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Emerging Contractor Development Program

Emerging Contractor Development Program. A National Initiative of the Department of Public Works Presentation to Road Pavement Forum 7 & 8 May 2002. Contents. Approach to contractor development Framework of ECDP support Impact and lessons Challenges ahead Concluding remarks.

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Emerging Contractor Development Program

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  1. Emerging Contractor Development Program A National Initiative of the Department of Public Works Presentation to Road Pavement Forum 7 & 8 May 2002

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

  3. 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

  4. HARSH REALITIES

  5. Development Approach Public Sector Delivery Demand side access Supply side support Affirmative Procurement (APP) = ACCESS TO WORK OPPORTUNITIES Emerging Contractor Development Programme = ACCESS TO SUPPORT • transparent • competitive • cost effective • information & advice • training & mentoring • finance & credit • Delivery • Empowerment, transformation • Consolidation, emergence

  6. 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

  7. Essence of ECDP Department of Public Works ECDP Other Organisations Emerging Contractors

  8. Framework of ECDP Support ECDP regional offices HELP DESK Direct Support EXTERNAL SUPPORT Private Sector, NGO’s ECDP Database Work Opportunities Monitoring & Evaluation

  9. 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

  10. ECDP Data Base • Categorises contractors • Matches contractor with work opportunities • Supports monitoring and evaluation • Enables progression/ exit • Creates a track record

  11. Financial Support SpectrumDevelopment in Progress Prompt Payment Guarantees (APP, Waiver of Guarantees) Supplier Credit (Supplier-based Programs) Working Capital Project Finance (Financial Institution),

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

  13. Number of Registered contractors

  14. CET Training

  15. 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

  16. 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.

  17. THANK YOU

  18. THANK YOU

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