It is mandatory for all local contractors to be registered with the Construction Industry Development Board Malaysia CIDB before undertaking and completing any construction work in Malaysia unless they are granted exemption.
GRADE, CATEGORY AND SPECIALIZATION
Scope of Registration
A contractor is registered according to:
d) Classification Status
it qualifies for.
Each contractor is registered within a grade according to the contractor’s capability to fulfil the criteria for such. The grade limits the contractor to participate in tenders or to carry out work for certain values.
Grade & Limit of Tender / Value of Work
G1 Not exceeding RM200,000.00
G2 Not exceeding RM500,000.00
G3 Not exceeding RM1 million
G4 Not exceeding RM3 million
G5 Not exceeding RM5 million
G6 Not exceeding RM10 million
G7 No limit
There are three (3) contractor registration categories:
a) Construction of Buildings B
b) Civil Engineering construction CE and
c) Mechanical and Electrical ME
Contractors can apply for the categories above, based on the work to be performed. The category registered, however, is based on the academic qualification and experience of the technical person.
Each specialization is registered under a category and grade in the Contractor Registration Certificate. Most new applicants are generally registered as B04, CE21 or M15, based on the technical person’s qualification.
B01 to B28
CE01 to CE43
M01 to M23 E01 to E35
For other specializations, registration is based on the work offer letter / proof of work completion /confirmation letter from the client awarding the project / Certificate of Competency in Management (SKP) conducted by CIDB for related specializations.
Specializations Involving Other Acts, Regulations, Competent Person
Applications for other specializations must fulfill the requirements for registration.
NEW APPLICATION BY PRIVATE LIMITED / LIMITED COMPANY (ROC)
A company incorporated in Malaysia and consists of seventy percent (70%) and above of local equity, with the exception of the value of foreign equity from ASEAN countries and also those under the Free Trade Agreement (FTA) allowed.
Registration with the Registrar of Companies
The company must fulfil the registration criteria and requirements.
Applicants must register his business operations with Companies Commission of Malaysia (CCM) in Malaysia (Company Registration). The business activities or operation of a company must be related to construction work and state as such in Company Registration (Memorandum & Articles of Association). Company information can be purchased online from the Companies Commission of Malaysia (CCM).
Applicants must have and maintain sufficient funds for the entire period of their registration.
Financial Capacity by Grade
The minimum capital (paid-up or accumulated/net capital worth) owned by the applicant for Grade G1 is RM5,000 / RM10,000 (for SPKK), G2 RM25,000, G3 RM50,000, G4 RM150,000, G5 RM250,000, G6 RM500,000, and G7 RM750,000.
Financial Feasibility Assessment
The applicant’s financial feasibility is assessed based on the company’s paid-up capital or net capital worth owned. Preference Shares and Authorized Capital are not considered.
Technical Person Qualification/Experience
A technical person is the company owner, director, or full-time employee. They must be a Malaysian citizen with a certificate / diploma / degree / Certificate of Competency in a construction-related field. the minimum qualification of the technical person for different grades.
For Grade G1, G2 and G3, the qualification of the technical person is a technical certificate (if any).
For Grade G4, the minimum qualification of the technical person is a diploma.
For Grade G5, the minimum qualification of the technical person is a diploma (minimum 5 years of experience) or a degree (minimum 1 year of experience).
For Grade G6, the minimum qualification of the 2 technical persons is a degree and a diploma (at least one with minimum 3 years of experience).
For Grade G7, the minimum technical person is two degree holders (at least one with 5 years of experience) or a degree holder and a diploma holder (both with minimum 5 years of experience).
The technical person’s degree / diploma / certificate must be related to the construction field and is recognized by the Malaysian Government / CIDB. The technical person declared must constantly remain in the company throughout the period of registration. Technical person must not be bound or employed full-time by any party other than the applicant’s company or firm. If there are any changes in the technical person, the grade and category of registration with CIDB will be affected.
1 APPLICANT INFORMATION
1.1 Printout of the latest company information from the Companies Commission of Malaysia (CCM) E-Info Services.
1.2 A copy of the applicant’s identity card (of one of the company owners)
1.3 A copy of the director’s technical certificate / academic certificates (if any)
2 FINANCIAL INFORMATION
2.1 Printout of the latest company information from the Companies Commission of Malaysia (CCM) E-Info Services.
2.2 For applications made by private limited companies having a company as a shareholder, the company’s latest annual returns. For applications made by limited companies, the company’s latest annual returns.
3 INFORMATION ON TECHNICAL PERSON
3.1 A copy of a qualification certificate that is related to construction and is recognized by government institutions;
- A degree recognized by the Malaysian government
- A diploma recognized by the Malaysian government
- A certificate of competency from a related agency, a technical certificate of Competency in Business Management
3.2 A copy of the technical person’s identity card
3.3 Proof of technical person’s employment
- A copy of the latest month’s EPF contribution statement, or the A form and the official EPF contribution payment receipt
- A copy of the latest month’s SOCSO contribution statement or salary slip for employees aged above 55
The Local Contractor Registration Certificate (PPK) is issued once the registration fee is paid. The certificate for new applicants is valid for 1 year.
The processing fee payable for new local contractor registration (Contractor Registration Certificate (PPK) / Government Work Procurement Certificate (SPKK)) is RM50.00 / application.
The registration fee payable for new registration of Local Contractor Registration Certificate (PPK) G1 is RM20.00 / year, G2 RM80.00 / year, G3 RM150.00 / year, G4 RM350.00 / year, G5 RM700.00 / year, G6, and G7 RM1,400.00 / year.
Application Processing Time
The processing time for the application is 10 working days.
If you have any enquiries or need clarification, please contact Bestar RW William.