GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES for Implementing... · cidb ncdp...

National Contractor Development Programme

GUIDELINES FOR IMPLEMENTING

CONTRACTOR DEVELOPMENT PROGRAMMES

II

SEPTEMBER 2011

cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011

1

CONTENTS

1. BACKGROUND 32. PURPOSE OF THIS DOCUMENT 53. WHAT IS A SUCCESSFUL CONTRACTOR DEVELOPMENT PROGRAMME? 74. IMPLEMENTING CONTRACTOR DEVELOPMENT 9

4.1. Establishing the needs, programme goals & strategy for contractor development 104.2. Getting started 11

4.2.1. Developing a programme business case 114.2.2. Establish a contractor development steering committee 114.2.3. Identify required role players and establish stakeholder forum 11

4.3. Staff resource planning 114.4. Targeting 12

4.4.1. Target groups 124.4.2. Identificationofprojects 12

4.5. Identifying support initiatives 124.6. Contractor assessment 13

4.6.1. Criteria for access 134.6.2. Competence 134.6.3. Financial upgrading factor 134.6.4. Contractor rating 15

4.6.4.1 Grade 2-6 contractors 15 4.6.4.2 Contractor prioritisation 16

4.6.5. Awarding points for socio-economic goals 164.6.6. Selecting contractors for development 16

5. MANAGING CONTRACTOR DEVELOPMENT 185.1 Training strategy 185.2 Training attendance: sharing the cost of contractor development 185.3 Dispute resolution 19

6 EVALUATION AND EXITING OF CONTRACTORS 217 MONITORING AND EVALUATION 23

Annexures: Annexure: Standard Operating Procedures Legends 25 Procedure for Implementing Contractor Development Programme 26Targeting Procedure 27 Contractor Assessment Procedure 28 Cost Sharing Principles for Contractor Development 29 Dispute Resolution Procedure for Contractor Development 30 Procedure for Evaluation and Exiting of Contractor’s 31 Monitoring and Evaluation Procedure 32


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BACKGROUND

The National Contractor Development Programme (NCDP) is a public sector led programme comprising of a partnership between the cidb, National and Provincial Public Works and other willing stakeholders and partners.

TheobjectiveoftheNCDPistoincreasethecapacity,equityownership,sustainability,qualityandperformanceofcidbregistered contractors – effectively raising the contribution of the construction industry to South Africa’s accelerated and shared growth initiative.

Toachieve this objective, participantswithin theNCDPshould commit to all or someof the followingdevelopmentaloutcomes:• Improvethegradingstatusofcontractorsintargetedcategoriesandgrades;• Increasethenumberofblackwomen,disabled,andyouth-ownedcompaniesintargetedcategories;• Createsustainablecontractingenterprisesbyenablingcontinuousworkthroughacompetitiveprocess;• Improvetheperformanceofcontractorsintermsofquality,employmentpractices,skillsdevelopment,safety,health

andtheenvironment;and• Improvethebusinessmanagementandtechnicalskillsofthesecontractors.


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PURPOSE OF THIS DOCUMENT

The purpose of this document is to assist committed clients to design and implement appropriate Contractor Development Programmes (CDPs) through direct targeting of contractors1 . The guidelines address the following aspects:

• GuidancefordesigningorimplementingCDPs.Theseinclude:o Targetingofbudgets,projectsandcontractors;o Evaluationofcontractorswhenenteringaprogramme;o Trainingandmentoring;o Sharingthecostofcontractordevelopment;o Riskandcostsharingincontracts;o Paymentdisputeresolution;o Exitingfromtheprogramme;ando Monitoring and evaluating the programme.

These guidelines are generally for government clients that intend establishing a CDP using direct procurement as a means of engaging contractors. It is applicable to Grade 2 to 6 contractors with a track record and excludes newly established contracting enterprises, but certain principles can be applied to other grades where clients deem it appropriate.

The guidelines only apply in detail to contractors in the General Building or Civil Engineering Classes of Works, but the principles can be applied to other Classes of Works.

1 For a discussion of “direct” and “indirect” targeting mechanisms, see “Targeting for Contractor Development Programmes; Background”, Construction Industry Development Board (2010), available on the cidb website


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WHAT IS A SUCCESSFUL CONTRACTOR DEVELOPMENT PROGRAMME?

