Terrific Reasons to Hire a Contractor

So you want to build your own home? Perhaps you own a house already and want to modify or extend the existing space. Maybe you just want to add a swimming pool or a lock-up garage.

Many people undertake DIY construction projects without the consultation or employment of an experienced contractor. Many of these projects turn out to be successful, but can also come with various challenges.

If you want to remove the stress element, consider hiring a contractor for the following reasons.

  • Experience

Appoint a construction company that has a wealth of expertise in the industry. An experienced contractor will know exactly what is required for your project to be completed safely and within your budget and time frame.

  • Quality of Work

More often than not, experienced contractors have skilled in-house teams and external sub-contractor teams that have likely worked together on numerous projects. This provides you with peace of mind that your project will be carried out with quality workmanship.

  • Compliance with the Law

It would be wise to appoint a contractor who is an expert in complying with South Africa’s National Building Regulations (NBR). Your appointed contractor should know how to carry out the works by following these guidelines.

Reputable contractors in the home building industry should be registered with the National Home Builders Registration Council (NHBRC). The NHBRC’s vision is “to be a champion of the housing consumer” and their mission is “to protect the housing consumers and to regulate the homebuilding environment.”

  • Insurance Cover

Should you ever encounter a problem with the structures in the future, your insurer will want to make sure that all legal regulations were adhered to during construction. If not, your claim/s could be rejected.

  • Warranties

Projects are undertaken by a contractor that is NHBRC certified and carry a 12-month warranty against roof leaks and a 5-year warranty against major structural defects.

The ultimate goal here would be to transform your living space into a place that works for you and your family, that is safe and that will last for many years to come. The above-mentioned points will hopefully assist you with the decision of whether or not to appoint a contractor for your next exciting project.

Happy planning!

 

 

Sources:
SANS 10400 Building Regulations
NHBRC
NHBRC warns consumers against fraudulent use of its logo
Property24
Dial A Contractor
Durbanville online directory


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About Bianca Warwick

I had the privilege of joining the Leads 2 Business content team in January 2012. I work in the exciting Projects department, following the progress of construction developments in KwaZulu-Natal and the Free State.

Tenders by CIDB – What do you need to get the job?

What do you need to get the job?

cidb-what-you-need-to-get-the-job

The Construction Industry Development Board (cidb) – a Schedule 3A public entity – was established by Act of Parliament (Act 38 of 2000) to promote a regulatory and developmental framework that builds:

  • Construction industry delivery capability for South Africa’s social and economic growth.
  • A proudly South African construction industry that delivers to globally competitive standards.

The cidb’s focus is on

  • Sustainable growth, capacity development and empowerment
  • Improved industry performance and best practice
  • A transformed industry, underpinned by consistent and ethical procurement practices
    Enhanced value to clients and society

 

Construction companies is South Africa are required to register with the CIDB for various classes of construction works, if they want to be awarded Government tenders, and are assigned ratings based on their financial capability. CIDB ratings, when required, are listed on tender notices and perform two functions: The most obvious being that if a company is not registered in that particular rating or class of work then that company can not be awarded that contract (unless they form a Joint Venture); and the second is that the Rating gives a estimated value for the contract concerned. This is helpful for subcontractors to determine whether it is worth their while to approach those companies tendering.

 

Below is a breakdown of the various Construction works and how the various ratings are determined:

 

Class of Construction Works

 

GB General Building

CE Civil Engineering

EB Electrical Engineering Works – Building

EP Electrical Engineering Works – Infrastructure

ME Mechanical Engineering

SB Asphalt works (supply and lay)

SC Building Excavations, shaft sinking, lateral earth support

SD Corrosion protection (cathodic, anodic and electrolytic)

SE Demolition and blasting

SF Fire prevention and protection systems

SG Glazing, curtain walls and shop fronts

SH Landscaping, irrigation and horticulture works

SI Lifts, escalators and travellators (installation, commissioning and maintenance)

SJ Piling and specialised foundations for building and structures

SK Road markings and signage

SL Structural steelwork fabrication and erection

SM Timber buildings and structures

SN Waterproofing of basements, roofs and walls using specialist systems

SO Water supply and drainage for buildings (wet services, plumbing)

SQ Steel security fencing or precast concrete

 

Class of Construction Works

 

Civil Engineering (CE): Construction Works primarily concerned with materials such as steel, concrete, earth and rock and their application in the development, extension, installation, maintenance, removal, renovation, alteration, or dismantling of building and engineering infrastructure.

Basic Work Types: Water, sewerage, roads, railways, harbours and transport, urban development and municipal services.

Examples: Structures such as cooling tower, bridge culvert, dam, grand stand, road, railway, reservoir, runway, swimming pool, silo or tunnel. The results of operations such as dredging, earthworks and geotechnical processes. Township services, water treatment and supply, sewerage works, sanitation, soil conservation works, irrigation works, storm-water and drainage works, coastal  works, ports, harbours, airports and pipelines.

