Registration/Contractor Registration

Contractor Registration

About Contractor Registration

Categories, Classifications & Ceilings

How to Register

Registration Requirements

Registration Fees

Up-gradation Criteria

About Contractor Registration

Registration System

The Construction Development Board (CDB) has developed a Contractor Registration System based upon a classification and categorization of contractors. Only licensed contractors shall be eligible for registration. The registration of contractors, re-registration, upgrading, and any matters related to contractor registration shall be carried out strictly in accordance with the principles and procedures incorporated in the System.

The purpose of the CDB Registration System is to maintain a list of qualified contractors for Government Works. The system prevents the need for formal pre-qualifying of contractors, and therefore allows government contracts to be awarded and executed faster.

All Ministries, Departments, Dzongkhags and their procuring agencies are required to use these registered contractors in the execution of government works.

Please note that the registration system is only relevant for government construction works. Contractors who only execute private construction projects do not need to be registered with the CDB.

Validity

A contractor who has been registered will be issued a Certificate of Registration (CTR08). Renewal of the Certificate of Registration must be applied for within thirty (30) days of its expiration date

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Categories, Classifications & Ceilings

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	above Nu 19 Million	Nu. 9 - 19 Million	Nu. 2 - 9 Million	Up to Nu. 2 Million
Maximum number of contracts at a time	5 contracts	4 contracts	3 contracsts	1 contract
Maximum value of contracts at a time	No ceiling	Nu.- Million	Nu.- Million	Nu. - 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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How to Register

how2register

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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:

1. 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.).

2. 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.

3. 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.

4. 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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Contractor Registration Fees

Registration fees are based on the categories (W1-W4) that are applied for. The more categories a contractor applies for, the higher their fees will be.

The following table provides the fee structures. Fees are paid after the CDB has assess a contractor's application and has determine their eligible categories and classifications. All fees must be paid before a registration certificate will be issued.

*Schedule of Fees*
Class.	Per Category Heading
Class.	New registrations and upgradations	Re-registration
A	Nu. 6000	Nu. 3000
B	Nu. 4000	Nu. 2000
C	Nu. 1200	Nu. 600
D (Petty)	Nu. 200	Nu. 100

As mandated by the Financial Manual of 1988, the Construction Development Board (CDB) will establish and maintain the List of Registered Contractors. Contractors will be divided into four categories of work, and registration will be based on their financial capacity, human resources, equipment and facilities, and track record. The registration system is a process of formal pre-qualification and is not limited to a particular contract or project. Proof of enrollment on the CDB Registration System will constitute a presumption of overall suitability and will qualify contractors to participate in the bidding of government projects.

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Up-gradation Criteria

A. Criteria for the Financial Capacity:

Firms proposing to up-grade must fulfill the financial criteria of the next higher class shown below:

Criteria

(Class B to Class A)

(Class C to Class B)

(Class D to Class C)

Petty

Minimum value of Turnover in any one year during the last three years:

(Profit/Loss Statement)

Nu. 22.5 Million

Nu. 11.25 Million

Nu 0.75 Million

N/A

Net Worth:
and Credit rating

Nu. 4,000,000

Nu. 10,000,000

Nu. 1000,000

Nu. 5,000,000

Nu. 500,000

Nu.1,000,000

N/A

B. Minimum Requirements: Human Resources (Key Personnel) Assessment

Minimum requirement for Human Resources (Key personnel) will be checked against the class proposed for up-gradation. The firm should demonstrate that key personnel employed with the firm had been working with the firm for no less than six months as per the table below.

Criteria

D (petty)

W₁ & W₃

W₄

W₁& W₃

W₄

W₁& W₃

W₄

Permanent Key Employees:
     (i)    Manager
     (ii)   Graduate Engineer      (iii) Diploma Engineer
     (iv) Accountant
     (v) Site supervisor
      -----------------------------
minimum # of employees:

1
1 (Civil)
2 (Civil)
1
3 (Civil)

-----
8

1
1 (Elec)
2 (Elec)
1
3 (Elec)

---
8

1
1 (Civil)
1 (Civil)
1
2 (Civil)

-----
6

1
1 (Elec)
1 (Elec)
1
2 (Elec)

-----
6

1
-
1 (Civil)
-
1 (Civil)

-----
3

1
-
-
-
1 (Elec)

-----
2

1
-
-
-
-

-----
1

C. Track Record

Criteria

Contract Range

Upgrade to "A"

Above 15m

Upgrade to "B"

Nu. 7.5 - 15m

Upgrade to "C"

Nu. 1.5 - 7.5m

UPGRADE

i) Applicants must be currently registered as class 'B' contractor.

ii) Completed three projects in the applied category valued at least Nu. 7.5 million each, or alternatively, one project in the applied category valued of at least Nu. 12 million (80% of 15m), during the previous two years.

i) Applicants must be currently registered as class 'C' contractor.

ii) Completed three projects in the applied category valued at least Nu. 4.5 million each, or alternatively, one project in the applied category valued at least 6.0 million(80% of 7.5 m), during the previous two years.

i) Applicants must be currently registered as class 'D' contractor.

ii) Completed three projects in the applied category valued at least Nu. 0.50 million each, or alternatively, one project in the applied category valued at least Nu. 0.90 million, during the previous two years.

