Content Synopsis - CIDB

1 Inform Practice Note #3. august 2006 . (Version 2 - February 2008). Applying the Register of Contractors in Construction Works Contracts cidb's Inform Practice notes provide guidance and clarity in achieving client objectives in construction procurement and delivery. Practice notes inform clients and practitioners on how to embrace best practice and how to deal with issues that may arise. They are aligned with, but do not replace regulation. Content Synopsis 1 Introduction 2 Section 16(3) of the Construction Industry Development Board Act, 2 Registration of contractors 2 2000 requires that the Minister of Public Works prescribe the manner Who must register 2 in which public sector construction contracts may be invited, awarded Categories of registration 3 and managed within the framework of the registers and within Contractor grading designations 3 the framework of the policy on procurement.

2 Part IV (Invitation, Joint ventures 4 Award and Management of Construction Works Contracts) of the 3 Applying the register of contractors 4 Construction Industry Development Regulations, read in conjunction General requirements 4 with the cidb Standard for Uniformity in Construction Procurement, Activating the Register through establishes requirements for the application of the register of procurement documents 5 contractors in construction works contracts. Interpreting reasonable 6. Interpreting capable of being so This practice note identifies which contractors need to register, registered 7 describes the categories of registration and the cidb contractor Procedure in relation to the grading designations and establishes a step by step procedure to invitation, evaluation and award satisfy the requirements of the Regulations (as amended up to 23.)

3 Of quotations 8 November 2007) in relation to quotations, tenders and expressions Procedure in relation to the invitation, of interest. evaluation and award of tenders 9. Procedure in relation to calls for expressions of interest 11. Practice Note #3 Version 02 February 2008 1. 1. Introduction The Construction Industry Development Board Act of 2000 (Act 38. of 2000) prohibits the award of an engineering and construction works contract in the public sector to an unregistered contractor and requires the Board to establish a national register of contractors, which: Categorises contractors in a manner that facilitates public sector procurement;. Indicates the size and distribution of contractors operating within the construction industry;. Indicates the volume, nature and performance of contractors and target groups.

4 Promotes contractor development; and Is accessible to the private sector to facilitate private sector procurement. The register of contractors is intended to: Support risk management in the public tendering process;. Reduce the administrative burden associated with the award of contracts;. Reduce tendering costs to both employers and contractors;. Phase II of the Registers Enable effective access by the emerging sector to work and Section 21 of the cidb Act requires that development opportunities;. the Board, within a reasonable period Assess the performance of contractors in the execution of after the establishment of the register of contracts and thus provide a performance record for contractors;. contractors, to establish a best practice Regulate contractor behaviour and promote minimum standards contractor recognition scheme which: and best practice.

5 A) Enables organs of state to manage risk Store and provide data on the size and distribution of on complex contracting strategies;. contractors operating within the industry and the volume, and nature, performance and development of contractors and target b) Promotes contractor development in groups; and relation to best practice standards and Enable access by the private sector and thus also facilitate private guidelines published by the Board. sector procurement and business to business linkages. (This scheme is still under development). The second phase of the registers will introduce a best practice contractor recognition scheme. The cidb is required in terms of the Construction Industry Development 2. Registration of contractors Regulations to register a contractor within 21 working days of receipt of Who must register an application that is complete in all respects.

6 Only prime or main contractors must be registered. Subcontractors need not be registered. Labour only contractors and those The cidb can only commence with the contractors who are provided with the bulk of the materials required assessment of an application when it is in for engineering and construction works by the employer or an agent possession of all the information required of the employer, need not register. for grading. As a result, those applicants whose submissions are incomplete will Once-off joint ventures do not have to register, provided that each experience delays in the processing of partner of the joint venture is separately registered. Contractors their applications. who work as Home Builders in terms of the Housing Consumer Practice Note #3 Version 02 February 2008 2. Protection Measures Act of 1999 are deemed to be registered and only need to register on the cidb Register of Contractors should they wish to contract with the public sector on construction work other than home building.

7 Categories of registration The category of registration of a contractor on the cidb Register of Contractors is determined by the following: Describing contractor grading 1) The contractor grading designation;. designations 2) The status of a contractor as a potentially emerging enterprise;. 3) From a date determined by the Minister in the Gazette, recognition Single number Two letters depicting representing a registered the class of construction status in terms of a best practice recognition scheme; and contractor's capability works (general building, to undertake a contract civil engineering, electrical 4) From a date determined by the Minister in the Gazette, the in a particular class of engineering, mechanical status of recognition of the progress of a contractor in terms of construction works within engineering or specialist a specified tender value category) in which the any black economic empowerment programme.

8 Range. contractor is registered. Currently the register only records items 1 and 2 above contractor grading designations and emerging enterprise status. 5 CE PE. The cidb Act defines emerging enterprise as an enterprise Designates potentially emerging status, if applicable which is owned (at least 50%), managed and controlled by previously disadvantaged persons and which is overcoming Tender Range of Tender Values Value Range business impediments arising from the legacy of apartheid.. Greater than Less than or equal to designation 1 R0 R200 000. 2 R200 000 R500 000 Contractor grading designations 3 R500 000 R1 500 000. 4 R1 500 000 R3 000 000. 5 R3 000 000 R5 000 000. 6 R5 000 000 R10 000 000. A contractor's grading comprises three characters which reflect a 7 R10 000 000 R30 000 000 registered contractor's capability to perform a contract of a given 8 R30 000 000 R100 000 000.

9 9 R100 000 000 No limit tender value range (first character) in a class of construction works (second and third character). Classes of construction works Description Designation Definition Civil engineering CE Construction works that are primarily concerned with the materials such as steel, concrete, earth and rock and their works application in the construction, operation, maintenance and management of hydraulic, structural, environmental and systems aspects of infrastructure works and services. Electrical EE Construction works that are primarily concerned with installation, testing, operation and maintenance of equipment, engineering works plant and systems within the electrical, electronic, communication and electrical systems areas. General building GB Construction works that: works a) a re primarily concerned with the provision of permanent shelter for its occupants or contents; or b) c annot be categorised in terms of the definitions provided for civil engineering works, electrical engineering works, mechanical engineering works, or specialist works.

10 Mechanical ME Construction works that are primarily concerned with the installation, testing, operation and maintenance of machines, engineering works machine and thermodynamic processes and manufacturing, materials handling plants and systems. Specialist works SA Alarms, security and access control systems. SB Asphalt works (supply and lay). SC Building excavations, shaft sinking and 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 (installation, commissioning and maintenance). SJ Piling and specialised foundations for buildings and structures. SK Road markings and signage.