 

Electrical Engineering Works – Building (EB): Construction Works that are primarily concerned with the installation, extension, modification or repair of electrical installations in or on any premises used for the transmission of electricity from a point of control to a point of consumption, including any article forming part of such an installation

Basic Work Types: All electrical equipment forming an integral and permanent part of buildings and/or structures, including any wiring, cable jointing and laying and electrical overhead line construction.

Examples: Electrical installations in buildings. Electrical reticulations within a plot of land (erf) or building site. Standby plant and uninterrupted power supply. Verification and certification of electrical installations on premises.

 

Electrical Engineering Works – Infrastructure (EP): Construction Works that are primarily concerned with development, extension, installation, removal, renovation, alteration or dismantling of engineering infrastructure: a) relating to the generation, transmission and distribution of electricity; or b) which cannot be classified as EB.

Basic Work Types: Electrical power generation, transmission, control and distribution equipment and systems

Examples: Power generation. Street and area lighting. Substations and protection systems. Township reticulations. Transmission lines

 

General Building Works (GB): Construction Works that: a) are primarily concerned with the development, extension, installation, renewal, renovation, alteration, or dismantling of a permanent shelter for its occupants or contents; or b) cannot be categorised in terms of the definitions provided for civil engineering works, electrical engineering works, mechanical engineering works, or specialist works.

Basic Work Types: Building and ancillary works other than those categorised as: Civil engineering works; Electrical engineering works; Mechanical engineering works; Specialist works.

Examples: Buildings for domestic, industrial, institutional or commercial occupancies. Car ports. Stores. Walls.

 

Mechanical Engineering Works (ME): Construction Works that are primarily concerned with the development, extension, installation, removal, alteration, renewal of engineering infrastructure for gas transmission and distribution, solid waste disposal, heating, ventilation and cooling, chemical works, metallurgical works, manufacturing, food processing and materials handling.

Basic Work Types: Machine systems including those relating to the environment of building interiors. Gas transmission and distribution systems. Pipelines. Materials handling, lifting machinery, heating, ventilation and cooling, pumps. Continuous process systems, chemical works, metallurgical works, manufacturing, food processing such as that in concentrator machinery and apparatus, oil and gas wells, smelters, cyanide plants, acid plants, metallurgical machinery, equipment and apparatus, and works necessary for the beneficiation of metals, minerals, rocks, petroleum and organic substances or other chemical processes.

Examples: Air-conditioning and mechanical ventilation. Boiler installations and steam distribution. Central heating. Centralised hot water generation. Compressed air, gas and vacuum installations. Conveyor and materials handling installations. Continuous process systems involving chemical works, metallurgical works, oil and gas wells, acid plants, metallurgical machinery, equipment and apparatus, and works necessary for the beneficiation of metals, minerals, rocks, petroleum and organic substance and other chemical processes. Dust and sawdust extraction. Kitchen equipment. Laundry equipment. Refrigeration and cold rooms. Waste handling systems (including compactors)

 

Specialist Works

 

SB: The extension, installation, repair, maintenance or renewal, or removal of asphalt.

SJ: The development, installation, removal, or dismantling, as relevant, of piles and other specialised foundations for buildings and structures.

SC: The development, extension, installation, removal and dismantling, as relevant, associated with building excavations, shaft sinking and lateral earth support.

SK: The installation, renewal, removal, alteration or dismantling, as relevant, of road markings and signage.

SD: The development, extension, installation, repair, renewal, removal or alteration of corrosion protection systems (cathodic, anodic and electrolytic).

SL: The development, extension, installation, renewal, removal, renovation, alteration or dismantling of structural steelwork and scaffolding.

SE: Demolition of buildings and engineering infrastructure and blasting.

SM: Timber buildings and structures.

SF: The development, extension, installation, renewal, removal, renovation, alteration or dismantling of fire prevention and protection infrastructure (drencher and sprinkler systems and fire installation).

SN: The extension, installation, repair, maintenance, renewal, removal, renovation or alteration, as relevant, of the waterproofing of basements, roofs and walls using specialist systems.

SG: The development, extension, installation, renewal, removal, renovation, alteration or dismantling of glazing, curtain walls and shop fronts.

SO: The development, extension, installation, renewal, removal, alteration, or dismantling or demolition of water installations and soil and waste water drainage associated with buildings (wet services and plumbing).

SH: The development, extension, installation, maintenance, renewal, removal, alteration or dismantling, as relevant, of landscaping, irrigation and horticultural works.

SQ: The development, extension, installation, repairs, dismantling of precast walls, installation of wire perimeter fencing, diamond perimeter fencing, palisade steel fencing with posts and stay at intervals.

