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Construction Development Board

Contractor Registration Click here to apply for the service

OVERVIEW

In accordance with Chapter II, clause 2.3.1 of Procurement Rules and Regulations 2009, the 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. of Procurement Rules and Regulations 2009.

Accordingly, the Construction Development Board (CDB) has developed a online registration system called e-Zotin, wherein all Contractors/Consultants who wish to participate in the contracting/consultancy job of construction sector in Bhutan must first be registered through online with the CDB.   

The classification, categorization and registration of Contractors/Consultants by the Construction Development Board through the use of uniform procedures and criteria, provides a quick access to updated records of Contractors/Consultants and avoid possible irregularities attributed to adhoc/multiple/inconsistent registration.

The procuring agencies could specify the additional requirement (depending on specific jobs) to that provided in the evaluation of potential Contractors/Consultants. The requirements will vary greatly with the nature of the projects. The specific requirements will be established and assessed in the tender documents during the bidding stage of those projects.

The Contractors will be Classified into Three Class, namely Class Large, Class Medium, and Class Small. The scope of their activities will be categorized into W1, W2, and W3 & W4 (for detail refer "Categorization of Infrastructure Projects")
The Consultants are categorized into (a) Civil Engineering Services, (b) Architectural Services & (c) Electrical Engineering Services (for details refer "Consultants registration) 
 
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/Consultants to participate in the bidding of government or other public work projects. The system prevents the need for formal pre-qualification process of Contractors/Consultants, and therefore allows the government contracts to be awarded and executed faster.

REGISTRATION SYSTEM

The Construction Development Board (CDB) has developed a Contractors/Consultants Registration System based upon a classification of Contractors/Consultants and Categorization of Works. The registration of Contractors/Consultants, re-registration, up-gradation, and any matters related to Contractors/Consultants registration shall be carried out strictly in accordance with the specified principles and procedures.  

CDB Registration requirement henceforth shall apply to JVs (amongst National Contractors/Consultants or with Foreign Contractors/Consultants) & also to independent Foreign Construction or Consultancy Firms if they wish to participate in contract/consultancy works in Bhutan. 

All Ministries/Departments/Agencies (government corporate agencies) concerned in the public sector shall use these Registered Contractors/Consultants according to their classifications and categories in the execution of infrastructure projects. The private sectors & the NGOs are also encouraged to use the same.

ELIGIBILITY FOR REGISTRATION:
All Bhutanese citizens having attained the age of 18 years shall be eligible to register All Bhutanese are permitted to undertake business in any Dzongkhag of their choice. Census registration or ownership of landed property in a particular Dzongkhag shall not be a condition for eligibility to registration.
An applicant shall be entitled to only one Registration Certificate within the Kingdom.
The fees for registration shall be levied as per the "Schedule of fees".

Scope of Registration

Contractors shall be classified and registered under one of three classifications namely: Small, Medium and Large for each category of Projects.

Validity of Certificate of Registration

Contractors who have been duly registered with the Construction Development Board will be issued a Certificate of Registration valid for a period of two years.

At any time during the validity period of the Certificate of Registration, the Contractors may submit a request in the approved application form for upgrading of his category and/or for additional classification Headings/Sub-headings.

A late fee of Nu. 100 per day shall be levied for each day of delay (with 1 month of grace period after the expiry of the validity period) subjected to maximum of Nu. 3000.00 for Small. The renewal of the certificate of registration MUST be applied within thirty (30) days of its expiration date. 

Categorization of Infrastructure Projects

Infrastructure projects will be categorized into 4 separate Headings itemized under reference W1 to W4. Each heading generally covers the types of works that are executed under the Government's infrastructure program. A brief description of each Heading is given below:

Infrastructure Projects Categories
Categories Headings Description
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 Bhutanese Paintings 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 & Telecom Works Construction, rehabilitation and improvement of civil works in hydropower facilities, such as dam 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.
Permissible work volumes & values of Contractors

The Contractors will be classified according to his/her capabilities for each category of work. There are three classifications ranging from Large to Small. Contractors' 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.

Details (Large) (Medium) (Small)
Eligible bid amount (million Nu) > 15 million 4 – 15 million ≤ 4 million
Maximum number of contracts at a time 5 Nos. 4 Nos. 2 (provided the total amounts is < 4mn)
Maximum value of contracts at a time (million Nu) No ceiling No ceiling 4 million

Note: The above values are based on the agencies estimate and not the quoted value.

