CIDB grading requirements are determined principally by two factors: track record in completed construction works and available capital[1][2].
Registration with the Construction Industry Development Board (CIDB) assigns contractors a grade from 1 to 9, with Grade 1 requiring only basic documents (such as company registration and tax compliance) and no prior experience[6][8]. For grades 2 to 9, contractors must supply:
- Copies of project awards from clients
- Certificates of project completion
- Payment certificates
- Recent bank statements
- Latest annual financial statements
These must reflect projects completed in the specific class of works the contractor is applying for within the last five years[1][2][3].
Financial capability is assessed using financial statements from the past two years, considering available capital, assets, and equity—not just cash flow[1][3].
Every CIDB grade has a corresponding maximum contract value:
- Grade 1: up to R500,000
- Grade 2: up to R1,000,000
- Grade 3: up to R3,000,000
- Grade 4: up to R6,000,000
- Grade 5: up to R10,000,000
- Grade 6: up to R20,000,000
- Grade 7: up to R60,000,000
- Grade 8: up to R200,000,000
- Grade 9: No limit
Contractors can apply to upgrade their grade if their circumstances (track record/financial capacity) improve. Upgrades are treated as new applications and must include all required documents for the target grade[3].
Each grade is valid for three years, with annual updates required (except Grade 1)[6][2]. Contractors must renew every three years and resubmit evidence every six years to remain at their current grade[2][6].
For Small, Medium, and Micro Enterprises (SMMEs), having the right CIDB grade provides eligibility for higher-value projects and competitive advantages in public tenders[4]. Multiple CIDB grades can be held for different project categories, but fees apply for each[2].
References
- [1] Requirements For Grading – Contractors – cidb
- [2] CIDB Explained
- [3] Climbing the – grades Ladder – CIDB
- [4] A Guide to CIDB for SMME Contractors
- [6] Overview of the Register of Contractors
- [8] CIDB Grading Designations and Classes of Construction Works
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