Strategic Plan, Business Plan and Budget - 2009/2010 and MTEF- Construction Industry Development Board (cidb) Strategic Plan, Business Plan and Budget - 2009/2010 and MTEF- Presentation to NCOP SC 13 October 2009 development through partnership

Presentation Content Overview Distilled 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 Risk and Fraud Budget development through partnership

cidb Act - Distilled Mandate 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 Context – Purpose of cidb development through partnership sustainable industry development

Implications of Distilled Mandate 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 Context – Purpose of cidb development through partnership sustainable industry development

Vision 2012 and Beyond Vision & Mission: “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”. Progress and building momentum development through partnership New implementation challenges!

Mission Vision & 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”. Progress and building momentum development through partnership New implementation challenges!

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

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

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)

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.

Grading by Province – September 2009

Actual no. of companies registered 12

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

OPERATIONAL PLAN & STAFFING STRUCTURE development through partnership

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. Progress and building momentum development through partnership New implementation challenges!

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. Progress and building momentum development through partnership New implementation challenges!

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

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

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

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. Progress and building momentum development through partnership New implementation challenges!

Develop revenue model-consultation 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

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

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

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 cidb Accredited Management Systems Performance Reports cidb Competence Assessment

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

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

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

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

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

Performance Measurement Programme Strategic Project Operational Objective Target Construction Registers Service Service Excellence Using Business Process Management (BPM) best practice to deliver sustained, measurable service excellence. Service areas include head office registrations processing, call centre and internal query resolutions unit. 31 Mar 2010 Enhancement of software systems Software systems to support flexible business processes, work flow integration and performance monitoring. Software to support integration of registration services across head office and CCC's. 31 Dec 2010. development through partnership

New Risk Committee appointed Risk and Fraud New Risk Committee appointed 3 Board members, CEO, CFO, Ext member of Audit Committee; Risk & Governance Manager Chaired by Board member Review of “key risks” Review of Risk Management Policy and Procedures Special audit process: integrity of RoC/Compliance Progress and building momentum development through partnership

2009/2010 BUDGET development through partnership

Building human resource capacity 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

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

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

Summary Budget (kR) (MTEF) 09/10 10/11 11/12 12/13 Organizational income Registers 34 113 38 272 41 252 44 552 Transfer payments 59 269 63 665 65 959 66 882 Interest income 2 200 2 420 2 662 2 890 Total revenue 95 582 104 357 109 873 114 324 Standard item: Expenditure Personnel 42 738 49 686 50 887 55 677 Administrative 22 187 26 149 29 992 29 015 Capital 3 070 778 622 617 Operational 27 587 27 744 28 372 Total expenditure

Summary Budget per Programme (kR) 09/10 10/11 11/12 12/13 Office of the CEO 8 974 9 529 10 375 10 731 Corporate Services 24 995 29 400 28 234 29 887 Growth & Contractor Development 21 133 22 441 24 433 25 270 Construction Industry Performance 9 395 9 977 10 862 11 234 Procurement & Delivery 10 687 11 349 12 386 12 811 Registers 20 398 21 661 23 583 24 391 95 582 104 357 109 873 114 324

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