Construction Industry Development Board (ci d b) Business Plan and Budget - 2008/2009 -

Construction Industry Development Board (cidb)

Business Plan and Budget- 2008/2009 -

Second TermParliamentary Portfolio Committee

09 May 2008

development through partnershipcidb

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


to provide: leadership and an enabling regulatory and development framework for:

• A total construction delivery capability to achieve South Africa’s economic and social growth

• Sustainable growth and empowerment of historically disadvantaged

• Global standards of performance and value to clients and society

sustainable industry sustainable industry developmentdevelopment

cidb Act - Distilled MandateC

on

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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

sustainable industry developmentsustainable industry development

Implications of Distilled MandateC

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– Purp

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STAFFING STRUCTURE


Achievements:

• Now > 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

New implementation New implementation challenges!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 MOU’s– Workforce Group– FNB

• Fraud cases and Fraud reporting hotline


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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


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Achievements: Current Status-Registers Statistics1 26953 7958 1145 843 3212 401112 2073 1203 208 215 417 41163 589 441 78 102 80 12904 613 665 115 185 93 16715 285 359 89 113 86 9326 243 339 53 66 30 7317 114 152 25 34 26 3518 23 52 7 7 9 989 24 39 21 11 8 103

Total 30917 11208 1,741 1576 3961 49,403CE Civil Engineering EE Electrical Engineering GB General Building

9292ME Mechanical Engineering SW Specialist Works


10

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 > 65 000

Total registrations = (active + suspended)

Projected growth based on historical data

0100002000030000400005000060000700008000090000

100000

Dec 04 Dec 05 Dec 06 Dec 07 Apr 08 Dec 08

No. o

f reg

istra

tions

Series1

Achievements: Current Status-Registers Statistics

Region 1 2 3 4 5 6 7 8 9 Total

Eastern Cape 3801 334 124 139 79 69 29 3 1 4579

Free State 2352 209 47 83 44 33 16 8 2 2794

Gauteng 9523 976 230 435 262 235 151 50 70 11932

International 7 2 0 0 1 0 1 3 19 33

Kw aZulu-Natal 10826 1078 304 366 170 129 57 15 6 12951

Limpopo 4277 533 212 229 144 89 28 2 0 5514

Mpumalanga 4000 384 177 191 72 53 8 3 0 4888

National 2 0 0 0 0 0 0 0 0 2

North West 2238 179 45 74 37 29 11 1 0 2614

Northern Cape 399 63 24 29 23 8 9 0 0 555

Western Cape 2686 357 127 125 100 86 40 13 5 3539

Total 37425 3758 1163 1546 832 645 310 85 98 49401

National & provincial targetsNational & provincial targetsdevelopment through partnership

cidb

Black owned by Grade only

Medium sized contractors = 80% black Medium sized contractors = 80% black ownershipownership

Grade Total Black Owned % of the Total1 40111 39095 972 4116 3677 893 1290 1137 884 1671 1358 815 932 693 746 731 505 697 351 163 468 98 23 239 103 1 1

Total 49,403 46,652 94

80%36934624

gapsgaps

Women owned by grading

Designation Total Women Owned % of the Total1 40111 19982 502 4116 1882 463 1290 620 484 1671 658 395 932 327 356 731 205 287 351 62 188 98 4 49 103 0 0

Total 49,403 23,740 48

Women Owned by grading

Women owned – Mechanical Engineering

Development targetingDevelopment targeting

Designation Total Women % of the Total1 318 145 46

2 89 30 34

3 37 13 35

4 41 10 24

5 28 7 25

6 18 0 0

7 5 0 0

8 2 0 0

9 5 0 0Total 543 205 38

gapsgaps

GB CE ME EE SW Total1 2573 904 81 64 179 38012 169 107 17 19 22 3343 48 63 3 6 4 1244 54 61 7 10 7 1395 27 31 3 8 10 796 27 36 2 4 0 697 10 16 1 2 0 298 0 3 0 0 0 39 0 1 0 0 0 1

Total 2908 1222 114 113 222 4,579CE Civil Engineering EE Electrical Engineering GB General BuildingME Mechanical Engineering SW Specialist Works

Class of Works by grading – Eastern Cape

GradeGB CE ME EE SW Total

1 1588 478 86 38 162 23522 126 55 8 5 15 2093 20 21 3 1 2 474 29 43 4 4 3 835 12 22 1 5 4 446 11 18 2 2 0 337 7 7 0 2 0 168 4 3 0 0 1 89 0 2 0 0 0 2


Class of works

Class of Works by grading – Free State


1 5892 1650 355 333 1293 95232 442 235 61 70 168 9763 92 59 23 23 33 2304 129 154 57 56 39 4355 61 90 34 38 39 2626 58 98 23 33 23 2357 32 63 18 23 15 1518 9 22 5 6 8 509 16 22 19 9 4 70


Class of works

Class of Works by grading – Gauteng


1 7417 2454 200 112 643 108262 480 415 51 45 87 10783 114 125 19 28 18 3044 134 141 19 48 24 3665 59 56 15 24 16 1706 52 54 8 10 5 1297 25 22 2 4 4 578 4 10 0 1 0 159 2 1 1 0 2 6


Class of works

Class of Works by grading – KwaZulu Natal

GB CE ME EE SW Total1 3042 840 155 86 154 42772 344 116 29 26 18 5333 124 64 9 15 0 2124 96 95 6 29 3 2295 53 68 12 9 2 1446 35 46 3 5 0 897 14 9 1 0 4 288 0 2 0 0 0 2


