Construction Industry Development Board cidb

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Construction Industry Development Board
(cidb) Business Plan and Budget - 2008/2009
- Second Term Parliamentary Portfolio Committee
09 May 2008
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Presentation Content

• Overview
• Distilled mandate Structure
• Achievements
• Challenges
• Key Focus for 2008/09
• Key Internal Focus for 2008/09
• Performance measurement
• Focus on long-term staffing systems
• BP approval process
• Budget

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cidb Act - Distilled Mandate

• to provide leadership and an enabling
  regulatory and development framework
• for
• A total construction delivery capability to
  achieve South Africas economic and social growth
• Sustainable growth and empowerment of
  historically disadvantaged
• Global standards of performance and value to
  clients and society

Context Purpose of cidb
sustainable industry development
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Implications of Distilled Mandate

• Dual responsibility of cidb
• An enabler/developer - WIP
• A regulator/enforcer of compliance - a new focus
• Change of direction critical to demonstrate value
  add in the industry

Context Purpose of cidb
sustainable industry development
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STAFFING STRUCTURE
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Achievements

• Now gt 65 000 registrations (ca 50 000 active) vs
  ca 27 500 (2006)
• More than 3 000 contractors upgraded (ca 87
  black)
• Assessments done on a weekly basis
• Backlog cleared early last year
• Launched Registers Communication Drive Nov
  07-Improved understanding of requirements and
  quality as well as rate of applications

Progress and building momentum
New implementation challenges!
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Achievements

• Construction Contact Centres
• Established in partnership with Prov DPWs
• 4 already established Gauteng(PTA), WC(CT),
  EC(Bisho), KZN(Durban)
• Last 5 being established this FY
• Signed MOUs
• Workforce Group
• FNB
• Fraud cases and Fraud reporting hotline

Progress and building momentum
New implementation challenges!
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Achievements

• Registration process simplified-latest Regs
  Amendments
• Gr 1 effective Jan 2008-
• over the counter registration, no certificate
• no annual updates in second and third year,
• no annual fees,
• linked to development
• Gr 2-9 amendments to regs published for public
  comments, till 30 May
• Remove certificate
• Remove bank rating
• Adjust upper tender limits

Progress and building momentum
New implementation challenges!
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Achievements Current Status-Registers Statistics
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Achievements Stats- Exponential Growth

• Increase in registrations
• Dec 2004 1500
• Dec 2005 7500
• Dec 2006 27500
• July 2007 42000
• Dec 2007 55 000
• End March 2008 gt 65 000

Total registrations (active suspended)
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Achievements Current Status-Registers Statistics
National provincial targets
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Black owned by Grade only
Medium sized contractors 80 black ownership
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Women owned by grading
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Women owned Mechanical Engineering
Development targeting
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Class of Works by grading Eastern Cape
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Class of Works by grading Free State
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Class of Works by grading Gauteng
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Class of Works by grading KwaZulu Natal
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Class of Works by grading Limpopo
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Class of Works by grading Mpumalanga
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Class of Works by grading North West
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Class of Works by grading Northern Cape
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Class of Works by grading Western Cape
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Achievements ..Continued

• Developed Code of Conduct-already incorporated in
  the UCT curriculum for Construction Management-
  to expand into other academic institutions
• Standard for Uniformity (SfU) incorporated into
  UCTs library of resources to expand into other
  academic institutions
• Toolkit/IDIP (Infrastructure Delivery Improvement
  Programme) Rollout
• 2010 Procure Manual

Progress and building momentum
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Achievements ..Continued

• Client capacitation workshop on construction
  procurement now accredited by ECSA-CPD pts for
  registered professionals
• Stakeholder Forum-June 2007, report to SF members
• 5-Year Independent Review Jan/Feb 2007, report
  published, handed over to Minister Dec 2007

Progress and building momentum
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Achievements State of Industry Reports

• Skills for Infrastructure Delivery in South
  Africa The Challenge of Restoring the Skills
  Pipeline (2006/07)
• The State of Municipal Infrastructure (2007/08)
• led to National Infrastructure Maintenance
  Strategy
• The Building and Construction Materials Sector
  Challenges and Opportunities (2007/08)
• materials shortages, opportunities for
  enterprise development, quality concerns
• Health and Safety (in progress)

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Achievements State of Industry Reports

• Construction Industry Indicators 2007
• performance of the contractor (26)
• defects (25)
• quality of tender documents and specifications
  (30)
• safety
• delayed payments (5 longer than 90 days)
• breakfast launch May 2008
• focuses cidb interventions

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Achievements State of Industry Reports

• cidb Quarterly Monitor
• overview of the state of contractor development
  at Provincial level
• input to developing targeted development
  intervention strategies in support of the NCDP
• being presented to Provincial HoDs

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Achievements cidb Quarterly Monitor
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Achievements Performance Improvement

• Contractor Guidelines
• Series 1 2 (of 3) in print
• Establishing a construction business
• Operating a construction business
• Executing a construction project
• Benchmarking Clubs
• launch KZN May 2008

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Achievement Performance Improvement

• Work progressing well on
• cidb Best Practice Contractor Recognition Scheme
• Supply Chain Development (7 8)
• Construction Management Systems (5 6)
• HS, Quality, Environment
• Competence Assessment (2 to 4)
• cidb Best Practice Project Accreditation Scheme
• Close-out Reports

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Achievements National Infrastructure Maintenance
Strategy

