A Complete Guide To CIDB Contractor Grades
Local contractors registering with CIDB are classified into seven grades (from G1 to G7) with each successive grade allowing a contractor to undertake higher value construction projects.
The higher the grade, the stricter the requirements, ensuring contractors are matched with suitable projects – and they can always move up or down in grade as circumstances change.
Our guide provides a complete overview of CIDB’s grading system for local contractors in Malaysia, breaking it down as follows:
- the link between grade and category / specialisation
- registration requirements
- the ways a contractor’s grade affects them
- changing grade as a contractor
Of course, you’re welcome to skip reading altogether and get in touch with us for help!
Otherwise, let’s begin.
The CIDB grade – category link
In addition to grade which mainly indicates financial capability, CIDB also classifies contractors based on their area of expertise using what are known as ‘kod bidang CIDB’ which consist of:
- categories which refers to four broad areas of construction work, and
- further specialisations under each category
The two contractors below have the same categories and specialisations but different grades.
They can undertake the same type of projects, but the G4 contractor can take on projects of a higher value.
While a contractor can only have one grade, they can register for multiple categories and specialisations so long as they can satisfy the required supporting documents – for details, see our list of kod bidang CIDB.
Registration requirements
Each grade has its own paid up capital and technical personnel requirements.
| Grade | Paid-Up Capital | Personnel Requirements |
|---|---|---|
| G1 | RM5,000 (RM10,000 for SPKK) | One Technical Certificate holder (if available) |
| G2 | RM25,000 | Same as G1 |
| G3 | RM50,000 | Same as G1 |
| G4 | RM150,000 |
Standard: Diploma holder
Category F: • With FM qualification: 1 × FM Diploma • Without FM qualification: 1 × Diploma + 3 years’ facility services / maintenance experience |
| G5 | RM250,000 |
Standard: Diploma holder with min 5 years’ experience OR Degree holder with min 1 year experience Category F: • With FM qualification: 1 × FM Diploma + 1 × Technical Diploma (3 years’ experience) • Without FM qualification: 1 × Degree + 1 year FM experience OR 1 × Diploma + 5 years FM experience |
| G6 | RM500,000 |
Standard: Diploma holder AND Degree holder, one with min 3 years’ experience
Category F: • With FM qualification: 1 × FM Degree + 1 × Technical Diploma (3 years’ experience) • Without FM qualification: 1 × Degree + 1 × Diploma (at least one with 3 years FM experience) |
| G7 | RM750,000 |
Standard: Two Degree holders, one with min 5 years’ experience OR Diploma holder AND Degree holder, both with min 5 years’ experience Category F: • With FM qualification: 1 × FM Degree + 1 × Technical Degree (3 years’ experience) • Without FM qualification: Either 1 × Degree + 1 × Diploma (both with 5 years FM experience) OR 2 × Degree holders (one with FM experience) |
How grade impacts a contractor
As a contractor’s grade indicates their financial and (to a certain extent) technical capability, it impacts every facet of their operation in both major and minor ways including:
- the maximum value of projects they can handle
- where they can operate
- construction categories they can enter
- how strictly they are assessed
- ownership and subcontracting rules for Bumiputera Status
- registration fees
- renewal requirements
Maximum project values
The most significant impact of a contractor’s grade is on the maximum contract value they can undertake depending on category.
| 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 with no upper limit | Above 200,000 with no upper limit | Above 10,000,000 with no upper limit |
Category F eligibility
While most categories are open to all grades, Category F (Facilities Management) is restricted to G4 contractors and above only, and in addition, contractors who wish to apply for this category cannot operate as a Sole Proprietorship, conventional partnership or LLP.
Geographic area of operation
A contractor’s grade limits how wide a net they can cast for projects, particularly government work:
- G4 – G7 (and G3 with STB status) contractors can tender for projects anywhere in the country
- G3 contractors without STB status and G2 contractors are limited to the state they are registered in
- G1 contractors are restricted to the district where they are registered in
SPKK requirements
An SPKK certificate qualifies holders to bid on government construction projects, and a contractor’s grade impacts the required star rating they must have to obtain SPKK under a scheme called SCORE:
- G5 to G7 contractors need at least 3 stars, while
- G2 to G4 contractors need at least 2 stars
Meanwhile, G1 contractors who wish to register for SPKK certification only need to go through a simpler assessment system called MCORE – and they don’t even need a specific rating!
