A Transformation Framework cidb National Stakeholder Forum 29 March 2016 1
Transformation Framework 1) Governance 2) Business conditions 3) Business factors 4) Skills development & competencies: – professional – construction; skilled- and semi-skilled 5) Developmental support 2
1) Governance • Transformation requires policy, legislative and regulatory environment under which transformation takes place in construction 3
1) Governance; In Place Instrument / Intervention Intended Outcome Improved performance of public and CIDB Act private sector clients, contractors and other participants Legislation / Regulation CID Regulations: Uniformity & transparency in • SFU procurement • Code of Conduct Good governance Compliance cidb Compliance Compliance with cidb Prescripts Monitoring Strategy Monitoring & Evaluation cidb Compliance Monitor Compliance with iTender 4
1) Governance; Under Development Instrument / Intervention Intended Outcome Legislation / CIDB Act; Enhanced legislation • Review of Act Regulation Compliance CID Regulations: Compliance with cidb prescripts • cidb Inspectorate Monitoring CID Regulations: and Compliance with cidb prescripts • cidb Inspectorate Evaluation 5
2) Business Conditions • Business conditions impact on the total work available to the construction sector and the underlying business conditions within which transformation must take place: – An objective for the cidb is to increase the total government spend and the efficiency and rate of spend, thereby enhancing transformation • Transformation requires an inclusive economy, with enhanced participation of black-contractors, black-BEPs and black- materials manufacturers and suppliers : – An objective for the cidb is to increase the participation of the black-sector in public and private sector spend through regulation, development programmes and best practice 6
Standard for Infrastructure Procurement and Delivery Management (SIPDM) Impact on Transformation: Procurement System 7
Procurement System (SIPDM) a) Establish what to procure b) Decide on procurement strategies: – packaging strategy – contracting strategy Impact on – pricing strategy transformation – targeting strategy and socio- c) Solicit tender offers economic d) Evaluate tender offers objectives e) Award contracts f) Administer contracts and confirm compliance requirements 8
2) Business Conditions; In Place Instrument / Intervention Intended Outcome Facilitate public sector cidb Register of Contractors procurement Procurement Facilitate public sector cidb Contractor Recognition procurement and promote Scheme contractor development Client Capacity Public Sector Client Capacity Enhanced public sector interventions procurement capability Access to work opportunities and PE Status development Enhanced public sector Access to Work procurement cidb Inform Practice Notes Enhance participation of black- sector Guidelines for Labour Intensive EPWP Enhanced participation of labour Construction 9
2) Business Conditions; cidb Inform Practice Notes • • PN 1; Scaling up Delivery and PN 15, Framework Agreements Accelerating Empowerment • PN 16, Advance Payment • PN 3; Applying the Register of • PN 19, Streamlining Payment Contractors in Construction Processes Works Contracts • PN 33, Objectives Linked to • PN 10; Attaining Social and Infrastructure Delivery Economic Deliverables • PN 32, Application of the • PN 11; Programme Management Potentially Emerging (PE) Approach to Delivery Status • PN 33, Balancing Delivery and Development on Infrastructure Projects 10
2) Business Conditions; Under Development (i of ii) Instrument / Intervention Intended Outcome Review of CIDB Act: Enhanced legislation • cidb Instruction Notes Facilitate public sector cidb Register of Professional Procurement procurement and promote Service Providers (PSPs) development of PSPs cidb Client Recognition Scheme Enhanced public sector procurement cidb Procurement Competence Enhance efficiency and rate of Client Capacity Standards spend cidb Project Assessment • Access to work Scheme: • Standard for Indirect Targeting opportunities Access to Work • Enhanced business for Enterprise Development • cidb Best Practice conditions Subcontracting Arrangements 11
2) Business Conditions; Under Development (ii of ii) Instrument / Intervention Intended Outcome Local cidb Standard for Contract Uniformity in business Beneficiation / Participation Goals conditions Participation Facilitate public sector Contractor cidb Register of Contractors: procurement and promote • Regulation Amendments Registration contractor development 12
