Construction Industry Development Programme, NPWP, Department of Public Works

Emerging Contractor Development Program

A National Initiative of the Department of Public Works

Presentation to Road Pavement Forum7 & 8 May 2002

Construction Industry Development Programme, NPWP, Department of Public Works

Contents

• Approach to contractor development• Framework of ECDP support• Impact and lessons• Challenges ahead• Concluding remarks

Construction Industry Development Programme, NPWP, Department of Public Works

What is an emerging contractor?

Defined as an enterprise owned,managed and controlled by historically disadvantaged individuals which is still overcoming business impediments arising from the legacy of apartheid

Construction Industry Development Programme, NPWP, Department of Public Works

HARSH REALITIES

Construction Industry Development Programme, NPWP, Department of Public Works

Development Approach

Affirmative Procurement (APP)= ACCESS TO WORK

OPPORTUNITIES

Emerging ContractorDevelopment Programme= ACCESS TO SUPPORT

• Delivery• Empowerment, transformation• Consolidation, emergence

Public Sector Delivery

Demand side access Supply side support

•transparent•competitive•cost effective

•information & advice•training & mentoring•finance & credit

Construction Industry Development Programme, NPWP, Department of Public Works

Principles of Contractor Development

• Target contractors who make best use of the support provided

• Clearly defined entry and exit criteria• Systematic monitoring and evaluation of contractors

Performance• Uniform and standard procurement documents, practises

and procedures• NQF principles should form the basis for skills

development ( Training should promote career progression)

• Enabling programme must not perpetuate the existing division of the industry

Construction Industry Development Programme, NPWP, Department of Public Works

Essence of ECDP

Department of Public Works

ECDP

Emerging ContractorsOther Organisations

Construction Industry Development Programme, NPWP, Department of Public Works

Framework of ECDP Support

HELP DESKDirect Support

ECDP Database

ECDPregional offices

EXTERNAL SUPPORTPrivate Sector, NGO’s

Work Opportunities

Monitoring & Evaluation

Construction Industry Development Programme, NPWP, Department of Public Works

ECDP Help Desk

• Registers Contractors• Provides information, advice & training

-Quotes and tenders- Performance and payment procedures

• Inter-active video/multi-media programmes

• Facilitates access to external support

Construction Industry Development Programme, NPWP, Department of Public Works

ECDP Data Base

• Categorises contractors• Matches contractor with work

opportunities• Supports monitoring and evaluation• Enables progression/ exit• Creates a track record

Construction Industry Development Programme, NPWP, Department of Public Works

Financial Support Spectrum

Development in Progress

Guarantees(APP,

Waiver of Guarantees)

Supplier Credit

(Supplier-based

Programs)

Prompt Payment

Working Capital Project Finance

(Financial Institution),

Construction Industry Development Programme, NPWP, Department of Public Works

Achievements

• Database of contractors• CET Training & RPL• Promotion of women in construction• Reduced delayed payments• Access to finance IDC and Khula

Construction Industry Development Programme, NPWP, Department of Public Works

Number of Registered contractors

Year Male Female Total

99-00 1405 165 1570

00-01 1891 262 2153

01-02 2982 275 3257

Construction Industry Development Programme, NPWP, Department of Public Works

CET Training

Year Male Female Total

00-01 65% (78) 35% (42) 120

00-02 60% (108) 40% (72) 180

Total 186 114 300

Construction Industry Development Programme, NPWP, Department of Public Works

Challenges

• Matching contractors with the contracts• Volatility of workload• Monitoring of performance• Screening of contractors• Job creation or empowerment ????• Support framework• Lack of organisational capacity

Construction Industry Development Programme, NPWP, Department of Public Works

Concluding Remarks

The skewed business ownership patterns in the South Africa is a problems.

The sub- standard skills level of emerging contractors and their continued lack of access to resources is a much bigger problem.

We have to intensify support to contractors to create real entrepreneurs.

Construction Industry Development Programme, NPWP, Department of Public Works

THANK YOU

Construction Industry Development Programme, NPWP, Department of Public Works

THANK YOU