Construction Industry Development Board (ci d b) Strategic Plan, Business Plan and Budget

1. development through partnership Construction Industry Development Board (cidb) Strategic Plan, Business Plan and Budget - 2009/2010 and MTEF- Presentation to PPC Tuesday, 20 October 2009

2. Presentation Content Overview Legislative Framework & mandate New Vision, Mission and Strategy External Context for 2009/10 Internal Context for 2009/10 Strategic Objectives Operational Plan Key focus for 2009/10 Performance measurement Budget development through partnership

3. Overview: Legislative Framework & Mandate development through partnership CIDB Act 38 of 2000…mandates the cidb to • provide strategic leadership to industry stakeholders to stimulate sustainable growth, reform and development • Regulate the construction industry • 1st Board and CEO November 2001 • First regulations: 2004-SfU, RoC, RoP Context – Purpose of cidb

4. to provide:strategic 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 development through partnership Overview: Legislative Framework & Mandate Context – Purpose of cidb

5. 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 Implications of Distilled Mandate development through partnership Context – Purpose of cidb

6. development through partnership Overview: Legislative Framework & Mandate Legislative Framework & Mandate • CIDB Act 38 of 2000…mandates the cidb to establish the National Register of Contractors: • Facilitates public sector procurement, delivery and risk management • Supports contractor development • Promotes better performance - improved quality, safety, health and environment. • to categorise contractors in accordance with their capability

7. RoC-Benefits Support risk management in the tendering process Reduce the administrative burden To facilitate sustainable growth and transformation of contractors, enable effective access by the emerging sector Reduce tendering costs to clients and contractors Promote minimum standards and contractor best practice Enable access by the private sector Provide information on the size, distribution, nature and development of contractors To improve the performance of contractors Overview: Legislative Framework and Mandate development through partnership

8. development through partnership Overview: Legislative Framework & Mandate Legislative Framework & Mandate • CIDB Act 38 of 2000…mandates the cidb to establish the National Register of Projects: • Gather information on the nature, value and distribution of projects • Provides the basis for a best practice project assessment scheme • Promote the performance of public and private sector clients

9. Vision & Mission: Vision 2012 and Beyond “A dynamic, innovative and development organisation that provides strategic leadership and an efficient service to stakeholders, leading to a transformed and competitive construction industry that delivers quality infrastructure, promotes economic growth, and an organisation that is caring for its employees”. development through partnership Progress and building momentum

10. Vision & Mission: Mission “To direct and drive an integrated construction industry development strategy that transforms the role of industry and stakeholders for sustainable growth, improved delivery, performance and value to public and private sector clients, and investors through strategic partnerships; to strategically and deliberately promote the empowerment of small, medium and micro enterprises to improve their capability and grow the economy; to develop employees to be meaningful participants in the organisation”. development through partnership Progress and building momentum

11. External Context: Supporting interventions Infrastructure delivery skills Public sector delivery Stakeholder Analysis & Management 5 – Year Review recommendations development through partnership Progress and building momentum

12. Internal Context: Operation and growth of RoC-see graphs and tables following this slide Specialisation Risk Exposure Business Systems- EDMS CRS Software Upgrade development through partnership Progress and building momentum

13. 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; End March 2009 >80 000 Total registrations = (active + suspended)

14. Class of Works by grading-Sept 2009 There have been 4,801 upgrades on the Register to date. Black owned enterprises constitute 84% of all upgrades.

