A Complete Guide To CIDB SPKK Registrations
After a PPK certificate from CIDB, the next step for a contractor can be a Government Work Procurement Certificate (Sijil Perolehan Kerja Kerajaan or SPKK) which allows bidding government construction projects.
For contractors who want to handle their own application, our guide provides a complete overview of this certificate, broken down into:
- the meaning of SPKK ‘listed individuals’
- requirements for new applications / renewals
- government contract value limits
- how to submit an SPKK application, and
- SPKK offences and penalties
Note: You’re welcome read CIDB’s SPKK guide instead (be warned it’s in Bahasa Melayu) or skip the reading altogether and get in touch with us for help.
Otherwise, let’s begin!
Submitting an SPKK application
SPKK applications are made online via CIDB’s CIMS portal and carry a processing fee of RM50 for new applications and RM30 for renewals.
Payment must be made within seven days of submitting an application, and pnce payment is done, you can return to CIMS to view and print out your SPKK Certificate.
New application requirements
In addition to a valid PPK Certificate, applicants must meet these conditions:
- have no active disciplinary or court actions.
- meet their respective PPK grade paid up capital requirements
- have a valid minimum SCORE certification (3 stars for G5 – G7; 2 stars for G2 – G4).
- for G7 contractors, have ISO 9001:2008/2015 certification.
- comply with equity ownership conditions:
- SPKK shareholders cannot own over 5% equity in other companies with SPKK.
- board members, key management, and technical personnel are not registered with another company with an SPKK Certificate
Note: CIDB has temporarily halted new G1 SPKK applications – sorry!
Fee & validity period
There is no registration fee for the SPKK certificate itself, but all new applications incur a RM50 processing fee. Once granted, a contractor’s SPKK validity period follows the expiry date of their PPK certificate.
Renewals
G2 – G7 contractors must meet the paid-up capital and minimum SCORE requirements during application.
Meanwhile, there are additional limits to changes in company shareholding for G1 contractors.
- If new shareholders acquire more than 49% of the company’s paid-up or accumulated capital, the SPKK will be revoked.
- Also, new shareholders cannot be a majority shareholder unless they have been with the company for at least five years alongside the existing shareholders.
As new G1 applications are currently frozen, a revocation is effectively permanent.
Key operational rules
During and after SPKK registration, a contractor must make note of four mandatory requirements and restrictions that govern a contractor’s daily operations and participation in tenders:
- their permitted operational areas
- who to make their listed individuals
- their contract limits, and
- punishable offences
Operational areas
The grade of the SPKK determines where a contractor can bid, namely:
- G1 and G2 are restricted to their registered districts or states for quotations
- G4 to G7 can bid for tenders nationwide
SPKK listed individuals
SPKK listed individuals are displayed on an SPKK certificate and are the only ones allowed to sign contracts and offers linked to the certificate, and usually consist of shareholders, directors, and leaders.
Additionally, only they can attend site visits for quotations, tenders, and voting.
Each SPKK Certificate can have up to five listed individuals who meet these requirements:
- are Malaysian citizens.
- have an EPF/SOCSO contribution if they are a company employee
- are not associated with any other company with a valid SPKK Certificate
Government contract value limits
Contract value limits vary by contractor grade, and are as follows:
| Grade | Building / Civil / Mechanical (RM) | Electrical (RM) | Facilities (RM) |
| G1 | Up to 200,000 | Up to 200,000 | – |
| G2 | 200,001 – 500,000 | Up to 500,000 | – |
| G3 | 500,001 – 1,000,000 | Up to 1,000,000 | – |
| G4 | 1,000,001 – 3,000,000 | 200,001 – 3,000,000 | Up to 3,000,000 |
| G5 | 3,000,001 – 5,000,000 | 200,001 – 5,000,000 | 3,000,001 – 5,000,000 |
| G6 | 5,000,001 – 10,000,000 | 200,001 – 10,000,000 | 5,000,001 – 10,000,000 |
| G7 | Above 10,000,000 | Above 200,001 | Above 10,000,000 |
This is why everyone wants to be a G7 contractor!
Offences & penalties
Disciplinary actions will be taken against SPKK holders for violations as outlined below.
| Offence | Penalty |
| Forging or amending information / documents to participate in tenders or obtain contracts | 2 year suspension |
| Withdrawing before tender decision | 1 year suspension |
| Withdrawing after contract is offered | 2 year suspension |
| Subcontracting without client approval | 2 year suspension |
| Failure to meet contract obligations: i. Delay ii. Not meeting specifications | Warning |
| Contract termination for projects called by tender | 2 year suspension |
| Contract termination for projects called by quotation & Requisition (voting work) | 1 year suspension |
| Contractor deliberately participates in government work procurement during suspension period | a. SPKK Registration Revocation b. Board of Directors / Owners blacklisted for 3 years Note: New SPKK registrations can only be made by the Board of Directors/Owners after punishment period ends |
| Other violations related to offer and contract conditions | Warning |
Companies subjected to SPKK disciplinary action may submit an appeal online within 21 days from the effective date of the SPKK action against the company.
Let MISHU help with your SPKK registration
Consider engaging our CIDB registration services to handle all your license and certification needs – we’re professional, fast, and reasonably priced!