an industry perspective of the cidb process transport, housing, public works, local government &...

AN INDUSTRY PERSPECTIVE OF THE

CIDB PROCESS

Transport, Housing, Public Works, LocalGovernment & Provincial Affairs, Water

Affairs & Forestry

CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB)

ROLE OF GOVT

•CLIENT

•FACILITATOR

•REGULATOR

•VESTED INTEREST•VALUE FOR MONEY

•SOCIAL & ECONOMIC RESPONSIBILITY

•GROWTH & DEVELOPMENT OF INDUSTRY

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WHY THE CIDB?

•OBJECTIVE : TRANSFORMATION

•HOW?

CREATING AN ENABLING ENVIRONMENT FOR RECONSTRUCTION, GROWTH AND DEVELOPMENT IN THE CONSTRUCTION

INDUSTRY


INTER-

MINISTERIAL

COMMITTEE

TASK TEAM FOCUS GROUPS

REFERENCE GROUPS


PROCESS

•GREEN PAPER OUTLINED POLICY & APPOINTMENT OF TASK TEAM

•WHITE PAPER

•FRAMEWORK PLAN - CRITERIA FOR ESTABLISHMENT OF CIDB

•CONSULTATION VIA REFERENCE & FOCUS GROUPS

•SUBMISSION TO INTER-MINISTERIAL COMMITTEE, THEN CABINET, STATE LAW ADVISOR AND FINALLY PARLIAMENT



NEED FOR CIDB

•SA CONSTRUCTION INDUSTRY NATIONAL ASSET

•WELL DEVELOPED INFRASTRUCTURE

•LARGER FIRMS INTERNATIONALLY COMPETITIVE

•STRUCTURAL PROBLEMS•INVESTMENT VOLATILITY & DECLINE

•WORKFORCE INSTABILITY & SKILLS DECLINE

•RACIALLY SKEWED OWNERSHIP & PARTICIPATION

•LACK OF UNIFORMITY & CAPACITY IN PUBLIC SECTOR

•DISPERSED STAKEHOLDERS & CLIENTS

•SYSTEMATIC APPROACH REQUIRED FOR ABOVE BETWEEN PUBLIC & PRIVATE



OBJECTIVES

•LEADERSHIP

•STABILITY

•UNBLOCK DELIVERY

•FACILITATOR

•OPTIMISE INDUSTRY


OBJECTIVES PROGRAMMES

GROWTH BUSINESS, ECONOMIC & MARKET DEVELOPMENT

INDUSTRY DEVELOPMENTPERFORMANCE

DELIVERY PROCUREMENT & DELIVERY MANAGEMENT

FOCUS GROUP 6 : PROCUREMENT

TERMS OF REFERENCE

REVIEW SELECTED OUTPUTS OF GOVERNMENT PROCUREMENT REFORM POLICIES, PROCUREMENT PRACTICES,

PROCEDURES IN CONSTRUCTION INDUSTRY, DEVELOP BEST PRACTICES &

STRATEGIES

ENABLE CID TASK TEAM TO ADVISE GOVERNMENT, PROMOTE BEST

PRACTICES, FURTHER PUBLIC/PRIVATE CO-OPERATION AND ENHANCE DELIVERY

AND PERFORMANCE

CIDB WHEN CONSTITUTED WILL PROMOTE ABOVE



BEST PRACTICES

•UNIFORM PROCUREMENT DOCUMENTS

•MODERN FORM OF CONTRACT FEATURES

•COMPILATION OF PROCUREMENT DOCUMENTS

•MANNER TO APPOINT CONSULTANTS

•FAIR CONDITIONS OF SUBCONTRACT

•GOVERNING ACTIONS OF THOSE PROCURING

•NORMS FOR PROCUREMENT & DELIVERY MANAGEMENT

•USE OF PROCUREMENT FOR SOCIAL POLICY

•MANAGING RISK ON CONTRACTS

•JOINT VENTURE FORMATION TO DEVELOP EMERGING SECTOR



RECOMMENDATIONS

PUBLIC CONSTRUCTION PROCUREMENT UTILISE STANDARD APPOVED

PROCUREMENT DOCUMENTS (FIDIC, GCC, JBCC, NEC)

COMPLY WITH: BEST PRACTICE GUIDE (BPG) #2 : FEATURES OF

A MODERN FORM OF ENGINEERING & CONSTRUCTION CONTRACT

ORGANS OF STATE INCLUDE NAT & PROVINCIAL DEPT’s (DPW, TRANSPORT, WATER AFFAIRS &

FORESTRY, HOUSING & CONSTITUTIONAL DEVELOPMENT), METROPOLITIAN COUNCILS, &

PUBLIC ENTITIES



RECOMMENDATIONS

ENGINEERING & CONSTRUCTION WORKS CONTRACTS SUBJECT TO ST36, THE

GENERAL CONDITIONS OF WHICH ARE TO BE MODIFIED AND REDRAFTED

ST36 NOT TO BE REFERRED TO IN CONDITIONS OF TENDER



RECOMMENDATIONS

PROCUREMENT DOCUMENTS TO BE DRAFTED IN ACCORDANCE WITH BPG #1 :

