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Construction Development Board


Contractor Registration Click here to apply for the service

INTRODUCATION 
In line with the Procurement Rules and Regulations of Bhutan, the Construction Development Board shall be the competent authority of the Government to establish and maintain the List of Registered Contractors and Consultants for Works as specified under clause 2.1.2.1. It shall issue guidelines on registration of contractors and consultants for works from time to time to facilitate efficient functioning and effective implementation of works in the best interest of the Government. To facilitate the above objectives and requirements, the CDB will be guided by the "Guidelines for Registration of Contractors, Consultancy, Construction Professionals, Specialized firms and Trades" etc. All information/documents submitted become the property of CDB. The CDB reserves the right to use and disclose such information in any form of publication for the purposes and interests of the construction industry.

EMPOWERING CLAUSE

The authority to register and classify registrants is derived from Chapter 2 of Procurement Rules and Regulations 2019 and in particular following sections:

  1. Section 2.1.1.2 of Procurement Rules and Regulations 2019: Proof of enrolment in an authorized and properly constituted Registration system shall constitute a presumption of overall suitability of a bidder to participate in a public procurement procedure.
  2. Section 2.1.2.1 of Procurement Rules and Regulations 2019: Appropriate technical authorities of the relevant Sectors, as may be identified by the Government from time to time, may establish Lists of Registered Suppliers /Contractors /Consultants, hereinafter called Registers.
  3. Section 2.1.3.4 of Procurement Rules and Regulations 2019: Evidence of the party’s technical ability may be furnished by any of the following means:
    1. The educational and professional qualifications of the managerial and supervisory staff of the party, and in particular, those of the person or persons responsible for carrying out the assignments;
    2. A description of the party’s technical facilities, including reference to the tool, plant and technical equipment available.
  4. Section 2.3.1.1 of Procurement Rules and Regulations 2019: Construction Development Board (CDB) shall be the competent authority of the Government to establish and maintain the List of Registered Contractors and Consultants for Works as specified under clause 2.1.2.1. It shall issue guidelines on registration of contractors and consultants for works from time to time to facilitate efficient functioning and effective implementation of works in the best interest of the Government. 
  5. Section 2.3.1.2 of Procurement Rules and Regulations 2019: Registration with the CDB and possession of a valid CDB certificate shall, in accordance with clause 2.1.1.2, constitute a presumption of overall suitability of a bidder to participate in a public procurement procedure in respect of the classification for which he has been registered. 
  6. Section 2.3.1.4 of Procurement Rules and Regulations 2019: The List of Registered Contractors and consultants including construction professionals is formally established by the CDB and shall be updated from time to time. The List of Registered Contractors including Architects and Engineers shall be made available in the web site of CDB. 
  7. Section 2.3.1.5 of Procurement Rules and Regulations 2019: Admission to the List of Registered Contractors and consultants including construction professionals shall be made by written application pursuant to the procedure set out in the Manual of the Construction Development Board.

ELIGIBILITY 

  1. Any Bhutanese individual upon attaining the age of 18 years is eligible to get registration certificate after compliance to other requirements mentioned under other provisions of Registration Guidelines 2020.
  2. Any foreign company who wish to work in Bhutan can make an application for issuance of registration certificate as a non-Bhutanese contractor or consultant.

