1. development through partnership Construction Industry Development Board (cidb) Presentation to the PPC: Strategic Plan 2011/12 to 2015/16 APP 2011/12 Budget: Strategic Plan/APP 27 May 2011

2. development through partnership 1.Strategic Plan 2011/12 – 2015/16 State of alignment with NT Framework Part A: Strategic overview/priorities Legislative Framework & Mandate Vision and Mission Updated situational Analysis Strategic Outcomes Oriented Goals/Performance information Part B: Strategic Objectives Resource considerations Risk Management 2.Business Plan 2011/12 State of alignment with NT Framework Part A:Strategic overview Part B: Programme and sub-programme plans incl performance information 3.Budget: Strategic Plan (2011/12 -2015/16, incl anchor year - APP 2011/12) Presentation Outline

3. development through partnership State of alignment with NT Framework Effort to align after submission in February 2011 Structure has improved towards required format Not yet 100% but close to it Have interacted with Treasury for clarity Interaction with cidb core programmes-a process Factoring in 4 th and 5 th years still work in progress-timing problem-Feb/March/April normally very tight but also October/November/Dec last year Strategic Plan 2011/12 -2015/16 Strategic Plan

4. development through partnership A: Overview:- Legislative Framework & Mandate CIDB Act 38 of 2000…mandates the cidb to  provide strategic leadership to industry stakeholders to stimulate sustainable growth, reform and improvement  Regulate the construction industry Mandated, among others, to establish:  RoC (Contractors)  RoP(Projects)  Others-RoPSP (BE Consultants), Material Suppliers, Material Manufacturers Strategic Plan

5. development through partnership Dual responsibility of cidb: –An enabler/developer -since inception –A regulator/enforcer of compliance – a focus being prioritised Change of emphasis critical to demonstrate value- add in the industry, requires specialist human resources and funding- hence now continues to be prioritised Cross-cutting nature of cidb business - emphasised A:…..Implications of Distilled Mandate Strategic Plan

6. development through partnership A: Vision & Mission: Vision 2012 and Beyond “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”. Strategic Plan

7. development through partnership A:Vision & Mission: 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”. Strategic Plan

8. development through partnership A: Updated Situational Analysis Boom in construction 2004 – 2007 Slow down on new projects- reducing business confidence in building and construction from end 2008 Global financial crisis in 2008, culminating in economic recession 2009 – 2010 SA Construction industry resilient due to multiyear, multibillion Rand projects Stadia, Airports, BRT Systems, Roads networks, Gautrain, Transnet MPP Opportunity to use demonstrated capability, capacity to build much required infrastructure Strategic Plan

9. development through partnership A: Updated Situational Analysis 2010 infrastructure got us excited Completed mainly before the beginning of the Soccer tournament BUT new projects slow down Delay in payments Companies closing shop, esp SMME’s –Job losses –Loss of capacity –Frustration on the transformation agenda Strategic Plan

10. development through partnership cidb Construction Industry Indicators (CIIs)

11. development through partnership A: Updated Situational Analysis Strategic Plan

12. development through partnership A: Updated Situational Analysis Register of Contractors (RoC) > 111 000 registrations Monitoring growth of RoC Specific skills remain a challenge –ESDA pilot kick-started Various initiatives: fast tracking NCDP and facilitating training – strong requirement Transformation of the industry a concern and a challenge Strategic Plan

13. development through partnership A: Strategic Outcomes CIP-sample(see hard copy-table gets difficult to format and read on presentation) Background Performance information CRS-sample (see hard copy-table gets difficult to format and read on presentation) Background Performance information Strategic Plan

14. development through partnership A: Strategic Outcomes CIP-sample(see hard copy-table gets difficult to format and read on presentation) Background Programme Focus-Industry performance improvement A key focus of the Construction Industry Performance Programme for 2011/12 is the further development and assessment of the cidb Best Practice Contractor Recognition Scheme and the cidb Best Practice Project Assessment Scheme through pilot projects, an incremental roll-out of elements of these schemes. “Laying the foundation for performance improvement” Strategic Plan

