Understanding Work Categorization System

Construction Industry in Bhutan comprises of about 2000 contractors spread in various parts of the country and operating with different level of licences. The level here refers to the Class of a contractor which has an important role to play in Bhutanese construciton industry's context. Similarly, works are also categorized in four groups.

The categorization of works and classification system was devised by the Construction Development Board (CDB) which is a regulatory body to oversee the construction industry in Bhutan. To know more about CDB, you may visit their website www.cdb.gov.bt.

* To work as a contractor in Bhutan, each individual or a company must possess a valid CDB Certificate from Construction Development Board and also a Construction Licence issued by Department of Trade and Industry (know more about this department here).

As highlighted above, generally there exists four different category for works namely W1, W2, W3 and W4 as of now. The following table explains these categories:

Understanding Contractor Class Classification System

Contractors are allowed to register under a Class based on the experience/expertise, financial status, equipment, human resource and other resources available with the contractor or the company. The four class level symbolizes the capability and strength of a company or a contractor. The Classes are A, B, C and D where A is the highest level of this classification system. CDB has set minimum requirement criterias which needs to be fulfilled as to register oneself to a certian class.

* It is to be noted that a new contractor cannot directly register under Class A or B. If the contractor is an Engineer in profession, then he/she may acquire Class C licence but has to meet other requirements too set for Class C. If not a contractor should always start from Class D. A contractor can acquire Class A or B licence only via the upgradation process.

The work category and class classifications are related to eachother since a class should have a category defined or vice-versa. Generally, it is found that contractors register for all work categories and in such case the highest class among the four categories is taken into consideration and the contractor is represented by that class. For instance, a contractor may have W1 as Class C, W3 as Class D and W4 as Class A, and in this case the contractor is considered as a Class A contractor.

* Basically, the classification system of contractors is ruled by the allowable contract range for each class. Class D contractors are allowed to take up works fetching a contract price of not more than Nu. 1.5 Million. Similary, the range for Class C is Nu 1.5 - 7.5 Million and Nu. 7.5 - 30 Million for Class B. Class A being in the top of the classification system, this gives them the advantage to take up works starting from Nu. 30 Million with no upper ceiling defined.