REGISTRATION PROCESS  

  • For a new registration as an aspiring Contractor, the applicant needs to attend an mandatory 'Induction Course' conducted by CDB.
  • For registered contractors, it is an mandatory to attend the 'Refresher Course' which is pegged with renewal of CDB Registration Certificate. 
  • Applicant shall apply online using the online application form available at www.cdb.gov.bt/e-Zotin/Registration services or www.citizinservices.gov.bt after availing the mandatory Induction Course/Refresher course. 
  • Applicant shall upload supporting documents against the classification and registration based on the set criteria and other requirements for the registrants provided in the Registration guideline or other relevant documents.
  • Applicant shall receive a message or email notifying the status of the application which can also be tracked on CDB website at www.cdb.gov.bt by clicking on ‘Track Your Application’ button.
  • Applicant shall receive the results of the application indicating whether the registration is successful or otherwise as follows:
    1. Registration unsuccessful: Applicant shall receive a message or mail explaining the reason the registration is unsuccessful for which the registrant needs to re-apply complying with the instructions or reasons for the rejection of application or registration; or
    2. Registration successful: Applicant shall receive a message or email notifying successful application with the approved class, work category, specialization etc., and the amount of registration fee to be paid for the issuance of the Registration Certificate.
  • Applicant shall pay the prescribed registration fees within 30 days from the day the application is approved. Failure to do so will lead to cancellation of the application without any further notice.
  • Applicant shall require to re-apply if the application is cancelled. 
  • Applicant shall pay the prescribed fees and penalties if applicable through G2C payment gateway, at the CDB Office or at the nearest Regional Revenue and Customs Office (RRCO) of Ministry of Finance.
  • If fees and penalties as applicable are paid using other than G2C payment gateway OR RRCO OFFICE, the applicant shall intimate a copy of the money receipt to CDB accountant at accountant@cdb.gov.bt
  • All fees payable shall be in cash in accordance with the procedures specified in The Financial Manual, the Royal Government of Bhutan. Fees once paid are not refundable. 
  • For new registration, an applicant shall receive a user credential via email to log in to the CDB registration system after payment of the prescribed registration fees.
  • Successful applicant shall be able to print system generated registration certificate.

Classification, Categorization and Registration requirements:

  • A contractor shall be classified and registered into three different classes which are ‘Large class’, ‘Medium class’ and ‘Small class’.
  • Each contractor is registered within a class according to the contractor’s capability to fulfil the criteria for such and category of projects mentioned. 
  • Infrastructure projects will be categorized into 4 separate categories defined under reference ‘W1, W2, W3 & W4’ which generally covers the types of works as follows:
 CATEGORIES   HEADINGS  DESCRIPTIONS
 W1  Roads & Bridges             Construction of roads (laterite, prime and seal Flexible or rigid pavement); timber or concrete or steel bridges, culverts, surface drainage, kerbs, footways, pedestrian overhead crossings, airport runways and aprons;
 Rehabilitation, reinstatement, improvement to embankment, slope stabilization, provision of adequate drainage system, re-gravelling or resealing existing pavement, repair, improvement or reconstruction of road sections or repair or reconstruction of damaged or destroyed bridges.
 Construction of all types of bridges, aqueducts and flyovers
 W2  Traditional Bhutanese Painting   /Finishing Works         Internal and external finishing and decorations of all structures in traditional Bhutanese paintings.
 W3  Buildings, Irrigation, Drainage, Flood Control, Water Supply & Sewerage  Construction of all kinds of buildings including that of timber, masonry, concrete or steel. Services such as storms and sanitary drainage system.
 Rehabilitation and restoration of all physical facilities in damaged or destroyed buildings.
 Construction of drainage systems, terminal buildings, hangers, warehouses Depots, any appurtenant structures.
 The construction includes all the internal electrification (new and renovation, repair), plumbing, painting and finishing work other than Internal and external finishing and decorations of structures in traditional Bhutanese paintings.
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, construction of substations including the installation of switchgear, transformers and low voltage distribution board.
 Construction of Substations & Transmission Lines
 Laying ducts and construction of junction boxes and of manholes for telephone cable networks.

 

Contractor’s classification will determine the size and maximum number of construction works that he or she is eligible to undertake as provided in following table:

 Details

Large Class

Medium Class

Small Class

 Financial Threshold/Eligible bid amount (Nu. in million)

 > 20 million

 5 – 20 million

 ≤ 5 million

 Work in Hand Limit/Maximum number of contracts at a time

 8 Nos.

 4 Nos.

 2 Nos.

Note: The above values are based on the agencies estimate and not the quoted value w.e.f. 1st March 2021.

