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

development through partnershipcidb

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)

development through partnershipcidb

development through partnershipcidb

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

development through partnershipcidb

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

development through partnershipcidb

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

development through partnershipcidb

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

development through partnershipcidb

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

development through partnershipcidb

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

development through partnershipcidb

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

development through partnershipcidb

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