Contractor Registration
Frequently Asked Questions
- Why do I need to register with the CDB?
- How do I start the process?
- What information do I require before I start?
- Which category & classification should I apply for?
- Can I apply for more than one category?
- Why do I need to specify my income, net worth and credits?
- Why do I need to have key personnel?
- I only hire people when I need them, does the CDB recognise this?
- Why do I need to own equipment before I can register?
- Can I just hire equipment when I need it?
- My friend has agreed to lend me equipment when I need it. Will the CDB accept this?
- How can I prove that I own my equipment?
- I have construction equipment, but not those items required by my category. What to do?
- I don't want to start as a petty contractor, can I start as a "C" contractor or above?
- I do not meet your requirements. What can I do?
- Can I register more than one firm?
- Why is your registration form so difficult?
- Why do I need to re-register with the CDB?
Why do I need to register with the CDB?
Only contractors who are registered with the CDB can bid for government construction works. Registering with the CDB is a form of prequalification. It saves time since contractors do not need to prove their qualifications for every project. As such, construction projects can be awarded faster and easier.
Registering with the CDB also lets us know who you are. We can then keep you informed of changes to government procedures and regulations.
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How do I start the process?
Contractors should register with the CDB prior to obtaining their trade license from MTI. The first step towards registering with the CDB is to obtain a Contractor Registration Form (CTR01). This form can be downloaded from this website or from any BCCI representative. Complete the form and submit it to the BCCI. You will be notified by the CDB when your application has been assessed and your eligibility has been determined.
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What information do I require before I start?
You will need detailed information about your financial capacity, human resources, equipment and track record. For most contractors, the hardest part is obtaining supporting documentation to support your claims. You will need to be able to justify your net worth, specify your personnel, and prove ownership of your equipment. Only claims that are fully supported will be considered by the CDB during your assessment. In the past, the CDB did not require supporting documentation. However, the current registration requirements will not allow exceptions (except in the case of appeals to the Board.)
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Which category & classification should I apply for?
It depends. If you are just starting, and have no construction experience, the CDB requires that you begin as a Petty class contractor. This will allow you to bid for small jobs and gain experience before tackling larger projects. As a petty contractor, you can choose almost any category of work. However, you will need to purchase equipment for the category that you apply for.
If you or your engineer have significant experience in a specific sector, then you should probably apply for the category of work that best fits that sector. A reason that we have introduced multiple categories of work is to promote specialisation. As a contractor become a specialist in a particular sector, the new regulations will also help them win new projects by reducing the eligible competition.
Please note that the CDB does not encourage direct entry to classifications other than Petty. While it is possible to become a "B" or "C" contractor on the basis of a firm's experience, the CDB prefers new contractors to prove their capabilities before bidding for larger projects. All applications for direct entry to classifications other than Petty will be scrutinised very carefully.
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Can I apply for more than one category?
Yes. However, please note that you must meet the requirements for each category. Specifically, you will require equipment and experience in each category that you apply for (with the exception of Petty contractors whom do not require experience.) Also, note that registration fees are calculated per category-- the more categories requested, the higher the overall fees will be.
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Why do I need to specify my income, net worth and credits?
The CDB realises that many contractors fail to properly execute projects because they do not have the financial capacity to cover the basic costs associated with construction works. For example, if a contractor cannot afford to pay his workforce on time, his staff may disappear and force delays to the project. Because of this, the government wants to ensure that a contractor has the minimum resources to undertake projects.
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Why do I need to have key personnel?
The CDB wants to make sure that your firm has the necessary personnel to undertake construction projects. As your firm grows and hires more people, it will have the capacity to perform larger works. You will need to provide a CV for each of your key personnel. If one of these people resigns or is released from your firm, you will need to immediately replace them. Make sure to maintain detailed records of each of these personnel changes so that you can explain the changes to the CDB if necessary.
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I only hire people when I need them, does the CDB recognise this?
The CDB understands that many key personnel can be hired on an as-needed basis. For this reason, it will consider a firm's capacity to hire people when assessing their human resources. However, only documented cases of past hires will be considered. In other words, you will need to provide the CDB with documentation that proves you hired key personnel in the past. The documentation can be old service agreements, contracts or paychecks that clearly show the name of you or your firm and the name & position of the person hired. For this reason, the CDB strongly recommends that all contractors maintain detailed records of all hired personnel .
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Why do I need to own equipment before I can register?
The CDB considers it important that each contractor own a minimum amount of equipment for two basic reasons: 1) it insures that a contractor has the equipment necessary to successfully execute construction projects; and 2) it encourages contractors to make an investment in their chosen profession. After making an investment, contractors will be obliged to take their construction business seriously and will be eager to be successful in their endeavors.
