1. Construction Industry Development Board development through partnership “Towards Uniform Conditions of Contract and Specifications in South Africa” South African Road Pavement Forum 22 November 2005

2. Construction Industry Development Board development through partnership Background Uniformity in Construction Procurement  1995Discussion paper by the Procurement Forum entitled Building and Engineering Contracts: the way forward  1997Government’s Green Paper on Public Sector Procurement Reform in South Africa  1998/9National working group established by the Department of Public Works  2000Focus Group 6 recommendations (Interministerial Task Team for Construction Industry Development)  2000CIDB Act promulgated which mandates the CIDB to promote standardisation and uniformity in procurement documentation, practices and procedures

3. Construction Industry Development Board development through partnership  From 2002 SANS standards for construction procurement  From 2003 CIDB best practice guidelines  2003 Code of conduct for the Parties engaged in Construction Procurement  2003 Regulatory Framework for Supply Chain Management issued in terms of the PFMA  2004Construction Industry Regulations, CIDB Standard for Uniformity in Construction Procurement / Best Practice Guidelines  2005Supply chain management regulations issued in terms of the Municipal Finance Management Act

4. Construction Industry Development Board development through partnership  The Standard for Uniformity in Construction Procurement emanates from the CIDB Act 38 of 2000 and establishes minimum requirements that are mandatory for the public sector that:  promote cost efficiencies through the adoption of:  a uniform structure for procurement documents  standard component documents including forms of contract;  generic and uniform tender procedures;  enable risk, responsibilities and obligations to be clearly identified.

5. Construction Industry Development Board development through partnership The CIDB Standard for Uniformity in Construction Procurement establishes minimum requirements for: 1.the solicitation of tender offers; 2. the manner in which quality is to be incorporated in procurement documents; 3.the formatting and compilation of procurement documents; and 4.the application of the register of contracts to public sector contracts.

6. Construction Industry Development Board development through partnership Annexures Annex A:Best Practice Guidelines Annex B:Standard notice and invitation to tender Annex C:Form of Offer and Acceptance Annex D:Sample preferencing schedule where direct preferences are granted in respect of targeted enterprise status Annex E:Sample preferencing schedule where preferencing are granted in respect of the direct participation of targeted enterprises and/or labour Annex F:Standard Conditions of Tender Annex G:Form of guarantee Annex H:Standard Conditions for the calling for Expressions of Interest Annex I:Selection of subcontractors by employers and contractors Identical to that in SANS 294

7. Construction Industry Development Board development through partnership The Standard for Uniformity in Construction Procurement limits the range of forms of contract that may be used:  Works- NEC, FIDIC, GCC 2004, JBCC Series 2000  Services- NEC Terms Service Contract  Professional Service- NEC or CIDB  Supplies- CIDB

8. Construction Industry Development Board development through partnership The projected Outcomes of Standardisation and Uniformity in Procurement Documents Standardisation and uniformity promotes: a)Effective participation by new entrants or emerging enterprises to the business environment; b)Cost effectiveness, both in financial and human resource terms; c)The simplification and computerization of the documentation process; d)Contractors being able to more easily determine the scope and extent of risk and price accordingly; e)The management of a contract becoming routine and administration procedures becoming mechanized; and f)Savings in cost and improvement in quality.

9. Construction Industry Development Board development through partnership A first principle approach to procurement documentation Procurement documents are required primarily to:  Solicit tender offers; and  Form the basis for a contract.

10. Construction Industry Development Board development through partnership Documents required for the solicitation of tender offers Volume 1: Tendering procedures Part 1: Tendering procedures Tender Notice and Invitation to Tender Tender Data Volume 2: Returnable documents Part 2: Returnable documents List of Returnable Documents Form of Offer and Acceptance Contract Data (Part 2: Data provided by the Contractor) Activity Schedule / Bill of Quantities Returnable Schedules Volume 3: Contract (Draft contract) Part 1: Agreement and Contract Data Contract Data (Part 1: Data provided by the Employer) Part 2: Pricing data: Pricing Instructions Part 3: Scope of Work: Scope of Work Part 4: Site information: Site Information

11. Construction Industry Development Board development through partnership Principle In order to have a fair, transparent and equitable solicitation process, employers should:  provide tenderers with clear instructions as to how they are to submit their tender offers; and  inform them as to how their tenders are to be processed following their receipt.

12. Construction Industry Development Board development through partnership Implementation Schedule Public Sector Client deadlines Provincial Department of Public Works15 October 2004 eThekwini Metropolitan Council14 January 2005 National Department of Public Works in all regions30 August 2005 Every provincial department30 August 2005 Every national department not mentioned above30 September 2005 Every public entity30 November 2005 Every metropolitan council not mentioned above15 March 2006 A municipality which is not a metropolitan council, classified as a high capacity local authority in Government Gazette No.733 of 1 July 2004 “Local Government: Municipal Finance Management Act 2003 Delays and exemptions 30 April 2006 A municipality classified as a medium capacity municipality30 July 2006 A municipality classified as a low capacity municipality30 November 2006

13. Construction Industry Development Board development through partnership Thank You