Effective since July 20, 1995, registration with the Construction Industry Development Board of Malaysia (CIDB) under Section 25 of Act 520 (2011 Amendment) is mandatory for all contractors, both local and foreign, before they can sign and execute any construction work in Malaysia. Exemptions are only granted to those qualified under Section 40(1) of the Construction Industry Development Board of Malaysia Act 1994 (Act 520).

Any contractor found violating Section 25 upon conviction will be fined not less than ten thousand ringgit and not more than one hundred thousand ringgit under Section 29. Additionally, under Section 30, the Board has the authority to issue written notices to violating contractors, directing them to stop or discontinue construction work, and prohibiting them from taking responsibility for initiating or completing any construction work.

2. Registration Requirements

3. Types of Applications

3.1 New Registration

New registration is an application made by a company that does not yet have registration with CIDB. The company must comply with the registration criteria and conditions. Contractors will be registered according to the eligible Grade, Category, and Specialization. The new registration period is two years, and contractors must comply with the following conditions during this period:

• Attend and pass the Contractor Integrity and Code of Ethics Course
• Meet the minimum CCD points
• Attend and pass the Business Management course (SKP) - for grades G1 to G3 that do not have a Technical Certificate
• Attend and pass the Facility Management course (SKP) - for companies with the Facility (F) category
• Attend and pass the Facility Skills Competency Certificate course (SKK) - for companies with the Facility (F) category

3.2 Renewal

Registration renewal is an application made to extend the registration certificate period. Companies can apply at least one hundred and twenty days (120) before the expiry date of the Contractor Registration Certificate (PPK). Companies must comply with the criteria and registration requirements and be free from disciplinary action. The registration period is between one (1) to three (3) years depending on the accumulated CCD points.

CIDB reserves the right to reassess the grade/category/specialization of the existing contractor registration based on documents/information declared during renewal.

3.3 Re-registration

Re-registration is a renewal application made after the expiry date of the registration certificate. Companies must comply with the registration criteria and conditions and be free from disciplinary action. The registration period is between one (1) to three (3) years depending on the accumulated CCD points. CIDB reserves the right to reassess the grade/category/ specialization of the existing contractor registration based on documents/information declared during re-registration.

3.4 Registration Information Update

Registration information update is an application submitted by contractors to make changes to:

• Grade
• Category / Specialization
• Technical Personnel Information / Competent Person / Agency Certificate
• Capital / Shareholder Information Update

3.4.1 Grade Change

• Permitted grade change applications include downgrading or upgrading. However, applications to downgrade to G1 are not allowed if the company has SPKK. If done, the SPKK will be canceled and automatically the STB will also be canceled.
• Information that needs to be updated when applying for a grade change includes financial information/shareholder capital information/technical personnel information.
• Companies must comply with the registration criteria and conditions and be free from disciplinary action.
• The expiry period of the Registration Certificate starts from the date the registration fee is paid until the expiry date of the current Registration Certificate.
• If the remaining registration period is less than one hundred and twenty (120) days from the expiry date, the application can be made together with the renewal application. The validity period of the Registration Certificate starts from the date the registration fee is paid until the approved renewal period.
• Processing fee RM50.00
• The Registration fee for grade upgrade is the difference between the new grade fee and the renewal/re-registration fee of the previous grade, and the registration fee for grade downgrade is RM100.00

3.4.2 Category/Specialization Change

• Information that needs to be updated when applying for a category change is technical personnel information.
• While for specialization change applications, information that needs to be updated includes competent person information/agency registration certificate/declaration of projects if the specialization application is related to work evidence.
• Additional specialization can be applied for if the company can prove one of the following:-
  • The company has carried out work in the requested specialization by submitting a work offer letter or proof of completed work
  • Has a relevant Competent Person in that field (refer to appendix 6)
  • Registration with any registering agency under the Parliamentary Act (refer to appendix 6)
  • Has a Certificate of Management Proficiency (SKP) issued by CIDB in the requested field.
  • Has technical personnel experienced in facility services or maintenance/facility services or hospital maintenance)
• For applications to add Facility (F) category, only ROC/SKM/ROS companies registered in grade G4 and above are allowed to apply.
• Companies must comply with the registration criteria and conditions and be free from disciplinary action.
• The expiry period of the Registration Certificate starts from the date the registration fee is paid until the expiry date of the current Registration Certificate.
• If the remaining registration period is less than one hundred and twenty (120) days from the expiry date, applications for category/specialization changes based on technical personnel/competent person/agency certificate can be made together with the renewal application. The validity period of the Registration Certificate starts from the date the registration fee is paid until the approved renewal period.
• Processing fee RM30.00
• Registration Fee RM100.00

3.4.3 Changes to Technical Personnel/Competent Person/Agency Certificate Information

• Technical personnel/competent person and agency certificate information needs to be updated if there are changes from time to time. Whether these changes affect the registration grade/category/specialization or not, companies must do so to ensure that company information in the CIDB database is up-to-date.
• Companies must comply with the registration criteria and conditions and be free from disciplinary action.
• If the changes affect the registration grade/category/specialization, a Registration Certificate will be issued. If not, only an approval letter for the information change application will be provided.
• Processing fee RM30.00
• If the change results in a downgrade of the registration grade, the registration fee charged is RM100.00/ or if the registration grade increases, the fee is the difference between the new grade fee and the renewal/re-registration fee of the previous grade.

