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AN INDUSTRY PERSPECTIVE OF THE CIDB PROCESS

AN INDUSTRY PERSPECTIVE OF THE CIDB PROCESS. Transport, Housing, Public Works, Local Government & Provincial Affairs, Water Affairs & Forestry. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB). Slide 1 of 21. Next. Previous. ROLE OF GOVT. CLIENT FACILITATOR REGULATOR VESTED INTEREST

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AN INDUSTRY PERSPECTIVE OF THE CIDB PROCESS

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  1. AN INDUSTRY PERSPECTIVE OF THE CIDB PROCESS Transport, Housing, Public Works, Local Government & Provincial Affairs, Water Affairs & Forestry

  2. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB) Slide 1 of 21 Next Previous ROLE OF GOVT • CLIENT • FACILITATOR • REGULATOR • VESTED INTEREST • VALUE FOR MONEY • SOCIAL & ECONOMIC RESPONSIBILITY • GROWTH & DEVELOPMENT OF INDUSTRY

  3. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB) Slide 2 of 21 Next Previous WHY THE CIDB? • OBJECTIVE : TRANSFORMATION • HOW? • CREATING AN ENABLING ENVIRONMENT FOR RECONSTRUCTION, GROWTH AND DEVELOPMENT IN THE CONSTRUCTION INDUSTRY INTER- MINISTERIAL COMMITTEE FOCUS GROUPS REFERENCE GROUPS TASK TEAM

  4. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB) Slide 3 of 21 Next Previous PROCESS • GREEN PAPER OUTLINED POLICY & APPOINTMENT OF TASK TEAM • WHITE PAPER • FRAMEWORK PLAN - CRITERIA FOR ESTABLISHMENT OF CIDB • CONSULTATION VIA REFERENCE & FOCUS GROUPS • SUBMISSION TO INTER-MINISTERIAL COMMITTEE, THEN CABINET, STATE LAW ADVISOR AND FINALLY PARLIAMENT

  5. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB) Slide 4 of 21 Next Previous NEED FOR CIDB • SA CONSTRUCTION INDUSTRY NATIONAL ASSET • WELL DEVELOPED INFRASTRUCTURE • LARGER FIRMS INTERNATIONALLY COMPETITIVE • STRUCTURAL PROBLEMS • INVESTMENT VOLATILITY & DECLINE • WORKFORCE INSTABILITY & SKILLS DECLINE • RACIALLY SKEWED OWNERSHIP & PARTICIPATION • LACK OF UNIFORMITY & CAPACITY IN PUBLIC SECTOR • DISPERSED STAKEHOLDERS & CLIENTS • SYSTEMATIC APPROACH REQUIRED FOR ABOVE BETWEEN PUBLIC & PRIVATE

  6. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB) Slide 5 of 21 Next Previous OBJECTIVES OBJECTIVES PROGRAMMES GROWTH BUSINESS, ECONOMIC & MARKET DEVELOPMENT PERFORMANCE INDUSTRY DEVELOPMENT DELIVERY PROCUREMENT & DELIVERY MANAGEMENT • LEADERSHIP • STABILITY • UNBLOCK DELIVERY • FACILITATOR • OPTIMISE INDUSTRY

  7. FOCUS GROUP 6 : PROCUREMENT Slide 6 of 21 Next Previous TERMS OF REFERENCE REVIEW SELECTED OUTPUTS OF GOVERNMENT PROCUREMENT REFORM POLICIES, PROCUREMENT PRACTICES, PROCEDURES IN CONSTRUCTION INDUSTRY, DEVELOP BEST PRACTICES & STRATEGIES ENABLE CID TASK TEAM TO ADVISE GOVERNMENT, PROMOTE BEST PRACTICES, FURTHER PUBLIC/PRIVATE CO-OPERATION AND ENHANCE DELIVERY AND PERFORMANCE CIDB WHEN CONSTITUTED WILL PROMOTE ABOVE

