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

2. 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
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3. 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

4. Achievements: Beginning to see impact
Improved public spend (26,8% higher)
Now > registrations (4000 Oct 2005)
More than 1200 contractors upgraded (ca 85% black)
500 applications per week
Over 800 projects registered – i-Tender notifications ( / 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!

5. 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.

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

7. 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

8. 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

9. 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
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10. 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

11. 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
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12. 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
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13. 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)
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14. 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
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15. 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
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16. Key Focus for 2007/08 (iv) Skills:
Report on Restoring the Supply Pipeline
JIPSA
Framework for Employment Skills Delivery Agency (ESDA)
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17. 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
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18. 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
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19. Performance Measurement (i)
Output targets set for each focus area (Section 6 of Business Plan)
Example
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20. 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
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21. 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)
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22. 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
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23. 2007/2008 BUDGET
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24. 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
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25. EXPANDED STAFFING STRUCTURE4 5 6 37 7 7 7 10 11 41 11 12
CURRENT = 46
NEW = 66
TOTAL = 112

26. EXPANDED STAFFING STRUCTURE4 5 6 37 7 7 7 10 11 41 11 12
CURRENT = 46
NEW = 66
TOTAL = 112

27. EXPANDED STAFFING STRUCTURE4 5 6 37 7 7 7 10 11 41 11 12
CURRENT = 46
NEW = 66
TOTAL = 112

28. 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

29. 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

30. 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 %

31. 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

32. 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

33. 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

34. ………..Thank You Thank You Thank You Thank You
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