Contractor Registration
Contractor Registration GuidelinesDefinitionPerakuan Pendaftaran Kontraktor Tempatan (PPK)Registration of Consortium Or Joint Venture ContractorsRegistration of International ContractorsProcessing FeesProcess DurationRegistration FeesMethod of PaymentResponsibilities of Registered ContractorsCertificate PrintStandard Terms of Construction Contracts For Renovation Work And Small ProjectsAttachment
Program For Industry
Contractor Registration GuidelinesDefinitionPerakuan Pendaftaran Kontraktor Tempatan (PPK)Registration of Consortium Or Joint Venture ContractorsRegistration of International ContractorsRegistration of Foreign ContractorsProcessing FeesProcess DurationRegistration FeesMethod of PaymentResponsibilities of Registered ContractorsCertificate PrintStandard Terms of Construction Contracts For Renovation Work And Small ProjectsAttachment
Contractor Registration Guidelines
Effective from 20 July 1995, it is mandatory for all contractors whether local or foreign to register with the Malaysian Construction Industry Development Board (LPIPM) or CIDB under Section 25 of Act 520 (Amendment 2011) before undertaking and completing any construction work in Malaysia except those who are exempted under Section 40(1) of the Malaysian Construction Industry Development Board Act 1994 (Act 520).
Any contractor who violates Section 25 when convicted, can be fined not less than ten thousand ringgit but not more than one hundred thousand ringgit under Section 29. Under Section 30 the Board can through a written notice delivered to the contractor to stop starting or continuing work construction or undertake to carry out or complete construction work.
Definition
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Local Contractor Registration Certificate (PPK)
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The types of applications are as follows:
The types of applications are as follows:
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Government Employment Certificate (SPKK)
SPKK holders are eligible to participate in any government procurement in the field of construction according to the qualifications set out in the Treasury Circular No. 6 of 2012 and the amended Treasury Instruction No. 3 years 2012 by the Malaysian Ministry of Finance. Applicants need to ensure that they have PPK to qualify the company to apply for SPKK. However, application approval is subject to SPKK registration conditions.
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Registration of Contractor Consortium Or Joint Venture
Registration of Consortium or Joint Venture Contractors is a combination of two or more companies that have been appointed to implement a construction project. The combined company is not registered as a business/incorporated with the Companies Commission of Malaysia (SSM). The company must be registered with CIDB based on the project awarded. The Certificate of Registration issued is only valid for implementing the project as stated in the Certificate of Registration only. In general, there are two (2) types of consortium or joint venture contractor registration with CIDB namely:
- i) Certificate of Registration of Local Consortium/ Joint Venture Contractors.
- ii) Certificate of Registration of Foreign Consortium/ Joint Venture Contractors.
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Registration Of International Contractors
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Process Fees
Each application must be accompanied by a processing fee. Payment of the processing fee can be made online through the CIMS system. The following is the value of the process fee that needs to be explained according to the type of application made as in Table A.
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The application can only be updated within fourteen (14) days from the date the application was first made. Applications that are not submitted (click the submit button) within that period will be automatically cancelled.
While the process fee payment period must be cleared within seven (7) days from the date the application is sent (click the submit button). If no payment is received within that period, the application will be automatically cancelled.
Process Duration
The application will be processed within the prescribed period. The following is the process period that has been set according to the type of application as in Table C.
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Registration Fees
The amount of registration fee charged will be notified through the application approval letter. Payment of fees can be made online through the CIMS system. The fee must be paid within fourteen (14) days from the date the approval letter is issued. The approval of the application will be automatically canceled without any notice if the registration fee is not paid within that period. Applicants are required to submit a new application if they wish to regain the Contractor's Registration Certificate after the application has been cancelled. Here is the Registration Fee Payment as in Schedule D.
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Method Of Payment
Payment can be made online through the CIMS system. Payments using company checks or personal checks are not accepted. All fees paid are non-refundable.
Responsibilities Of Registered Contractors
Payment can be made online through the CIMS system. Payments using company checks or personal checks are not accepted. All fees paid are non-refundable.
1. Local Contractors
- i) General Conditions
- a) The Registration Certificate issued is not transferable.
- b) The Board has the right to review the contractor's registration grade from time to time
- ii) Responsibilities and Obligations of the Contractor
- a) The contractor must comply with the provisions of the Akta Lembaga Pembangunan Industri Pembinaan Malaysia 1994 (”AKTA 520”) (PINDAAN 2011) the regulations made thereunder and any terms, conditions or restrictions imposed by the Board from time to time .
- b) The contractor may not participate in any tender or carry out any construction work after the expiration of this Certificate and until it is renewed.
- c) The contractor cannot undertake to build any construction project that exceeds the value of the construction work specified under his registration grade and cannot carry out any construction project outside his registration category.
- d) The contractor must submit information about any construction work or project within fourteen (14) days after being awarded.
- e) The contractor must submit any information required by the Board from time to time.
- f) The contractor must display the Certificate of Registration issued by the Board or a copy of the Certificate of Registration certified by the Board at its place of business.
- g) The contractor must display the registration number on the signboard at each construction site.
- h) Contractors must comply with the principles stated in the CIDB Contractor Code of Ethics Book.
- i) The contractor must appoint skilled construction workers and site supervisors who are accredited and certified by the Board.
- j) All construction site workers must have a valid Construction Personnel Card.
- k) The contractor must ensure that the products or building materials used are based on the requirements of MS (Malaysian Standard) or other standards approved by the authorities in Malaysia and certified by the Board.