A CDP should be a well-planned operation that aims to exit and graduate contractors from the programme with measurable improvements (e.g.NQF levelor improvement incontractorgrading)and involvescommitmentoffinancialandhumanresources by both the client and the contractor. Clients that commit to contractor development must use an appropriate portionoftheirprocurementofinfrastructurebudgettosupporttheobjectivesoftheNCDP.

The table below summarises the key requirements for a successful CDP.

Item RequirementsTick If Completed

√ or ×

Programme Strategy

A well designed and funded programme strategy aligned with the needs of the client

Projectsspecificallyselectedfortheircharacteristicsthatsupportthecontractordevelopment requirements and ensure sustainable development opportunities

Committed clients that use an appropriate portion of their procurement of infrastructurebudgettosupporttheobjectivesoftheNCDP

Contractor / Participants

Contractor selection must be based on predetermined criteria, aligned to envisaged development outcomes

Selectionmustbetransparentbasedonthecriteriaforselectionasidentifiedabove

Contractors must be assessed against predetermined criteria

Measure improvement against predetermined criteria on a regular basis and at exit

Client Capacity

SufficientcapacityforthemanagementoftheCDP

Appropriate monitoring, evaluation and quality control measures

Management of stakeholder expectations

An in-depth understanding of relevant procurement methods

AppropriatetrainingprogrammesthatleadtorelevantNQFqualifications

Business mentorship by experienced mentors


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IMPLEMENTING CONTRACTOR DEVELOPMENT

The purpose of this section is to guide clients through the key elements of implementing a contractor development programme. The key steps a client must follow to implement a CDP are listed in the table below and discussed in subsequent sections.

Item DescriptionTick If Completed

√ or ×

Needs,Programme Goals & Strategy

Assess and determine the need for contractor development

Setmeasurablelong-termprogrammegoalsandobjectivesforeachoftheyears(duration) of the programme

Determine contractor development outcomes for the programme

Assign a programme implementation timeline

Getting Started

Establish a Contractor Development Steering Committee

Identify required role players to support the implementation of contractor development,e.g.financialinstitutions,mentors,traininginstitutions,etc.

Conduct role player consultation sessions

Prepare a programme business case providing:

• Programme goals and description

• Scope of programme and interventions

• Contractor, organisational and institutional arrangements

• Resources and budget to support the programme and attain desired results

• Programme implementation timescale

• Measurable outcomes

• Programme operations monitoring and evaluation mechanisms

Resource Planning

Select appropriate organogram for contractor development

Determine manager, supervisors, and other staff roles and expected tasks in the programme

Determine mentor roles and expected tasks in the programme

Defineresourcesandbudgetneededtosupporttheprogramme

Targeting Collectportfolioofprojectstobeusedinthetargetingprocess

Selectprojectsanddetermine(quantify)targetsforeachyearwherepossible

Identify Projects

Determinecomplexityofprojects

Maplocalityofprojectsanddeterminecontractordevelopmentopportunities

Identify Support Initiatives

Determine mentoring approach

Develop training strategy and programme

Contractor Assessment

Determine criteria for inclusion in the programme

Invite contractors to register for contractor development

Apply assessment model


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The diagram below depicts the overall process for implementing contractor development.

4.1. Establishing the needs, programme goals & strategy for contractor development

As in any supplier development programme, clients must consider their own needs when designing a targeting strategy for a CDP. For example, if the typical delivery problems experienced by the client are construction quality related, the client may decide to only target contractors to ensure quality improvement. If there are not enough women-owned contractors in aspecificgrade,theclientmaytargetwomen-ownedcontractorsinaspecificgrade.

4. Training & Mentorship

3. Work Opportunities

Contractor Development Programme

To develop key contracting

competencies

5. Evaluation and Exiting of Contractors

6. Monitoring & Evaluation of the

Programme

1. Programme strategy & Targeting

2. Contractor Assessment


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4.2. Getting started

Asasector,CDPsdevelopmentinitiativenormallyrequiresignificantsupportfromthepoliticalstakeholdersintheprocess.It is important that the key role players in a CDP are involved from the start of the process.

