MDA Law
Favourable business ethics & pushing up your construction company’s CIDB grading
Last year, I am sure as most will agree, various companies, in particular within the construction industry (as well as other institutions / organisations) felt the sting of a tough economical period. However, as the fight goes on, it made me think about an old song by Judy Collins called the “Liverpool Lullaby”, with a lyrical line that states “Although we have no silver spoon, Better days are coming soon”.
With that in mind, we remain hopeful and positive that this year will make a turn for the better. With economic rehabilitation and growth, will come new opportunities, new developments etc. This will then hopefully open the doors wide again for existing construction companies, big or small and even new players to the game to get on the tender playing field. Therefore, with this article I felt it necessary to remind current players and for those who are unfamiliar, what is expected ethically wise and what can be done to grow your CIDB grading.
As you would know, and as stressed and promoted by inter alia the Constructio Industry Development Board (CIDB), it remains crucial that all players in the construction industry should strive in upholding high standards of ethics in all business dealings, especially at the start, when participating from tendering stage.
On the CIDB’s website, a “Code of Conduct” is provided for all parties engaged in construction procurement and I invite all to familiarise yourselves with this Code of Conduct, to view click here:
Further, what I think a lot have wondered about or have asked in the past (especially for the smaller or new construction companies coming into the game), what can be done to grow that CIDB grading and gunning for the giants (i.e. your bigger budget projects etc.)?
Your CIDB grading gets determined by some factors, such as your companies’ works capability and further your financial capabilities. To be able to get financially stronger and to better works capability, participate and keep tendering for projects at your specific qualified level, then work it up from there, increasing works capability and by doing so, getting paid by satisfied clients (hopefully the ones that do pay) to grow financially.
If you are small, attempt to build subcontractor relationships with other higher grading contractors or seek for possible Joint Venture opportunities. Trust and good relations is important in this regard. In light of the above, continue and endeavour to do business in good faith, upholding good business ethics and by doing so, building strong trusting relationships with others in the industry in order to grow yourself into one of the big players.
Author: Barry Herholdt, Associate