15. Grading by Province – September 2009

16. Actual no. of companies registered

17. Strategic Objectives: Organisational Capacitation “Value-added” service delivery Research and Development Agenda Phase II of the Registers Procurement Reform development through partnership Progress and building momentum

18. development through partnership OPERATIONAL PLAN & STAFFING STRUCTURE

19. Operational Programmes: Programme 1: Growth and Contractor Development(GCD)-focuses on promotion of enterprise development, investment and spending as the basis for a stable, developing industry and the participation of the emerging sector. development through partnership Progress and building momentum

20. Operational Programmes: Programme 2: Construction Industry Performance-focuses on improved performance and best practice for an industry that delivers reliable value to clients, investors and end-users, information on construction industry indicators to inform cidb strategy, policy makers and stakeholders. development through partnership Progress and building momentum

21. Operational Programmes: Programme 3: Procurement and Delivery Management-focuses onenhanced public sector construction procurement and infrastructure delivery management capability of public sector clients enabling efficient and effective delivery of quality infrastructure to the public. development through partnership Progress and building momentum

22. Operational Programmes: Programme 4: Construction Registers Servicesfocuses on: Registration of contractors and both public and private sector projects Regulation to effect improved performance and best practice of clients and suppliers. development through partnership Progress and building momentum

23. Operational Programmes: Programme 5: Chief Executive’s Office focuses on: overall strategic leadership and governance in support of the Board; stakeholder consultations and communications. development through partnership Progress and building momentum

24. Operational Programmes: Programme 6: Corporate Services, responsible for: financial management including registers fees; human resource administration-HR Admin; supply chain management-SCM; information technology-IT. development through partnership Progress and building momentum

25. Key Focus for 2009/10 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 partnership

26. Key Focus for 2009/10 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 – NIMS-cidb role and budget for implementation development through partnership

27. Key Focus for 2009/10 Phase II of the Registers-Best Practice Quality H&S Environment Benchmarking- benchmarking clubs development through partnership

28. cidb Best Practice Contractor Recognition Scheme Grade Enablers; Business, H&S, Quality, Env, etc Results 9 2 SANS / ISO / OSHAS Management Systems AND Supply Chain Development Performance Reports cidb Accredited Management Systems cidb Competence Assessment

29. cidb Best Practice Project Assessment Scheme Value Best Practice 9 2 Energy Efficiency PUBLIC SECTOR Construction Management Plans PUBLIC SECTOR Skills / ESDA PUBLIC & PRIVATE Standard for Uniformity PUBLIC SECTOR Performance Reports PUBLIC SECTOR

30. Key Focus for 2009/10 Establish ESDA: funding, operation HR Development Internal audit process, Risk Management & Corporate Governance EDMS Project Database development through partnership

31. Key Focus for 2009/10 Contractor Development: Revised framework - National Contractor Development Programme -NCDP Continue rollout in conjunction with DPW W/shops with Provincial DPWs/other infrastructure department/entities New Construction Contact Centres (CCC):LIMPOPO; NW Phase in value-add through CCCs development through partnership

32. Key Focus for 2009/10 Stakeholder Forum (SF) 2009: 23 Oct 2009 Nominations for new SF Members for next two years – Finalised in Oct 2009 General Stakeholder engagements 5-year review recommendations development through partnership

33. Performance Measurement Output targets set for each focus area (Section 6 of Business Plan) Example development through partnership

34. Performance Measurement development through partnership

35. development through partnership 2009/2010 BUDGET

36. Focus of 2009/2010 Budget Building human resource capacity Establishment of last 2 Construction Contact Center/s Improve value-add at the Construction Contact Centres Improvement of Registers service delivery NIMS staffing and operationalisation Focus on fraud and corruption/forensics Enforcement of compliance development through partnership

37. Focus of 2009/2010 Budget Facilitating the establishment of the ESDA Phase II of the Registers (Quality, H&S, Environment)-Best Practice Promotion of R&D agenda Academic institutions to teach cidb requirements- start the process Benchmarking with international bodies & benchmarking clubs Continued support to 2010 Soccer World Cup infrastructure procurement-not necessary so far EDMS-prioritised development through partnership

38. Focus of 2009/2010 Budget Stakeholder management Upscale communication: media/stakeholders/etc ICT-hub of operations development through partnership

39. Summary Budget (kR) (MTEF)

40. Summary Budget per Programme (kR)

41. Thank You development through partnership ………..Thank You Thank You Thank You