Contractors and company directors are solely responsible for ensuring all licence registration submissions are accurate and authentic.
The Construction Industry Development Board (CIDB) has warned that construction companies risk licence suspension or revocation if hired consultants or agents submit fraudulent registration information on their behalf.
The board said it does not recognise or endorse the use of agents, adding that contractors and company directors bear full responsibility for the accuracy and authenticity of all submissions.
"If documents are found to be false, CIDB will take action and this may include the suspension or cancellation of the Contractor Registration Certificate (PPK), as well as the imposition of penalties on the company directors, in accordance with the provisions of Act 520, relevant regulations and CIDB guidelines."
"These measures reinforce the principle that company directors are ultimately accountable for the conduct and compliance of the companies."
— CIDB, in a statementA nearly two-year SAYS investigation uncovered a network of so-called consultants or agents exploiting the ease of contractor registration — and the difficulty of navigating CIDB's online registration platform — for profit.
These groups offer to register construction companies, with some even providing fraudulent certificates and documents to secure approval.
One of the posts shared by a consultant on Facebook. · Image via Social media screenshot
CIDB said it has not received any verified reports or formal complaints about consultants or agents offering technical certificates for contractor licence or SPKK registration, but views such allegations seriously.
CIDB said its online registration platform, the Construction Industry Management System (CIMS), is user-friendly and allows contractors to submit applications independently.
The CIMS platform, used by contractors to register their licences. · Image via SAYS
"This system is complemented by mobile service counters, a dedicated CIDB Careline platform, structured training programmes, as well as instructional videos and user manuals."
"These initiatives are designed to minimise reliance on agents, promote transparency, and ensure that contractors fully understand and take ownership of their regulatory obligations."
— CIDB on CIMSWhat CIDB's statement makes clear is that the board will not shield company directors from accountability simply because a third-party agent was used. The legal exposure falls squarely on those who sign off on submissions — regardless of who prepares them.
As this series has shown, the line between convenience and complicity is thin. And CIDB has now made it explicit where the responsibility ends.