  8. FOCUS GROUP 6 : PROCUREMENT Slide 7 of 21 Next Previous BEST PRACTICES • UNIFORM PROCUREMENT DOCUMENTS • MODERN FORM OF CONTRACT FEATURES • COMPILATION OF PROCUREMENT DOCUMENTS • MANNER TO APPOINT CONSULTANTS • FAIR CONDITIONS OF SUBCONTRACT • GOVERNING ACTIONS OF THOSE PROCURING • NORMS FOR PROCUREMENT & DELIVERY MANAGEMENT • USE OF PROCUREMENT FOR SOCIAL POLICY • MANAGING RISK ON CONTRACTS • JOINT VENTURE FORMATION TO DEVELOP EMERGING SECTOR

  9. FOCUS GROUP 6 : PROCUREMENT Slide 8 of 21 Next Previous RECOMMENDATIONS PUBLIC CONSTRUCTION PROCUREMENT UTILISE STANDARD APPOVED PROCUREMENT DOCUMENTS(FIDIC, GCC, JBCC, NEC) COMPLY WITH: BEST PRACTICE GUIDE (BPG) #2 : FEATURES OF A MODERN FORM OF ENGINEERING & CONSTRUCTION CONTRACT ORGANS OF STATE INCLUDE NAT & PROVINCIAL DEPT’s(DPW, TRANSPORT, WATER AFFAIRS & FORESTRY, HOUSING & CONSTITUTIONAL DEVELOPMENT), METROPOLITIAN COUNCILS, & PUBLIC ENTITIES

  10. FOCUS GROUP 6 : PROCUREMENT Slide 9 of 21 Next Previous RECOMMENDATIONS ENGINEERING & CONSTRUCTION WORKS CONTRACTS SUBJECT TO ST36, THE GENERAL CONDITIONS OF WHICH ARE TO BE MODIFIED AND REDRAFTED ST36 NOT TO BE REFERRED TO IN CONDITIONS OF TENDER

  11. FOCUS GROUP 6 : PROCUREMENT Slide 10 of 21 Next Previous RECOMMENDATIONS PROCUREMENT DOCUMENTS TO BE DRAFTED IN ACCORDANCE WITH BPG #1 : UNIFORMITY IN PROCUREMENT DOCUMENTS SEPERATE CONDITIONS OF TENDER, CONDITIONS OF CONTRACT, SPECIFICATIONS & TERMS OF PAYMENT

  12. FOCUS GROUP 6 : PROCUREMENT Slide 11 of 21 Next Previous RECOMMENDATIONS CONSULTANTS APPOINTED IN TERMS OF THE STANDARD PROFESSIONAL SERVICES CONTRACT IN ACCORDANCE WITH BPG #4 : APPOINTMENT OF CONSULTANTS IN THE PUBLIC SECTOR SUBCONSULTANTS - STANDARD SUBCONSULTANCY AGREEMENT

  13. FOCUS GROUP 6 : PROCUREMENT Slide 12 of 21 Next Previous RECOMMENDATIONS SUBCONTRACTORS ENGAGED IN TERMS OF WRITTEN CONTRACT THAT SATISFY PROVISIONS OF BPG #3 : FAIR CONDITIONS OF SUBCONTRACT GCC, JBCC, NEC, FIDIC (NOT COLTO) AND NO MIXING OF ONE MAIN CONTRACT WITH ANOTHER SUBCONTRACT MINIMAL PROJECT SPECIFICATION AMENDMENTS

  14. FOCUS GROUP 6 : PROCUREMENT Slide 13 of 21 Next Previous RECOMMENDATIONS CODE OF CONDUCT APPLIES TO PROCUREMENT OF GOODS, SERVICES & ENGINEERING CONSTRUCTION WORKS BY PUBLIC BODIES

