construction registers > register of contractors

Who must register?
The grading system
Potentially emerging status
How your grade is reflected
Benefits of the Register of Contractors
Registration fees
Application for Contractor Registration Grade 1
Form CRS F006: Application for Contractor Registration

The Register of Contractors is established by the Construction Industry Development Board (cidb) in terms of the CIDB Act 38 of 2000. The Act makes it mandatory for pubic sector clients to apply this register when advertising and evaluating tenders and quotations. The Act is given effect by the Construction Industry Development Regulations of 9 June 2004 as amended.

Who must register?

Any enterprise that tenders or enters into a contract for construction works with the public sector must be registered. Joint ventures established on a contract specific basis do not have to register, provided that each partner of the joint venture is separately registered.

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The grading system

The Register of Contractors grades all contractors according to their capability to perform construction projects. A contractor grading designation is determined by assessing both its financial and works capabilities. This is based on the contractor’s past performance

Financial capability is evaluated in terms of the contractor’s Annual Average Turnover during the past 2 years, the largest works contract the contractor has performed in the past 5 years, and the value of the employable capital that a contractor is able to secure in order to perform a construction works contract

Employable capital is determined by assessing the contractor’s net asset value, their bank rating and any financial sponsorships that they may have secured. Nett Asset Value is equal to the contractor’s net assets minus liabilities.

Works capability is evaluated in terms of the largest contract the contractor has performed in the class of works applied for, as well as compliance with statutory requirements (e.g. registration with the Electrical Contractors’ Board of SA). The contractor must also have the required number of professionals in their employ for the grade applied for. These can be either full-time employees or full-time equivalent

What grade should you apply for?
There are 9 grading levels. These show the size of contracts a contractor is capable of doing. This is based on financial and works criteria. The financial criteria comprises: average annual turnover, track record and employable capital. Works capability assesses a contractor’s track record and the number of qualified personnel in certain specialist categories (e.g electrical)

What class of works should you apply for?
You should apply for the class of works you are capable of doing. For example, if you are doing general building you should apply for general building and not civil engineering or specialist works.

You may register for more than one grade and class of works.

Potentially emerging status

In addition to the grade applied for, the contractor can also apply for recognition as a potentially emerging contractor. Potentially Emerging status indicates that the contractor has significant development potential, but has impediments that must be overcome. Potentially Emerging status also reflects the black majority ownership of the enterprise.

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How your grade is reflected:

The contractor grading consists of a combination of alphanumeric characters that represents the capability of the contractor in a particular class of works. Eg: 5GB represents a contractor that is capable of performing a contract to the value of R5m in a General Building class of works.

Tender value range refers to the contract value range a contractor is considered capable of executing. It is designated on a scale of 1 to 9 for a particular class of construction works. A contractor with a tender value range of 1 is considered capable of executing contracts up to R 200 000 in value. A contractor with a tender value range of 9 is considered capable of executing construction contracts of more than R 100 000 000 in value.

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Benefits of the Register of Contractors:

• Enables effective targeting of contractors for development
• Provides information about the size, distribution and capability of contractors
• Facilitates sustainable empowerment
• Establishes the foundation for implementation of a National Contractor Development Programme
• Provides a risk management tool for contractors and clients
• Helps contractors to build track record

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Registration fees:

Contractor registration fees consist of a once-off Admin fee for each class of works that a contractor wishes to register in and an Annual fee which is due for the highest tender value range in which the contractor is registered

• Admin Fee payable once off for each class of works applied for
• Annual Fee payable each year based on the highest grade that the contractor is registered in any class of works.

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