Sakhile Construction Business Plan — Compliance and Registrations
CIDB, NHBRC, health and safety, employment and tax registrations required to bid and build lawfully in South Africa.
Compliance and Registrations
Jump to section
- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. The CIDB Grading Ladder
- 3. The Market in 2026
- 4. Strategy: Private Work First
- 5. SWOT and Competitive Position
- 6. The Working Capital Problem
- 7. Retention and Guarantees
- 8. Unit Economics of a Contract
- 9. The Five-Year Roadmap and Gates
- 10. Funding
- 11. Estimating and Contract Control
- 12. People and Plant
- 13. Compliance and Registrations
- 14. Financial Projections
- 15. Break-Even
- 16. Sensitivity and Scenarios
- 17. Risk Management
- 18. Implementation Timeline
- 19. Returns
- 20. Key Performance Indicators
- 21. Key Assumptions
- 22. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
|
Requirement |
Detail |
When |
|---|---|---|
|
Company registration |
Incorporation with the Companies and Intellectual Property Commission; annual returns |
Before anything else |
|
CIDB registration |
Register of Contractors under the CIDB Act 38 of 2000. Grade 1 at R450 per class, activated within 48 working hours |
Month 1; renewed before expiry — auto-suspension applies from 1 January 2026 with no grace period |
|
Central Supplier Database |
Registration at csd.gov.za linking CIPC, SARS and bank details |
Before any public tender |
|
Register of Projects |
Client registers each project within 21 days of award; confirm in writing |
At every award, without exception |
|
Tax |
Income tax, VAT and PAYE registration; tax compliance status pin |
Month 1 |
|
Bargaining council |
Building industry bargaining council registration and contributions where applicable |
From first site employee |
|
Compensation fund |
COIDA registration and a letter of good standing |
Before site work; required by most clients |
|
Health and safety |
Construction Regulations compliance; appointed safety officer; health and safety file per site |
Per contract |
|
Insurance |
Contract works, public liability, plant, motor and employer’s liability |
Before first contract |
|
NHBRC |
National Home Builders Registration Council enrolment for residential work |
Where residential work is undertaken |
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Compliance, CIDB and professional, R’000 |
110 |
150 |
230 |
330 |
450 |
|
Insurance, R’000 |
70 |
120 |
210 |
340 |
500 |
|
Combined |
180 |
270 |
440 |
670 |
950 |
|
As a share of turnover |
4.3% |
2.8% |
2.3% |
2.0% |
1.8% |
Compliance and insurance together cost R180 000 in Year 1 — 4.3 per cent of turnover — falling to 1.8 per cent by Year 5. The Year 1 burden is heavy relative to the trading base and is unavoidable: a contractor cannot bid public work without CIDB and CSD registration, cannot start site work without a letter of good standing, and cannot obtain either without the underlying registrations. It is the cost of entry rather than a cost of trading.