The above works should have been completed to the satisfaction of the client. Such satisfactory completion certificates should be signed by no less than Head of Department / Organization.

D. Minimum Requirements of Equipment& Facilities

It will be checked for the new class/category proposed. Equipments will be physically checked and verified for all up-gradation proposals.

Sl.#	Mandatory Equipment & Facilities	(Class ‘B’ proposing to upgrade to class ‘A’)			(Class ‘C’ proposing to upgrade to class ‘B’)			(Class ‘D’ proposing to upgrade to class ‘C’)
	W₁, W₃ & W₄	W₁	W₃	W₄	W₁	W₃	W₄	W₁	W₃	W₄
1	Excavator (or) Pay loader (or) (Motor grader for W₁)	1	1	-	-	-	-	-	-	-
2	Truck (Truck or Tractor for Class C)	1	1	1	1	1	1	1*	1*	1*
3	Air compressor	1*	1*	1*	1	-		-
4	Road roller	1			-			-
5	Survey equipments (Theodolite/Total stn.)	1*	1*	1*	1*	1*		-
6	Concrete mixer (10/7 cft) & (7/5 cft for Class C)	-	1	1		1	1	1	1
7	Vibrator		1	1		1	1	1*	1*	1*
8	Steel shuttering set (sft.)		5000			2500
9	Water pump	-	-	1	-	-	-	-	1
10	Crane Truck	-	-	1
11	Meggar	-	-	1	-	-	1	-		1
12	Max puller	-	-				1

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Financial capacity

• For Revalidation

Criteria	A	B	C	D (Petty)
Option 1: Net Worth is:	Nu. 5,000,000	Nu. 2,500,000	Nu. 675,000	N/A
Option 2: Net Worth is: and Average Annual Income is:	Nu. 2,000,000 Nu. 32,500,000	Nu. 750,000 Nu. 15,000,000	Nu. 225,000 Nu. 4,500,000	N/A
Option 3: Net Worth is: and Average Annual Credits are:	Nu. 2,000,000 Nu. 10,000,000	Nu. 750,000 Nu. 2,250,000	Nu. 150,000 Nu. 675,000	N/A

* N/A stands for Not Applicable

• For Up-gradation

Criteria

(Class B to Class A)

(Class C to Class B)

(Class D to Class C)

Minimum value of Turnover in any one year during the last three years:

(Profit/Loss Statement)

Nu. 22.5 Million

Nu. 11.25 Million

Nu 0.75 Million

Net Worth:
and Credit rating

Nu. 4,000,000
Nu. 10,000,000

Nu. 1000,000
Nu. 5,000,000

Nu. 500,000
Nu.1,000,000

Financial capacity can be shown by:

Submitting financial statements such as audited/certified financial statements/balance sheets, company annual report etc. that would clearly indicate the financial position of the preceding years,(only audited or certified statements submitted to the Department of Revenue & Customs will be accept in particular from Classes A & B contractors).

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Human Resources

Criteria

D (Petty)

W1&W3

Option 1:
a) Permanent Employees:
     (i)    Manager
     (ii)   Engineer, Graduate
            or Architect
     (iii) Engineer, Diploma
     (iv) Accounant
     (v) Site supervisor
     (vi) Tech./Skilled worker
     -----------------------------
      minimum # of employees:

1
1(Civil)

2(Civil)
1
3(Civil)
-
-----
8

1
1(Elec)

2(Elec)
1
3(Elec)
-
-----
8

1
1(Civil)

1(Civil)
1
2(Civil)
-
-----
6

1
1(Elec)

1(Elec)
1
2(Elec)
-
-----
6

1
-

1(Civil)
-
1(Civil)
-
-----
5

1
-

1(Elec)
-
1(Elec)
-
-----
5

*'Elec' stands for 'electrical'

*N/A stands for 'Not Applicable'

Following documents may be attached to authenticate information on key personnel:

C.Vs of all employees with his/her own signature including submission of academic transcripts, years of experience and other relevant information to demonstrate competence.
TDS and Health Contribution

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Equipment and Facilities

Criteria	A	B	C	D (Petty)
a) Number of valid equipment owned per category applied.	All equipment mandatory	All equipment mandatory	All equipment mandatory	N/A

Note: To view the valid equipment items, please click on the appropriate category below.

