Activating the Registers
within
Construction Procurement
1b
development through partnership
Construction Industry Development Board
A generic procurement process
Activity 1: Establish what is to be procured
Activity 2: Decide on procurement strategies
Activity 3: Solicit tender offers
Activity 4: Evaluate tender offers
Activity 5: Award contract
Activity 6: Administer contracts
and confirm compliance
development through partnership
Construction Industry Development Board
Registers & Procurement Interactions
1. Determine approximate
contractors grading
requirements e.g 5 GB
1. Establish
what is
to be
procured
2. Determine
Procurement
strategy
2. Advertise using
iTender, indicating
approximate
contractor grading
requirements
3. Validate CIDB Registration
Reg Con
3. Solicit
tender
offers
3.a Tender
Offers by
contractors
4. Validate Contractor Grade
4. Tender
Evaluation
&
Contractor
selection
5. Award
contract
5. Register Award
Reg Proj
6. Manage
contractor
6. Register
Completion
(optional)
development through partnership
Construction Industry Development Board
A generic procurement process
Activity 1: Establish what is to be procured
Activity 2: Decide on procurement strategies
Activity 3: Solicit tender offers
Activity 4: Evaluate tender offers
Assess
market
capacity
& BEE
opportunit
ies using
RoC
Apply
register of
contractors
Activity 5: Award contract
Activity 6: Administer contracts
and confirm compliance
Register of
projects
development through partnership
Construction Industry Development Board
Development of registered contractors /
Broad based black economic empowerment
Assess market capacity & BEE
opportunities using RoC
The information stored in the registers
•
enables gaps in contracting capacity to be
identified
•
provides market intelligence; and
•
facilitates the appropriate targeting and
integration of development initiatives
development through partnership
Construction Industry Development Board
Development of registered contractors
Employers should provide registered contractors with work
opportunities so that they can be sustainable & improve
their contractor grading designation by:
1 providing packages of projects to provide continuity;
2 implementing targeted development programmes to
support potentially emerging contractors;
3 offering preferences to contractors who undertake
to enter into joint ventures with or subcontract
portions of the works to such contractors; and
4 requiring a prime contractor to subcontract defined
portions of the works to such contractors
5 Provide term contracts e.g. for maintenance
Can also provide a preference for a particular contractor
grading designation
development through partnership
Construction Industry Development Board
Prepare
procurement
documents
1 Identify preferably one, but not more
than two, class(es) of construction works
that best describes the works to be
performed.
CE = civil engineering
EE = electrical engineering
GB = General building
ME = Mechanical Engineering
Specialist works
eg concrete fencing may be CE or GB
2 Estimate the tender value including value
added tax
say R 4,5 million
development through partnership
Construction Industry Development Board
Prepare
procurement
documents
3 Determine the approximate contractor
grading designation based on the selected
class(es) of construction works and
estimated tender value
Class of
construction works
5
C
E
Tender value range
Alternatively 5GB
5CE/GB
Tender Value
Range
designation
Tender value including
VAT not to exceed:
1
R 100 000
2
R 300 000
3
R 1 000 000
4
R 3 000 000
5
R 5 000 000
6
R 10 000 000
7
R 30 000 000
8
R 100 000 0009
9
No limit
Not permitted
Construction Industry Development Board
4,5 m
development through partnership
Consideration:
Estimating requirements for contractor grading
designations where value is close to limit of tender
value range
Estimated value
+20% or less
Upper limit of tender
value range limit
Adopt lower contractor grading designation
(no prejudice)
Example: Estimate = R5,3 million ≤ 1,2 x R5,0 = R6,0
Use designation 5 (R3,0 to R5,0)
development through partnership
Construction Industry Development Board
Consideration:
Grading designations for construction works taking place
over an agreed number of years
Base estimated tender value on annual value where work:
•
•
•
is on an “as and when required” basis eg pipelines;
of a routine nature e.g. road maintenance; or
grouped into identifiable and similar components
where commencement of the next component is
dependent on the completion of the previous one eg the
building of a limited number of class room blocks where
a block is substantially complete before embarking on
the construction of a subsequent block
development through partnership
Construction Industry Development Board
Invite contractors
to submit tender
offers
4 Notify tenderers of contractor
grading designation requirements in
invitations to tender
Notice and Invitation to Tender
or
It is estimated that tenderers should have a
CIDB contractor grading of 5CE or 5GB higher.
It is estimated that tenderers should have a
CIDB contractor grading of 5CE or 5GB or
higher. 4CE or 4GB potentially emerging
enterprises who satisfy criteria stated in the
Tender Data may submit tender offers.
(Wording for calls for expressions of interest also
available)
CIDB Standard for Uniformity in Construction
Procurement Construction Industry Development Board
development through partnership
Prepare
5 State requirements for contractor
procurement
grading designation in tender data in
documents
the form of eligibility criteria
Tender data
Only those tenderers who are registered with the
CIDB, or are capable of being so prior to the evaluation
of submissions, in a contractor grading designation
equal to or higher than a contractor grading
designation determined in accordance with the sum
tendered, or a value determined in accordance with
Regulation 25 (1B) or 25(7A) of the Construction
Industry Development Regulations, for a CE or GB
class of construction work, are eligible to have their
tenders evaluated.
