Contractors Assistance Fund

The Contractors Assistance Fund (CAF) was established in the year 2002 for the purpose of assisting contractors to access finance required for bid security or advance payment guarantee. This is after the Board realised that some contractors were not able to raise enough funds or collateral to secure bid securities or advance payment securities.

The Fund assists small and some medium contractors to access guarantees for bid security and advance payment security. To access the fund service, the contractor should apply for membership to the fund. Currently the Board operates the fund in collaboration with the CRDB Bank PLC.

Eligibility of Contractor

Currently the eligibility to CAF Membership is to all Local contractors (General Works Contractors and Specialist Contractors) irrespective of their class of registration. Eligible Contractor should apply for registration by filling in application form and pay a non- refundable fee of TZS 300,000/=

The applicant should submit passport size photos of two directors or partners who shall be dealing with CAF issues on behalf of the company. Attach letter of Authority/Board Resolution/ Power of Attorney to authorize the two directors. .

To qualify for guarantee, the following additional conditions will apply:

1. The Contractor must be current on his obligations to CRB including payment of Annual Subscription Fees, penalties or fines if any
2. Have timely submitted annual return forms.
3. Have no unpaid penalties, pending default notice or pending court case with CRB.
4. Have not defaulted against previous guarantees.
5. Have participated in CRB Annual Consultative Meetings within the last two years.
6. For advance payment, the respective project must have been registered by the board.
7. Amount requested and purpose must e verified through supporting documents in form of bid conditions, stating the bid security amount or contract conditions and data stating provisions and the amount of advance payment requirements. For advance payment guarantee the member has to also submit a contract between the contractor and employer.
8. The contractor can only be guaranteed for one tender/contract at any time to maximum of TZS 100,000,000.00 (One Hundred Million) per guarantee subject to availability of funds.
9. Applicants shall pay to the bank’s commission applicable on the bond/advance payment guarantee. In addition the applicant shall pay to CRB a nominal commitment fee equal to 0.5% of the guarantee amount.