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Wednesday, July 6, 2011

How CIDB Grading system works in South Africa

1. Your contractor grading designation is determined by your financial capability and your works capability.
2. Your financial capability relates to your financial history (turnover), the value of your completed contracts and the amount of working capital you can muster to sustain a contract, i.e. available capital. Available capital is determined from the liquid cash resources available to you, including bank balances, loans that may be leveraged and any financial sponsorships.
3. Your works capability is determined by the largest contract you have undertaken in your class of construction works, the number of professionals you employ, and your fulfillment of relevant statutory requirements
4. Your contractor grading designation will be used by government (national, provincial, municipal and state owned enterprises) to decide if your tender will be considered for a particular construction works contract. For example: if you are registered as a 5CE, you will be considered for public sector civil engineering works contracts of a value not exceeding R6.5 million. You may register for different classes of works. For example, you may be registered as a 5CE and as an 8ME. This means that you will also be considered for public sector mechanical engineering works contracts of a value not exceeding R130 million.
5. The main member of a Joint Venture must already have an active grading in the relevant category of works

Try the Grading Designation Calculator here: