CIDB Construction Registers Service 1a. Introduction: Register of contractors Register of projects When do registers apply. What is the Construction Registers Service?. The Construction Registers Service is made up of the: National Register of Contractors National Register of Projects.
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CIDB Construction Registers Service
The CIDB Act tasks the Board to:
Register of contractors is to be applied in all public sector construction works contracts which exceed R30 000 including VAT
Design of the Register of Contractors
Register those that have the potential (capability) to undertake a contract of a given size, based on track records
NB cannot register currentresource capacity of a contractor as it depends on the number of contracts that are being performed simultaneously
Don’t register contractors who are under restrictions from doing business with the public sector eg. name appears on the register of tender defaulters, no tax clearance certificates
Contractor grading designation e.g. 5 CE
Type of work
The single number represents a contractor’s capability to undertake a
contract in a particular class of construction works with a specified tender value range.
Two letters depict the class of construction works in which a contractor is registered.
Tender Value Ranges
Classes of construction works
CE = civil engineering
EE = electrical engineering
GB = General building
ME = Mechanical Engineering
Specialist works (SA to SP)
SA Alarms, security and access control systems
SB Asphalt works (supply and lay)
SC Building excavations, shaft sinking & lateral earth support
SD Corrosion protection (cathodic, anodic and electrolytic)
SE Demolition and blasting
SF Fire prevention and protection systems
SG Glazing, curtain walls and shop fronts
SH Landscaping, irrigation and horticultural works
SI Lifts, escalators and travellators
SJ Piling and specialized foundations for buildings &structures
SK Road markings and signage
SL Structural steelwork fabrication and erection
SM Timber buildings and structures
SN Waterproofing using specialist systems.
SO Water supply and drainage for buildings (wet services)
SP Building of Homes in terms of NHBRC scheme
Employable capital = (NAV x r) + s
NAV is the nett asset value (sum of the contractor’s assets less the sum of the contractor’s liabilities) for the two years immediately preceding an application contained in the summarised financial statements certified by an auditor, or in the case of a close corporation, the accounting officer;
“r” is the bank rating factor (A & B = 3, C = 2, D to H = 1)
“s” is the total value of financial sponsorship (any financial support from another party that contributes to the value of the applicant’s employable capital) that is acceptable to the CIDB.
Values in Regulations
Largest contract over last five years
Criteria applied to each class of works applied for
Contractors who are registered with the NHBRC as home builders are exempt from registration provided that they only undertake the construction of homes
Labour Only Contractors who undertake substantially labour only contracts are exempt
NB Contractors who work only for the private sector are not required to registered
Note:TRACK RECORD – Grade 1 Contractors in who have executed a contract in excess of R10 000 are registered as having a “track record” (TR)
The regulations permit the Board torelaxany of the criteria contained in the regulations in the transitional period up to 15 November 2007.
The Board has published a number of relaxations in the manner in which a contractor is assessed and has significantly reduced the values published in the regulations for annual average turnover, highest value of contract completed and employable capital associated with all designations.
Values in Relaxations
Joint ventures (transitional arrangements)
An employer must, within 21 working days from the date on which a contractor’s offer to perform a construction works contract is accepted in writing by the employer, apply on the approved form to the Board for the registration of every project, consisting of a single construction works contract, of which the contract value exceeds a value determined by the Minister by notice in the Gazette.
Public sector above R 200 000
Private sector above R 3,0 million
(NHBRC homes exempt)
Implementation dates for the Registers
Implementation dates for the register of projects for contracts above R200 000 (public sector)