W1 - Roads and Bridges

W2 - Traditional Bhutanese Painting/Finishing Works

W3 - Buildings, Irrigation, Drainage, Flood Control, Water Supply & Sewerage

W4 - Power and Telecommunication Works

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TRACK RECORD

Criteria	A	B	C	D (Petty)
Option 1: a) To maintain current classification	i) Applicants must be currently registered as an 'A' contractor. ii) Works in progress or completed one project in the applied category valued at least Nu. 15 million, or alternatively participated in at least five (5) biddings during the previous two years.	i) Applicants must be currently registered as an 'B' contractor. ii) Works in progress or completed one project in the applied category valued at least Nu. 7.5 million, or alternatively participated in at least five (5) biddings during the previous two years.	i) Applicants must be currently registered as an 'C' contractor. ii) Works in progress or completed one project in the applied category valued at least Nu. 1.5 million, or alternatively participated in at least five (5) biddings during the previous two years.	i) Currently Registered with the CDB. ii) Works in progress or completed one project or alternatively participated in at least two (2) biddings during the previous two years.
Option 2: a) To upgrade to a higher classification.	i) Applicants must be currently registered as an 'B' contractor. ii) Works in progress or completed three projects in the applied category valued at least Nu.7. 5 million, or alternatively, one project in the applied category valued of at least 12 million, (80% of 15m) during the previous two years.	i) Applicants must be currently registered as an 'C' contractor. ii) Works in progress or completed three projects in the applied category valued at least Nu. 4.5 million, or alternatively, one project in the applied category valued of at least 6 million, during the previous two years.	i) Applicants must be currently registered as an 'D' contractor. ii) Works in progress or completed three projects in the applied category valued at least Nu. 0.50 million, or alternatively, one project in the applied category valued of at least 0.90 million, during the previous two years.	N/A
Option 3: a) For new applicants only.	Direct entry available as special case only when established incorporated company under the Company Act of Bhutan. requires formal assessment of approval of the Board.	Direct entry available as special case only when established incorporated company under the Company Act of Bhutan. requires formal assessment of approval of the Board.	A diploma Engineer with a minimum of 5 years documented project execution experience, and a direct involvement in projects with a miminum accumulated value of Nu. 5 million.	N/A

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W1 - Roads and Bridges

(Mandatory equipments)

Class A
Sl.No	Name
1	Excavator (or) Pay Loader (or) Motor Grader
2	Truck
3	Air Compressor
4	Road Roller
5	Survey Equipments

Class B
Sl.No	Name
1	Truck
2	Air Compressor
3	Survey Equipments

Class C
Sl. No.	Name
1	Truck or Tractor
2	Concrete Mixer
3	Vibrator

Class D (Petty)
NA

To fulfill the minimum mandatory of equipment and facilities, a contractor must:

show that the registration of equipments declared to CDB are in the name of applicant only.
submit blue book copies supported by Route Permits and Insurances for all RSTA registered equipment.
submit equipment verification reports duly endorsed by the authorized govt. Engineers for those equipments, which are not dealt by RSTA.

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W2 - Traditional Bhutanese Painting/Finishing Works

(Mandatory equipments)

Class A
Sl.No	Name
1	Excavator (or) Pay Loader (or) Motor Grader
2	Truck
3	Air Compressor
4	Concrete Mixer (10/7 cft)
5	Survey Equipments
6	Vibrator
7	Steel Shuttering set (5000 sft)

Class B
Sl.No	Name
1	Truck
2	Concrete Mixer (10/7 cft)
3	Survey Equipments
4	Vibrator
5	Steel Shuttering set (2500 sft)

Class C
Sl. No.	Name
1	Truck or Tractor
2	Concrete Mixer( 7/5 cft)
3	Vibrator
4	Water Pump

Class D (Petty)
NA

To fulfill the minimum mandatory of equipment and facilities, a contractor must:

show that the registration of equipments declared to CDB are in the name of applicant only.
submit blue book copies supported by Route Permits and Insurances for all RSTA registered equipment.
submit equipment verification reports duly endorsed by the authorized govt. Engineers for those equipments, which are not dealt by RSTA.

