Registration Requirements
Since the purpose of contractor registration is to allow the government to
quickly determine a contractor's ability to perform various types and sizes of
construction works, the CDB has established a number of requirements that must
be met before certification is awarded.
There are four main registration requirements:
-
Financial
capacity - applicants need to show the CDB that they have sufficient
resources to meet the financial requirements which normally arise during the
execution of construction projects. Larger projects
require greater financial resources. To determine
financial capacity, the CDB assesses an applicant's current net worth
(total assets minus total liabilities), their annual average gross income
(cash-flow) and their ability to obtain financing (overdrafts, bank
credits, etc.).
-
Human
resources - applicants need to show the CDB that they have the necessary
full-time personnel stationed in Bhutan to undertake
government works. The CDB has determined the minimum
number of staff required for each classification of
contractor.
-
Equipment
and facilities - applicants need to show the CDB that they have the
necessary equipment and facilities to complete the works.
Depending on the category(-ies) applied for, an inventory of mandatory
equipments items is required. Different works
require different equipment.
-
Track record - applicants need to
show the CDB that they have sufficient work experience in each sector of the
industry. Work experience is usually the determining
factor behind a contractor's classification. There are different
requirements depending on if the contractor is a new applicant,
requesting an upgrade to a higher classification, or re-registering existing
classifications.
The CDB will perform random checks to verify the accuracy of the information
provided by applicants. If a contractor is found to have provided
false information, their registration will be cancelled and they will no longer
be eligible to bid for government works.
A contractor is also not allowed to list equipment or personnel which are
owned by another company registered with the CDB. An individual or
individuals can have a controlling interest in more than one registered company
as long as they can prove that the equipment and personnel of each company are
separately owned.
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