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CIC REGISTRATION FEES DOWN 25%

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MBABANE – Relief at last! The Construction Industry Council (CIC) continues to heed to the massive outcry of businesses and individuals by reducing what had been termed ‘steep’ registration and renewal fees.


CIC Chief Executive Officer (CEO) Nhlanhla Dlamini, said the registration and renewal fees which previously cost up to  E30 000 in some categories, would be reduced by 10 per cent.


“All registration fees and renewal fees for contractors have been reduced by 10 per cent for the 2019/2020 financial year, except for foreign contractors. Late renewal of CIC certificates will attract a penalty of 10 per cent of the annual renewal fees. Foreign contractor’s registration fees, manufacturers and suppliers, and all administration fees remain unchanged,” Dlamini announced.


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It should be mentioned that registration fees and renewal fees for contractors were reduced by 15 per cent during the 2018/2019 financial year. This effectively means there has been a 25 per cent drop in the registration and renewal fees in the last 12 months. 


The fees were stipulated to create a source of revenue to finance establishment and operations of the council. The reduction was in line with the pledge made when the fees were initially introduced in September 2014, where it had been precisely mentioned that there would be a reduction soon after the council was fully established and operational. It had also been promised that the fees would be dropped following the approval of the construction levy.


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Dlamini announced that in terms of the Construction Industry Council Act No. 14 of 2013, Section 27(10), all contractors and stakeholders would now register and renew their licences for the incoming financial year under the new pricing schedule.
Registration will commence on Monday March 18, 2019 to Monday, May 13, 2019.


The CEO said all specialists’ works contractors would now be categorised under the main classes of works that are building works, civil works, electrical works and mechanical works.


He explained that they would further be graded according to the following; their financial capability which will be measured on 10 per cent, works capability that will have a 70 per cent effect on overall score and available capital which will account for up to 20 per cent.  


According to Section 38(1) of the CIC Act, “A contractor shall not undertake, carry out or complete any construction works or portion of such works for either a public or a private contract awarded in terms of competitive tender or quotation, unless the contractor is registered with the council and holds a valid certificate issued by the council according to categorisation of contractors”.


Therefore, non-compliant contractors will be penalised according to Section 38(2), of the CIC Act 14 2013.
Furthermore, contractors who have not remitted the project levy to the council will not be issued with certificate for renewal per the CIC Levy Regulation 6(3)

 

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