Categories, Classifications and Ceiling



Categories

Starting in 1999, contractors are required to register for construction works in up to four categories.   The purpose of this is to encourage contractors to specialize in specific construction sectors.   Only contractors who are registered for a particular category of works will be eligible to bid for works of that type.   A contractor can be registered in more than one category.    The following table lists the seven categories of work:

W1

Roads and Bridges 

W2

Traditional Bhutanese Painting/Finishing Works

W3

Buildings, Irrigation, Drainage and Flood Control, Water Supply and Sewerage

W4

Power and Telecommunication Works

Classifications

A contractor will be classified according to his/her capabilities for each category of work.    There are four classifications ranging from "A" (Large) to "D" (Petty).    A contractor's classification will determine the size of construction works that he/she is eligible to undertake, as well as the maximum number of contracts that can be awarded at a time.    The following table lists the four classification available for each category of work:


 

A (Large)

B (Medium)

C (Small)

D (Petty)

Eligible bid amount Nu  15 Million Nu. 7.5 - 15  Million Nu. 1.5 - 7.5 Million Up to
 Nu. 1.5 Million
Maximum number of contracts at a time 5 contracts 3 contracts 3 contracts 1 contract
Maximum value of contracts at a time

No ceiling

Nu. 30
 Million
Nu. 15 Million Nu. 1.5
Million


Classification is based upon the contractor's financial capacity, human resources, equipment and facilities, and track record.    For upgrading of classification and/or to request other categories of work, the contractor may submit an additional Contractor Registration Form (CTR01). 

Because a contractor's classification is partly determined by their experience in a sector, it is anticipated that contractors will maintain different classifications for different categories of work.    For example, a contractor may be eligible as a "B" contractor for category W1 (Roads and Bridges), yet only be eligible as a "C" contractor for category W3 (Buildings and Airports).     In this case, the contractor will maintain 2 classifications. 


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