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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 2019, 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. CDB 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.

Accordingly, the Construction Development Board (CDB) has developed a online registration system called e-Zotin. The application system will be accessible from www.cdb.gov.bt and www.citizenservices.gov.bt , wherein all Contractors who wish to participate in the contracting job of construction sector in Bhutan must first be registered through online with the CDB.   

The classification, categorization and registration of Contractors by the Construction Development Board through the use of uniform procedures and criteria, provides a quick access to updated records of Contractors 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. 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 are classified into 3 (Three) Class, namely Large Class, Medium Class, and Small Class. The scope of their activities will be categorized into W1, W2, W3 & W4 (for detail refer "Categorization of Infrastructure Projects")

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 or other public work projects. The system prevents the need for formal pre-qualification process of Contractors, and therefore allows the government contracts to be awarded and executed faster.

REGISTRATION SYSTEM

The Construction Development Board (CDB) has developed a Contractors Registration System based upon a classification of Contractors and Categorization of Works. The registration of Contractors, re-registration, up-gradation, and any matters related to Contractors 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 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

 5 – 15 million

 ≤ 5 million

Maximum number of contracts at a time

 5 Nos.

 4 Nos.

 2 Nos.

Note: The above values are based on the agencies estimate and not the quoted value which shall be effect from 1st September 2019.

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. The application system will be accessible from www.cdb.gov.bt and www.citizenservices.gov.bt .

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

  • A registration certificate is issued 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:

1. 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), latest undertaking letter along with copy CID shall be submitted with the application. 

Human 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

1

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 (Bhutanese) 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 

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. 

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:

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

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.

Change due to down gradation

  • Submit complete online registration forms.
  • CDB registration fees as applicable
  • Letter of consent for down gradation

Registered Office

All the Large and Medium class must establish a registered office with proper postal address within their registered Dzongkhag.

Terms & conditions of certification:

  1. As provided in clause 2.1.1.2 and 2.3.1 of Procurement Rules and Regulations 2019, the holder of this Certificate is qualified to participate in public procurement procedure.
  2. The issuance of CDB Registration Certificate will be based largely on the fulfillment of the minimum criteria set against classification of Contractor and Categorization of Works and upon certification by competent authority for construction professionals.
  3. All the registered contractors should comply with 'Code of ethics for Contractors' & Ethical code of Conduct for Contractors 2019.
  4. CDB will not be accountable for any false/fabricated submission that could have led to the fulfillment of the criteria and subsequent issue of CDB Registration Certificate.
  5. CDB Registration Certificate once issued would not relieve the certificate holder of any relaxation on the minimum requirements for registration.
  6. Notwithstanding the provisions of Companies Act of Bhutan, the certificate issued is non-transferable even if the promoters separate and establish similar companies.
  7. CDB Certificate cannot be leased or subleased to any individual or another firm.
  8. Certificate is valid during the period for which it was issued provided it has not been cancelled, suspended or revoked by CDB or any other competent authority.
  9. Failing to renew within the expiry date will lead to penalty of Nu.100 per day.
  10. Failing to pay the fees for approved online application within 30 days will lead to cancellation of the application.
  11. All registered construction firm must attend the mandatory refresher course in order to apply for renewal.
  12. No Contractors can submit bid, participate in bidding  or be on the contention for award if the registration has expired.
  13. No Contractors can undertake/implement works which is not within the scope of the registration.
  14. CDB may verify the resources committed for the projects as and when desires.
  15. The registration is subject to verification whenever the CDB so desires. CDB will inspect the minimum mandatory requirement of manpower and equipment of Large and Medium contractors and the during the time of monitoring, every firm must extend necessary support and cooperation to CDB Officials.
  16. Large and Medium Contractors must have Office established with Signboard (requirements of office and signboard as determined by CDB)
  17. Registered firms are required to inform the CDB of any changes in their address, contact details or any pertinent particulars within one month.
  18. The CDB Registration Certificate can be revoked, downgraded, suspended or cancelled at any given time if the:
  • Holder undertakes unlawful participation in the procurement process;
  • Entity does not possess the minimum requirements during the physical verification process (at the discretion of CDB);
  • Entity has obtained the same due to false submissions;
  • Entity becomes bankrupt or winds up; or
  • Entity has been charged by the court for penal offence.

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

Any Joint Ventures (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.