Classification is based upon the Contractors' human resources & equipment and facilities. For upgrading of classification and/or to request other categories of work, the Contractors may apply for an additional cateogry through online (e-zotin).

Because a Contractors 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 "Medium" Contractors for category W1 (Roads and Bridges), yet only be eligible as a "Medium" Contractors for category W3 (Buildings). In this case, the Contractors will maintain 2 classifications.

W2 will not have any Class such as Small, Medium and Large.

Registration Requirements (How to Register)

Contractors should register with the CDB prior to obtaining Trade License from the Ministry of Economic Affair. MoEA will grant licenses to only those Contractors that are recognised with the CDB.

  • The first step towards registering with CDB is to apply the application online (e-Zotin - www.cdb.gov.bt).

  • Also needs to submit Citizenship ID Card copy and Induction course certificate copy (for new registration only).

  • A registration certificate is awarded to the applicant after the receipt of fees. Please note that registration fees are calculated per category. The more categories that are awarded, the higher the total registration fees will be. Applicant must insist on proper receipt every time a payment is made.

  • If an applicant does not agree with the CDB's assessment, or desires an exemption from a particular requirement, he/she is eligible to request an appeal to the Board of CDB. Appeals will be decided by the Board during the next scheduled board meeting. For more information regarding the appeal process an applicant shall contact CDB.

  • Issuance of CDB Registration does not constitute the fulfillment of all the requirements to obtain Trade License. Requirements for Trade License will be stipulated by the concerned agencies.

Criteria for New Registration/Up-gradation of Contractors
Technical Capability (Personnel and Equipment Resources)

Applicants should satisfy the Construction Development Board that they have necessary full-time personnel stationed in Bhutan to undertake the work corresponding to the Classification/Category Heading applied for.

Personnel qualifications such as technical/professional qualifications (academic certificates), undertaking letter and appointment order shall be submitted with the application. 

Personnel Resources
Permanent Key Employees: Large Medium Small
W1 & W3 W4 W1 & W3 W4 W1, W3 & W4

1. Manager

1

1

1

2. Graduate Engineer

1 (Civil)

1 (Elec)

-

-

-

3. Diploma Engineer

2 (Civil)

1 (Elec)

1 (Civil)

-

-

4. Accountant

1

1

-

-

-

5. Site supervisor

2 (Civil)

2 (Elec)

1 (Civil)

1 (Elec)

-

The following documents have to be submitted to authenticate information on key personnel's:

  1. Academic transcripts and other relevant information;

  2. Copy of CID or valid work permits issued by the Immigration for Non-Bhutanese,

  3. Latest Undertaking letter;

NOTE:

  • Manager: The qualification of Managers of a firm recruiting fresh managers other than the proprietor should be class XII and above;

  • Site supervisor: The qualification of Site Supervisor of firms should be Class X and above during the replacement or re-registration if they are not able to commit the existing Site Supervisor;

  • Accountant: The qualification of Accountant/Accounts Officer for large firm should be Bachelor degree in the field of Commerce, Business Management, Business Administration and Accountancy during replacement or re-registration.

Applicants must also have owned construction equipment adequate to undertake the work corresponding to the Classification/Category applied for. The minimum requirements to be qualified for “Technical Capability” for different classifications are below:

Equipment Resources
Sl. No. Criteria Large Medium Small
W1 W3 W4 W1 W3 W4
1. Excavator (or) Pay loader (or) (Motor grader for W1) 1 1 - - - - No requirement
2. Road Roller 1 - - - - -
3. Truck 1 1 1 1* 1* 1*
4. Air Compressor 1 1* 1* - - -
5. Survey equipments Total Station 1* Leveling Machine -
6. Concrete mixer - 1 1 1 1 -
7. Vibrator - 1 1 1* 1* 1*
8. Crane Truck - - 1 - - -
9. Steel Shuttering set (sft) - 5000 - - 2000 -
10. Water Pump /Multi-meter - - 1 - 1 1
11. Meggar - - 1 - - 1
12. Max puller - - 1 - - -
Schedule of Fees (New Registration & Re-registration & Upgradation Fee)

A Contractor, who is issued a new Certificate of Registration, shall pay the Registration Fee corresponding to the Classification. The Contractors shall apply for re-registration one month before the expiry of the registration validity.