4.2.1. Developing a programme business case

The Programme Manager: Contractor Development must develop a programme business case that addresses the following aspects:• Programmegoalsanddescription;• Scopeofprogrammeandinterventions;• Contractor,organisationalandinstitutionalarrangements;• Resourcesandbudgettosupporttheprogrammeandattaindesiredresults;• Programmeimplementationtimescale;• Measurableoutcomes;and• Programmeoperationsmonitoringandevaluationmechanisms.

4.2.2. Establish a contractor development steering committee

A steering committee is an important part of the success of any CDP as this will ensure buy-in and improved communication. The purpose of the steering committee is to direct initiatives that do not fall directly under the management of the Programme Manager: Contractor Development. Examples of this would include supply chain management arrangements and payments and contract conditions. The steering committee must approve the business case for contractor development.

4.2.3. Identify required role players and establish stakeholder forum

Appropriate consultation with key role players will ensure that there is a common understanding of the CDP anditwillsignificantlyincreasethechancesofsuccess.Althoughspecifickeyroleplayersmustbeidentifiedby the client, the following participants are recommended:• Thecontractordevelopmentsteeringcommitteemembers;• ThelocalConstructionContactCentre(CCC)manager;• OtherclientsthatmaywanttoparticipateinCDPs;• Constructionsectorrepresentative;and• Trainingauthoritiesandtraininginstitutions

4.3. Staff resource planning

As contractor development is an initiative of the client, the client must ensure appropriate resourcing of the contractor development initiative. The structure should incorporate a unit which is focused on contractor development, with the following functions:• Planningcontractordevelopmentinterventions;• Coordinatingcontractortrainingduringtheprogramme;• Coordinatingmentoringactivities;• Procurementspecialisationspecificallyfocusingonsourcingstrategiesthatwillpromotecontractordevelopment;• Stakeholdermanagementandcommunicationofcontractordevelopmentactivities, includingcoordinationwith

financialinstitutions;and• Monitoringandevaluation.


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4.4. Targeting

TargetingofspecificcontractorsformsanintegralpartofthedesignofaCDP.Anill-conceivedCDPwillnotsupporttheobjectivesofeithertheclientorthecontractors.Itisimportantthattheinterrelationshipbetweenthetargetedgroups,theneedsofthecontractors,thesupply-sidesupport initiativesandtheprojects identifiedforcontractordevelopmentarealigned.TargetingshouldbereadinconjunctionwiththeTargeting for Contractor Development Programmes: Guidelines available on the cidb website.

4.4.1. Target groups

CDPs should apply the following guidelines in identifying target groups:i) Ownership: CDPs should target the development of black, women, disabled, and youth-owned

companies.Specifically,CDPsshouldtargetthedevelopmentofcompanies inthoseClassesofWorks (CoWs) and Grades where imbalances in such ownership exist.

ii) Supply and Demand: CDPs should target the development of new contracting capacity only where demonstrableshortagesexistthatarealignedwiththeservicedeliveryobjectivesoftheclient.

iii) Performance Improvement (or competence development): CDPs should target to improving the performance of contractors – in particular in those areas which are aligned with the service delivery objectivesoftheclient.

iv) Local Economic Objectives:Wherefeasible,targetingofcontractorsshouldreflectlocaleconomicobjectives.

4.4.2. Identification of projects

Clientsshould identify theprojects forcontractordevelopmentbasedon thecidbgradeofcontractorstargeted.Projectidentificationshouldconsiderprojectcomplexityandlocality,andmustbematchedwiththe capability of the contractor.

4.5. Identifying support initiatives

The most critical element in any CDP is the support initiatives provided or arranged by clients which includes mentoring, technicalskillsdevelopment,businessandfinancialmanagementtraining,accesstofinanceoracombinationoftheabove.

• Training: This initiative requires the client to organise training with an accredited institution. The training should be aligned with the Requirements and Guidelines for cidb Contractor Competence Accreditation which is available from the cidb, which are deemed to be minimum standards necessary for running a contracting enterprise and for supervisingbuildingandconstructionworkswithinthefieldsoff:o Businessmanagement;o Buildingandconstructionworksmanagement(operationalandsupervision);ando Legislative issues.