UNIFORMITY IN PROCUREMENT DOCUMENTS

SEPERATE CONDITIONS OF TENDER, CONDITIONS OF CONTRACT,

SPECIFICATIONS & TERMS OF PAYMENT



RECOMMENDATIONS

CONSULTANTS APPOINTED IN TERMS OF THE STANDARD PROFESSIONAL SERVICES CONTRACT IN ACCORDANCE WITH BPG #4 : APPOINTMENT OF CONSULTANTS IN THE

PUBLIC SECTOR

SUBCONSULTANTS - STANDARD SUBCONSULTANCY AGREEMENT



RECOMMENDATIONS

SUBCONTRACTORS ENGAGED IN TERMS OF WRITTEN CONTRACT THAT SATISFY

PROVISIONS OF BPG #3 : FAIR CONDITIONS OF SUBCONTRACT

GCC, JBCC, NEC, FIDIC (NOT COLTO) AND NO MIXING OF ONE MAIN CONTRACT WITH

ANOTHER SUBCONTRACT

MINIMAL PROJECT SPECIFICATION AMENDMENTS



RECOMMENDATIONS

CODE OF CONDUCT APPLIES TO PROCUREMENT OF GOODS, SERVICES &

ENGINEERING CONSTRUCTION WORKS BY PUBLIC BODIES



RECOMMENDATIONS

PROCUREMENT & DELIVERY MANAGEMENT PROCEDURES & PRACTICES IN ACCORDANCE BPG #5 : PUBLIC SECTOR

PROCUREMENT & DELIVERY MANAGEMENT FOR ENGINEERING &

CONSTRUCTION WORKS

APPLIES TO PRE PLANNED DESIGN,

BUILD DEVELOP & CONSTRUCT, AND

RAPID DELIVERY PROCUREMENT CONTRACTS



RECOMMENDATIONS

UNSOLICITED PROPOSALS IN ACCORDANCE WITH BPG #6 : GUIDELINES IN RESPECT OF UNSOLICED PROPOSALS FROM THE PRIVATE SECTOR TO ORGANS

OF STATE



RECOMMENDATIONS

TARGETED PROCUREMENT AS DEVELOPED, DOCUMENTED AND CO-ORDINATED BY THE DPW MUST BE

UTILISED TO ATTAIN SOCIO-ECONOMIC DELIVERABLES IN ENGINEERING AND CONSTRUCTION WORKS CONTRACTS

www.pwdprocure.co.za



RECOMMENDATIONS

RISK ON PUBLIC SECTOR CONTRACTS MANAGED IN ACCORDANCE WITH BPG

#8 : MANAGING RISK ON PUBLIC SECTOR ENGINEERING AND CONSTRUCTION

WORKS CONTRACTS



RECOMMENDATIONS

JV AGREEMENTS TO SATISFY PRINCIPLES OF BPG #7 : FEATURES OF A JOINT

VENTURE AGREEMENT

MODEL DOCUMENTS INCLUDE THOSE BY SAFCEC (ENGINEERING &

CONSTRUCTION), FIDIC (PROFESSIONAL)


FUNCTIONING

CIDB TO MONITOR DOCUMENT USAGE BY STATE ORGANS & PROBLEMS/DISPUTES

THAT ARISE

DPW GEOGRAPHICAL TARGETED PROCUREMENT MANAGEMENT SYSTEM TO

TRACK CONTRACT & SOSIO-ECONOMIC OBJECTIVES BY STATE ORGANS

REGISTER OF CONTRACTORS

REGISTER OF CONTRACTS

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Slide 19 of 21

CIDB TO ENSURE UNIT STANDARDS OF LEARNING IN :

•PUBLIC SECTOR PROCUREMENT•TARGETED PROCUREMENT•CONTRACTING STRATEGIES

•PROCUREMENT DOCUMENTS•DISPUTE RESOLUTION MECHANISMS

•RISK MANAGEMENT•THE FULL PROJECT CYCLE•WHOLE LIFE CYCLE COSTS

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FUNCTIONING Slide 20 of 21


COMPOSITION

•MEMBERS APPOINTED PER PROCEDURES OUTLINED IN REGULATION, NOT BILL

•MUST HAVE CONSTRUCTION INDUSTRY DEVELOPMENT EXPERTISE

•REPRESENT RACE & GENDER

•MEMBERS IN INDIVIDUAL CAPACITY

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IMPLICATIONS

•STANDARDISED DOCUMENTS & SPECIFIC FEATURES FOR ALL

•CODE OF CONDUCT & NORMS AND STANDARDS

•FAIR CONDITIONS OF CONTRACTING

•JV FORMATION WITH DEVELOPING SECTOR

•INTRODUCTION OF ARD IN CONSTRUCTION

•PROCUREMENT = TOOL OF SOCIAL POLICY

•SUNSET PROVISION FOR APP

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