Joint ventures are eligible to submit tenders provided
that…..
(Wording for PE potentially emerging contractors also
available in Standard for Uniformity)
development through partnership
Construction Industry Development Board
Determine
whether or not
tender offers
are responsive
4
5
6
6 Look up each tenderer’s contractor
grading designation on the register.
Evaluate only those tenderers who have
not tendered above their tender value
range, except where the sum tendered
R 3 000 000
is just above the limit of their range.
R 5 000 000
R 10 000 000
Example:
Tenderer cgd
A
5
B
6
C
6
D
5
E
4
tendered amount
R 5,6 million
R 6,5 million
R 7,0 million
R 8,0 million
R 6,2 million
Declare as nonresponsive
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Construction Industry Development Board
“Capable of being so registered”
An employer may evaluate a tender received from an
unregistered tenderer, only if such a tenderer satisfies all
the requirements for registration in a particular grade.
Note:
Evaluation commences with the reduction of tender offers
to a comparative basis
The onus is on the employer to be satisfied that the
contractor is capable of being registered.
Tip – get a copy of contractor’s CIDB application to evaluate
whether the contractor is likely to meet the requirements
for registration in the required category.
development through partnership
Construction Industry Development Board
Determine
whether or not
tender offers
are responsive
7
Declare as non-responsive all
tenders received from:
a) registered contractors who tender
above their designated tender value
range, except where the margin by
which the tender value range is
exceeded is reasonable; or
b) unregistered contractors who are not
considered as being capable of being
registered in the required contractor
grading designation prior to the
evaluation of tenders.
development through partnership
Construction Industry Development Board
Determine
whether or not
tender offers
are responsive
8 Decide in the case of a tenderer who
tenders above his tender value range
if:
Example:
Tenderer cgd
A
5
B
6
C
6
i) the amount by which the tendered
sum exceeds the tender value range
is reasonable;
ii) the award of a contract to such a
contractor does not impose any undue
risk.
Employer can award
tendered amount contract to tenderer
R 5,6 million
A if satisfied that
R 6,5 million
tenderer has
sufficient capability
R 7,0 million
and capacity
development through partnership
Construction Industry Development Board
Determine
whether or not
a contract can
be awarded to
a responsive
tenderer
9 Determine if there are any reasons for
not awarding a contract






may be subject to restrictions
must have the capability and
capacity to perform the contract.
must have legal capacity to enter into
the contract.
must be solvent
must satisfy all legal requirements.
may be disqualified due to conflicts
of interest.
development through partnership
Construction Industry Development Board
Perform a
risk
analysis.
10Ascertain if any of the following, as relevant,
presents an unacceptable commercial risk :
a)
b)
c)
d)
unduly high or low tendered
rates or amounts in the tender offer;
contract data provided by the tenderer; or
the content of tender returnables which are
to be included in the contract.
development through partnership
Construction Industry Development Board
Confirm
recommendation
contained in the
tender evaluation
report
11
Confirm that tenderer is on
the register and is in
possession of required
contractor grading
designation
development through partnership
Construction Industry Development Board
Formally accept
tender offer
Register contract award with 21 working
days of acceptance of offer, indicating if
the regulations relating to the awarding of
a contract outside of a contractors cgd
were applied
Capture contract completion
/ termination data
Submit report within one month of:
•issue of practical completion
certificate;
•making last (final) payment to
contractor in terms of the contract;
•canceling or terminating contract; or
•renewing a contract.
development through partnership
Construction Industry Development Board
Register of Projects (deemed to satisfy)
1 Advertise tenders on
i-Tender@cidb
Notify
contractors
2 Award contract or 3 Cancel tender
cidb website
4. Cancellation of contract
development through partnership
Construction Industry Development Board
How to get started?
Register Employer and
Users
Form P1
Obtain
employer
number
development through partnership
Construction Industry Development Board
What needs to happen on and after d-day?
•
Register of contractors
•
Register of projects
development through partnership
Construction Industry Development Board
Register of contractors
The contractor grading designation must be
applied in all tender advertisements for
engineering and construction works and in the
procurement documents relating to such works.
Register of projects
The register of projects must be applied to all
construction contracts awarded
development through partnership
Construction Industry Development Board
Using the CIDB website / i-tender service
•
•
•
•
•
•
•
Confirm the grading / registration /
application status of contractors
Obtain information on the numbers and
profiles of registered contractors
Establish the contractor grading designation of
JVs
Advertise tenders / expressions of interest
Cancel tenders
Report on the award and cancellation of
contracts
View advertisements / awards / cancellations
development through partnership
Construction Industry Development Board
Verification process
development through partnership
Construction Industry Development Board
Contact persons
Please contact the following people at the CIDB for:
Procurement related issues
Nomaphoso Mkhonza
Lerato Molefe
Contractor Registration issues:
Wisane Maluleke
Busang Tjale
Tel: 0860 10 33 53
development through partnership
Construction Industry Development Board
Thank You
development through partnership
Construction Industry Development Board