A Complete Guide To CIDB G2 Requirements

G2 contractors in Malaysia are allowed to handle construction projects worth up to RM500,000, a significant step up from the RM200,000 limit for G1 contractors just one grade below.

Despite the increase in potential opportunities, becoming a G2 contractor is still very accessible for smaller ventures, and for contractors who want to handle their own application, our guide explains:

• how grades work in CIDB’s classification system
• minimum requirements
• required documents
• registration steps and fees, and
• certificate renewal

Let’s begin.

Not all G2 contractors are the same

Under CIDB’s system, a contractor’s grade reflects their financial capability, while a specific list of category and specialisation codes define their technical expertise, and so:

• grades determine the value of projects a contractor may undertake (up to RM500,000 for G2)
• categories and specialisations determine the types of projects they can perform

This makes selecting the right categories and specialisation codes vital regardless of grade, and for unfamiliar readers, we recommend our list of CIDB categories and specialisation codes to find yours.

G2 contractor requirements

The main certificate for a G7 CIDB contractor is known as a Contractor Registration Certificate or Sijil Perakuan Pendaftaran Kontraktor (PPK),

There are three main financial and technical requirements to qualify:

• company must be at least 70% locally owned
• paid-up capital of RM25,000
• employ one technical personnel with a Technical Certificate in a relevant field who is a Malaysian citizen

G2 SPKK requirements

An Sijil Perolehan Kerja Kerajaan (SPKK) certificate is optional but extremely common as it qualifies the G2 contractor for procurement of government construction projects in their registered state.

For contractors that want to participate in government tenders, an SPKK certificate comes after the initial PPK certificate is approved, and requires the following:

• valid G2 PPK certificate
• valid SCORE rating of 2 stars
• free from any disciplinary actions or court convictions at the time of application

G2 STB requirements

Eligible contractors that obtain an SPKK certificate may want to formally add on Sijil Taraf Bumiputera (STB) status, which qualifies them for public projects reserved for Bumiputera contractors.

For a G2 contractor the company must be at least 51% Bumiputera in the following areas:

• share ownership
• number of shareholders or partners
• board of directors
• key management positions
• financial control (including cheque signatories and overdraft guarantors)
• full time employees

Additionally, it must have a physical office with displayed signage and clear separation if sharing space with other Bumiputera companies, while sharing with non-Bumiputera companies is prohibited.

Required documents

All G2 applicants generally need to prepare the same core list, while some will need additional documentation as required by their chosen specialisation.

Core supporting documents

• copy of MyKad for applicant (owner/director) and all technical personnel
• academic certificates for all declared technical personnel
• proof of employment such as:
  • latest EPF contribution statements, or
  • Borang A with payment receipts for all technical personnel
• SOCSO statements or latest salary slips for personnel over 55
• latest annual return and proof of paid-up capital for Sdn Bhd / Bhd:
• latest financial statements / partnership agreement for ROB / PLT / SKM / ROS
• company information from e-Info SSM for PLT
• SKM or ROS certificate and official list of board of directors for cooperatives and associations

Additional supporting documents

• other agency certifications as required by specialisation such as SPAN, ST, JKKP, or PDRM
• competent person certificates (Sijil Pendaftaran Orang Kompeten), where applicable to tspecialisation

Please note that this list only refers to PPK registration, and for information on the other optional certificates, see our guides to SPKK and STB registrations respectively.

Registration steps, validity period & fee

All CIDB registrations and renewals are made online via CIDB’s CIMS portal, and first-time applicants will need to create a user account in the name of a company director or owner.

A G2 PPK certificate carries an annual fee of RM80 and is typically issued for two years, so once the account is created, applying for the certificate is a simple four-step process:

1. Select the relevant categories, specialisations, and grade
2. Upload supporting documents
3. Pay RM50 application fee
4. Pay RM160 fee once approved

If all documents are in order, CIDB applications typically take seven working days to process, and the two-year validity period starts from the date the registration fee is settled.

If they wish, contractors may now take steps to register for SPKK and then STB certificates.

However, all new contractors must fulfill mandatory post-registration compliance requirements.

Post-registration & renewal

During these first two years, new G7 contractors must fulfill the following to qualify for renewal:

• attending and passing relevant courses for their specialisation:
  • Integrity and Code of Ethics (all)
  • Business Management/ Kursus Pengurusan Kontraktor (for those without technical personnel)
• obtain at least 10 CCD points in one year
• obtain a valid SCORE rating (must be minimum 2 stars to renew SPKK as well)

For more information, see our guide to CCD points and how to obtain them.

The certificate renewal is also done online via CIMS and can be submitted up to 120 days before expiry. The license may later be renewed for up to three years, depending on CCD points accumulated.

Any valid SPKK and STB certificates can be renewed simultaneously provided the requirements are met.

Good luck with your application and if you need help, we’re just a click away 😊

Let MISHU handle your G2 CIDB application

Consider engaging our CIDB registration services to handle all your CIDB application and renewal needs, including PPK, SPKK, STB and code specialisation changes – we’re professional, fast, and reasonably priced!