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National Registration and Grading Scheme for Construction Contractors
 
Different client organizations had been registering contractors during the past using different criteria. To avoid anomalies and to maintain uniformity, the government decided to register contractors centrally. In 1989 Central Registration scheme was started by ICTAD and it was revised in 1993, 1995 and 2008 & now the registration scheme is being continued by CIDA (Construction Industry Development Authority), (successor to ICTAD). Registration and grading is a screening process for the capabilities of prospective contractors to determine their general ability to undertake different types and sizes of projects without reference to any specific contract. Registration and grading will be determined by evaluating a contractor mainly on his financial capability, the technical ability with staff and plant & machinery, and the experience gained in relevant fields. Initially under this scheme the contractors were classified under 10 grades (M1 to M10) on financial terms. "M" Grading system was revised in 2008 with the introduction of a system with grades from C1 to C10 on financial terms.

This scheme was revised in 2015 & the new grading system CS2 to C9 is introduced.

Meanwhile ICTAD registration (now known as CIDA registration) is a requirement for obtaining government contracts and there are over 2500 Construction Contractors registered with CIDA. A Database of contractors is maintained.
 
(1)  Purpose / benefits of Registration Scheme
 
  The client organizations can select the right contractor to the project by following the grading system. But this registration scheme is not intended to replace the pre-qualification for major contracts.
The Grading system motivates the contractor for self development, for upgrading while preventing contractors from under taking project beyond their capabilities.
To ensure the contractors to complete projects within the set times, cost and quality targets.
 
(2) For whom is this applicable

Contracting organizations registered in Sri Lanka for the purpose of carrying out the business of Building/Civil Engineering, Electro Mechanical, Piling & Specialized construction either with the Registrar of the Companies under the Companies Act or with the Provincial Secretaries.

Having minimum 51% ownership by Nationals of Sri Lanka.
 
(3) Validity of Registration
Once granted the registration is valid for 03 years & needs to be renewed, thereafter
 
 
(4) Grades and Financial Limits of the Contractor Registration Scheme
 
Financial Limits of the Contractor Registration scheme have been set to suit the present position of the Construction Industry. The 'Point System' for the evaluation of contractors have also been adjusted accordingly. The Guidelines for Grading of Construction Contractors - (CIDA/ID/10) is available for sale at CIDA Information Centre. A Record Book (from different colours to different sectors) is being issued for the convenience of all the parties. The 'abbreviations' for the 'Grades' of schemes "C" (Building & Civil Engineering), "EM" (Electrical Mechanical Services), "SP-C" (Specialized Constructions) & "GP" (Piling), and the 'Financial Limits' are given below.
 
However, the previous 'M' system is no more effective from 1st September 2010.
 
As such the client organizations are requested to call bids for their projects specifying the relevant "Financial Limits" of the new 'C' scheme..
 
Main Contractor :
 
Speciality
Grade
Financial Limit (Rs. Million)
Registration Fee per year Rs.

Building Construction

Highway Construction

Bridge Construction

Water Supply and Sewerage

Irrigation and Drainage Canals

Dredging and Reclamation

Storm Water disposal and Land Drainage

Maritime Construction

Heavy Construction (Areas to be Specified)

CS2
         X > 3000
500,000.00 + VAT
CS1
3000 ≥ X > 1500
300,000.00 + VAT
C1
1500 ≥ X > 600
150,000.00 + VAT
C2
600 ≥ X > 300
60,000.00 + VAT
C3
300 ≥ X > 150
37,000.00 + VAT
C4
150 ≥ X > 50
31,000.00 + VAT
C5
50 ≥ X > 25
26,000.00 + VAT
C6
25 ≥ X > 10
20,000.00 + VAT
C7
10 ≥ X > 05
15,000.00 + VAT
C8
05 ≥ X > 02
8,000.00 + VAT
C9
02 ≥ X
6,000.00 + VAT
 
Financial Limits (Effective from June 2015)
 
Specialist Contractor :
 

Specialty

Sub Speciality

Grade

Financial Limit
(Rs. Million)

Registration Fee per year Rs.