- iii) Disciplinary Action
According to Regulation 15, Contractor Registration (Construction Industry) Regulations 1995, the Board may cancel or suspend the registration of any contractor registered under these Regulations if:- a) The Certificate holder has been punished as bankrupt; or
- b) The winding up petition in relation to the contractor has been submitted; or
- c) Certificate holders fail to comply with any provisions of the Act or registration regulations; or
- d) The Certificate Holder has obtained the Certificate by making a false certificate or statement in writing or otherwise; or
- e) The Certificate holder abandons the construction work that is being carried out; or
- f) The Certificate Holder is found guilty by the court or any investigative body established under any written law for being negligent in the implementation of the construction works carried out; or
- g) The Certificate Holder has violated or failed to comply; or has assisted in the breach of any terms, conditions or limitations imposed by CIDB.
Note:
- i. Contractors whose registration has been canceled or suspended are not allowed to participate in any new tender or continue any construction work.
- ii. The CIDB may in certain circumstances allow contractors whose Registration Certificates have been revoked to complete their current work.
- iii. Disciplinary actions and decisions made on PPK will affect the status of SPKK.
2. Foreign Contractors
- i) General Conditions
- a) The Foreign Contractor Registration Certificate issued cannot be transferred.
- b) This Certificate allows the holder of the Certificate to carry out only the projects specified in this Certificate.
- c) This Certificate does not allow the holder of the Certificate to participate in a tender for any construction work or to carry out any other construction work.
- ii) Certificate Validity Period
This Certificate is valid until the expiration date of the project specified in this Certificate. - iii) Responsibilities and Obligations of the Contractor
- a) Foreign Contractors must comply with the provisions of Akta (Pindaan 2011) Lembaga Pembangunan Industri Pembinaan Malaysia 1994 (”Akta”), the Regulations made under it and any terms, conditions or restrictions imposed by the Board from time to time.
- b) If the completion date of the project is extended, the contractor must apply to the Board within fourteen days before the end of the period to extend the Registration Certificate. Supporting documents must be included.
- c) Foreign Contractors must display the Registration Certificate issued by the Board or a certified true copy of the Certificate by the Board at the place of business.
- d) The Foreign Contractor must display his registration number on a signboard at each construction site.
- iv) Disciplinary Action
Foreign Contractor Registration will be cancelled, suspended or if –- a) The Foreign Contractor does not comply with the requirements of any other written law;
- b) The Foreign Contractor has been sentenced to bankruptcy;
- c) The winding up petition in relation to the foreign contractor has been submitted;
- d) The foreign contractor has violated or disobeyed any provision of the Act;
- e) The foreign contractor has obtained the Certificate by making or causing to be made any false or fraudulent statement, certification or representation whether in writing or otherwise;
- f) The foreign contractor has abandoned any promised construction work without any reasonable reason;
- g) The foreign contractor is found to be negligent by the court or any investigative body established under any written law in relation to any construction work that has been undertaken; or
- h) The foreign contractor has violated any terms and conditions of the Contractor's Responsibilities and Obligations as stated in para 2.iii.
Certificate Print
Printout of Contractor Registration Certificate (PPK) / Government Work Procurement Certificate (SPKK), Bumiputera Status Certificate (STB)
The certificate must be printed by the applicant online through the CIMS system. No more handing over certificates at CIDB State/Branch counters. For applications to obtain a duplicate certificate or a reprint of a certificate due to loss/damage, applicants can print it themselves online without any payment charges.
- The virtual Certificate of Contract Registration (PPK) can only be printed online after the registration fee has been paid.
- Government Employment Certificate (SPKK) and Bumiputera Status Certificate (STB) can only be printed online after the application has been approved. No registration fee is charged on SPKK and STB.
Below is an example of a PPK, SPKK and STB virtual certificate printed online. To ensure that the security features in the virtual certificate are preserved, each certificate will be placed with a QR Code. The information in the QR Code can be read by scanning using a mobile phone that has a QR application Code Reader.
Applicants must keep the original documents within 3 years from the date of application for the purpose of Contractor Compliance Assurance, CCA (Contractor Compliance Assurance). Here are the supporting documents that need to be uploaded according to the type of application made as in Table B.
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Standard Terms of Construction Contracts For Renovation Work And Small Projects
This contract is provided to complete the deficiencies that exist in the construction industry in Malaysia. Although several construction contracts have been published for the construction industry in Malaysia – but to date, there are no major contracts written in plain language and none that specifically cater to the needs of renovation work and small projects. Although a contract can be made verbally, a written contract can avoid uncertainty. Standard contracts that are well written and in plain language can also help improve efficiency, and avoid unnecessary disputes.
These standard terms of contract can be used together with other documents such as drawings, specifications, and lists 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. There is no minimum or maximum price set for the size of the project that is considered appropriate for this contract as it can be used for all types and sizes of projects.
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Opening of New Registration of G1 Bumiputera Contractors
The Federal Government has announced the re-opening of the new registration of G1 Bumiputera Contractors on 16 August 2019 which allows qualified contractors to apply to register as G1 Bumiputera Contractors from 1 September 2019. The Government's decision to reopen the new registration of G1 Bumiputera Contractors aims to give opportunities to the new generation including the youth graduates of skills training centers who have a technical background to start working in the construction industry. This step can produce more Bumiputera contractors who are viable and able to play a leading role in the construction industry.
The types of applications are as follows:
The types of applications are as follows:
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Program For Industry
