The CIDB rating is a vital system in the South African construction industry.
Essentially, a CIDB rating is a contractor’s “license to trade with government” and determines their eligibility to bid on and execute public sector construction projects.
What is a CIDB Rating?
The rating is a classification that certifies a contractor’s capability to undertake projects of a certain value and in a specific class of works
Format: A CIDB grade is represented by one digit and two letters, for example, 4GB
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- The Digit (1 to 9):Represents the contractor’s Grading Level.This determines the maximum value(the Tender Value Limit) of the construction project they are permitted to execute. Grade 1 is the lowest, and Grade 9 is the highest (no limit).
- The Two Letters: Represents the Class of Works or type of construction the contractor is experienced in (e.g. General Building or Civil Engineering).
Example Of Common Classes of Work
Example Of Common Classes of Work
How Does the CIDB Rating System Work?
The grading system assesses a contractor’s capability based on two primary determinants: Financial Capability and Works Capability (Track Record)
Financial Capability
This assesses the contractor’s financial capacity to start and sustain a new project.
The CIDB looks at:
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- Best Annual Turnover: The best turnover achieved in the immediate past two financial years.
- Available Capital: Funds presumed available to the contractor (based on their financial statements) to service a project.
Works Capability / Track Record
This assesses the contractor’s proven experience in the specified class of works.
The CIDB looks at:
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- Largest Completed Contract: The largest construction contract the contractor has successfully completed in the relevant class of works during the five years immediately preceding the application.
This completed project must be registered on the Register of Projects (RoPs).
- Largest Completed Contract: The largest construction contract the contractor has successfully completed in the relevant class of works during the five years immediately preceding the application.
Grading Levels and Tender Value Limits
The maximum tender value a public sector client may award a contractor is strictly tied to their grading level.
FTR = Financial & Track Record
NQC= No Qualifying Criteria
Tender value ranges are the upper limit of each range, inclusive of VAT, and came into effect on 07 October 2019 in terms of the Construction Industry Development Regulations, 2004 (as amended). They are adjusted from time to time by notice in the Government Gazette.
Note: The exact tender value ranges are periodically adjusted by the Minister of Public Works in line with inflation
Edit: Updated Values 20/08/2026
You can see your grading designation with the CIBD Grading Designation Calculator.
You can also start your registration for your CIBD Grading Here.
What Do You Need to Qualify for Each CIDB Grade?
The CIDB looks at three things, and each one is measured against the tender value limit of the grade you want. Your best turnover in the last two years. The biggest single contract you have finished in the last five years. And how much capital you have available. Grade 1 asks for none of it.
Two of the three are about money, turnover and capital. The third is proof you have done work that size before.
None of these are fixed rand amounts. Each one is a percentage of the grade’s tender value limit, so when the limits went up in 2019, these went up with them. The percentages themselves never changed.
Turnover needs to be half the limit. Your largest contract needs to be just under a quarter of it, 22.5%. Available capital needs to be a tenth, and less than that at the bottom grades.
| Grade | Tender value limit | Best annual turnover (2 yr) | Largest contract (5 yr) | Available capital |
|---|---|---|---|---|
| 1 | R500,000 | None | None | None |
| 2 | R1,000,000 | None | None | R200,000 |
| 3 | R3,000,000 | R1,500,000 | R675,000 | R150,000 |
| 4 | R6,000,000 | R3,000,000 | R1,350,000 | R300,000 |
| 5 | R10,000,000 | R5,000,000 | R2,250,000 | R1,000,000 |
| 6 | R20,000,000 | R10,000,000 | R4,500,000 | R2,000,000 |
| 7 | R60,000,000 | R30,000,000 | R13,500,000 | R6,000,000 |
| 8 | R200,000,000 | R100,000,000 | R45,000,000 | R20,000,000 |
| 9 | No limit | R300,000,000 | R135,000,000 | R60,000,000 |
Grade 9 has no ceiling on what you can bid for, so the CIDB works its qualifying figures off a notional value instead.
Grades 1 and 2 ask for very little. Check those two directly with the CIDB.
These figures come from the CIDB’s Regulation Amendment Notification of 15 August 2019, which set the tender value limits everyone works with today. They took effect on 07 October 2019.
The 20% rule. If the estimated value of a job lands within 20% of the bottom of a tender value range, you get graded on the range below it. Put simply, a job that sneaks just over a threshold does not automatically push you up a grade.
Key Takeaways
Prerequisite for Public Tenders
A contractor must be registered on the CIDB Register of Contractors to be awarded public sector construction contracts (typically for tenders valued above a certain threshold, like R200,000).
Tender Qualification
A contractor cannot bid on a tender that has a value higher than the limit stipulated by their current CIDB grading level.
Upgrade Paths
Contractors start at lower grades and apply for an upgrade as they successfully complete larger projects and increase their financial capacity, moving up the ladder toward Grade 9