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

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

Categorization Fees (Nu) per Category Heading
New registration/Up-gradation Re-registration
Small 5,000/- 2,500/-
Medium 10,000/- 5,000
Large 15,000/- 7,500/-
Registered (W2) 1,500/- 1,000/-
Mode of payment

All fees shall be payable by cash in accordance with the procedures specified in The Financial Manual, the Royal Government of Bhutan. Fees once paid are not refundable. The Construction Development Board will adjust the fees after giving prior notice.

Change in contractors' particulars

Registered contractors are required to inform the construction development board of any changes in its management status, address or any pertinent particulars within one month of such change.

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/individuals) will be allowed under the following conditions:

  1. The Transferee should be a direct inheritor of licensee/certificate holder proven by property inheritance documents duly endorsed by competent authorities.

  2. He/she should have been associated in the same business for more than 5 years and continuously worked not less than 3 years prior to the request for transfer of CDB.

  3. Transfer of CDB Registration maybe allowed to be effected within the validity period of the certificate.

A nominal lump-sum transfer fee to 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.

Original CDB Certificate shall be surrendered to CDB

Change in the Location

The change shall be announced with reasons in the news media after which one month observation period will be kept before processing the change.

Original CDB Certificate shall be surrendered to CDB

Change due to down gradation

Submit complete registration forms.

Enclose the Original CDB Certificate or pay late fees.

CDB registration fees as applicable

Letter of consent for down gradation

Certificate of registration

The Certificate of Registration is the property of the Construction Development Board and it must be returned to the office where the Contractors/Consultants is registered whenever the Contractors/Consultants' registration has expired or is withdrawn for any reason.

Registered Office

Each Applicant (at least one partner in case of JV) must be a Bhutanese National and must establish a registered office with proper postal address.

Terms & conditions of certification
  1. The issuance of CDB Registration Certificate will be based largely on the submission of the applicant at the time of registration application (CDB shall from time to time carry out the physical verification process).

  2. CDB does not take the responsibilities of any false/fabricated submission that could have led to the fulfillment of the criteria and subsequent issue of CDB Registration Certificate.

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

  4. The CDB Registration shall be issued in the name of the establishment and also has reference of the proprietor/promoters.

  5. Certificate issued is non-transferable even if the promoters separate and establish similar companies.

  6. Certificate is valid during the period for which it was issued provided it has not be cancelled or suspended or revoked by CDB.

  7. A Contractor/Consultant shall apply for renewal of registration within 30 days before expiry.

  8. No Contractors/Consultants can submit, participate of be on the contention for award if the registration has expired

  9. No Contractors/Consultants can undertake/implement works which is not within the scope of the registration.

  10. The registration is subject to verification whenever the CDB so desires.

  11. The registered company shall inform CDB of the awarded work within one month of the award

Cancellation & suspension of CDB Certificates

The CDB Registration Certificate can be revoked, suspended or cancelled at any given time if the:

  1. Holder undertakes unlawful participation in the procurement process.

  2. Entity does not possess the minimum requirements during the physical verification process (at the discretion of CDB).

  3. Entity has obtained the same due to false submissions.

  4. Entity becomes bankrupt/winds up.

  5. Entity has been charged by the court.

  6. Re-registration is not done within ONE year from the expiry of validity

Registration of Foreign Firms/JVs

Henceforth any JV between Foreign Firm(s) & Bhutanese Companies or Foreign Firms (independently) wishing to participate (whether on invitation by the prospective client or through advertisement) in the Construction works in Bhutan need to be registered with CDB.

Joint Ventures between Bhutanese Firm(s) & Foreign will be issued specific CDB Certificate and they can participate in the specified work.

The Applicant must submit the following information:

  1. The Bhutanese Firm must already have a valid CDB Registration Certificate.

  2. The Foreign Firm wishing to obtain the CDB Registration Certificate must first prove that they are a legal entity in their place of operation.

  3. The application must specifically mention the job for which CDB registration is required.

  4. The CDB Registration Certificate will be used only within Bhutan.

  5. Brief Company Profile

  6. Copy of License/incorporation from the country of establishment (attested by District Magistrate)

  7. Copies of Relevant Past Experience (authenticated by client)

  8. Financial information (balance sheet) of past 5 years

  9. Power of Attorney of Authorized signatory (rank must atleast of second in command in the hierarchy)

  10. Any other requirement that CDB may specify

Once all the required details are submitted in every respect CDB will review the submission and if acceptable issue the Certificate within 2 weeks from the date of application.