Post on 22-Mar-2018
development through partnershipcidb
CIDB Regulation Amendments
National Stakeholder Forum
22 Nov 2012
development through partnershipcidb
1 R 200,0002 R 650,0003 R 2,000,0004 R 4,000,0005 R 6,500,0006 R 13,000,0007 R 40,000,0008 R 130,000,0009 > R 130,000,000
Tender Value Range Less than or equal to
Overview of the CRS – Tender Value Ranges
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Registration Criteria and Requirements
• Registration Criteria are based on Financial and Works Capabilities– Financial
• Best Annual Turnover over two preceding years• Available Capital
– Works Capability• Largest project completed in the preceding five years • Registered Professionals employed (applicable at the
higher grades)
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Registered Professionals – Current Requirement• The current requirement essentially involves contractors
supplying names to cidb for the purposes of cidb compliance• Not a practical requirement. Registration is valid for three years.
Access to projects is variable and contractors cannot keep professionals on their books
• Remove the requirement for contractors to have registered professionals in their employ at cidb registration stage
• Clients are required to determine the resource requirements on a ‘project by project’ basis based on the scope of work, the complexity and the size of the project
• cidb will issue a practice note to clients to coincide with the implementation of this amendment
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Reduction in Turnover values
Grade Upper limit of tender value range (Current Values)Best Annual Turnover
(Reduced Values)Best Annual Turnover
(50% of Upper Limit of tender value range)
2 650,000 - -
3 2,000,000 R 1 000 000 1,000,000
4 4,000,000 R 2 000 000 2,000,000
5 6,500,000 R 3 250 000 3,250,000
6 13,000,000 R 7 800 000 6,500,000
7 40,000,000 R 24 000 000 20,000,000
8 130,000,000 R 90 000 000 65,000,000
9 No Limit R 270 000 000 200,000,000
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Reduction in Track Record values
Grade Upper limit of tender value range
(Current Values)Largest Contract
(25 & of Upper Limit of tender value range)
(Reduced Values)Largest Contract
(22.5% of Upper Limit of tender value range. 20 % for Grade 2)
2 650,000 R 150 000 R 130,000
3 2,000,000 R 500 000 R 450,000
4 4,000,000 R 1000 000 R 900,000
5 6,500,000 R 1 600 000 R 1,500,000
6 13,000,000 R 3 250 000 R 3,000,000
7 40,000,000 R 10 000 000 R 9,000,000
8 130,000,000 R 32 500 000 R 30,000,000
9 No Limit R 100 000 000 R 90,000,000
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Tender Value Limit Adjustments
• The draft regulations make provision for the Minister, in consultation with the CIDB, to publish tender value limit adjustments (at lease once in three years but may publish annually) with proportional registration criteria adjustments. This is to be done on a set date and based on the principles of ‘inflation and market conditions’.
1 R 200,0002 R 650,0003 R 2,000,0004 R 4,000,0005 R 6,500,0006 R 13,000,0007 R 40,000,0008 R 130,000,0009 > R 130,000,000
Tender Value Range Less than or equal to
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Regulation Amendments
• The Method B registration option essentially provides a mechanism for enterprises with large financial capacity to obtain high grades without having any track record
• Contractors are winning tenders but do not have any experience in the Class of Works under consideration
• The Method B registration option is to be removed • Regulations to extend the current provisions for the transfer of
track record to cater for legitimate cases where companies need to get registered but cannot meet the required criteria in the name of the enterprise
• The grading calculation for Joint Ventures improved• The lead partner required to be registered in not more than
one grade below the advertised grade• Clarification in terms of the Fencing Class of Work
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Grade Upper limit, (R) of tender value range
Best Annual Turnover (R)(2 year)
Largest contract(R)(5 year)
Available capital (R)
1 200,000 - - -2 650,000 - 20 % of tender
value limit-
3 2,000,000 50% of tender value limit
22.5% of tender value limit
5% of tender value limit
4 4,000,000 50% of tender value limit
22.5 % of tender value limit
5% of tender value limit
5 6,500,000 50% of tender value limit
22.5 % of tender value limit
10% of tender value limit
6 13,000,000 50% of tender value limit
22.5 % of tender value limit
10% of tender value limit
7 40,000,000 50% of tender value limit
22.5 % of tender value limit
10% of tender value limit
8 130,000,000 50% of tender value limit
22.5 % of tender value limit
10% of tender value limit
9 No Limit 50% of (3 * tender value limit of Grade 8)
22.5 % of (3 * tender value limit of Grade 8)
10 % of (3 * tender value limit of Grade 8)
Consolidated Requirements
Note: For grading designation “3” or “4”, the applicant must meet the requirement as indicated in relation to that designation in column 4 of table 1 and at least one of the requirements so indicated in that table in column 3 or 5
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Public Comments
• Comments to be sent to:– Gugu Mgwebi
• Email: gugu.mgwebi@dpw.gov.za• By hand: Central Government Building, Corner
Vermeulen and Bosman, Pretoria 0001• Post: Department of Public Works. Private Bag
x62 Pretoria, 0001
• Comments close on: – 05 December 2012
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Process for F inalisation
• Public Comments Close – 5 December 2012• Review comments and development of final
Regulations – 14 Jan 2013• CIDB Board Approval – 29 Jan 2013
– (subject to schedule for Board meetings)• DPW Policy Unit Approval – 28 Feb 2013• Minister Approval and gazette of final
Regulations – 29 Mar 2013