  15. FOCUS GROUP 6 : PROCUREMENT Slide 14 of 21 Next Previous RECOMMENDATIONS PROCUREMENT & DELIVERY MANAGEMENT PROCEDURES & PRACTICES IN ACCORDANCE BPG #5 : PUBLIC SECTOR PROCUREMENT & DELIVERY MANAGEMENT FOR ENGINEERING & CONSTRUCTION WORKS APPLIES TO PRE PLANNED DESIGN, BUILD DEVELOP & CONSTRUCT, AND RAPID DELIVERY PROCUREMENT CONTRACTS

  16. FOCUS GROUP 6 : PROCUREMENT Slide 15 of 21 Next Previous RECOMMENDATIONS UNSOLICITED PROPOSALS IN ACCORDANCE WITH BPG #6 : GUIDELINES IN RESPECT OF UNSOLICED PROPOSALS FROM THE PRIVATE SECTOR TO ORGANS OF STATE

  17. FOCUS GROUP 6 : PROCUREMENT Slide 16 of 21 Next Previous RECOMMENDATIONS TARGETED PROCUREMENT AS DEVELOPED, DOCUMENTED AND CO-ORDINATED BY THE DPW MUST BE UTILISED TO ATTAIN SOCIO-ECONOMIC DELIVERABLES IN ENGINEERING AND CONSTRUCTION WORKS CONTRACTS www.pwdprocure.co.za

  18. FOCUS GROUP 6 : PROCUREMENT Slide 17 of 21 Next Previous RECOMMENDATIONS RISK ON PUBLIC SECTOR CONTRACTS MANAGED IN ACCORDANCE WITH BPG #8 : MANAGING RISK ON PUBLIC SECTOR ENGINEERING AND CONSTRUCTION WORKS CONTRACTS

  19. FOCUS GROUP 6 : PROCUREMENT Slide 18 of 21 Next Previous RECOMMENDATIONS JV AGREEMENTS TO SATISFY PRINCIPLES OF BPG #7 : FEATURES OF A JOINT VENTURE AGREEMENT MODEL DOCUMENTS INCLUDE THOSE BY SAFCEC (ENGINEERING & CONSTRUCTION), FIDIC (PROFESSIONAL)

  20. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB) Slide 19 of 21 Next Previous FUNCTIONING CIDB TO MONITOR DOCUMENT USAGE BY STATE ORGANS & PROBLEMS/DISPUTES THAT ARISE DPW GEOGRAPHICAL TARGETED PROCUREMENT MANAGEMENT SYSTEM TO TRACK CONTRACT & SOSIO-ECONOMIC OBJECTIVES BY STATE ORGANS REGISTER OF CONTRACTORS REGISTER OF CONTRACTS

  21. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB) Slide 20 of 21 Next Previous FUNCTIONING • CIDB TO ENSURE UNIT STANDARDS OF LEARNING IN : • PUBLIC SECTOR PROCUREMENT • TARGETED PROCUREMENT • CONTRACTING STRATEGIES • PROCUREMENT DOCUMENTS • DISPUTE RESOLUTION MECHANISMS • RISK MANAGEMENT • THE FULL PROJECT CYCLE • WHOLE LIFE CYCLE COSTS

  22. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB) Slide 21 of 21 Next Previous COMPOSITION • MEMBERS APPOINTED PER PROCEDURES OUTLINED IN REGULATION, NOT BILL • MUST HAVE CONSTRUCTION INDUSTRY DEVELOPMENT EXPERTISE • REPRESENT RACE & GENDER • MEMBERS IN INDIVIDUAL CAPACITY

  23. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB) Previous IMPLICATIONS • STANDARDISED DOCUMENTS & SPECIFIC FEATURES FOR ALL • CODE OF CONDUCT & NORMS AND STANDARDS • FAIR CONDITIONS OF CONTRACTING • JV FORMATION WITH DEVELOPING SECTOR • INTRODUCTION OF ARD IN CONSTRUCTION • PROCUREMENT = TOOL OF SOCIAL POLICY • SUNSET PROVISION FOR APP

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