Class of Works by grading – Limpopo


1 2861 805 112 82 140 40002 215 120 9 17 23 3843 96 58 5 13 5 1774 82 86 7 14 2 1915 24 36 3 7 2 726 17 31 1 4 0 537 7 1 0 0 0 88 0 2 1 0 0 3


Class of works

Class of Works by grading – Mpumalanga


1 1621 373 72 29 143 22382 104 53 4 6 12 1793 28 9 3 1 4 454 39 28 1 5 1 745 15 17 1 2 2 376 11 14 3 1 0 297 3 7 1 0 0 118 1 0 0 0 0 1


Class of works

Class of Works by grading – North West


1 288 65 3 13 30 3992 38 12 2 5 6 633 12 6 5 1 0 244 10 13 1 5 0 295 4 6 6 7 0 236 4 3 0 1 0 87 3 6 0 0 0 9

Total 359 111 17 32 36 555CE Civil Engineering EE Electrical Engineering GB General BuildingME Mechanical Engineering SW Specialist Works

Class of works

Class of Works by grading – Northern Cape


1 1665 387 80 86 468 26862 155 90 26 21 65 3573 55 36 8 14 14 1274 40 44 13 14 14 1255 30 33 13 13 11 1006 28 39 11 6 2 867 12 20 2 3 3 408 5 8 0 0 0 139 1 3 0 0 1 5


Class of works

Class of Works by grading – Western Cape

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 UCT’s library of resources – to expand into other academic institutions

• Toolkit/IDIP (Infrastructure Delivery Improvement Programme) & Rollout

• 2010 Procure Manual

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• 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

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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)



• 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



• 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


Achievements: cidb Quarterly Monitor

0% 20% 40% 60% 80% 100%

7 & 8

5 & 6

2 to 4

Building

Civil

Black Owned

0% 25% 50% 75% 100%

7 & 8

5 & 6

2 to 4Building

Civil

“Competition”

0% 5% 10% 15%

7 & 8

5 & 6

2 to 4

Building

Civil

Upgrades

0% 20% 40% 60% 80%

7 & 8

5 & 6

2 to 4Building

Civil

Public Sector Contracts


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


Achievement: Performance Improvement

• Work progressing well on:– cidb Best Practice Contractor Recognition

Scheme;• Supply Chain Development (7 & 8)• Construction Management Systems (5 & 6)

– H&S, Quality, Environment

• Competence Assessment (2 to 4)

– cidb Best Practice Project Accreditation Scheme;

• Close-out Reports

Competence Assessment

9

2

SimplifiedManagement Systems

Supply ChainDevelopment

Enablers;Business, H&S, Quality, Env, etc

Grade

Clo

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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

Cabinet

Minister ofPublic Works

ProgrammeSteering

Committee

ProgrammeManager

TaskTeams

AdvisoryGroup

Presidential Co-ordination Committee



• 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

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Empowerment

Delivery

Performance

Growth

Capability

Consistent procurement & delivery environment

Quality, safety, health and environment, employment

Skills & systems efficiency

Sustainable enterprises and emergence into mainstream economy

convergencein

focus

Triple output – 10

years, dep on

power gen cap

cidb Strategic ChallengeC

on

firm

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th

e v

isio

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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


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/stakeholders


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



• 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



• Phase II of the Registers– Quality– H&S– Environment

• Benchmarking- benchmarking clubs• HR Development• Internal audit process, Risk Management

& Corporate Governance• EDMS• Project Database



• 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



• 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



• 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.


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


Performance Measurement

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

• Example


Performance Measurement

Programme Strategic Project

Operational Objective

Target

Construction Registers Service

Phasing out of Help Desks

Phasing out of Help Desks and replacement with CCCs

End of FY 2008/09 Reduced no. of

complaints on the quality of service offered

80% compliant applications received through CCCs

Quality and integrity enhancements

Ongoing enhancements, quality and integrity of registrations on the CRS

Ongoing quality improvement to registration turnaround </= 21 working days

Ongoing alignment of CRS with industry needs and trends


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


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


2008/2009 BUDGET


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


Focus of 2008/2009 Budget

• Facilitating establishment of the ESDA• Phase II of the Registers (Quality, H&S,

Environment• Promotion of R&D agenda• Academic institutions to teach cidb

requirements• Benchmarking with international bodies &

benchmarking clubs• Continued support to 2010 Soccer World Cup

infrastructure procurement• EDMS


07/08 08/09 09/10 10/11

Organizational income

Registers 12 500 26 520 29 172 32 090

Transfer payments 49 891 75 078 67 354 72 158

Carried forward from 06/07 5 499 - - -

Total revenue 67 890 101 598 96 526 104 248

Standard item: Expenditure

Personnel 30 775 37 479 38 284 41 346

Administrative 12 965 32 559 19 841 21 428

Capital 7 350 11 240 14 888 16 079

Operational 16 800 20 320 23 513 25 395

Total expenditure 67 890 101 598 96 526 104 248

Summary Budget (kR) (MTEF)

PROGRAMMEActual 07/08

(unaudited)

Total08/09

Total09/10

Total10/11

Office of the CEO 11 101 8 800 5 335 5 762

CorporateServices 23 631 29 657 20 706 22 362

Growth &ContractorDevelopment

17 740 24 989 24 206 26 142

Construction IndustryPerformance 4 044 8 917 11 678 12 612

Procurement &Delivery 10 547 10 031 19 056 20 581

Registers 16 334 19 204 15 545 16 789

83 397 101 598 96 526 104 248

Summary Budget per Programme (kR)

Thank YouThank You

Thank You………..Thank You


Construction Industry Development Board (ci d b) Business Plan and Budget - 2008/2009 -

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