15. development through partnership A: Strategic Outcomes CIP-sample(see hard copy-table gets difficult to format and read on presentation) Background/cont Performance Improvement and Contractor Development Performance Improvement and Project Delivery Infrastructure delivery skills National Infrastructure Maintenance Strategy (NIMS) R&D and Academic Excellence Strategic Plan

16. development through partnership A: Strategic Outcomes CIP-sample/… Cont Background/cont Excellent quality of internal and endorsed publications Surveys with partners Performance-see hard copies Strategic Plan

17. development through partnership A: Strategic Outcomes-CIP-example Strategic Plan

18. development through partnership A: CIP-Payment Delays: Contractors

19. development through partnership A: CIP- Payment Delays; Contractors

20. development through partnership A: CIP- Payment Delays: Client’s Agent

21. development through partnership A: Strategic Outcomes CRS-sample (see hard copy-table gets difficult to format and read on presentation) Background Register of Contractors (RoC) > 111 000 registrations Software rewrite and EDMS (Electronic document management system)-one of the largest projects undertaken by cidb Efficiency and quality Detect and mitigate fraud and corruption Staff training Focus on i-tender RoP – high priority, capacitation Performance-see hard copies later Strategic Plan

22. development through partnership A: CRS-Class of Works Per Province - Grade 1 Actual number of companies registered = 70, 053 Strategic Plan

23. development through partnership A: CRS- Class of Works - Grade 2 to 9 Strategic Plan

24. development through partnership A: CRS-Actual no.of companies registered- Grade 2 to 9 Strategic Plan

25. development through partnership A: Strategic Outcomes Strategic Plan 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; Jan 2010>100 000

26. development through partnership B: Resource Considerations cidb is a knowledge-based organisation May need same qualified employees as the industry General shortage of specific skills Competing for same target market use of internal resources vs external experts – critical Skills transfer prioritised but will take time- targeting the right employees Strategic Plan

27. development through partnership B: Risk Management Risk Management a priority Resides in the office of the CEO Supported by an outsourced internal audit unit with a future insourcing strategy Risk Committee exercises oversight Nominated Board members part of and drive RM oversight Strategic and operational risks identified and ranked Process under review Strategic Plan

28. development through partnership Annual Performance Plan 2011/12 State of Alignment with new NT Framework –Not 100% but close to it A: Strategic Overview: -Maintenance of an efficient registration Service at the CRS (Construction Registers Service) -Efficient, flexible, integrated and suitable software and platform to replace the old-costing over three years and complex exercise to accommodate future needs; -to include EDMS (electronic document management system-will assist with document management and mitigate the rampant fraud and corruption Annual Performance Plan

29. development through partnership A: Strategic Overview: -Research and Development (R&D) Agenda as well as Academic Capacity -Centres of Excellence (CoEs) have been appointed: Wits and NMU -Work will continue to deal with critical and identified areas of research to restore the culture of research in the industry - funded by the cidb -SA students to be assisted to pursue postgrad studies and a focus on research -This in addition to the PG Conference /Doctoral Workshops series -Phase 2 of the Registers-Best Practice Schemes -Best Practice Schemes to address quality, H&S and the environment -Piloting of components of Best Practice Schemes –at various stages -will continue through 2011/12 Annual Performance Plan 2011/12 Annual Performance Plan

30. development through partnership A: Strategic Overview: -Public Sector Procurement, Delivery, Capacitation and Enforcement of Compliance -Heightened focus on enforcement of compliance by clients; budget requirements a constraint -Enforcement of compliance requires internal and external capacity -Human Resource Development -Mitigation of Global Warming, Climate Change and Related Environmental Issues -The cidb is playing a critical role with other government departments, incl DPW to fast track environmental issues in construction eg retrofitting programme supported by government -Fraud and Corruption -Increased focus on fraud and corruption Annual Performance Plan 2011/12 Annual Performance Plan

31. development through partnership A: Strategic Overview: -Alignment of Programmes and units for better efficiency -Based on experience from the last few years of operation -Corporate services already started -Core programmes will take time and consultation with Board -Piloting of the Register of Professional Service Providers -Approval by Board in December 2010 to pilot after many years of consulting and agreement/disagreement -A proposal with timelines -WIP Annual Performance Plan 2011/12 Annual Performance Plan