3.4.4 Shareholders/Capital

• Information on changes to shareholders/capital needs to be updated if there are changes from time to time. Whether these changes affect the registration grade/category/specialization or not, companies must do so to ensure that company information in the CIDB database is up-to-date.
• Companies must comply with the registration criteria and conditions and be free from disciplinary action.
• If the changes affect the registration grade/category/specialization, a Registration Certificate will be issued. If not, only an approval letter for the information change application will be provided.
• Processing fee RM30.00
• If the change results in a downgrade of the registration grade, the registration fee charged is RM100.00/ or if the registration grade increases, the fee is the difference between the new grade fee and the renewal/re-registration fee of the previous grade.

3.5 Special Permission to Participate in Tenders Outside Specialization

Special permission issued by CIDB in letter form to contractors to participate in tenders, where the specialization required by the client in the tender advertisement is not included in the Contractors Registration Certificate owned by the company.

3.6 Company Information Update

All contractors need to inform CIDB of any changes in details of information regarding their company within thirty (30) days from the date of such changes. Under Section 39 of Act 520 (2011 amendment), contractors may be fined not exceeding five thousand ringgit (RM5,000.00) if they fail to notify this matter.

Applicants need to submit applications online through CIMS by submitting supporting documents along with the processing fee. Companies that register their business with the Companies Commission of Malaysia (SSM) should note that any changes to company information involving the purchase of SSM data, applications for changes to information details at CIDB can only be made 14 days after the information changes are sent to SSM. Types of information changes and reference documents are as shown in Table J.

Table J - Types of Information Changes and Reference Documents.

Processing Period

Payment Method

Payment can be made online through the CIMS system. Payment using company checks or personal checks is not accepted. All fees paid are non-refundable.

Responsibilities of Registered Contractors

Payment can be made online through the CIMS system. Payment using company checks or personal checks is not accepted. All fees paid are non-refundable.

1. Local Contractors

i) General Conditions

• The issued Registration Certificate cannot be transferred.
• The Board has the right to review the contractors registration grade from time to time.

ii) Responsibilities and Obligations of Contractors

• Contractors shall comply with the provisions of the Construction Industry Development Board of Malaysia Act 1994 (ACT 520) (AMENDMENT 2011), regulations made thereunder, and any terms, conditions or restrictions imposed by the Board from time to time.
• Contractors cannot participate in any tender or carry out any construction work after the expiry of this Certificate and until it is renewed.
• Contractors cannot undertake to construct any construction project exceeding the construction work value stated under their registration grade and cannot carry out any construction project outside their registration category.
• Contractors shall submit information regarding any construction work or project within fourteen (14) days after being awarded.
• Contractors shall submit any information required by the Board from time to time.
• Contractors shall display the Registration Certificate issued by the Board or a copy of the Registration Certificate certified by the Board at their place of business.
• Contractors shall display the registration number on the signboard at each construction site.
• Contractors shall comply with the principles stated in the CIDB Contractor Code of Ethics Book.
• Contractors shall appoint skilled construction workers and site supervisors who are accredited and certified by the Board.
• All workers at the construction site must have a valid Construction Personnel Card.
• Contractors shall ensure that construction products or materials used are based on MS (Malaysian Standard) requirements or other standards approved by authorities in Malaysia and certified by the Board.

iii) Disciplinary Actions

According to Regulation 15, Contractor Registration Regulations (Construction Industry) 1995, the Board may cancel or suspend the registration of any registered contractor under these Regulations if:

• The Certificate holder has been adjudged bankrupt;
• A winding-up petition relating to the contractor has been submitted;
• The Certificate holder fails to comply with any provision of the Act or registration regulations;
• The Certificate holder has obtained the Certificate by making a false declaration or statement in writing or otherwise;
• The Certificate holder abandons the construction work being carried out;
• The Certificate holder is found guilty by a court or any investigative body established under any written law for negligence in the execution of construction works carried out;
• The Certificate holder has violated or failed to comply with; or has assisted in the violation of any terms, conditions or restrictions imposed by CIDB.