The CDB understands that many contractors do not want to invest in equipment when there are no assurances of future work. As such, contractors are encouraged to start as Petty class contractors, which has very low equipment requirements. The CDB is also actively trying to acquire statistics (such as average bid/win ratios) that will further assist contractors to make informed decisions about appropriate levels of investment. Stringent regulations about equipment investments will also help reduce the number of registered contractors, making the sector more attractive for those individuals and firms who are eager to participate and invest in the industry.
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Can I just hire equipment when I need it?
Like people, the CDB recognises that it is sometimes good business practice to hire equipment when needed rather than purchase it forthright. For this reason, it will consider a contractor's capacity to hire equipment when assessing it's capabilities. However, only documented cases of past hires will be considered. In other words, you will need to provide the CDB with documentation that proves you hired the equipment in the past. The documentation can be old lease agreements or challans that clearly show your name or the name of your firm and the type of the equipment hired. For this reason, the CDB strongly recommends that all contractors maintain detailed records of all equipment hired or leased.
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My friend has agreed to lend me equipment when I need it. Will the CDB accept this?
No. The CDB will only consider equipment hires that occur in the past. Agreements, no matter how valid, for future equipment hires will not be accepted by the CDB. Furthermore, all equipment listed in the application form must be owned or hired by the individual or firm applying for registration.
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How can I prove that I own my equipment?
All applicants must prove that the equipment listed on their application form is owned by the individual or firm applying for registration. Equipments owned by family members or employees is not acceptable.
To prove ownership, a contractor should provide a photocopy of the equipment's bluebook for any item that is licensed by the RSTA. For equipment that is not licensed (vibrators, concrete mixers, etc.), a contractor should provide a bill-of-sale or other proof of purchase. If the sales receipt or equivalent has been lost, then a contractor can obtain a signed statement from any government engineer or high-ranking official (Dzongda, Dzongrab, Thrimpon, Thrimrab, Gup or Chhimi) confirming ownership of the items.
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I have construction equipment, but not those items required in my category. What to do?
The CDB is willing to accept alternate construction equipment items on a case-by-case basis. However, the equipment must be of comparable value and useful for the works category persued.Prior approval to substitute items must be obtained from the CDB Secretariat before submitting the application form. An official statement allowing the substitution will need to be attached to the application form for the equipment to be included in the assessment. Any substituted items included that do not have prior approval will be rejected.
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I don't want to start as a petty contractor, can I start as a "C" contractor or above?
The CDB strongly encourages contractors to gain experience before tackling larger projects. However, it also recognises that many experienced contractors may wish to form new business ventures or split existing firms. As such, the CDB will allow direct entry to "B" or "C" classifications. Direct entry to "A" classifications is allowed in special cases only and requires formal approval by the Board of Directors.
For new applicants only, the CDB will consider the track record or experience of its key personnel. If a firm has a qualified diploma or graduate engineer, and has acquired the necessary equipment and meets all other requirements, then they can apply for direct entry into the higher classifications. However, such applications will be closely scrutinised for compliance.
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I do not meet your requirements. What can I do?
If you do not meet the CDB's requirements and feel that there is a valid reason for you to be exempted, then you are encouraged to submit an appeal to the CDB's Board. The appeal process is simple. Request an application form from the CDB Secretariat and include a clear and concise description of your appeal. There is a Nu. 1000 fee that must be paid when submitting your application. Your appeal will be photocopied and presented to all of the Board members for consideration during the next scheduled Board meeting. If a majority of Board members accept your appeal, it will be granted.
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Can I register more than one firm?
Yes. However, all of the listed equipment and personnel must be physically owned by the second firm and cannot have been used in the registration of any other firms. For example, to register two companies you must own two sets of qualifying equipment. The same equipment cannot be used for both firms. Furthermore, the burden of proof that the equipment is wholly owned by the two firms lies with the contractor. If he or she cannot adequately support the claim of separate ownership, then the application will be rejected.
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Why is your registration form so difficult?
The registration form is only difficult in that the CDB requires supporting documentation of all claims. If a contractor has maintained good records or accounts, they will not find the application process too burdensome. Therefore, all contractors are strongly encouraged to maintain adequate records to support their claims. We feel that once all contractors understand the documentation requirements of the CDB, and start maintaining these documents, that the registration process will become very easy.
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Why do I need to re-register with the CDB?
Re-registration with the CDB is necessary for many reasons. From the contractor's side, re-registration provide an opportunity to apply for more categories and higher classifications. Although a contractor can apply for these at any time, a bi-annual re-registration will allow the contractor a specific time period to take stock of their past and present work and review future strategies.
From the CDB's side, re-registration of contractors helps to separate the active contractors from the non-active ones. It also insures that the CDB maintain up-to-date information on each contractor's, including their capacity. This information will help the CDB to monitor the development of contractors and to decide necessary changes to its registration system.
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