SI: The development, extension, installation, repair, maintenance, renewal, removal, renovation, alteration or dismantling of lifts, escalators, travellators and hoisting machinery

 

How contractor grading designations are determined

 

Your contractor grading designation is determined by your financial capability and your works capability.

 

Your financial capability relates to your financial history (turnover), and the amount of working capital you can muster to sustain a contract, i.e. available capital. Available capital is the sum of total equity, retained income, shareholders or member’s loans and any form of acceptable financial sponsorship.

 

Your works capability is determined by the largest contract you have undertaken and completed in your class of construction works (completed during the 5 years immediately preceding the application).

 

Your contractor grading designation will be used by Government (national, provincial, municipal and state owned enterprises) to qualify your tender to be considered for a particular construction works contract. For example: if you are registered as a 5CE, you will be considered for public sector civil engineering works contracts of a value not exceeding R6.5 million. You may register for different classes of works, for example, you may be registered as a 5CE and as an 8ME. This means that you will also be considered for public sector mechanical engineering works contracts of a value not exceeding R130 million.

 

Determining Financial Capability

The specific requirements that need to be satisfied in respect of the contractor grading designation being applied for, depending on the contractor grading designation applied for, financial capability will be determined from:

  • best turnover from the two financial years immediately preceding the application;
  • the available capital that you are able to mobilise;
  • the contractor must satisfy all the criteria relating to financial capability.

 

 

Determining Works Capability

The specific requirements that you need to satisfy in respect of the contractor grading designation applied are:

 

Designation

Grade 2: Must have completed a contract with the value of not less than R130 000.

Grade 3: Must have completed a contract with the value of not less than R450 000 and either have best turnover not less than R1 000 000 or have available capital not less than R100 000.

Grade 4: Must have completed a contract with the value of not less than R900 000 and either have best  turnover not less than R2 000 000 or have available capital not less than R200 000.

Grade 5 and higher: Must have works and financial capability not less than that tabulated in Table C(i) below, for the  contractor grading designation applied for.

 

Determining Financial Capability

 

 

Potentially Emerging Enterprises

 

A registered, potentially emerging contractor may be awarded a contract at one level higher than the enterprise’s registered contractor grading designation, if the client or employer:

 

Is satisfied that such a contractor has the potential to develop and qualify to be registered in that higher grade; and

 

Ensures that financial, management or other support is provided – in the context of a targeted development programme

  • to enable the contractor to successfully execute that contract.

 

Joint Ventures

 

A joint venture is a grouping of two or more contractors who jointly undertake to perform a construction works contract.

 

Any enterprise that tenders or enters into a contract for construction works with the public sector, must be registered.

Once-off joint ventures do not have to register. Each partner of the joint venture must be separately registered and the lead partner must have a contractor grading designation not lower than one level below the required grading designation in the class of construction works under consideration.

 

The contractor grading designation for a once-off joint venture is assessed by the client, based on:

 

the sum of the best annual turnover of all the members of the joint venture;

the sum of the available capital of all the members of the joint venture; and

The cidb has developed a calculator to enable assessment of joint ventures. This calculator is available on the cidb website at www.cidb.org.za

 

Leads 2 Business subscribers have the option to filter by CIDB ratings as well as set up their Advisory settings, so they only receive the Ratings that they are interested in. My advice in this regard, would be to go “one above and one below”. The idea of the CIDB ratings is progression. New companies start out with a CIDB 1 and as the company grows in experience and financial standing, they would progress up the ratings. So a subscriber would select “one above” (as in a Rating above their current Rating) and select “one below” to make sure that they are notified of any tenders where only the PE (Potentially Emerging) rating has been specified on the tender. Keeping an eye on the next rung up the ladder, but ensuring your foot is still firmly in place on the rung below (if you like metaphors).

 

 

Examples of  tender notices of various CIDB Ratings and Classes:

 

CIDB 1: Upgrading of School Ablution Facilities – DTA 609616

CIDB 2: Supply, Deliver and Erect 6000m wire Barbed Wire Fencing for Bambanani co-op – DTA 609446

CIDB 3: Construction of a bridge at Alberton Campus – DTA 609447

CIDB 4: Construction of a large Ablution block at Thusego Intermediate School – DTA 609710

CIDB 5: Replacement and Maintenance of Traffic Signal Equipment  – DTA 609486

CIDB 6: Resurface and Upgrade Boksburg Athletics Grounds – DTA 609500

CIDB 7: Upgrade and Extension of the Warrenton WTP (Civil, Mechanical, Electrical and C&I) – DTA 609603

CIDB 8: Reseal of National Route N1 Section 29 between Km 70 and Musina – DTA 608049

CIDB 9: Observatory Forensic Pathology Laboratory: Replacement – DTA 609086

 

