The development agreement that BIDR has signed with BAIC SA determine that a minimum of 35% of the overall construction cost must be awarded to local SMME contractors. This means that a work component of 35% of the MR 780, which calculates to MR 273, shall be reserved for local SMME’s. This expectancy shall only be achieved if tender prices received from SMME’s are competitive and market related.

BIDR wish to ensure a fair distribution of the works reserved for SMME contractors, and in particular contractors with lower CIDB ratings. In order to achieve this, BIDR has specified how the SMME work allocation must be distributed under each Contract.

The following distribution has been specified:

Contract No 1

Assembly combined Body Shop, Energy Centre and Oil and Waste Store: Prescribed minimum % value of work executed by SMME/EME of 35%

Grading Prescribed minimum % value of work executed by SMME/EME
 1  10% of the prescribed overall SMME/EME minimum of 35%
 2 and 3  20% of the prescribed overall SMME/EME minimum of 35%
 4 and above  70% of the prescribed overall SMME/EME minimum of 35%

Contract No 2

Paint Shop, Office Block, Bridge and Sewage Treatment Centre: Prescribed minimum % value of work executed by SMME/EME of 35%

Contract No 3/1: Outdoor civil works

Grading Prescribed minimum % value of work executed by SMME/EME
 1  30% of the prescribed overall SMME/EME minimum of 45%
 2 and 3  20% of the prescribed overall SMME/EME minimum of 45%
 4 and above  50% of the prescribed overall SMME/EME minimum of 45%

 

Contract No 3/2: Small buildings and outdoor electrical mechanical and fire protection services

Grading Prescribed minimum % value of work executed by SMME/EME
 1  30% of the prescribed overall SMME/EME minimum of 50%
 2 and 3  20% of the prescribed overall SMME/EME minimum of 50%
 4 and above  50% of the prescribed overall SMME/EME minimum of 50%

 

Contract No 3/3: Perimeter Fencing and Boundary Walls

Grading Prescribed minimum % value of work executed by SMME/EME 
 1  30% of the prescribed overall SMME/EME minimum of 80%
 2 and 3  20% of the prescribed overall SMME/EME minimum of 80%
 4 and above  50% of the prescribed overall SMME/EME minimum of 80%

 

View the “Status report to Stakeholders on SMME employment on BAIC project”, presentation by BIDR/UC given on 8 September 2017 here