The Construction Industry Development Board of Malaysia (‘CIDB
’) had on 7 May 2020 introduced initiatives to ease the burden of construction industry players affected by the COVID-19 pandemic and the imposition of the various forms of Movement Control Orders. Several of these initiatives were subsequently extended until 1 April 2021. Our previous Alerts on the initiatives and the extension period are available here
CIDB has now announced that they will be reimplementing their initiatives for local contractors1
, a summary of which is set out below.
EXEMPTION FROM REQUIREMENTS FOR RENEWAL OF REGISTRATION
The following initiatives are available for contractors renewing their registrations with CIDB:
With respect to Items 1 and 2 above, the validity period for the renewed registration will only be for a period of one year. For Item 3, the validity period for the renewed Government Work Procurement Certificate (SPKK) will depend on the validity of the local contractor registration.
It is to be noted that the abovementioned initiatives are optional
. It is possible that contractors may not wish to opt in for these initiatives, as the validity period for the renewed registration is only one year. This is a relatively short time frame, given that renewed registrations are typically valid for up to three years. For contractors involved in ongoing projects exceeding one year, a renewal of one year may not be practical.
WHAT IF A CONTRACTOR DOES NOT OPT IN FOR THESE INITIATIVES?
If a contractor does not opt for these initiatives, the standard conditions for renewal will apply. However, there is one exception which is that CIDB will grant a fifty percent (50%) deduction of the CCD points required.4
HOW LONG WILL THESE INITIATIVES BE IN EFFECT?
These initiatives for local contractors will be effective until 31 December 2021.
Alert prepared by Rachel Chiah (Senior Associate) of the Construction and Engineering Practice of Skrine.
The full text of CIDB’s announcement is available here
The Government Work Procurement Certificate (SPKK) allows the holder to participate in any government procurement for construction works. It is only available to local contractors registered with CIDB.
The requirement for Grade 1 contractors to have technical personnel employed for purposes of renewal of their registration only took effect in 2021. “Technical personnel
” means either the owner or an employee has the requisite qualifications recognised by CIDB.
The amount of CCD points required for renewal of local contractor registration varies according to the grade of contractor registration and the year in which the contractor applies for such renewal.