 

CIDB http://www.cidb.org.za

 

cidb HELPLINE

086 100 2432

 

Construction Industry Development Board Act, 2000 (Act No 38 of 2000) http://www.cidb.org.za/publications/Pages/Legislation.aspx

 

Application for Contractor Registration Grade 1 (July 2016)

http://www.cidb.org.za/publications/Documents/Application%20for%20Contractor%20Registration%20Grade%201%20(July%202016).pdf

 

Application for Contractor Registration Grade 2 – 9 (July 2016)

http://www.cidb.org.za/publications/Documents/Application%20for%20Contractor%20Registration%20Grade%202%20-%209%20(July%202016).pdf

If you are interested in becoming one of our subscribers, please visit our website.
To view notes with screenshots on how to use our website, please visit our Wiki site.
To view more articles, please visit our blog.

About Claire Donaldson

I started working at Leads 2 Business in February 2005, and have served as Head of Department of Daily Tenders from 2007 until the present. I oversee both the Daily Tenders South Africa and Africa Departments.

Pricing Online – RfQs

78-Blog-Header-Pricing-Bills-of-Quantity-Online

Have you ever received one of these and wondered why?

RFQ

The reason you have received an RfQ email is because you are listed on our Directory as a Vendor. We have Buyers (main contractors) who subscribe to our Leads 2 Quotes platform who use our Directory to select Vendors to send RfQ’s to.

Basically these Buyers send us BoQ’s for each relevant contract. We (L2Q Bills staff) process these BoQ’s by formatting them and splitting each item into the relevant trades (which may sound simple but can often take many hours to decipher). The Buyers, using our Directory, select a trade and region and a list of the relevant Vendors under that Trade and Serviceable Region appear, they select who they want to send to and click ‘Send RfQ’. You (the Vendor) will then receive an RfQ email (as above).

You have received this email, now what?

Firstly you need to check if the RfQ you have received is relevant to what your company does. If not, you will need to click on the “Update my Trade Profile”.

If the items are of relevance and you would like to price you can click on “Intend to Price”. If the items are of relevance but you are unable to quote for that time period (see respond by date/start date) you can click on “Decline to Price”. This will indicate to us (L2B) and the Buyer (who’s details are listed on the top right hand corner of the email) whether you will or won’t be pricing.

You’ve decided to Price the RfQ, where to next?

You will need to go ahead and work out the relevant rates required. Remember to take note of the Buyers T’s & C’s as some of these may specify whether VAT should be exclusive or inclusive and whether delivery or labour should be included. If you require Drawings in order to price you can click on the “Drawings” link in order to view or download the drawings. If there are no drawings on that link you will need to contact the Buyer. It is vital to note that we only have the information that the Buyers have provided. Any additional information required that is not available online, will have to be requested directly from the Buyer by the Vendor.

In order to use any of the L2B online features you will need your Vendor login details (Registration is Free). If you cannot remember these or have never registered as a Vendor you are welcome to contact us, via email, telephonically or via our Live Help option in order to request assistance.

Once you have all your relevant rates you can then go ahead and choose how you would like to respond to the RfQ. You could choose Fax, Email or Online Pricing, please note that Online Pricing is the quickest and easiest.

You’ve (wisely) chosen to use Online Pricing, where do you start?

You can use Online Pricing by clicking on the “Price Online Now” link which will take you to the L2B website where you will log in using your Vendor login details.

Once logged in you select the Vendor Home page on the Home drop-down. Your Active RfQ’s will now be displayed where you can click on “Submit Price” next to the relevant contract number and you will be redirected to enter your T’s & C’s, after submitting, the “Pricing” page will be displayed where you can simply enter your rates for each item which are automatically multiplied by the quantity to give a total and a grand total in red at the bottom. You are also able to interact with the other tabs as their relevance requires. Once you are happy with everything you can click on “Submit Prices”, ticking the “Send a copy to my email” box if you would like to keep a copy of the pricing you have submitted.

What do you do once you’ve submitted your prices?

Once the contract is awarded you will receive a notification via email. If the Buyer who sent you the original RfQ is awarded the contract you can now follow up with them regarding the prices you previously submitted to see if they will require your services and how competitive your prices were. If the contract is awarded to a different contractor you can still contact them and offer to send them your prices (you should have a copy if you selected to send a copy to your email) or by logging into your L2Q Vendor Profile and clicking on the relevant “Download Sent Bill” icon.

Receiving and responding to RfQ’s has never been easier with Leads 2 Business Online Pricing.

Want to know more about being a Vendor/Buyer, our Platinum Directory Listing (PDL), Leads 2 Quotes (L2Q) or any of the other Services we offer? Contact me on SashaA@L2B.co.za

About Sasha Anderson

Millennial Mom + wife living the hash-tag life