• Mentoring: A contractor’smentorship needs are to be identified and an appropriatementorship interventionshould be developed. Mentorship should revolve primarily around the contractor’s business management skills and knowledge,suchastenderingandmarketing.MentorsmustberegisteredasmentorswiththeCouncilofProjectand Construction Management Professionals.


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4.6. Contractor Assessment

The purpose of the assessment is to select contractors that meet the entry level requirements in line with the focus of the CDP and to determine their developmental needs. All contractors applying for development must be registered in the cidb Register of Contractors.

4.6.1. Criteria for access

Clients should apply the following criteria to determine which contractors get access to contractor development programmes:• Competence• Financialupgrading;and• Socio-economicgoals

4.6.2. Competence

The contractor must be assessed to determine their level of competence, as outlined in the Requirements and Guidelines for cidb Contractor Competence Accreditation. The competence assessment can be done intermsofformalqualificationsandexperiencerequirements,orintermsoftherequirementsforanexternalcompetence assessment undertaken by a cidb recognised external Competence Assessment Panel. The diagram below outlines the required competencies per grade and class of works.

Category Grade NQF Level

Minimum Qualifications for building and construction management and for building and construction technology

Minimum Experience

GB: General BuildingCE: Civil Engineering

5 & 6 5 •DimplomaorNationalCertificate;or•CETAaccreditedRPLCertificate 5 years

2 to 4 4•NationalCertificate;or•IndustryrecognisedCETAaccredited

training programme3 years

TC: Trade Contractor/Artisans 1 to 50 3 to 5

•NationalCertificate;•CETAaccreditedRPLCertificate;or•Registrationwithrelevanttrade

association

3 years


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Once the contractors’ competence has been determined, contractors should be rated as indicated in the table below for assessing their suitability for enrolment into the CDP. The competence assessment will then also be used for evaluating the mentoring and training requirements of contractors that are enrolled within a CDP.

Description Rating

Contractorpossessingtherequiredqualificationsandminimumexperience 2

Contractorpossessingtheminimumexperiencebutwithouttherequiredqualification. 1

Contractorpossessingtherequiredqualificationbutwithouttheminimumexperience 0

Contractorwithouttherequiredqualificationandexperience -1

4.6.2.1 Determining Competence Rating The rating must be conducted based on the following principle for a Grade 5 or 6 General Building/Civil

Engineer Contractor: • AContractorpossessingofanNQF5Qualificationorabove(DiplomaorNationalCertificate

oraCETAaccreditedRPLCertificate)inbuildingandconstructionmanagement;andbuildingandconstructiontechnology;with5ormoreyear’sexperience,mustscorea(2);

• AcontractorpossessingofanNQF4Qualificationandlessonthespecifiedareas,with5years’ormoreexperiencemustscorea(1);

• AcontractorpossessingofanNQF5Qualificationoraboveonthespecifiedareas,with4years’orlessexperience,mustscorea(0);and

• AcontractorpossessingofanNQF4orlessQualificationonthespecifiedareas,with4year’sor less experience, must score a (-1).

This principle must be applied to other classes of works and grades, based on the requirements outlined by the Requirement and Guidelines for cidb Contractor Competence Accreditation.

4.6.3. Financial upgrading factor

Thecontractormustbeassessedtodetermineafinancialupgradingfactorandtomeasurehowclosethecontractor is to upgrading to the next grade designation.

ThefinancialupgradingfactorisdeterminedinlinewiththerequirementsofthecidbRegisterofContractorsbased on the following:• bestannualturnover;• largestcontract;and• available capital as indicated in the table on the following page (based on the current cidb

requirements).


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GradeUpper limit of tender value

