CIDB grades explained

The Construction Industry Development Board (CIDB) grades contractors from 1 to 9 based on financial capacity and track record. Your grade caps what public-sector construction contracts you may bid on.

The nine grades

Each CIDB grade corresponds to a maximum contract value. Registration is free for grade 1; grades 2 and above require an application fee and audited financials.

GradeMax tender valueTypical profile
1R200,000Startup / owner-operator
2R650,000Small contractor
3R2,000,000Established small contractor
4R4,000,000Medium contractor
5R6,500,000Medium contractor
6R13,000,000Large contractor
7R40,000,000Large contractor
8R130,000,000National player
9UnlimitedMajor contractor

Thresholds are periodically updated by the CIDB; verify against cidb.org.za before pricing a near-threshold bid.

Classes of works

You register per class — a grade 6 civil engineering contractor is not automatically qualified for grade 6 electrical work. The main classes:

  • GB — General Building
  • CE — Civil Engineering
  • EB — Electrical Engineering (Building)
  • EP — Electrical Engineering (Projects)
  • ME — Mechanical Engineering
  • SE — Specialist Electrical
  • SI — Specialist Installation
  • Plus sub-classes for specialist works (SF, SG, SH, SN, etc.)

How your grade is calculated

Your grade is the lowest of three qualifying factors:

  1. Best annual turnover in the past two financial years.
  2. Available capital — liquid assets minus liabilities, from your most recent audited statement.
  3. Largest completed contract value in the past five years in the same class of works.

Example: a contractor with R4m turnover, R1.5m available capital, and a R3.5m largest contract qualifies for grade 3 (the lowest factor).

Joint ventures

A formally-registered JV can combine the capacities of its partners. Register the JV with the CIDB before the tender closes — a JV certificate is required on submission. Each partner retains their individual CIDB grade; the JV itself gets a JV-specific grade valid for the duration of the tender.

Renewal

Registrations are valid for three years. You must submit annual updates confirming financial and works capability even during that window — failure leads to suspension.

Common mistake: Bidding on a project above your CIDB grade. Even R1 over the threshold is an automatic disqualification with no right of appeal.

Grade formula

Your grade = minimum(turnover factor, capital factor, largest contract factor). Upgrade the lowest factor to upgrade the grade.

Potentially Emerging

"PE" contractors can bid one grade above their registration on tenders reserved for Potentially Emerging bidders. Treasury and the CIDB publish the PE list.

Check your grade

Use the CIDB calculator to estimate the grade your financials qualify for.

Open calculator

Related guides

FAQ

Frequently asked questions

The Construction Industry Development Board (CIDB) grades contractors from 1 to 9 based on financial capacity and track record. The grade caps the value of public-sector construction contracts a contractor may bid on. Grade 1 is capped at R200,000; Grade 9 has no upper limit.

By the lowest of three factors: best annual turnover in the last two years, available capital, and the value of the largest single contract completed in the last five years. The lowest of these three sets your grade.

They identify the class of works: GB (General Building), CE (Civil Engineering), EB (Electrical Building), EP (Electrical Projects), ME (Mechanical Engineering), SE (Specialist Electrical), SI (Specialist Installation), and further specialist classes. You register per class.

Grade 1 registration is typically immediate. Grades 2 and above take up to 21 business days once a complete application and audited financials are submitted. Re-grading to a higher class can take longer.

Not alone. Bidding above your CIDB grade is an automatic disqualification. A joint venture can combine the partners' capacities to meet a higher grade if the JV is registered with CIDB.

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