The registration certificate shall be issued upon payment of prescribed fees respectively as provided in the following table:

 Categorization  New Registration  Renewal  Late fee
 Large Class  Nu. 15,000 per category  Nu. 7500 per category  Nu. 100 per day
 Medium Class  Nu. 10,000 per category  Nu. 5000 per category  Nu. 100 per day
 Small Class  Nu. 5000 per category  Nu. 2500 per category  Nu. 100 per day to a max. of Nu. 3000/-
 W2 category  Nu. 1500/-  Nu. 1000/-  Nu. 100 per day to a max. of Nu. 300

 

  • A contractor has the right to maintain same or different classifications for different categories of work or projects for which a contractor can have more than one classification.
  • For contractors having more than one classification, higher class shall be considered except for procurement purposes.
  • Classification of firms into Large, Medium and Small classes and application of permissible work volume shall not apply to W2 category.
  • Contractor classification, renewal, upgrading of classification and/or to request other categories of work is based on the contractors’ human resources, equipment and facilities as provided in the following tables for ‘Minimum Mandatory Human Resources’ and 'Minimum Mandatory Equipment and facilities'.

MINIMUM MANDATORY HUMAN RESOURCES REQUIRED:

 Description LARGE CLASS MEDIUM CLASS SMALL CLASS
W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4
 Manager (Class XII and above) 1* - 1* 1* 1* - 1* 1* - - - -
 Degree Engineer 1(Civil)* - 1(Civil)* 1(Elec.) - - - - - - - -
 Diploma Engineer 2(Civil)* - 2(Civil)* 1(Elec.) 1(Civil)* - 1(Civil)* - - - - -
 Accountant (Class X with certificate in commercial accounting) 1* - 1* 1* - - - - - - - -
 Site Supervisor (Class X and above) 2* - 2* 2 1* 1* 1* 1* 1* 1* 1* 1*
 Total 7*   7* 6 3* 1 3* 2 1* 1* 1* 1*

Note: For Large/Medium class, Proprietor himself can be the Manager/Engineer of his firm. * minimum only. The firm needs to have Safety Committee & appointment of one safety Officer among their permanent employees. The following documents have to be submitted to authenticate information on key personnel's while applying:

  1. Academic transcripts and other relevant information;
  2. Copy of CID (Bhutanese) or valid work permits issued by the Immigration for Non-Bhutanese,
  3. Latest Undertaking letter (as per the sample uploaded in CDB website).

MINIMUM MANDATORY EQUIPMENT & FACILITIES: 

 Description LARGE CLASS MEDIUM CLASS SMALL CLASS
W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4
 Excavator/Payloader 1 - 1 - - - - - - - - -
 Road roller 1 - - - - - - - - - - -
 Truck 1 - 1 1 1* - 1* 1* - - - -
 Crane Truck - - - 1 - - - - - - - -
 Air Compressor 1 - 1 1 - - - - - - - -
 Survey equipment’s 1* - 1* 1* 1* - 1* 1* - - - -
 Concrete mixer - - 1 1 1* - 1* - - - - -
 Vibrator - - 1 1 1* - 1* - - - - -
 Steel Shuttering set (sft) - - 5000 - - - 2000 - - - - -
 Water pump/Multi-meter - - - 1   - - 1 - - - -
 Meggar - - - 1   - - 1 - - - -
 Max puller - - - 1   - - - - - - -

Note: Survey equipment’s - For Large class is Total Station, For Medium Class is Leveling machine. (*) - minimum one only.

For the equipments registration, the applicant are required to submit the following documents:

  1. Copy of the valid registration certificate (Blue book) and valid Insurance policy for each equipment where applicable;
  2. For up-gradation/New Registration in Large/Medium Class, the equipments that do not require registration with RSTA, copy of cash memos stamped by RRCO if newly imported or verification letter issued by a Government Engineer.
  3. For 'Renewal' the equipments that do not require registration with RSTA, certification or verification letter issued by Construction Association of Bhutan(CAB).

Downgrading, Suspension and Cancellation of registration certificate

  1. CDB reserves the right to downgrade, suspend or cancel as applicable for non-compliance as per the Registration Guidelines 2020.
  2. Firms may be suspended upon written instructions from Anti-Corruption Commission, Court of Law and other law enforcing institutions.
  3. Registration certificate of a firm shall be cancelled upon receipt of written order of court of law to do so.
  4. Firms cannot avail any services available by virtue of the certificate being valid during the suspension period.

Validity of Certificate of Registration:

The validity of Certificate of Registration is valid for a period of 2 (Two) years from the date of approval.