rangeBest annual turnover Largest contract Available capital

Turnover Rating Value Rating Amount Rating

2 R 650 000 R 1 000 000 2 R 500 000 2 R 100 000 2

R 750 000 1 R 383 333 1 R 75 000 1

R 500 000 0 R 266 666 0 R 50 000 0

R 250 000 -1 R 150 000 -1 R 25 000 -1

3 R 2 000 000 R 2 000 000 2 R 1 000 000 2 R 200 000 2

R 1 666 666 1 R 833 333 1 R 166 666 1

R 1 333 333 0 R 666 666 0 R 133 333 0

R 1 000 000 -1 R 500 000 -1 R 100 000 -1

4 R 4 000 000 R 3 250 000 2 R 1 600 000 2 R 650 000 2

R 2 833 333 1 R 1 400 000 1 R 500 000 1

R 2 416 666 0 R 1 200 000 0 R 350 000 0

R 2 000 000 -1 R 1 000 000 -1 R 200 000 -1

5 R 6 500 000 R 7 800 000 2 R 3 250 000 2 R 1 300 000 2

R 6 283 333 1 R 2 700 000 1 R 1 083 333 1

R 4 766 666 0 R 2 150 000 0 R 866 666 0

R 3 250 000 -1 R 1 600 000 -1 R 650 000 -1

6 R 13 000 000 R 24 000 000 2 R 10 000 000 2 R 4 000 000 2

R 18 600 000 1 R 7 750 000 1 R 3 100 000 1

R 13 200 000 0 R 5 500 000 0 R 2 200 000 0

R 7 800 000 -1 R 3 250 000 -1 R 1 300 000 -1

Oncetherateforeachareahasbeendetermined,theclientshouldallocateanoverallfinancialupgradingfactorratingusingthe following formula:

Best annual turnover + largest contract + available capital

3 = Overall financial upgrading factor rating


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4.6.4. Contractor Rating Thefinancialupgradingfactorratingcanbecrossreferencedagainstthecontractor’scompetenceratingtoidentify

the contractors which are close to upgrading to the next grade designation but require assistance on competency. A score of 20, 40, 60 or 80 out of a maximum of 80 is then given to contractors that fall within the highlighted areas as shown in the following table.

Determining Contractor Rating for Grade 2 - 6 Contractors

Grade 2 – 8 Competence Rating

Financial Upgrading Rating

-1No qualifications or

Experience

0Qualifications & No

Experience

1Experience & No

Qualification

2Experience

& Qualifications

2 Very close 0 0 0 0

1 Close 0 80 60 0

0 Far 0 40 20 0

-1 Very far 0 0 0 0

4.6.4.1 Contractor Prioritisation

The focus of the CDPs should be on contractors functioning within the highlighted area for further assessment on socio-economic goals. However the client may select contractors functioning outside the recommended area at their own discretion.

4.6.5. Awarding points for Socio-Economic Goals

The selection process for the contractors should give preference to enterprises with Historically Disadvantaged Individual equity ownership which have Women, Disabled and Youth ownership. Therefore contractors must be scored out of a maximum of 20 points for socio-economic goals in line with the Preferencing policy of the department. The table above depicts an example of how the socio-economic goals can be determined and scored.

Example of how socio-economic goals can be determinedGoal Points

PE Status 4

Women 6

Disability 4

Youth 6

Total 20

4.6.6. Selecting contractors for development

Thecontractorrating(outof80)shouldbeaddedtothepointsawardedforsocio-economicobjectives(out of 20) to determine the overall score awarded to the contractor. Contractors should then be ranked from highest score to lowest score and the cut-off point is determined by the budget available. In order for a contractor to be selected for contractor development, a minimum score of 20 should be obtained for the overall score awarded.

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MANAGING CONTRACTOR DEVELOPMENT

During the operational phase of a contractor development programme, a number of key processes need to be implemented. The following list contains most of the critical functions relating to contractor development which will be further discussed below:

• Implementtrainingandmentorship;• Sharingthecostofcontractordevelopment;and• Facilitating dispute resolution.

5.1 Training strategy

A training strategy determines the overall training programme and logistics to conduct training. It should address the trainingapproach,objectivesandoutcomes,basedonthecontractorstrainingrequirements(section4.5.2),andalsotheprocess of identifying and mobilising training institutions which can provide the required training. The following logistical arrangements should be addressed:• Thenumberofpeopletobetrained• Thevenueanddateofthetraining• Thetrainingmaterialsrequired• Theexpectedinputandoutputofthetraining• Thetrainingserviceprovidermustidentifysuitabletrainingserviceproviderstoprovidethetraining.Thetraining

should be accredited with the Construction Education and Training Authority.