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W3 - Buildings, Irrigation, Drainage, Flood Control, Water Supply & Sewerage

(Mandatory equipments)

Class A
Sl.No	Name
1	Excavator (or) Pay Loader (or) Motor Grader
2	Truck
3	Air Compressor
4	Concrete Mixer (10/7 cft)
5	Survey Equipments
6	Vibrator
7	Steel Shuttering set (5000 sft)

Class B
Sl.No	Name
1	Truck
2	Concrete Mixer (10/7 cft)
3	Survey Equipments
4	Vibrator
5	Steel Shuttering set (2500 sft)

Class C
Sl. No.	Name
1	Truck or Tractor
2	Concrete Mixer( 7/5 cft)
3	Vibrator
4	Water Pump

Class D (Petty)
NA

To fulfill the minimum mandatory of equipment and facilities, a contractor must:

show that the registration of equipments declared to CDB are in the name of applicant only.
submit blue book copies supported by Route Permits and Insurances for all RSTA registered equipment.
submit equipment verification reports duly endorsed by the authorized govt. Engineers for those equipments, which are not dealt by RSTA.

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W4 - Power and Telecommunication Works

(Mandatory equipments)

Class A
Sl.No	Name
1	Crane Truck
2	Truck
3	Air Compressor
4	Concrete Mixer (10/7 cft)
5	Survey Equipments
6	Water Pump
7	Meggar
8	Vibrator

Class B
Sl.No	Name
1	Truck
2	Concrete Mixer (10/7 cft)
3	Survey Equipments
4	Meggar
5	Vibrator

Class C
Sl. No.	Name
1	Truck or Tractor
2	Meggar
3	Vibrator

Class D (Petty)
NA

To fulfill the minimum mandatory of equipment and facilities, a contractor must:

show that the registration of equipments declared to CDB are in the name of applicant only.
submit blue book copies supported by Route Permits and Insurances for all RSTA registered equipment.
submit equipment verification reports duly endorsed by the authorized govt. Engineers for those equipments, which are not dealt by RSTA.

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W1 - Roads and Bridges

Construction of roads (laterite, prime and seal Flexible or rigid pavement );timber or concrete or steel bridges, culverts, surface drainage, kerbsand footways, pedestrian overhead crossings.

Construction/maintenance of airport runways.

Rehabilitation, reinstatement, improvement to embankment, slope stabilization, provision of adequate drainage system, regravelling or resealing existing pavement, repair, improvement or reconstruction of road sections or repair or reconstruction of damaged or destroyed bridges.

W2 - Bhutanese Paintings

Internal and external furnishings and decorations of all structures.

W3 - Buildings, Irrigation, Drainage, Flood Control, Water Supply & Sewerage

Construction in timber, masonry, concrete or steel for all types of buildings including storms and sanitary drainage system.

Rehabilitation and restoration of all physical facilities in damaged or destroyed buildings.

Construction of drainage systems, aprons, terminal buildings, hangers, warehouse depots, any appurtenant structures related to Airports.

Construction and rehabilitation of irrigation and flood control schemes, irrigation inspection roads.

Dredging and reclamation of farmlands.

Construction of water treatment works, storage reservoirs and tanks, installation of transmission and distribution pipelines, aqueducts pumping stations including pumps, intakes and weirs.

Development of ground water and of infiltration galleries and the construction of wells, boreholes and pump stations.

Construction of sewage treatment facilities, septic tanks, sewers and manholes, sewer outfalls, sewage pumping stations.

Rehabilitation and improvement of water supply and sewerage facilities.

W4 - Power & Telecommunication Works

Construction, rehabilitation and improvement of civil works in hydropower facilities, such as dams tunnels and power generating plant buildings.

Installation of underground cables, overhead transmission and distribution lines, compound lighting, internal electrification, construction of substations including the installation of switchgear, transformers and low voltage distribution board.

Laying ducts and construction of junction boxes and of manholes for telephone cable networks.

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Registration/Contractor Registration

Contractor Registration

About Contractor Registration

Categories, Classifications & Ceilings

How to Register

Registration Requirements

Contractor Registration Fees

Up-gradation Criteria

Financial capacity

• For Revalidation

• For Up-gradation

Human Resources

Equipment and Facilities

TRACK RECORD

(Mandatory equipments)

Class A

Class B

Class C

Class D (Petty)

(Mandatory equipments)

Class A

Class B

Class C

Class D (Petty)

(Mandatory equipments)

Class A

Class B

Class C

Class D (Petty)

(Mandatory equipments)

Class A

Class B

Class C

Class D (Petty)

W1 - Roads and Bridges

W2 - Bhutanese Paintings

W3 - Buildings, Irrigation, Drainage, Flood Control, Water Supply & Sewerage

W4 - Power & Telecommunication Works