construction industry development board (ci d b) business plan and budget - 2008/2009 -
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development through partnership. Construction Industry Development Board (ci d b) Business Plan and Budget - 2008/2009 - Second Term Parliamentary Portfolio Committee 09 May 2008. Presentation Content. Overview Distilled mandate & Structure Achievements Challenges Key Focus for 2008/09 - PowerPoint PPT PresentationTRANSCRIPT
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
development through partnershipcidb
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
text
– Purp
ose
of
cid
b
development through partnershipcidb
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
on
text
– Purp
ose
of
cid
b
development through partnershipcidb
STAFFING STRUCTURE
development through partnershipcidb
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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development through partnershipcidb
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
New implementation New implementation challenges!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
New implementation New implementation challenges!challenges!
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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
development through partnershipcidb
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
Total 1797 649 104 57 187 2,794CE Civil Engineering EE Electrical Engineering GB General BuildingME Mechanical Engineering SW Specialist Works
Class of works
Class of Works by grading – Free State
GradeGB CE ME EE SW Total
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
Total 6731 2393 595 591 1622 11,932CE Civil Engineering EE Electrical Engineering GB General BuildingME Mechanical Engineering SW Specialist Works
Class of works
Class of Works by grading – Gauteng
GradeGB CE ME EE SW Total
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
Total 8287 3278 315 272 799 12,951CE Civil Engineering EE Electrical Engineering GB General BuildingME Mechanical Engineering SW Specialist Works
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
Total 3708 1240 215 170 181 5,514CE Civil Engineering EE Electrical Engineering GB General BuildingME Mechanical Engineering SW Specialist Works
Class of Works by grading – Limpopo
GradeGB CE ME EE SW Total
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
Total 3302 1139 138 137 172 4,888CE Civil Engineering EE Electrical Engineering GB General BuildingME Mechanical Engineering SW Specialist Works
Class of works
Class of Works by grading – Mpumalanga
GradeGB CE ME EE SW Total
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
Total 1822 501 85 44 162 2,614CE Civil Engineering EE Electrical Engineering GB General BuildingME Mechanical Engineering SW Specialist Works
Class of works
Class of Works by grading – North West
GradeGB CE ME EE SW Total
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
GradeGB CE ME EE SW Total
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
Total 1991 660 153 157 578 3,539CE Civil Engineering EE Electrical Engineering GB General BuildingME Mechanical Engineering SW Specialist Works
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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development through partnershipcidb
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
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development through partnershipcidb
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)
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb
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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ut
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development through partnershipcidb
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
development through partnershipcidb
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
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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
ing
th
e v
isio
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ch
alle
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es
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb
Key Focus for 2007/08
• Phase II of the Registers– Quality– H&S– Environment
• Benchmarking- benchmarking clubs• HR Development• Internal audit process, Risk Management
& Corporate Governance• EDMS• Project Database
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb
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.
development through partnershipcidb
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
development through partnershipcidb
Performance Measurement
• Output targets set for each focus area (Section 6 of Business Plan)
• Example
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb
2008/2009 BUDGET
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb
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
development through partnershipcidb