The training should be provided and structured so that the contractor can meet the requirements for cidb Contractor Competence Accreditation(seeSection4.4.2).ThistypicallyinvolvestheattainmentofformalNQFlevelqualifications,orwork place training and experience leading to the equivalent competence.

5.2 Training attendance: sharing the cost of contractor development

It is considered good practice to require contractors to contribute to their own development. Such contribution may take many forms, for example some contractor development programmes insist that contractors attend night classes to improve their skills while delivering on the contract. Other programmes require contractors to contribute 1% of turnover towards defrayingthecostofmentorship.SuchcommitmentensuresthatcontractorsarenotjustparticipatingintheCDPtoobtainwork, but actually progresses towards attaining the contractor development goals.

Clients should introduce measures to ensure commitment from contractors as follows:• Acontractorshouldatleastbear20%ofthedirectcostofskillsdevelopmentandtrainingcoursesand100%ofthe

indirect cost by making employees own time available to attend training courses.• Acontractorshouldatleastcontribute20%ofthedirectcostofmentorshiptoamaximumof1%ofturnover.

Should a contractor fail to pass the training courses or needs continuous mentorship, the contribution of the contractor should increase as follows:• Acontractorbearthefulldirectcostofskillsdevelopmentandtrainingand100%oftheindirectcostbymakingits

employees time available to attend training courses.• Acontractorshouldatleastcontribute40%ofthedirectcostofmentoringtoamaximumof2.5%ofturnover.

If a contractor does not meet the requirements as stated above, the contractor should exit the programme.


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5.3 Dispute resolution

Where there are established processes in respect of a particular form of contract, the Dispute Resolution Procedure for a CDP contract will be as set out in this guideline. The intention is to ensure that:• Contractorsarenotdisadvantagedduetolengthydisputeresolutionprocesses;and• Matterswhicharesubjecttodisputesareseparatedfrommatterswhicharenot.

Disputes arising in contracts awarded through the CDP should be resolved as expeditiously as possible. At all times the parties to a CDP contract should attempt to settle any claim without the need to enter into formal dispute resolution processes. However where it is not possible to resolve a claim, the dispute resolution process should be followed as set out in this guideline.

Adisputewillarisewhereaclaimbyonepartyisrejectedbytheotherpartyandattemptstoresolvethematteramicablywithinthestipulatedtimeframehasfailed.Aclaimwillbeconsideredasbeingrejectedifthepartytowhomtheclaimissubmitted, either:• Expresslyrejectstheclaim;• Doesnotrespondtotheclaimwithintheprescribedtimeframe;or• Thepartiesfailtoreacharesolutionwithinthestipulatedtimeframeandthereisnoagreementbetweentheparties

to extend the timeframe for the purpose of resolving the claim.

Claimswillnotberejectedinitsentiretyifthereisaproblemwithonlycertainaspectsofit.Thepartiesmustensurethataspectsof theclaimwhicharenot rejectedaresettled.Alldisputesarising inaCDPcontractwillbesubjectedtoanadjudicationprocess.AtthetimeofenteringintothecontractwiththeCDPcontractor,thepartiestotheCDPcontractshouldchooseanadjudicator.

The party to a CDP contract, instituting a claim that arises out of any act or omission by another party to a CDP contract wouldfirstgivenoticetotheotherpartytosettletheclaimwithin5daysofreceiptoftheclaim.Theclaimshouldbesupported with relevant details and any documentary evidence that will allow the other party to deal with the matter adequately.

Shouldtheclaimberejected,thepartiesmustattempttoresolvethematteramicablywithinfivedaysoftheclaimbeingrejected.Shouldthepartiesnotbeabletoresolvethematterintheprescribedtime,thepartythatisnotsatisfiedwiththeoutcome must issue a notice of dispute to the other party within two days after the expiry of the stipulated time period.

The notice of dispute should provide sufficient information and documentary evidence related to the dispute to givethe other party adequate opportunity to prepare its response. The aggrieved party will simultaneously give notice to the adjudicatorappointedthroughtheadjudicator’scontractascontainedinanyformofcontractcallingontheadjudicatortosetthematterdownforadjudicationwithin5daysofthedisputenoticedate.

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06


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EVALUATION AND EXITING OF CONTRACTORS

In order to graduate from a CDP, contractors should be re-evaluated and should meet the requirements for:• cidbContractorCompetenceAccreditation;and• Upgrading to a higher grade designation.

