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
Note: The exact tender value ranges are periodically adjusted by the Minister of Public Works in line with inflation
You can see your grading designation with the CIBD Grading Designation Calculator.
You can also start your registration for your CIBD Grading Here.
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