STB requirements
STB stands for Sijil Taraf Bumiputera and allows eligible SPKK holders to bid on government construction projects reserved for Bumiputera contractors. From G2 – G7, the general eligibility standard is to 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
Meanwhile, a G1 contractor must be 100% Bumiputera across these areas.
Additionally, G2 – G7 contractors are allowed to subcontract up to 70% of the value of a project to non-Bumiputeras, G1 contractors are prohibited from subcontracting any work to non- Bumiputera companies.
Registration fees
While all applications carry a processing fee of RM50, the PPK certificate annual fee varies by grade:
- G1: RM20.00
- G2: RM80.00
- G3: RM150.00
- G4: RM350.00
- G5: RM700.00
- G6: RM1,000.00
- G7: RM1,400.00
That’s right, the certificate fee for G1 is lower than the processing fee!
CCD points
The Contractor Continuous Development or CCD programme is meant to ensure contractors stay up to date with industry developments and requires earning a certain number of CCD points within a year to qualify for one year renewal:
- G1 & G2: 10 Points
- G3 & G4: 20 Points
- G5 & G6: 30 Points
- G7: 40 Points
Contractors may renew their PPK certificate for up to three years depending on the number CCD points collected compared their grade minimum – 60 CCD points would entitle a G3 contractor to a 3-year renewal, but a G5 contractor would only qualify for two years.
Renewal requirements
In addition to earning sufficient CCD points, contractors of different grades must fulfil different post-registration requirements to qualify for renewal:
- complete required training courses:
- Integrity & Code of Ethics Course for all new contractors
- Business Management Competency (SKP) for G1–G3 without technical personnel
- Facility Management Training for Category F contractors
- G2–G7 contractors must undergo a SCORE assessment
- SPKK G2 – G4 must earn 2 stars while G5 – G7 need 3 stars
- G1 contractors need only undergo an MCORE assessment
As a rule, the higher the grade, the stricter the requirements!
Changing CIDB grades
Whether they want access to higher-value projects or enjoy more relaxed requirements, contractors can apply for any grade change if they meet the requirements of the grade being applied for.
If there are fewer than 120 days remaining on the current CIDB license, the contractor can combine a grade change request with their renewal application, and fees are as follows.
| Type of Fee | Fee |
|---|---|
| Grade Change | RM50.00 |
| Downgrade | RM100.00 |
| Upgrade | Difference between new grade’s annual fee and previous grade’s renewal fee |
The only exception is a downgrade to G1 if SPKK-registered which revokes the SPKK certificate.
We wish you all the best with your CIDB registration, and if you need help, that’s what we’re here for!
Let MISHU handle your CIDB registration
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FAQs on contractor CIDB grades
- What does a CIDB contractor grade mean?
💡A CIDB contractor grade indicates a contractor’s financial and technical capacity, and determines the maximum project value they can undertake. Grades range from G1 (lowest) to G7 (highest). - What is the highest CIDB contractor grade?
💡G7 is the highest CIDB contractor grade. G7 contractors can undertake projects above RM10 million with no upper limit, subject to their registered category and specialisation. - What are the CIDB G1 contractor requirements?
💡G1 contractors require RM5,000 paid-up capital (or RM10,000 for SPKK registration), one Technical Certificate holder if available, and 10 CCD points for annual renewal. - What are the CIDB G4 contractor requirements?
💡G4 contractors require RM150,000 paid-up capital and one Diploma holder as technical personnel. Category F contractors must fulfil additional Facility Management personnel requirements. - What are the CIDB G5 contractor requirements?
💡G5 contractors require RM250,000 paid-up capital and either a Diploma holder with 5 years’ experience or a Degree holder with 1 year’s experience. - What are the CIDB G6 contractor requirements?
💡G6 contractors require RM500,000 paid-up capital and both a Diploma holder and Degree holder, with at least one having 3 years’ relevant experience. - What are the CIDB G7 contractor requirements?
💡G7 contractors require RM750,000 paid-up capital and either two Degree holders (one with 5 years’ experience) or a Diploma holder and Degree holder with 5 years’ experience. - Can a contractor change their CIDB grade?
💡Yes. Contractors can upgrade or downgrade their CIDB grade by applying for a grade change, provided they meet the requirements of the new grade.