Construction Industry Development Board development through partnership Activating the Registers within Construction Procurement 1b

Construction Industry Development Board development through partnership A generic procurement process Activity 1: Establish what is to be procured Activity 2: Decide on procurement strategies Activity 3: Solicit tender offers Activity 4: Evaluate tender offers Activity 5: Award contract Activity 6: Administer contracts and confirm compliance

Construction Industry Development Board development through partnership 2. Advertise using iTender, indicating approximate contractor grading requirements Registers & Procurement Interactions 1. Establish what is to be procured 5. Award contract 2. Determine Procurement strategy 3. Solicit tender offers 3.a Tender Offers by contractors 4. Tender Evaluation & Contractor selection 6. Manage contractor 3. Validate CIDB Registration 4. Validate Contractor Grade Reg Con 5. Register Award Reg Proj 6. Register Completion (optional) 1. Determine approximate contractors grading requirements e.g 5 GB

Construction Industry Development Board development through partnership A generic procurement process Activity 1: Establish what is to be procured Activity 2: Decide on procurement strategies Activity 3: Solicit tender offers Activity 4: Evaluate tender offers Activity 5: Award contract Activity 6: Administer contracts and confirm compliance Register of projects Assess market capacity & BEE opportunit ies using RoC Apply register of contractors

Construction Industry Development Board development through partnership Development of registered contractors / Broad based black economic empowerment The information stored in the registers enables gaps in contracting capacity to be identified provides market intelligence; and facilitates the appropriate targeting and integration of development initiatives Assess market capacity & BEE opportunities using RoC

Construction Industry Development Board development through partnership Employers should provide registered contractors with work opportunities so that they can be sustainable & improve their contractor grading designation by: 1providing packages of projects to provide continuity; 2implementing targeted development programmes to support potentially emerging contractors; 3offering preferences to contractors who undertake to enter into joint ventures with or subcontract portions of the works to such contractors; and 4requiring a prime contractor to subcontract defined portions of the works to such contractors 5Provide term contracts e.g. for maintenance Can also provide a preference for a particular contractor grading designation Development of registered contractors

Construction Industry Development Board development through partnership 1 Identify preferably one, but not more than two, class(es) of construction works that best describes the works to be performed. CE = civil engineering EE = electrical engineering GB = General building ME = Mechanical Engineering Specialist works eg concrete fencing may be CE or GB 2Estimate the tender value including value added tax say R 4,5 million Prepare procurement documents

Construction Industry Development Board development through partnership 3 Determine the approximate contractor grading designation based on the selected class(es) of construction works and estimated tender value Prepare procurement documents 5EC Tender value range Class of construction works Tender Value Range designation Tender value including VAT not to exceed: 1R R R R R R R R No limit 4,5 m Alternatively 5GB 5CE/GB Not permitted

Construction Industry Development Board development through partnership Consideration: Estimating requirements for contractor grading designations where value is close to limit of tender value range Upper limit of tender value range limit Estimated value +20% or less Adopt lower contractor grading designation (no prejudice) Example: Estimate = R5,3 million ≤ 1,2 x R5,0 = R6,0 Use designation 5 (R3,0 to R5,0)

Construction Industry Development Board development through partnership Consideration: Grading designations for construction works taking place over an agreed number of years Base estimated tender value on annual value where work: is on an “as and when required” basis eg pipelines; of a routine nature e.g. road maintenance; or grouped into identifiable and similar components where commencement of the next component is dependent on the completion of the previous one eg the building of a limited number of class room blocks where a block is substantially complete before embarking on the construction of a subsequent block

Construction Industry Development Board development through partnership 4Notify tenderers of contractor grading designation requirements in invitations to tender Invite contractors to submit tender offers Notice and Invitation to Tender It is estimated that tenderers should have a CIDB contractor grading of 5CE or 5GB higher. or It is estimated that tenderers should have a CIDB contractor grading of 5CE or 5GB or higher. 4CE or 4GB potentially emerging enterprises who satisfy criteria stated in the Tender Data may submit tender offers. (Wording for calls for expressions of interest also available) CIDB Standard for Uniformity in Construction Procurement

Construction Industry Development Board development through partnership 5State requirements for contractor grading designation in tender data in the form of eligibility criteria Prepare procurement documents Tender data Only those tenderers who are registered with the CIDB, or are capable of being so prior to the evaluation of submissions, in a contractor grading designation equal to or higher than a contractor grading designation determined in accordance with the sum tendered, or a value determined in accordance with Regulation 25 (1B) or 25(7A) of the Construction Industry Development Regulations, for a CE or GB class of construction work, are eligible to have their tenders evaluated. Joint ventures are eligible to submit tenders provided that….. (Wording for PE potentially emerging contractors also available in Standard for Uniformity)

