If you’re in the construction industry in South Africa and want to win government tenders, you’ll quickly come across CIDB grades. The Construction Industry Development Board (CIDB) uses this grading system to decide which projects contractors are eligible to bid for.
For many small and medium Black-owned construction businesses, understanding what grade you qualify for, what it costs, and how to upgrade is key to growing and competing for bigger contracts.
1. What Is the CIDB and Why Do Grades Matter?
The CIDB (Construction Industry Development Board) is a government body that regulates construction contractors.
- Every contractor that wants to apply for government construction projects must be registered with CIDB.
- Your grade determines the size (value) of the contracts you can bid for.
- Buyers check your CIDB grade on the CIDB Register of Contractors before awarding contracts.
Important: If your grade is too low, you cannot apply for higher-value projects.
2. How CIDB Grades Work
There are nine grades (1–9). The higher your grade, the larger the tender values you can qualify for.
Grade | Maximum Tender Value |
|---|---|
Grade 1 | Up to R200,000 |
Grade 2 | Up to R650,000 |
Grade 3 | Up to R2 million |
Grade 4 | Up to R4 million |
Grade 5 | Up to R6.5 million |
Grade 6 | Up to R13 million |
Grade 7 | Up to R40 million |
Grade 8 | Up to R130 million |
Grade 9 | No limit (any size contract) |
3. Requirements for Each Grade
Your grade is based on two main factors:
Financial capability
- Annual turnover
- Working capital
- Best turnover over the past two years
Work capability (track record)
- Largest project completed
- Type of work done (electrical, civil, building, etc.)
Tip: Start with Grade 1 (entry level) and upgrade as you complete projects and grow financially.
4. Costs of CIDB Registration
The registration fees depend on your grade:
- Grade 1: ±R450 per class of works (flat fee)
- Grades 2–9: Application fee + annual fee (based on grade)
- Renewal is required every 12 months
- Payment must be made before your registration is active
5. How to Register
- Go to https://registers.cidb.org.za
- Complete the online application
- Upload required documents:
- CIPC registration documents
- ID copies of directors
- Financial statements / bank statements
- Proof of completed projects (for higher grades)
4.Pay the registration fee
5.Wait for verification and approval
6. How to Upgrade Your Grade
- Complete projects at the maximum of your current grade (and keep proof)
- Grow your financial standing (annual turnover and bank records)
- Apply for an upgrade online through CIDB
- Submit supporting evidence (completion certificates, financials, project records)
Fast-Track Tip: Build partnerships or joint ventures to qualify for larger projects and use these as track record proof.
7. Common Mistakes to Avoid
- Applying for tenders above your grade (automatic rejection)
- Submitting incomplete financial or project records
- Forgetting to renew registration annually
- Not keeping proper documentation of completed projects
8. How etenderportal.co.za Helps
On etenderportal.co.za you can:
- Search for tenders by CIDB grade
- Filter projects that match your business size
- Learn step-by-step how to upgrade your grade for bigger opportunities
9. Final Tips
Your CIDB grade is your passport to construction tenders in South Africa. Start where you qualify, deliver quality work, and grow step by step.
Government tenders are one of the most powerful ways to grow your business — if you’re prepared and compliant. Keep your CIDB registration active, and aim to upgrade as your capacity increases.