Note:

• Contractors whose registration has been cancelled or suspended are not allowed to participate in any new tenders or continue any construction work.
• CIDB may in certain circumstances allow contractors whose Registration Certificate has been cancelled to complete current work.
• Disciplinary actions and decisions made on the PPK will affect the SPKK status.

2. Foreign Contractors

i) General Conditions

• The Foreign Contractor Registration Certificate issued is not transferable.
• This certificate allows the certificate holder to carry out only the project specified in this certificate.
• This certificate does not allow the certificate holder to participate in any tender for any construction work or to carry out any other construction work.

ii) Certificate Validity Period

This certificate is valid until the expiry date of the project specified in this certificate.

iii) Responsibilities and Obligations of Contractors

• Foreign Contractors shall comply with the provisions of the Construction Industry Development Board of Malaysia Act 1994 (Amendment 2011) ("Act"), Regulations made thereunder, and any terms, conditions or restrictions imposed by the Board from time to time.
• If the project completion date is extended, the contractor shall apply to the Board within fourteen days before the expiry date to extend the Registration Certificate. Supporting documents must be attached.
• Foreign Contractors shall display the Registration Certificate issued by the Board or a certified true copy of the Certificate at their place of business.
• Foreign Contractors shall display their registration number on the signboard at every construction site.

iv) Disciplinary Actions

Foreign Contractor Registration will be cancelled, suspended if -

• The Foreign Contractor fails to comply with the requirements of any other written law;
• The Foreign Contractor has been adjudged bankrupt;
• A winding-up petition relating to the foreign contractor has been submitted;
• The foreign contractor has violated or failed to comply with any provision of the Act;
• The foreign contractor has obtained the Certificate by making or causing to be made any false declaration, certification, or fraudulent representation, whether in writing or otherwise;
• The foreign contractor has abandoned any construction work undertaken without reasonable cause;
• The foreign contractor is found guilty by a court or any investigative body established under any written law in connection with any construction work undertaken; or
• The foreign contractor has violated any terms and conditions of the Responsibilities and Obligations of Contractors as stated in paragraph 2.iii.

Certificate Printing

Printing of Contractor Registration Certificate (PPK) / Government Work Procurement Certificate (SPKK), Bumiputera Status Certificate (STB)

Certificates must be printed by the applicant online through the CIMS system. There is no longer any certificate submission at CIDB State/Branch counters. For applications to obtain duplicate certificates or reprinting of certificates due to loss/damage, applicants can print them online without any charges.

• The virtual Contractor Registration Certificate (PPK) can only be printed online after the registration fee has been paid.
• Government Work Procurement Certificate (SPKK) and Bumiputera Status Certificate (STB) can only be printed online after the application has been approved. No registration fee is charged for SPKK and STB.

Applicants need to keep the original documents for a period of 3 years from the date of application for the purpose of Contractor Compliance Assurance (CCA). The following are supporting documents that need to be uploaded according to the type of application made as in Schedule B.

Standard Terms of Construction Contract for Renovation and Small Projects

This contract is prepared to fill the gap that exists in the construction industry in Malaysia. Although several construction contracts have been published for the Malaysian construction industry – so far, there is no main contract written in simple language and none specifically meets the needs of renovation work and small projects. Although contracts can be made verbally, written contracts can avoid uncertainty. Well-written standard contracts in simple language can also help improve efficiency and avoid unnecessary disputes.

These standard contract terms can be used together with other documents such as drawings, specifications, and bills of quantities to form a complete construction contract. It can be used for any construction project – although its original purpose was for renovation work and small projects. No minimum or maximum price is set for the size of projects considered suitable for this contract as it can be used for all types and sizes of projects.

• TERMA STANDARD KONTRAK PEMBINAAN UNTUK KERJA UBAH SUAI DAN PROJEK KECIL (STCC-RSP 2015)
• STANDARD TERMS OF CONSTRUCTION CONTRACT FOR RENOVATION AND SMALL PROJECTS (STCC-RSP 2015)

Appendices

Opening of New G1 Bumiputera Contractor Registration

The Federal Government announced the reopening of new G1 Bumiputera Contractor registration on August 16, 2019, allowing qualified contractors to apply for registration as G1 Bumiputera Contractors starting September 1, 2019. The Governments decision to reopen new G1 Bumiputera Contractor registration aims to provide opportunities for the new generation, including graduates from skills training centers with technical backgrounds, to begin participating in the construction industry. This measure can produce more viable Bumiputera contractors who can play a major role in the construction industry.

• G1 Bumiputera Contractor Registration
• Contractor Registration Requirements and Procedures
• Facility Contractor Registration

Definitions

While we strive to ensure the accuracy of the information on this page, we encourage users to verify details with theCentralized Information Management System (CIMS) portalor theCIDB portalfor the most up-to-date and comprehensive registration information.