Construction Industry Development Board development through partnership 6Look up each tenderer’s contractor grading designation on the register. Evaluate only those tenderers who have not tendered above their tender value range, except where the sum tendered is just above the limit of their range. Determine whether or not tender offers are responsive 4R R R Example: Tenderer cgd tendered amount A 5 R 5,6 million B 6 R 6,5 million C 6 R 7,0 million D 5 R 8,0 million E 4R 6,2 million Declare as non- responsive

Construction Industry Development Board development through partnership “Capable of being so registered” An employer may evaluate a tender received from an unregistered tenderer, only if such a tenderer satisfies all the requirements for registration in a particular grade. Note: Evaluation commences with the reduction of tender offers to a comparative basis The onus is on the employer to be satisfied that the contractor is capable of being registered. Tip – get a copy of contractor’s CIDB application to evaluate whether the contractor is likely to meet the requirements for registration in the required category.

Construction Industry Development Board development through partnership 7Declare as non-responsive all tenders received from: a)registered contractors who tender above their designated tender value range, except where the margin by which the tender value range is exceeded is reasonable; or b)unregistered contractors who are not considered as being capable of being registered in the required contractor grading designation prior to the evaluation of tenders. Determine whether or not tender offers are responsive

Construction Industry Development Board development through partnership 8Decide in the case of a tenderer who tenders above his tender value range if: i)the amount by which the tendered sum exceeds the tender value range is reasonable; ii)the award of a contract to such a contractor does not impose any undue risk. Determine whether or not tender offers are responsive Example: Tenderer cgd tendered amount A 5 R 5,6 million B 6 R 6,5 million C 6 R 7,0 million Employer can award contract to tenderer A if satisfied that tenderer has sufficient capability and capacity

Construction Industry Development Board development through partnership 9 Determine if there are any reasons for not awarding a contract  may be subject to restrictions  must have the capability and capacity to perform the contract.  must have legal capacity to enter into the contract.  must be solvent  must satisfy all legal requirements.  may be disqualified due to conflicts of interest. Determine whether or not a contract can be awarded to a responsive tenderer

Construction Industry Development Board development through partnership Perform a risk analysis. 10Ascertain if any of the following, as relevant, presents an unacceptable commercial risk : a) unduly high or low tendered b) rates or amounts in the tender offer; c) contract data provided by the tenderer; or d) the content of tender returnables which are to be included in the contract.

Construction Industry Development Board development through partnership Confirm recommendation contained in the tender evaluation report 11Confirm that tenderer is on the register and is in possession of required contractor grading designation

Construction Industry Development Board development through partnership Formally accept tender offer Register contract award with 21 working days of acceptance of offer, indicating if the regulations relating to the awarding of a contract outside of a contractors cgd were applied Capture contract completion / termination data Submit report within one month of: issue of practical completion certificate; making last (final) payment to contractor in terms of the contract; canceling or terminating contract; or renewing a contract.

Construction Industry Development Board development through partnership 1 Advertise tenders on 3 Cancel tender2 Award contract or cidb website 4. Cancellation of contract Register of Projects (deemed to satisfy) Notify contractors

Construction Industry Development Board development through partnership Register Employer and Users Obtain employer number Form P1 How to get started?

Construction Industry Development Board development through partnership What needs to happen on and after d-day? Register of contractors Register of projects

Construction Industry Development Board development through partnership Register of contractors The contractor grading designation must be applied in all tender advertisements for engineering and construction works and in the procurement documents relating to such works. Register of projects The register of projects must be applied to all construction contracts awarded

Construction Industry Development Board development through partnership Using the CIDB website / i-tender service Confirm the grading / registration / application status of contractors Obtain information on the numbers and profiles of registered contractors Establish the contractor grading designation of JVs Advertise tenders / expressions of interest Cancel tenders Report on the award and cancellation of contracts View advertisements / awards / cancellations

Construction Industry Development Board development through partnership Verification process

Construction Industry Development Board development through partnership Contact persons Please contact the following people at the CIDB for: Procurement related issues Nomaphoso Mkhonza Lerato Molefe Contractor Registration issues: Wisane Maluleke Busang Tjale Tel:

Construction Industry Development Board development through partnership Thank You