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Tender Value Range for Construction Industry Adjusted

July 8, 2019

Department of Public Works

8 July 2019

The range of tender values in terms of the Construction Industry Development Regulations has been adjusted.

The public works department published the tender value range adjustments in Government Gazette 42561.

The adjustments were made after consultation with the Construction Industry Development Board (CIDB).

According to the notice, the range of tender values is used to determine the value of contracts that contractors are considered capable of undertaking.

Contractors are listed on a register of contractors according to various grades.

All contractors seeking to participate in public sector construction works must be registered with the CIDB with the exception of home builders, labour-only subcontractors and suppliers.

Some of the proposed adjustments include a maximum value for a contract for grade 1 contractors of R500 000, R3 million for grade 3, R10 million for grade 5 and R200 million for grade 8.

The range of tender values is adjusted using producer price index final manufactured goods.

According to the department, the “different index options (Consumer Price Index, Producer Price Index Final Manufactured Goods, Producer Price Index Building & Construction and Construction and Contract Price Adjustment Provision) were considered and were tested for appropriateness, volatility and reliability”.

The adjustments kick in three months after the date of publication.