3) Business Factors • Transformation requires support mechanisms to build capabilities of black-enterprises, availability of skills, access to finance, etc.: – An objective for the cidb is to enhance the development and sustainability of the black-sector 13
3) Business Factors; In Place Instrument / Intervention Intended Outcome cidb Construction Management Improved performance and Quality Guidelines (CMG101) contractor development Finance MoU with financial institutions Access to finance cidb Contractor Recognition Scheme: • cidb Standard for Contractor Performance Reports Sustainability Improved performance and • cidb Competence Standard for of enterprises contractor development Contractors • cidb Best Practice: Construction Management Systems • Specification for a Fraud and Governance Corruption Management Enhanced governance System 14
3) Business Factors; Under Development Instrument / Intended Outcome Intervention Prompt Payment Contractor sustainability Regulations cidb Project Assessment Scheme: • cidb Standard for Sustainability Access to developmental opportunities Indirect Targeting for of enterprises Enterprise Development cidb Professional Improved performance and contractor Service Provider development Recognition Scheme 15
4) Skills Development & Competencies • Transformation requires support mechanisms to build capabilities of black-enterprises, availability of skills, access to finance, etc.: – An objective for the cidb is to enhance the development and sustainability of the black-sector 16
4) Skills Development & Competencies; In Place Instrument / Intervention Intended Outcome cidb Skills Development Agency Management of skills Professionals (SDA) development cidb Contractor Recognition Scheme: Enhanced skills • cidb Competence Standard for Artisans /skilled Contractors /semi-skilled cidb Skills Development Agency Management of skills (SDA) development 17
4) Skills Development & Competencies; Under Development Instrument / Intervention Intended Outcome cidb Project Assessment Scheme: • cidb Standard for Developing Professionals Skills development Skills cidb Project Assessment Scheme: • cidb Standard for Developing Skills development Artisans /skilled Skills /semi-skilled WorldSkills SA Construction Enhanced skills development Chapter 18
5) Developmental Support • Transformation requires support mechanisms to build capabilities of black-enterprises, availability of skills, access to finance, etc.: – An objective for the cidb is to enhance the development and sustainability of the black-sector, and enhancing the quality of construction 19
5) Developmental Support; In Place Instrument / Intervention Intended Outcome National Contractor Development Programme (NCDP): • Targeting for Contractor Development Programmes: Contractor development & CDPs Background developmental support • Guidelines For Implementing Contractor Development Programmes cidb Construction Management Improved performance and Guidelines (CMG101) contractor development cidb Inform Practice Notes • PN 29, Allocating Sustainable Information Access to developmental Work Opportunities to Contractor opportunities Development Programmes on Infrastructure Projects Innovation (SEE IDT / ASA presentations) 20
5) Developmental Support; Under Development Instrument / Intervention Intended Outcome cidb Project Assessment Scheme: • cidb Standard for Indirect Access to developmental Training Targeting for Enterprise opportunities Development 21
5) Programmatic Developmental Support: cidb Best Practice Fee; Under Development Rm; Number; Item Unit 5 Year Total 5 Year Total Assessment of prior learning (APL) 23 4 600 Contractors Top-Up training in line with cidb 17 2 125 Contractors Competence Standard Construction Management Systems 102 2 040 Contractors (CMS) Mentoring on CDPs 207 1 380 Contractors Contractor Performance Reports; 5 100 Contractors Adjudication Sponsorship of Construction Mentor 5 179 Mentors Training (C-Mentor) World-Skills 67 13 400 Learners 22
Summary & Conclusions 23
cidb Interventions; Emerging Results • Compliance with SFU is good • Compliance with Register of Contractors is high • Compliance with iTender / Register of Projects is low • Uptake of PE status is low • Uptake of Practice Notes is limited • NCDP and Contractor Development Programmes (CDPs) – strong potential, compliance is low • Contractor Recognition Scheme – roll-out only initiated in August 2015 24
Concluding Comments 25
Thank You 26
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