development through partnership Construction Industry Development Board Kwena Mokobane 21 June 2013

development through partnership OUTLINE CIDB Act Register of contractors Register of projects

development through partnership CIDB Act Register of contractors Register of projects

development through partnership The Construction Industry Development Board Act of 2000 (Act 38 of 2000) provides for the establishment of the Construction Industry Development Board to implement an integrated strategy for the reconstruction, growth and development of the construction industry. CIBD ACT

development through partnership CIDB OVERVIEW The CIDB was established to provide leadership to stakeholders; and stimulate sustainable growth, reform and improvement of the construction sector for: - effective delivery; and - the industry’s enhanced role in the country’s economy.

development through partnership Act mandates CIDB to perform the following: promote the standardisation of the procurement process initiate, promote and implement national programmes and projects aimed at the standardisation of procurement documentation, practices and procedures. determine and establish best practice that promotes procurement and delivery management reform LEGISLATIVE MANDATE - PROCUREMENT

development through partnership Construction procurement in the public sector is regulated in terms of general legislation governing public procurement and through the following CIDB prescripts issued in terms of the CIDB Act of 2000: CIDB Code of Conduct for the Parties engaged in Construction Procurement CIDB Standard for Uniformity in Construction Procurement. CONSTRUCTION PROCUREMENT Applicable to public and private sector Currently applicable to public sector (departments, municipalities and state owned enterprises)

development through partnership The CIDB Act mandates the Board to establish a national register of contractors and of construction projects to systematically regulate, monitor and promote the performance of the industry for sustainable growth, delivery and empowerment. The CIDB may expand this register to cover professional service providers, suppliers etc, as necessary LEGISLATIVE MANDATE - REGISTERS

development through partnership CIDB Act Code of conduct Register of projects

development through partnership “Section 5(4) of CIDB Act To promote uniform and ethical standards within the construction industry the Board: (a) Must publish a code of conduct for all construction–related procurement and all participants involved in the procurement process…” Code of Conduct establishes standards of behaviour that are consistent with a procurement system that is fair, equitable, transparent, competitive and cost effective CODE OF CONDUCT Employers and their agents, contractors, subcontractors, consultants, board members, politicians and tenderers

development through partnership CODE CONTENT Code of conduct for the parties engaged in construction procurement Behave equitably, honestly and transparently. Discharge duties and obligations timeously and with integrity. Comply with all applicable legislation and associated regulations. Satisfy all relevant requirements established in procurement documents. Avoid conflicts of interest. Not maliciously or recklessly injure or attempt to injure the reputation of another party.

development through partnership CIDB mandated to: conduct enquiries (has power to subpoena) sanction offender - suspend from register - fine up to R Code of conduct applies to both public and private sector Accounting officers and authorities should make their staff aware of this code of conduct ENFORCEMENT

development through partnership 1.Treasury Regulations issued in terms of the PFMA (Regulation 16A6.3) bid documentation and the general conditions of a contract are in accordance with the prescripts of the Construction Industry Development Board, in the case of a bid relating to the construction industry; 2.SCM Regulations issued in terms of the MFMA (Regulation 21) bid documentation for a competitive bidding process must take into account the requirements of the Construction Industry Development Board, in the case of a bid relating to construction, upgrading or refurbishment of buildings or infrastructure” LINKAGES WITH PFMA AND MFMA

development through partnership The CIDB Act tasks the Board to: establish and maintain a national register of contractors which facilitates public sector procurement establish and maintain the register of projects that will drive industry development objectives Construction works: the provision of a combination of goods and services arranged for the development, extension, installation, repair, maintenance, renewal. removal, renovation, alteration, dismantling or demolition of a fixed asset including building and engineering infrastructure CIDB NATIONAL REGISTERS

development through partnership Register must categorise contractors in a manner that (section 16(1)): facilitates public sector procurement promotes contractor development. A contractor may not undertake, carry out or complete any construction works or portion thereof for public sector contracts, awarded in terms of competitive tender or quotation, unless he or she is registered with the Board. CIDB ACT

development through partnership The purpose is to: gather information on the nature, value and distribution of projects; and provide the basis for a best practice project assessment scheme to promote the performance of public and private sector clients in the development of the construction industry. Register of projects Applicable to: Public sector contracts which exceed R Private sector contracts which exceed R 10 m State Owned Entity Eg; Eskom,Transnet; TCTA, ect, Threshold Increase to R10m.

development through partnership 17 Public sector must advertise competitive tenders on the CIDB website ( ) (Private sector may use this service if they so wish) Public must register award of contracts; report completion and any cancellations/termination on the CIDB website Fees currently waived Employers have to register with CIDB as users and obtain employer number and REQUIREMENTS

development through facilitates exchange of tender information between clients and contractors using: -SMS (short messaging system) - and - Internet (search engine) allows tenders to be advertised and awards to be reported on Tender TN2005/2/56 available from (client) for 2CE Closing 5/26/2005 Call I-TENDER SERVICE

development through partnership