Agrément South Africa

1. Agrément South Africa PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE ON PUBLIC WORKS 22nd October 2013 AGRÉMENT SOUTH AFRICA 2012/13 M514, 5th Floor, Marks Building, Parliament, 09:30 – 12:45. Pepi Silinga: Chairman Agrément South Africa Sammy Skosana, Technical Assessor Group Leader, Agrément South Africa Joe Odhiambo, CEO Agrément South Africa

2. Framework for the presentation • Performance Report • Progress Against planned targets • Governance matters • Financial Report Slide 2 of 22

3. Support Government Policy • A strong focus has been placed on bringing the benefits of innovative construction technologies to the fore. • This has been necessary as the country addresses the backlog of infrastructure development in previously disadvantaged areas. • The Government has an obligation to correct the imbalance of infrastructure roll-out and views the role played by innovative construction technologies as very important in this regard.

4. Support Government Policy • This is coupled with the dire need to improve service delivery to all our communities. • Role out of innovative construction technologies can provide an opportunity to contribute towards addressing challenges of poverty, unemployment and inequality. • Need for careful implementation plan to ensure quality of products meets requirements.

5. Strategic support to DPW • Agrément South Africa-certificated products were the topic of discussions at various different forums. • This illustrates the strides made by the organisation in undertaking technical assessment and certification of innovative non-standardised construction products, systems, materials, components and processes, which are not fully covered by a South African National Standards or Codes of Practice.

6. Product Development Cycle BUILT ENV. PROFESSIONALS

7. Strategic support to DPW • Supports the rollout of social infrastructure as a strategy to fast track the eradication of backlogs • Ensures structural integrity of buildings to protect government and beneficiary communities. • Monitors the uptake in social infrastructure roll-out on a regular basis • Built Environment Professional roles and contracting instruments thereof, Tender Documentation, as well as the Construction Contracting Instruments.

8. Progress against planned targets Over the past 44 years of the Agency’s existence, its Boards have certificated hundreds of buildings systems and products. Several of these have gone on to be used as conventional products in industry, including PVC bath tubs, PVC piping and Harvey roofing tiles. The impact of these products on the construction industry is well appreciated.

9. Governance Matters • Annual report 2012/2013 tabled in Parliament. • The Board of Agrément South Africa has welcomed the increased use of innovative construction system, including in some government projects. The Board particularly welcomes this as we strongly believe these innovative systems do provide government authorities with a level of assurance of quality and fitness-for-purpose.

10. Board Governance 8Board members. Appointed for a period of three years. Board Chairperson Mr Pepi Silinga is appointed by the Minister of Public Works. Strategic planning session held annually. The Board has continued its oversight role in ensuring that the outputs of the technical assessments meet the fitness-for-purpose criteria by ensuring that the technical assessment criteria are followed religiously and that appropriate tests are carried out as required to ensure authenticity and credibility of the test results

11. Slide 11

12. Board of Agrément SA Chairman and members Operates at strategic level Technical Committee Approves Innovations Technical Agency Agrement South Africa Industry Technical Experts Organisational Structure

13. Statement of Revenue and Expenditure for Agrément South Africa

14. Statement of Revenue and Expenditure for Agrément South Africa

15. Notes on Revenue and Expenditure for Agrément South Africa Revenue • Grant income: Increased by 5% • Contract Income: Reduced by 21% and is based on actual amounts charged to applicants for Agrement certification • Finance Income: Increased by 2% • Total Income: Increased by 2% overall Expenditure • Employees’ remuneration: Increased by 6%. • Operating expenses: Increased by 1% • Depreciation: Increased by 16% • Total operating expenditure: Increased by 4%

16. Financial statement • Agrément South Africa (Agency) operates under ministerial delegation of authority from the Minister of Public Works. • The grant funding for the Agency is channeled from the Department of Public Works (DPW). • The funds are ring fenced within the Built Environment Unit in a separate Competence Area. • The CSIR received an unqualified audit report.

17. Contribution of Agrément South Africa products Provides independent authoritative assessment of system performance thus peace of mind & assurance of fitness for purpose of certificated products. Leads to improvement in performance of existing products. Allows for the safe introduction of innovative construction products. Enhances the export potential of South African manufactured products.

18. Outcomes • Cost-effective building and construction activities • Efficient building and construction activities • Environmentally sustainable building and construction activities • Operating costs – • Risk of immovable asset failure • Socially acceptable building and construction activities • Improved quality service by the construction sector • Enhanced role of the construction sector in economic growth • Better-skilled construction companies and construction workers • Skill transfer to local community • Job creation – local and national

19. Assessment Framework

20. Prerequisite Institutional Arrangements • Procurement of Built Environment Professionals • Scope of Works & tender Documentation • Performance-based specification • Norms and Standards • Tender Adjudication & adjudication Guidelines • Decision-making Tool • Contract Amendments • Liability • Agrément South Africa certification • Durability, Maintenance, Green issues • Management of imported technologies

21. Prerequisite Institutional Arrangements • Viable alternatives have distinct advantages which can be explored by the public sector for the delivery of social infrastructure • Advantages are largely in the following areas: • Speed of construction • Project delivery costs (largely due to time related savings) • Construction quality • Thermal properties and environmental friendliness • Attention must be paid to maintenance to ensure durability

22. Prerequisite Institutional Arrangements • Ensure the greater majority of the public can benefit from the use of the technologies e.g. developing national standards like SANS 517 for light steel framed construction. • Professionals need to educate themselves on alternative technologies to be able to manage & supervise them. • Technologies can be enhanced by a “Government led targeted emerging contractor development programme.” • Careful match between the client needs and the specific advantages & benefits should always inform the selection decision.

23. Thank you… GOAL EFFORT SUPPORT