Grade 2 on the cidb Register of Contractors lets a contractor tender for public sector work valued at R1 000 000 or less. To qualify you need a completed contract of at least R130 000 in the class of works you apply for, finished in the five years before you apply, plus supporting track record documents and financial statements.
Unlike Grade 1, which has no qualifying criteria, Grades 2 to 9 are assessed on financial and track record criteria. Grade 2 has no minimum turnover or available capital requirement; those start at Grade 3.
Business Requirements at a Glance
- Tender value limit: R1 000 000 or less
- Works capability: a completed contract of at least R130 000, in the class of works applied for, within the last 5 years
- Financial capability: no best annual turnover or available capital requirement at Grade 2
- Fees: admin fee R450 and annual fee R250 (the cidb may review fees)
- Where to apply: a cidb Provincial Office, with supporting documents
- Processing time: up to 21 working days for Grade 2 to 9 applications
Registration and Legal Requirements
A grade carries a maximum tender value, and public sector clients may not award a contractor projects above it. The exception is emerging (PE) contractors, who may be awarded one level above their grade where the client has a development project in place. Details are on the cidb overview page.
For Grade 2, cidb looks at projects you completed in the last five years, in the field or class of works you are applying for. The largest of those contracts must be at least R130 000, and the maximum contract value Grade 2 is considered capable of is R1 000 000. See the cidb requirements for grading.
Registration is by class of works, so apply in the classes you actually work in.
Documents and Ownership Information Required
The cidb sets out the basic track record documents as follows, and it may ask for more:
- A copy of the project award from the client who awarded you the project
- A certificate of project completion
- A payment certificate
- Bank statements
Projects awarded from 1 April 2021 must be registered on the cidb Register of Projects before you can use them as track record.
Financial statements must be proper statements, not drafts, covering the 12 months before you apply. They must be compiled by an accounting officer registered with a recognised accounting body and in good standing; the cidb says not to use a tax practitioner. If the statements are unaudited, support them with bank statements or VAT returns. See the cidb tips on registration.
An application that is not supported by all relevant documents is treated as non-compliant. The cidb sends an SMS saying what is outstanding.
Tax, Licence and Compliance Requirements
You need a valid SARS Tax Compliance Status document. If it is out of date, the registration can be suspended, and it is also one of the documents required at renewal.
Health and safety on site, COIDA and Central Supplier Database registration are set by the client and other authorities rather than being part of the cidb grading criteria. Confirm what a specific tender requires in its tender documents.
Process, Deadlines and Ongoing Obligations
Apply for Grade 2 at a cidb Provincial Office with your supporting documents. The cidb’s maximum processing period is 21 working days. Contact details are on the cidb register of contractors page.
- Validity: a grade is valid for three years and expires on the anniversary of registration
- Annual update: pay the annual fee (R250 for Grade 2) every year in between. A grade not updated for two consecutive years is suspended
- Six years: new supporting documentation must prove you still meet the criteria
- More than one grade: you only pay the annual fee of your highest grade; the cidb sends reminders at least three months before it is due
Frequently Asked Questions
What are the cidb Grade 2 requirements?
A completed contract of at least R130 000 in your class of works within the last five years, with track record documents and financial statements. There is no turnover or capital minimum at Grade 2, and the tender limit is R1 000 000.
What are the cidb Grade 2 renewal requirements?
Renewal is every three years. Send your company registration documents, ID documents of all members, a valid SARS Tax Compliance Status document, your track record and financial statements to your nearest cidb provincial office, physically or by email. The cidb has relaxed the track record rule so that having no project won in the last five years carries no penalty, but the documentation is still required; check that this still applies when you renew. Between renewals, update your grade annually and pay the R250 annual fee. See the cidb tips on registration.
How much does Grade 2 registration cost?
The cidb lists an admin fee of R450 and an annual fee of R250 for Grade 2. The cidb may review fees, so check before you pay.
Do I need financial capability to register at Grade 2?
No minimum annual turnover or available capital applies at Grade 2; those start at Grade 3. You still need financial statements as part of your application.
How long does the application take?
The maximum period for processing Grade 2 to 9 applications is 21 working days.
Confirm everything with the Construction Industry Development Board. See business and compliance requirements and the company registration requirements you will need first.