SA Tenders AI

CIDB Grading Explained

By the SA Tenders AI team · Updated 15 July 2026

Every public-sector construction tender in South Africa states a required CIDB grading — “6GB or higher”, “2CE”, “4EB”. If your registration doesn’t match, your bid is non-responsive before anyone looks at your price. Here’s how the system actually works.

Reading a grading: number + letters

A grading like 6GB has two parts. The number (1–9) is your financial capability grade — it caps the value of contracts you may take. The letters are the class of works:

  • GB — General Building (buildings, renovations, schools, clinics)
  • CE — Civil Engineering (roads, water, earthworks, stormwater)
  • EB / EP — Electrical (building installations / infrastructure)
  • ME — Mechanical Engineering (HVAC, plants, materials handling)
  • Specialist classes (SB, SF…) for niche works like fencing and waterproofing

Maximum tender value per grade

GradeMax contract value
1R200 000
2R650 000
3R2 000 000
4R4 000 000
5R6 500 000
6R13 000 000
7R40 000 000
8R130 000 000
9Unlimited

These are the regulation values used across the industry — always confirm the current table on cidb.org.za, as amounts are amended from time to time.

How grades are assessed

Grade 1 is entry-level: registration with minimal requirements, designed for new contractors. Grades 2–9 are assessed on two legs: your largest completed contracts in that class of works, and your financial capability (available capital — a mix of equity, financial statements and sponsorships). You need both legs to support the grade.

Climbing the ladder

  • Use subcontracts — completed subcontract work counts toward track record. The 30% subcontracting rule exists partly to build smaller contractors’ records on big projects.
  • Keep financials clean — an upgrade application without proper financial statements stalls. Involve your accountant early.
  • Renew on time — registration lapses are a classic reason otherwise-qualified bidders get disqualified.

Ready to bid? Browse open construction tenders — each tender’s page shows the required CIDB grade, and if you upload your CIDB certificate to the free compliance check, the AI enforces grade adequacy automatically: it only matches you to tenders your grade can legally take.

Frequently asked questions

What CIDB grade do I need for a tender?+

The tender notice states the required grading, e.g. '6GB or higher'. The number is the financial capability grade (1–9) and the letters are the class of works (GB general building, CE civil engineering, EB/EP electrical, ME mechanical). Your registration must match or exceed both.

What is the maximum tender value for each CIDB grade?+

Grade 1: R200,000 · Grade 2: R650,000 · Grade 3: R2 million · Grade 4: R4 million · Grade 5: R6.5 million · Grade 6: R13 million · Grade 7: R40 million · Grade 8: R130 million · Grade 9: unlimited. Always confirm current limits on cidb.org.za, as the regulation is amended from time to time.

How do I upgrade my CIDB grade?+

Grades 2–9 are assessed on your best completed contracts and your financial capability (available capital). To move up, you generally need larger completed projects and stronger financials — track record on subcontracts counts, which is one reason subcontracting on bigger projects matters.

See which tenders you qualify for

Upload your compliance documents — AI matches you to open tenders in minutes. Free, no card needed.

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