Electrical & Mechanical Services (EM)

Mechanical Ventilation and Air Conditioning (MVAC)
Refrigeration (RF)
Electrical Installations (Low Voltage) (EI-LV)
Plumbing & Drainage (PD)
Elevators, Escalators & Travellators (EET)
Generators (Gen)
Electrical Installation (Medium Voltage) (EI-MV)
Extra Low Voltage Installations (Data, Telecommunication and Security Systems, Public address systems, Pipe music systems (ELV)
Fire Detection, Protection & Suppression (FDPS)
Medical Gas Systems (MG)
LP Gas Systems (LPG)
Heavy Steel Fabrications (HSF)

EM 1

X ≥ 50

31,000/- + VAT

EM 2

 50  ≥ X > 25

26,000/- + VAT

EM 3

25  ≥ X > 10

20,000/- + VAT

EM 4

10  ≥ X > 02

15,000/- + VAT

EM 5

 02  ≥ X

5,650/- + VAT

Specialised Construction Contractors (SP-C)

Aluminium & Finishes (A&F)
Floor, Wall & Ceiling Finishes (FW&C) [must specify the finish]
Carpentry & Joinery (Carp)
Light Metal Work (ME)
Landscaping (LA)
Furniture, Fittings & Equipments (FF&E)
Water Proofing (WP)
Swimming Pools (SP)
Industrial
Domestic
Soil Nailing & Stabilization (SN)

SP1

X ≥ 50

31,000/- + VAT

SP2

50  ≥ X > 25

26,000/- + VAT

SP3

25  ≥ X > 10

20,000/- + VAT

SP4
10  ≥ X > 02
15,000/- + VAT

SP5

02  ≥ X

5,650/- + VAT

Piling

Geotechnical Piling - Pre Cast (GP-P)
Geotechnical Piling - Bored Cast Insitu (GP-B)

GP-P

X  ≥   50

25,000/- + VAT

GP-B1

X ≥ 150

50,000/- + VAT

GP-B2

150  ≥ X  >   50

25,000/- + VAT

GP-B3

50  ≥ X  >   10

11,500/- + VAT

GP-B4

10  ≥ X

6,500/- + VAT

 
Requirements of Documents for Registration / Record Book Changes

No.

Status

Documents Needed

Fee
(VAT to be added)

Up to C5 / EM2 / SP2 / GP-B2

C4 &Above GP-B1, GP-P, EM1, SP1

01

Change of Company Status

a). Individual ownership converting to a partnership

1).Notice on closing of the previous business from provincial council. (Original with a certified copy)

2).Certified copy of New Partnership registration ( Original may be required for proof).

3).Finance/Bank facility for the partnership if necessary.

2000/=

5000/=

b). Adding partner / Partners to an already existing partnership

1).Revised partnership Registration with New names (A certified copy to file & original for proof)

2000/=

5000/=

c). Removing Partners from an already existing partnership

1).Revised partnership registration with names removed. (A certified copy to file & original for proof)

2).Letter of information from the partners going out

3).(Whether the going out partners qualifications affect the current grade to be checked by CIDA staff)

4500/=

8500/=

d). Individual Ownership or a partnership converting to a limited liability company

1).Notice on closing down details of the previous company. (Original with a certified copy)

2).New Business Registration document from company registrar.

  • With details of Directors.
  • Business Address.
  • Share distribution details.

(Previous RB to be cancelled & returned to the contractors)

3).New RB with new number to be issued. (Original shall be produced with certified copies).

4).Finance/Bank facility in the name of listed company.

13,000/=

20,000/=

e). Change of name

(I).Individual Business

- Copy of the BR with the new name & (Name Changed” endorsement. (Original with a certified copy)

2000/=

5000/=

(II).Partnership

- Copy of the BR with the new name & with the (Name Changed”.

- Ensure that

  • (No change in BR number)
  • (No change of partners)

(Original with a certified copy)

3000/=

6000/=

(III).(Pvt) Ltd

- Copy of the new Business Registration document with the new name & with the “Name Changed” endorsement. .

- Ensure that

  • (No change in BR number)
  • (No change of Directors)

10,000/=

25,000/=

02

Loss of Record Book

- Copy of the Police Entry

- Affidavit from the contractor

01stDuplicate Issue

Rs.25,000/=+vat

02ndIssue

Rs.60,000/=+vat

03rdIssue

Rs.100,000/=+vat

01stIssue

Rs.60,000/=+vat

Rs.100,000/=+vat

03

Change of staff

- Copies of New certificates

- EPF payment/ other payment details relevant to new staff

-

-

04

New Record Book

(In case of pages become full)

- Submit the current book for proof (To be returned)

1000/= + vat

1000/= + vat

[ Note - All copies of documents submitted are to be certified by a Notary Public or a lawyer ]
 
For further information you may contact Development Division of CIDA. Information on contractors who possess valid CIDA registration can be searched from the Website.
 
 
 
 
  Construction Industry Development Act No - 33 of 2014  
 
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