32. development through partnership A: Strategic Overview: -Alignment with the Government’s Strategic Priorities and the Presidential Performance Outcomes: -The cidb has indirect impact -Outcomes 4, 5, 6 and 10-see list -ESDA-skilling of the youth; opportunity to graduate and improve employment opportunity -NIMS-support to SMME’s/BEE; job creation; -Labour-based construction methods- job creation -2005 CD’s being distributed -New approach being developed with the CSIR Annual Performance Plan 2011/12 Annual Performance Plan

33. development through partnership A: Strategic Overview: -Alignment with the Government’s Strategic Priorities and the Presidential Performance Outcomes: -The cidb has indirect impact -Outcomes 4, 5, 6 and 10-see list -ESDA-skilling of the youth; opportunity to graduate and improve employment opportunity -NIMS-support to SMME’s/BEE; job creation; -Labour-based construction methods- job creation -2005 CD’s being distributed -New approach being developed with the CSIR Annual Performance Plan 2011/12 Annual Performance Plan

34. development through partnership B: Programme and sub-programme Information -CIP -CRS Background and Performance information as for Strategic Plan but based on anchor year 2011/12-see hard copies. Will be presented if required. Annual Performance Plan 2011/12 Annual Performance Plan

35. development through partnership BUDGET cidb 2011/12 – 2015/16 Budget 2011/12 2012/13 2013/14 2014/15 2015/16 R'000%ageR'000%ageR'000%ageR'000%ageR'000%age REVENUE Registers and Other Income 41 252 00038%44 552 00039%47 448 000 39% 51 243 840 39% 55 343 34740% Interest Income 2 662 0002%2 890 0003%3 078 000 3% 3 170 340 2% 3 265 4502% Transfer payments from DPW 65 959 00060%66 882 00059%71 229 000 59% 75 858 885 58% 80 789 71358% Total 109 873 000114 324 000121 755 000130 273 065139 398 510 EXPENDITURE Personnel Expenditure 54 157 74049%58 490 35951% 63 169 58852% 67 879 601 52% 72 949 47152% Administrative Expenditure 27 613 34425%29 159 69126% 30 792 63425% 32 794 155 25% 34 925 77525% Capital Expenditure 500 0000%500 0000% 500 0000% 532 500 0% 567 1130% Professional & Specialist Services 27 601 91625%26 173 95023% 27 292 77822% 29 066 809 22% 30 956 15122% Total 109 873 000114 324 000121 755 000130 273 065139 398 510 Notes Revenue - 38% of Total Revenue is generated through Contractor registartions. Averages 39% over 5 years - 60% of Total Revenue is from Government. Averages 59% over 5 years Expenditure - Personnel expenditure constitutes 49% of Total expenditure. Averages 51% over 5 years - Admin expenditure constitutes 25% of Total expenditure. Averages 25% over 5 years - Professional Fees constitutes 25% of Total expenditure. Averages 23% over 5 years Budget-SP and APP

36. development through partnership cidb 2011/12 - 2015/16 Budget: Programme Allocation 2011/12 2012/13 2013/14 2014/15 2015/16 R'000 %ag e R'000 PROGRAMME: EXPENDITURE Chief Executive Officer 10 375 400 9%11 101 678 11 878 795 12 650 917 13 473 227 Corporate Services(CS) 29 611 252 27%26 968 237 28 284 334 30 726 806 33 381 744 Growth and Contractor Development(GCD) 25 000 000 23%26 143 738 27 973 800 29 792 097 31 728 583 Construction Industry Performance(CIP) 10 862 200 10%11 622 554 12 436 133 13 244 481 14 105 373 Procurement Delivery Management(PDM) 12 386 400 11%13 253 448 14 181 189 15 102 967 16 084 660 Construction Registers Services(CRS) 21 637 748 20%25 234 345 27 000 749 28 755 798 30 624 925 Total 109 873 000 114 324 000121 755 000130 273 065139 398 511 Budget-SP and APP BUDGET

37. development through partnership Thank You ………..Thank you