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What is a CIDB License?
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). A person who undertakes to carry out or carry out and complete any construction work without being registered as a contractor registered with LPIPM shall be guilty of an offense under this Act and shall on conviction be liable to a fine not exceeding fifty thousand ringgit. Referring to Section 25 (1) of Act 520 of the Malaysian Construction Industry Development Board (CIDB):
“No person shall carry out work or complete, undertake to carry out or complete any construction work or declare himself as a contractor, unless he is registered with the Board and holds a valid certificate of registration issued by the Board under this Act”.
Contractors who apply to be registered are required to refer to the Contractor Registration Requirements and Procedures as well as comply with the conditions stated before submitting the application.
REGISTRATION OF CIDB
Two types of certificates issued by CIDB:
• Contractor Registration Certificate (PPK)
• Certificate of Employment of Work (SPKK)
• Bumiputera Status Certificate (STB) – Issued by the Contractors and Entrepreneurs Division (BPKU)
CIDB Registration Category:
• Civil Engineering Construction (CE)
• Building Construction and (B)
• Mechanical and Electrical (ME)
• Facilities (F)
CIDB GRADE CATEGORY
WHY IS IT IMPORTANT TO REGISTER CIDB LICENSE?
Having a CIDB license will confirm that the company is a legitimate contractor in carrying out construction-related work. It is mandatory for all contractors whether local or foreign to apply and register with CIDB before performing any work subject to CIDB Act 520.