Business Plan for 2007/2008 Construction Industry Development Board Presentation to Parliamentary Portfolio Committee 15 March 2007 development through partnership

Presentation Content Overview Distilled mandate Achievements Challenges BP approval process Key Focus for 2007/08 Key Internal Focus for 2007/08 Performance measurement Long-term staffing structure Budget development through partnership

cidb Act - Distilled Mandate to provide: 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 Context – Purpose of cidb sustainable industry development

Achievements: Beginning to see impact Improved public spend (26,8% higher) Now > 23 000 registrations (4000 Oct 2005) More than 1200 contractors upgraded (ca 85% black) 500 applications per week Over 800 projects registered – 150 000 i-Tender notifications (e-mail/ sms) to contractors – with more than 80 clients using the system More clients are registering daily Over 1800 officials/ consultants trained in last financial year-has increased this financial year after all municipalities capacitated Progress and building momentum New implementation challenges!

Achievements: Current Status – Registers Statistics There has been >1200 successful upgrades on the register, i.e. contractors improving on their gradings. 85% are by black owned enterprises.

National and provincial targets Achievements: …..Grading by Province National and provincial targets

Achievements: …..Continued Developed Code of Conduct-already incorporated in the UCT curriculum for Construction Management Standard for Uniformity SfU) incorporated into UCT’s library of resources Toolkit/IDIP (Infrastructure Delivery Improvement Programme) Rollout 2010 Procure Manual Progress and building momentum

Achievements: …..Continued Client capacitation workshop on construction procurement now accredited by ECSA GCC training guidelines completed and JBCC in first draft 5-Year Independent Review Progress and building momentum

Achievements: …..Continued 5 Year review: Done in week of 29 Jan-02 Feb Review Team Review Panel: 2 international experts & 3 South African Secretariat: 1 International expert and 1 South African Draft report - being reviewed Report generally positive and encouraging Leadership role of cidb recognised Recommended specific improvements Final report to Board, then from Board to Minister development through partnership

cidb Strategic Challenge Double output – 10 years Empowerment Growth Sustainable enterprises and emergence into mainstream economy convergence Confirming the vision & challenges in focus Capability Delivery Consistent procurement & delivery environment Skills & systems efficiency Performance Quality, safety, health and environment, employment

Revenue model-registers Structure as a national organisation Challenges Shifting priorities Revenue model-registers Structure as a national organisation Alignment of register with the Construction Charter Unprecedented volume of registered contractors, esp grade 1 contractors development through partnership

Updating of BP based on review Feb 07 (will present to Board-April 07) BP Approval Process Review by Board Oct 06 Incorporation of Board inputs and submission to DPW for approval by Minister Oct 06 Progress review Feb 07 Updating of BP based on review Feb 07 (will present to Board-April 07) Submission of final BP to DPW March 07 Approval by Minister development through partnership

Key Focus for 2007/08 (i) Contractor Registration “Operation Improve” – BPR and clearing of the backlog Resolution of specific Contractor problems Linkage to Construction Contact Centres Project Registration Promote through focused client registration Fast track and prioritise I-Tender RoP (DPW regional and provincial, then others) development through partnership

Key Focus for 2007/08 (ii) Public sector infrastructure delivery: Public sector procurement reform – streamlining, public sector capacitation, Register of Professional Services Providers Public sector delivery improvement – continue with IDIP: DPW & DoE; DoH National Infrastructure Maintenance Strategy – cidb role, programme manager and staff for implementation development through partnership

Key Focus for 2007/08 (iii) Contractor development: National Contractor Development Programme In conjunction with DPW 1st draft of NCDP Framework Targets-indicative W/shops with Gauteng, KZN, WC & EC Outreach into provinces – Construction Contact Centres (CCC): KZN, Gauteng, EC, WC –to be launched by Minister later this year development through partnership

Key Focus for 2007/08 (iv) Skills: Report on Restoring the Supply Pipeline JIPSA Framework for Employment Skills Delivery Agency (ESDA) development through partnership

Key Focus for 2007/08 (ii) 5 Year review: lessons learnt to be incorporated Specific recommendations General observations Stakeholder Forum Planned for May Consulting with Minister for date Provincial stakeholder workshops: March-April development through partnership

Key Internal Factors 2007/08 (i) Building the senior management team: Appointment of Prog Manager-Procurement & Delivery Strengthening the cidb’s capacity: Long-term staffing structure, incl CCC staff Service Quality: “Operation Improve” & incl 5-Year Review comments Management Systems: to support the expanded business processes including financial management, risk management and performance management systems Leadership - Stakeholder liaison, wider knowledge dissemination and communication development through partnership

