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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.

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.

Under this scheme the contractors are classified under 10 grades (M1 to M10) on financial terms. This M grading system was revised in 2008 and new grading system C1 to C10 was introduced. The existing scheme M1 – M10 will be functioned for a grace period of 2 years in parallel with the revised scheme (C1 – C10). Meanwhile ICTAD registration is a requirement for obtaining government contracts and there are over 2000 Construction Contractors registered with ICTAD. 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 contractor’s from under taking project beyond their capabilities.
	To ensure the contractors to complete projects within the set times, cost and quality targets.

(2) Registration Scheme for Small Scale Contractors / Entrepreneurs – C - 11

Recently ICTAD has introduced a new registration scheme for small scale contractors with the objective of developing their career. This grade is called C-11 and financial limit for this grade is Rs. 500,000/= Requirements for Registration is as follows.

	A copy of the National Identity Card
	Grama Niladari’s recommendation and divisional secretary’s certification.
	Registration fee is Rs. 865/= inclusive of VAT.

(3) Grades and Financial Limits of the Contractor Registration Scheme

Financial Limits of the Contractor Registration scheme have been revised to suit the present position of the Construction Industry. The ‘Point System’ for the evaluation of contractors were also revised accordingly. The criteria for evaluation is similar to the previous system. The new Guidelines for Grading of Construction Contractors - (ICTAD/ID/10) is available for sale at ICTAD Information Centre.

A New Record Book in purple colour is being issued for the revised scheme, for the convenience of all the parties. The ‘abbreviation’ for the ‘Grade’ of the revised scheme is “C” and the revised ‘Financial Limits’ are given below. The revised scheme is being implemented from 01st September 2008.

Please note that the previous scheme (M 1 to M 10) will continue for a period of two more years, in parallel with the new scheme, from 01st September 2008 to facilitate the registered contractors to convert into the new scheme.

The client organizations have been requested to call bids for their projects specifying the relevant “Financial Limits” of both schemes during the period from 01st September 2008 to 01st September 2010.

However, the ‘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.

Financial Limits (Effective from 1st September 2008)

Main Contractor

Grade	Financial Limit (Rs. Million)
C1	X ≥ 600
C2	600 ≥ X > 300
C3	300 ≥ X > 150
C4	150 ≥ X > 50
C5	50 ≥ X > 25
C6	25 ≥ X > 10
C7	10 ≥ X > 05
C8	05 ≥ X > 02
C9	02 ≥ X
C10	01 ≥ X
C11	0.5 ≥ X

Main Contractors :

Specialty	Grade	Financial Limit (Rs. Million)
Electrical & Mechanical Services	EM 1	X ≥ 10
	EM 2	10 > X ≥ 05
	EM 3	05 > X ≥ 03
	EM 4	03 > X ≥ 01
	EM 5	01 > X
Finishing Trades	F 1	X ≥ 03
	F 2	03 > X ≥ 01
	F 3	01 > X ≥ 0.5
	F 4	0.5 > X
Piling	GP-P	150 > X ≥ 50
	GP-B1	X ≥ 150
	GP-B2	150 > X ≥ 50
	GP-B3	50 > X ≥ 10
	GP-B4	10 > X

The new registration scheme C 11 for small scale contractors/entrepreneurs was commenced on 08th July 2009.

For further information you may contact Development Division of ICTAD. Information on contractors who possesses valid ICTAD registration can be searched from the Website.

Corporation for the Development of the construction Industry Under the State Industrial Corporation ACT NO. 49 of 1957