Furthermore, a formal application must have been submitted to the cidb for an accreditation of the contractor’s competence and for a contractor upgrade.

Notwithstanding the requirements for graduating from a CDP, all contractors should exit contractor development after the agreedperiodspecifiedintheCDPbusinesscase,whethertheygraduateornot.Generallythisshouldnotexceedthreeyears, (which is the time it normally takes to acquire the competence and experience) except in the case of contractors whohaveshownsignificantprogressbuthavenotyetgraduated.Inthesecases,theclientcandecidewhethertoprovideadditionalsupportforaspecifiedperiodorbyextendingthecontractor`speriodwithintheCDP.

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MONITORING AND EVALUATION

As part of the NCDP, the cidb intends to monitor and evaluate CDPs. Clients are expected to monitor their own programmes and report to the cidb on a quarterly basis. The table on the next page provides the key performance indicators per CDP which must be measured to determine the success of the CDP.

Indicator Description Frequency

Budget Annual budget put aside for the CDP Annually

Enrolments Number of contractors enrolled Quarterly

Projectawards

Number of tender awards within CDPValue of tender awards within CDP

Quarterly

Mentoring & training

Total number of mentors appointedApproximate total contact time between mentors and contractors

Quarterly

Loans Total number of loans accessedTotal value of loans accessed

Quarterly

Costs Cumulative planned expenditure on CDPCumulative actual expenditure on CDP

Quarterly

Cost-sharing Total contractor direct contributions to mentoring and training Quarterly

Qualifications TotalnumberofNQFqualificationsawarded Annually

Upgrades Number of contractors that meet the requirements improved their cidb grading Annually

Graduations Number of contractors graduating Annually

Exits Number of contractors exiting CDP (inclusive of graduations) Annually

The table below provides the key reporting requirements to the cidb for a CDP.

Report Description Frequency

Enrolments Name and CRS numbers of contractors enrolled Annually

Graduations Name and CRS Number of contractors graduating Annually

Qualifications Name and CRS numbers of contracting entity, together with names of individuals andthecidbrecognisedNQFqualificationsawarded

Annually

Exits Name and CRS numbers of contractors exiting Annually

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ANNEXURE


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s of

locality

perprojec

t

ProjectList


28

CONT

RACT

OR

ASSE

SSM

ENT

PRO

CEDU

RE

Cont

ract

or is

not

suita

ble

for f

urth

er s

cree

ning

Dete

rmin

e if t

he c

ontra

ctor

is

regi

ster

ed in

the

regi

ster

of

con

tract

s

Asse

ss a

nd s

core

co

ntra

ctor

s co

mpe

tenc

e ba

sed

on c

ompe

tenc

e re

quire

men

ts

Asse

ss a

nd s

core

contractorsfinancia

lup

grad

ing

fact

or

Awar

d po

ints

for

socio

-eco

nom

ic go

alsDe

term

ine

cont

ract

or ra

ting

Selec

t con

tract

ors

from

hig

h to

low

with

th

e cu

t-off

poin

t det

erm

ined

by

the

avail

able

budg

et

Add

cont

ract

or ra

ting

scor

e to

poi

nts

awar

ded

for s

ocio

-eco

nom

ic go

al

No

Yes


29

COST

SHA

RING

PRI

NCIP

LES

FOR

CONT

RACT

OR

DEVE

LOPM

ENT

Cont

ract

or b

ears

20%

of

the

dire

ct c

ost o

f skil

ls de

velo

pmen

t and

train

ing

cour

ses

and

100%

of t

he

indi

rect

cos

t, an

d co

ntrib

utes

20

% o

f the

dire

ct c

ost o

f m

ento

rshi

p to

a m

axim

um o

f 1%

turn

over

Cont

ract

or b

ears

full d

irect

co

st o

f skil

ls de

velo

pmen

t an

d tra

inin

g an

d 10

0% o

f th

e in

dire

ct c

ost

Cont

ract

or c

ontri

bute

s 20

% o

f the

dire

ct c

ost

of m

ento

rshi

p to

a

max

imum

of 1

% tu

rnov

er

Cont

ract

or c

ontri

bute

s 40

% o

f the

dire

ct c

ost o

f m

ento

ring

to a

max

imum

of

2.5

% o

f tur

nove

r

Does

con

tract

or re

quire

co

ntin

uous

men

torin

g?