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

Performance Measurement (ii) Operational Objective Target Construction Registers Service Service quality Average turnaround </= 21 days Minimal complaints on the quality of service offered 95% compliant applications received from help desks and CCC Ongoing development of the CRS Relaxations that expire in November 2007 to be addressed through a regulations review process to be concluded by June 2007 Ongoing alignment of CRS with industry needs and trends development through partnership

Revised Long-Term Staffing Structure (i) Incorporate lessons learnt from registration process to date To improve service quality – “Operation Improve” To incorporate provincial outreach through CCC To ensure sufficient programme depth Current positions (before approval); 46 New positions(now approved); 66 Total: 112 (excludes NIMS staffing) development through partnership

Revised Long-Term Staffing Structure (ii) Approval process, including system of remuneration – Minister of Public Works – approved w.e.f. Feb 07 Staff expansion Recruitment and retention at programme manager and CEO levels development through partnership

2007/2008 BUDGET development through partnership

Building human resource capacity Focus of 2007/2008 Budget Building human resource capacity Establishment of Construction Contact Centers Improvement of Registers service delivery NIMS staffing excluded in this Business Plan development through partnership

EXPANDED STAFFING STRUCTURE 4 5 6 37 7 7 7 10 11 41 11 12 CURRENT = 46 NEW = 66 TOTAL = 112

EXPANDED STAFFING STRUCTURE 4 5 6 37 7 7 7 10 11 41 11 12 CURRENT = 46 NEW = 66 TOTAL = 112

EXPANDED STAFFING STRUCTURE 4 5 6 37 7 7 7 10 11 41 11 12 CURRENT = 46 NEW = 66 TOTAL = 112

Total Budget (R’m) R2.5 m cash surplus R5.5 m 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 5.06 13.18 20.09 29.53 35.79 44.51 67.89 71.59 74.99 R2.5 m cash surplus R5.5 m Steep increase during first five years, then establishment of outreach centres and improvement of registers, stabilisation over next three years Zero surplus principle – Revenue = Expenses = Budget Over five years generate R2.5 m cash surplus development through partnership

Summary Budget (kR) (MTEF) 06/07 07/08 08/09 09/10 Organizational income Registers 4 500 12 500 19 706 20 947 Transfer payments 40 012 49 891 51 891 54 042 Carried forward from 06/07 - 5 499 Total revenue 44 512 67 890 71 597 74 989 Standard item: Expenditure Personnel 12 932 30 775 34 963 37 760 Administrative 7 630 12 965 16 134 16 329 Capital 1 254 7 350 3 800 4 000 Operational 22 694 16 800 16 700 16 900 Total expenditure

Summary Budget (kR) (MTEF) 06/07 07/08 08/09 09/10 Organizational income Registers 4 500 12 500 19 706 20 947 Transfer payments 40 012 49 891 51 891 54 042 Carried forward - 5 499 Total revenue 44 512 67 890 71 597 74 989 Standard item: Expenditure Personnel 12 932 30 775 34 963 37 760 Administrative 7 630 12 965 16 134 16 329 Capital 1 254 7 350 3 800 4 000 Operational 22 694 16 800 16 700 16 900 Total expenditure 25 % 4 % 4 %

Summary Budget (kR) (MTEF) 06/07 07/08 08/09 09/10 Organizational income Registers 4 500 12 500 19 706 20 947 Transfer payments 40 012 49 891 51 891 54 042 Carried forward - 5 499 Total revenue 44 512 67 890 71 597 74 989 Standard item: Expenditure Personnel 12 932 30 775 34 963 37 760 Administrative 7 630 12 965 16 134 16 329 Capital 1 254 7 350 3 800 4 000 Operational 22 694 16 800 16 700 16 900 Total expenditure

Summary Budget per Programme (kR) Actual 06/07 Total 07/08 Staff Opera- tional Capital Items Admin Costs Contact Centers Office of the CEO 4 104 4 716 2 692 1 500 - 524 Corporate Services 9 418 13 638 3 526 1 900 1 000 7 212 Growth & Contractor Development 5 596 20 397 10 088 459 8 850 Industry Performance 4 129 5 332 3 270 1 540 522 Procurement & Delivery 7 215 9 573 4 277 4 500 795 Registers 14 050 14 234 6 922 6 360 952 44 512 67 890 30 775 16 800 10 465

Summary Budget per Programme (kR) Total Staff Opera- tional Capital Items Admin Costs Contact Centers Office of the CEO 4 716 2 692 1 500 - 524 Corporate Services 13 638 3 526 1 900 1 000 7 212 Growth & Contractor Development 20 397 10 088 459 8 850 Industry Performance 5 332 3 270 1 540 522 Procurement & Delivery 9 573 4 277 4 500 795 Registers 14 234 6 922 6 360 952 67 890 30 775 16 800 10 465 Capital items = R6.35 m Operational items = R2.5 m

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