Monitoring of Registrants:

  1. The registration requirements provided in the provisions of Registration Guidelines shall be monitored by CDB as and when required complying the procedure and requirements set in the Monitoring Guidelines of CDB.
  2. CDB shall impose appropriate sanctions prescribed in Monitoring Guideline, Ethical Code of Conduct for Contractors and other legal instruments of CDB.

Compliance to Occupational Health and Safety aspects:

  1. All registrants shall comply with occupational health and safety legal instruments published by CDB and other relevant institutions mandated by law.
  2. All contractors shall nominate or appoint one safety officer and designate safety committee amongst the existing human resource for administering occupational health and safety aspects at worksite and offices.
  3. In pursuant to the provisions of Monitoring Guideline, CDB is mandated to regulate occupational health and safety compliance by the registrants.

Change in CDB Certificate:

The following changes may become necessary as & when the cases arise:

Change in the Ownership: 

The change/transfer of ownership of CDB Certificate (only for Bhutanese firms) will be allowed under the following conditions:

  • The Transferee should be a direct inheritor of licensee/certificate holder proven by property inheritance documents duly endorsed by competent authorities i.e. Parents to Children or vice versa [census details from DCRC,MOHCA] and Husband to wife or vice versa [need to attached copy of MC along with CID copy].
  • Transfer of CDB Registration maybe allowed to be effected within the validity period of the certificate.
  • A nominal lump-sum transfer fee of Nu. 1000/- will be charged for the change in ownership.
  • Change of ownership in the CDB Registration Certificate will not constitute/warrant an automatic/right for change of Trade License. It will be at the discretion of the MoEA to grant/not grant the change in the Business license as per their norms prevailing at that time.

Change in the Firm's Name

  • The change shall be announced with reasons in the news media after which one month observation period will be kept before processing the change. A nominal lump-sum fee of Nu. 500/- will be charged for the change in firm's name. 

Change in the Location

  • The applicant shall apply the change with reasons while applying and a nominal lump-sum fee of Nu. 500/- will be charged for the change. 

Terms & conditions of certification:

  1. The holder of registration certificate issued by CDB is qualified to participate in public procurement procedure.

  2. The issuance of registration certificate will be based largely on the fulfillment of the minimum criteria set against classification and categorization as applicable and upon certification by competent authority for construction professionals.

  3. Registration certificate holder is responsible for complying with the CDB Manual, relevant Guidelines and other legal instruments issued from time to time by CDB and any other relevant laws during the validity period.

  4. Without compromising the individual rights and the prevailing laws, CDB reserves the right to use and disclose such information in any form of publication in the interest of general public.

  5. CDB will not be accountable for any or fabricated submission that could have led to the fulfillment of the criteria and subsequent issue of registration certificate.

  6. Applicant shall be liable for penalty for forgery of documents as mentioned in the Penal Code of Bhutan and any other relevant laws.

  7. Registration certificate once issued would not relieve the certificate holder of any relaxation on the minimum requirements for registration.

  8. In pursuant to the provisions of Companies Act of Bhutan and other applicable laws, the certificate issued is non-transferable even if the promoters separate and establish similar companies.

  9. Registration certificate cannot be leased or subleased to any individual or another firm.

  10. Registration certificate is valid during the period for which it was issued provided it has not been cancelled, de-registered, suspended or revoked by CDB or any other competent authority.

  11. Firms failing to renew registration certificate after 13 months from the expiry date will be de-registered. 13 months hereby includes one month of grace period provided to the registrants.

  12. De-registered applicant remains in force for two years from the date of deregistration except for those applicants who could not renew despite reasonable efforts. 

  13. Failing to renew registration certificate within the expiry date will lead to penalty of Nu.100 per day and renewal of the registration certificate shall be applied after thirty days of its expiry.

  14. Failing to pay the fees for approved application within 30 days shall lead to cancellation of the application.

  15. All registered construction firm or other registrants as may be applicable shall produce certificate of the mandatory course in order to apply for renewal of the registration certificate.

  16. Any registrants as may be applicable may apply online using Application Form for upgrading of his category and or for additional classification, categories and sub-categories: 

    1. at any time during the validity of certificate; or

    2. at the time of renewal.

