CIDB Grade 1-9 Tenders: How Grading Affects Your Tender Opportunities
CIDB Grade 1-9 Tenders: How Grading Affects Your Tender Opportunities
The Construction Industry Development Board (CIDB) grading system determines which construction tenders your company can bid for in South Africa. Understanding this system is essential for any construction business seeking government work.
CIDB Grading Explained
The CIDB registers contractors in grades from 1 (entry level) to 9 (unlimited), with each grade determining the maximum contract value you can tender for.
Grade and Maximum Contract Values (2026)
| CIDB Grade | Maximum Contract Value | Typical Businesses |
|---|---|---|
| Grade 1 | R200,000 | One-person operations, startup contractors |
| Grade 2 | R650,000 | Small contractors, emerging businesses |
| Grade 3 | R2,000,000 | Small established contractors |
| Grade 4 | R4,000,000 | Growing construction companies |
| Grade 5 | R6,500,000 | Medium-sized contractors |
| Grade 6 | R13,000,000 | Established construction firms |
| Grade 7 | R40,000,000 | Large construction companies |
| Grade 8 | R130,000,000 | Major contractors |
| Grade 9 | Unlimited | Top-tier construction firms |
CIDB Grade 1 Tenders
Grade 1 is the entry point for new construction businesses. While limited to R200,000 per contract, Grade 1 tenders are numerous and competition is lower for well-prepared bidders.
Typical Grade 1 opportunities:
- Minor building repairs and maintenance
- Small painting contracts
- Basic plumbing and electrical work
- Fence installation
- Small paving projects
How to succeed at Grade 1:
- Focus on quality and completing on time
- Build references from completed projects
- Keep financial records clean for future upgrading
- Register on the CSD for government procurement
How to Upgrade Your CIDB Grade
Upgrading requires demonstrating:
Financial Capability
- Annual turnover matching the target grade
- Audited financial statements
- Proof of access to credit/banking facilities
Works Capability
- Completed projects at your current grade
- Project completion certificates
- Client references
Track Record
- Minimum number of completed projects
- Projects must be in the relevant class of works
- Projects must meet value thresholds
CIDB Classes of Works
Contractors register in specific classes:
| Code | Class of Works |
|---|---|
| CE | Civil Engineering |
| GB | General Building |
| ME | Mechanical Engineering |
| EB | Electrical Engineering (Building) |
| EI | Electrical Engineering (Infrastructure) |
| EP | Engineering & Process Plants |
| SO | Specialist Works |
Finding Tenders by CIDB Grade
On ProTenders, you can search for construction tenders and filter by estimated value to find opportunities matching your CIDB grade. Many government tenders specify the required CIDB grade in the tender notice.
Tips for Each Grade Range
Grades 1-3 (R200K - R2M):
- Municipal maintenance contracts
- School and clinic repairs
- Small housing projects
- Focus on building track record
Grades 4-6 (R4M - R13M):
- Medium-scale construction
- Water and sanitation projects
- Road rehabilitation
- Government building projects
Grades 7-9 (R40M - Unlimited):
- Major infrastructure projects
- Highway construction
- Large housing developments
- Hospital and school construction
Common Mistakes to Avoid
- Bidding above your grade — Automatic disqualification.
- Expired CIDB registration — Check validity annually.
- Wrong class of works — Ensure your registration covers the tender category.
- Not upgrading in time — Plan upgrades proactively as you complete projects.
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