• Strategy approved by Cabinet August 2006
• Strategy and Brochure published
• Task Teams 2 3 established
• Programme Steering Committee to be established
  May
• Launch by Minister 21 May 2008

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Achievements ..Continued

• New Audit Committee- Mid 2007
• New Board appointed Dec 2007
• Chair and Deputy Chair appointed Feb 2008
• Both Audit and Remuneration Committees as board
  subcommittees constituted
• Induction for Audit Committee and Board Feb and
  April 2008-completed

Progress and building momentum
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cidb Strategic Challenge
Triple output 10 years, dep on power gen cap
Empowerment
Growth
Sustainable enterprises and emergence into
mainstream economy
convergence
Confirming the vision challenges
in
focus
Capability
Delivery
Consistent procurement delivery environment
Skills systems efficiency
Performance
Quality, safety, health and environment,
employment
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Challenges

• Current boom in the industry
• Skills shortage-Demand side-Clients and supply
  side-contractors
• Power generation capacity will dampen projected
  growth
• Unprecedented volume of registered contractors
  continues to pose a challenge
• Unemployment in the country
• Shifting priorities

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Challenges

• Structure as a national organisation with
  provincial presence vs expectations, poverty
  alleviation, performance, growth, support by
  clients est business
• Alignment of register with the Construction
  Charter- not yet gazetted as Section 9 Code
• Revenue model-registers (long term sustainability
  and functionality?)
• Partnerships with sister organisations/stakeholder
  s

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Key Focus for 2008/09

• Contractor Registration
• Continuous improvement of registration process
• Regulation amendments
• Project Registration
• Been slow/relaxations
• Reprioritise Fast track and prioritise I-Tender
  RoP
• Develop revenue model-consultation

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Key Focus for 2007/08

• Continue with public sector procurement reform
  streamlining, public sector capacitation, etc
• Register of Professional Service Providers
  (RoPSP)- consultation, regs, pilot, rollout
• Compliance enforcement-NB!
• Public sector delivery improvement continue
  with IDIP DPW DoE DoH, Municipalities
• National Infrastructure Maintenance Strategy
  cidb role and budget for implementation

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Key Focus for 2007/08

• Phase II of the Registers
• Quality
• HS
• Environment
• Benchmarking- benchmarking clubs
• HR Development
• Internal audit process, Risk Management
  Corporate Governance
• EDMS
• Project Database

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Key Focus for 2007/08

• Contractor Development
• Revised framework - National Contractor
  Development Programme
• Continue rollout in conjunction with DPW
• W/shops with Provincial DPWs/other infrastructure
  department/entities
• New Construction Contact Centres (CCC) FS,
  LIMPOPO, MPU, NW NC-mid to later this year-cost
  implications
• Phase in value-add through CCCs

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Key Focus for 2007/08

• Skills
• Report on Restoring the Supply Pipeline
• Disseminate/distribute
• JIPSA
• Framework for Employment Skills Development
  Agency (ESDA) cidb facilitating
• Work with CETA
• Presidential/Government projects
• Eradication of mud schools
• National Skills Development Strategy
• Support DRC and others
• Continue Support to NYS

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Key Focus for 2008/09

• Stakeholder Forum (SF)
• June 07 SF report sent to SF members
• Task Teams with SF members, championed by cidb
  managers
• Planned for August/September
• Consulting with Minister for actual date
• Provincial stakeholder workshops June-July
• Nominations for new SF Members later in 2008 for
  next two years.

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Key Internal Factors 2007/08

• Organisational Capacitation
• Expansion programme
• Stability of Leadership level
• Long-term staffing structure, incl CCC staff
• Incl HR Development
• Service Quality
• Staff Training
• Restructuring for efficiency---Registers CCC as
  service pt
• Management Systems
• to support the expanded business processes
  including financial management, risk management
  and performance management systems
• Stakeholder Management

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Performance Measurement

• Output targets set for each focus area (Section 6
  of Business Plan)
• Example

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Performance Measurement
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Revised Long-Term Staffing Structure

• Structure should begin to stabilise from FY
  2009/10-other things held constant
• Challenge with NIMS- clarity soon
• RoPSP
• To ensure sufficient programme depth
• Current positions 112
• Projected ca 161

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BP Approval Process

• Presentation to Board Oct 07
• Incorporation of Board inputs and submission to
  DPW for approval by Minister Oct 07
• Interaction with DPW-Progress review - Dec 07
• Updating of BP based on review Feb/ April 08
• (for information to Board-May 08)
• Special motivation for budget adjustment-DPW
• Adjustment of BP-April/May 2008
• Submission of final BP to DPW May 08
• Approval by Minister

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2008/2009 BUDGET
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Focus of 2008/2009 Budget

• Building human resource capacity
• Establishment of last 5 Construction Contact
  Centers
• Improve value add at the Construction Contact
  Centres
• Improvement of Registers service delivery
• Restructuring CRS for efficiency
• NIMS staffing may change depending on rollout
  requirements

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Focus of 2008/2009 Budget

• Facilitating establishment of the ESDA
• Phase II of the Registers (Quality, HS,
  Environment
• Promotion of RD agenda
• Academic institutions to teach cidb requirements
• Benchmarking with international bodies
  benchmarking clubs
• Continued support to 2010 Soccer World Cup
  infrastructure procurement
• EDMS

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Summary Budget (kR) (MTEF)
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Summary Budget per Programme (kR)
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