  17. No provisional certificates shall be issued except for the following if the registration certificate has expired:

    1. Issuance or renewal of labour permit; or

    2. Issuance or renewal of engineer's permit.

  18. No contractor can submit bid, participate in bidding or be on the contention for award if the registration has expired.

  19. No contractor can undertake works which is not within the scope of the registration.

  20. CDB may verify the resources committed for the projects as and when desires.

  21. Large and medium contractors and consultants shall have office established with signboard and requirements determined by CDB.

  22. Registrants as may be applicable, shall update any changes online in their establishment address, contact details or any pertinent particulars within one month from the respective changes.

  23. The registration is subject to verification whenever the CDB so desires for which the mandatory requirement of manpower and equipment as may be applicable shall be monitored respectively and during the time of which every firm or individual must extend necessary support and cooperation.

  24. The CDB Registration Certificate shall be downgraded, suspended or cancelled at any given time if the:

    1. Holder has contravened provisions of this Guideline, other Guidelines and any other relevant laws in force;

    2. Holder undertakes unlawful participation in the procurement process;

    3. Holder does not possess the minimum requirements prescribed by CDB during the physical verification;

    4. Holder has obtained the same due to false submissions;

    5. Holder becomes bankrupt or winds up;

    6. Holder has been adjudged unsound mind by a competent court;

    7. Holder engages in fronting;

    8. Holder has been found guilty of professional misconduct after an inquiry held; or

    9. Holder has been charged by the court for penal offence.

Registration of Foreign Firms/JVs and among National contractor for procurement of works

Based on the decision of the 56th Board Meeting held on 5th May 2011 and vide Circular # MoWHS/CDB-2/2011-12/10 dated 4th July 2011, it was approved as folows:

  1. Foreign construction firms who wish to undertake construction works in Bhutan independetly or through Joint Ventures (JV) with Bhutanese construction Firm(s) are required to obtain CDB registration from the CDB Secretariat prior to partiipation in bidding for work(s). 
  2. Firms submitting bids as Joint Ventures (JV) partners shall actively particiapte in the entire process of procurement of works. All partners shall be jointly and severally liable and accuntable for the execution of the contract in accordance the provisions of Standard Bidding Document (SBD) and Procurement Rules and Regulation. 

The 47th Board Meeting of the Construction Development Board, has approved the following rules/criteria with regard to formation of Joint Venture (JV) among National contractors for procurement of works (RGoB Procurement only).

  1. Formation of Joint Venture (JV) shall be allowed only among construction firms/contractors registere with CDB in the same class.
  2. Construction firms/contractors shall be deemeed eligible to form joint venture for bidding for any contract subject to conditions in terms of number of works permitted to be undertaken simultaneously. Subject to meeting the bid capacity, Contractor shall be allowed to undertake contract not more than the maximum ceiling prescribed by the CDB, irrespective of whether the contract is excuted by the firm independently or on JV basis.
  3. For a Joint Venture to qualify, each of its partners shall meet at least 25 percent of minimum criteria as individual bidder while the lead partner shall meet at least 40 percent. However, either partner can use full turnover from the joint venture contracts for future biddings.
  4. The resources/fugures (turnover, liquid asset, manpower, equipment etc.) for each of the partners of a joint venture shall be taken into account/added to determine the Bidder's fulfillment of qualifying criteria.
  5. The prime contractor or the lead partner must have CDB registration for the particular category of work specified in the tender.
  6. Award of work under circumstances such as above require that the work is completed satisfactorily prior to new award. This is to ensure that contractors do not execute work simultaneously beyond the prescribed ceiling at any any given point of time.

For those Foreign firms wishing to obtain the CDB Registration Certificate, the Applicant must submit the following information:

  1. Copy of License/incorporation certificate from their country of establishment,

  2. Brief Company Profile

  3. Any other requirement that CDB may specify.
  4. The validity of Certificate of Registration for Foreign Firm is valid for a period of 1 (one ) years from the date of approval.

For further clarification, please contact us: registration@cdb.gov.bt or webmaster@cdb.gov.bt