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Construction Development Board

New Contractor Classification

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Posted on 8th August, 2012

This is for information of all government agencies, corporations and contractors that the Construction Development Board, Ministry of Works and Human Settlement shall be introducing a new system for contractor classification.  The system is to allow more opportunities and easier vertical integration to, in particular, the small and potential contractors' to venture into construction business. The new registration/classification system of contractors does not take into account financial capacity and track record requirements in order to allow aspiring potential contractors to register directly into any class based on their capacity. 

The new classification system has three classes viz. - Large (L), Medium (M) and Small (S) and shall come into effect from 1st May 2011.  The basic criteria, amongst others, are as follows:

1. LARGE class of contractors

a)            Class 'L' Contractors/Construction firms shall be permitted to bid for Class of Works he/she is qualified for an individual contract of estimated value above Nu 15 million;

b)            The Contractor may be allowed to undertake not more than five different contracts at a time subject to fulfilling bid-capacity and technical requirement as stipulated in the tender documents and CDB norms;

c)            Contractors/Applicants should satisfy the CDB that they have the necessary full-time key-personnel - 'Human Resources' stationed in Bhutan and 'Equipment and Facilities' to qualify the minimum requirement specified by the CDB; 

d)            The contractors in this class will need to get incorporated as a company within one year of registration as a 'large' contractor'.

e)            Works will be awarded based on the new point based system of evaluation.

2. MEDIUM class of contractors

a)            Class 'M' Contractors/Construction firms shall be permitted to bid for Class of Works he/she is qualified for an individual contract of estimated value above Nu 4 million upto Nu 15 million;

b)            The Contractor may be allowed to undertake not more than four different contracts at a time subject to fulfilling bid-capacity and technical requirement as stipulated in the tender documents and CDB norms;

c)            Contractors/Applicants should satisfy the CDB that they have the necessary full-time key-personnel - 'Human Resources' stationed in Bhutan and 'Equipment and Facilities' to qualify the minimum requirement specified by the CDB; 

d)            Works will be awarded based on the new point based system of evaluation.

3. SMALL class of contractors

  • Class 'S' Contractors/Construction firms is eligible to bid for any category of works upto Nu 4 million;
  • Class 'S' Contractor is allowed to undertake not more than two different contracts at a time as long as the combined value of two works is less than or equal to Nu 4 million;
  • Works will be awarded to class 'S' contractors based on lowest bid basis without any technical qualification criteria.

Therefore, in order to commence the reclassification process, CDB shall be assigning to construction firms new classification 'L', 'M' or 'S' as appropriate, based on the information that is available with the Secretariat as below:

 1.           Class "A" as Large (L)

2.            Class "B" as Large or Medium depending on the existing record with us.

3.            Class "C" as Medium and

4.            Class "D" as Small.

In order to expedite the reclassification process and not hamper the procurement process, all contractors falling under Class 'A', 'B' and 'C' are requested to submit their track records of the last five years (Work Order and Completion Certificate) and documents pertaining to Personnel and Equipments Resources within 10th March. 2011.  It is in the interest of contractor that CDB database has complete information on human resources, equipments and track records of the last five years for successful award of work as per the new point based evaluation system.

Further, those firms desiring to change their classification are requested to report in person with complete documents to enable us to carry out detailed assessment against the basic criteria specified.

This notification is issued for compliance with immediate effect.

Zhabtog Lyonpo,Chairman,CDB.