Cont

ract

or b

ears

20%

of t

he d

irect

co

st o

f skil

l dev

elopm

ent a

nd tr

ainin

g co

urse

s an

d 10

0% o

f the

indi

rect

cos

t

Cont

ract

or a

ttend

s su

ppor

t ini

tiativ

eDi

d th

e co

ntra

ctor

pas

s th

e tra

inin

g co

urse

s?

No

No

Yes

Yes


30

DISP

UTE

RESO

LUTI

ON

PRO

CEDU

RE F

OR

CONT

RACT

OR

DEVE

LOPM

ENT

Awar

d co

ntra

ct

to C

DP c

ontra

ctor

Appo

intanAd

judicator

for c

idb’

s Pa

nel o

f Ad

judicators

Subm

it no

tice

to

settl

e cla

im w

ithin

5

days

Settl

emen

t re

ache

d?Co

ntin

ue w

ith

project

Rece

ive n

otice

of

disp

ute

Rece

ive n

otice

of

disp

ute

Subm

it no

tice

of

disp

ute

Sche

dule

mee

ting

foradjudica

tionof

the

disp

ute

No

Yes

Docu

men

tary

evid

ence

to

sup

port

the

claim

Docu

men

tary

evid

ence

th

at s

uppo

rt di

sput

e


31

PRO

CEDU

RE F

OR

EVAL

UATI

ON

AND

EXIT

ING

OF

CONT

RACT

OR’

S

Cont

ract

or e

xitCO

P un

succ

essf

ully

Cont

ract

or e

xitCO

P su

cces

sful

lyRe

- as

sess

con

tract

or

afterthedefinedperiod

whe

ther

he/

she

com

plies

w

ith th

e gr

adua

tion

crite

ria?

Prov

ide

addi

tiona

lsupp

ortforadefined

perio

d (p

refe

rabl

y on

e ye

ar)

Decid

e w

heth

er c

ontra

ctor

hasshow

nsig

nificant

prog

ress

to p

rovid

e ad

ditio

nal s

uppo

rtw

ithin

the

prog

ram

me?

Cont

ract

or e

xits

cont

ract

or d

evelo

pmen

tun

succ

essf

ully

Asse

ss w

heth

er c

ontra

ctor

co

mpl

ies w

ith th

e gr

adua

tion

crite

ria a

t the

end

of c

ontra

ctor

de

velo

pmen

t ter

m

Cont

ract

or e

xits

cont

ract

or d

evelo

pmen

tpr

ogra

mm

e su

cces

sful

Yes

Yes

Yes

No

No

No


32

MO

NITO

RING

AND

EVA

LUAT

ION

PRO

CEDU

RE

Deve

lop

Mon

itorin

g an

d Ev

aluat

ion

Plan

with

specific

goals

Dete

rmin

e th

e in

dica

tors

to

be

mea

sure

dM

easu

re th

e va

rious

in

dica

tors

Obt

ain re

sults

for

each

mea

sure

men

tCo

mpa

re re

sults

to

identifiedgoalsfro

mthe

mea

sure

men

t con

duct

ed

Weretheidentifiedgoals

achi

eved

?

The

Cont

ract

or D

evelo

pmen

tPr

ogra

mm

e (C

DP) w

as s

ucce

ssfu

l

YesNo

Deve

lop

a Co

ntra

ctor

Deve

lopm

ent

Impr

ovem

ent P

lan

Mon

itorin

g an

dEv

aluat

ion

Plan


33

Notes:


34

Notes:


35

Notes:


36

Notes:


37

Notes:


38

Website: www.cidb.org.zaE-mail: [email protected]

Tel: +27 12 482 7200 or +27 86 100 cidbFax: +27 12 349 8986 or +27 86 681 9995

Anonymous Fraud line: 080 011 2432Postal address: PO Box 2107, Brooklyn Square, 0075

Physical address: Blocks N&R, SABS Campus, 2 Dr. Lategan Rd, Groenkloof, Pretoria, South Africa

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