1. www.agrement.co.za Slide 1. Agrément South Africa PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE ON PUBLIC WORKS 22 nd October 2013 AGRÉMENT SOUTH AFRICA 2012/13 M514, 5th Floor, Marks Building, Parliament, 09:30 – 12:45. Pepi Silinga: Chairman Agrément South Africa Sammy Skosana, Technical Assessor Group Leader, Agrément South Africa Joe Odhiambo, CEO Agrément South Africa

2. www.agrement.co.za Slide 2. Framework for the presentation Slide 2 of 22  Performance Report  Progress Against planned targets  Governance matters  Financial Report

3. www.agrement.co.za Slide 3. Support Government Policy  A strong focus has been placed on bringing the benefits of innovative construction technologies to the fore.  This has been necessary as the country addresses the backlog of infrastructure development in previously disadvantaged areas.  The Government has an obligation to correct the imbalance of infrastructure roll-out and views the role played by innovative construction technologies as very important in this regard.

4. www.agrement.co.za Slide 4. Support Government Policy  This is coupled with the dire need to improve service delivery to all our communities.  Role out of innovative construction technologies can provide an opportunity to contribute towards addressing challenges of poverty, unemployment and inequality.  Need for careful implementation plan to ensure quality of products meets requirements.

5. www.agrement.co.za Slide 5. Strategic support to DPW  Agrément South Africa-certificated products were the topic of discussions at various different forums.  This illustrates the strides made by the organisation in undertaking technical assessment and certification of innovative non- standardised construction products, systems, materials, components and processes, which are not fully covered by a South African National Standards or Codes of Practice.

6. Saturday, 21 November 2015 www.agrement.co.za Slide 6 Product Development Cycle BUILT ENV. PROFESSIONALS

7. www.agrement.co.za Slide 7. Strategic support to DPW  Supports the rollout of social infrastructure as a strategy to fast track the eradication of backlogs  Ensures structural integrity of buildings to protect government and beneficiary communities.  Monitors the uptake in social infrastructure roll- out on a regular basis  Built Environment Professional roles and contracting instruments thereof, Tender Documentation, as well as the Construction Contracting Instruments.

8. www.agrement.co.za Slide 8. Result for 2011/2012 Target 2012/2013 Actual 2012/2013 Applications received: Evaluation offers made: Evaluation offers accepted: Certificates issued: 16 33 30 24 31 Over the past 44 years of the Agency’s existence, its Boards have certificated hundreds of buildings systems and products. Several of these have gone on to be used as conventional products in industry, including PVC bath tubs, PVC piping and Harvey roofing tiles. The impact of these products on the construction industry is well appreciated. Progress against planned targets

9. www.agrement.co.za Slide 9. Governance Matters  Annual report 2012/2013 tabled in Parliament.  The Board of Agrément South Africa has welcomed the increased use of innovative construction system, including in some government projects. The Board particularly welcomes this as we strongly believe these innovative systems do provide government authorities with a level of assurance of quality and fitness-for-purpose.

10. www.agrement.co.za Slide 10. Board Governance 8 Board members. Appointed for a period of three years. Board Chairperson Mr Pepi Silinga is appointed by the Minister of Public Works. Strategic planning session held annually. The Board has continued its oversight role in ensuring that the outputs of the technical assessments meet the fitness-for-purpose criteria by ensuring that the technical assessment criteria are followed religiously and that appropriate tests are carried out as required to ensure authenticity and credibility of the test results

11. Ms Nteboheng Ngcobo University of Johannesburg Mr Mninawe Pepi Silinga Coega Development Corporation Dr Jeffrey Mahachi NHBRC Mr MF Makamo SABS Mr Hans Ittmann HWI Consulting Ms Mariana Marneweck NRCS Ms Adelaide Ranape Legal Manager Mr DC Fredericks OHS E-Consulting Slide 11

12. Saturday, 21 November 2015 www.agrement.co.za Slide 12 Board of Agrément SA Chairman and members Operates at strategic level Technical Committee Approves Innovations Technical Agency Agrement South Africa Industry Technical Experts Organisational Structure

13. Saturday, 21 November 2015 www.agrement.co.za Slide 13 of 32. 2012/20132011/2012 Variance REVENUE9 947 4919 778 790 168 701 - Grant Received8 692 9928 272 807 420 185 - Contract income1 293 9391 505 983 265 654 - Local private sector1 138 5291 293 939 -155 410 - Local public sector 31 400 99 165 -67 765 - International sector 70 400 112 879 -42 479 Other income 14 170 175 13 995 Total operating income9 947 4919 778 965 168 526 Statement of Revenue and Expenditure for Agrément South Africa

14. Saturday, 21 November 2015 www.agrement.co.za Slide 14 of 32. Statement of Revenue and Expenditure for Agrément South Africa 2012/20132011/2012 Variance Expenditure Employees’ remuneration 5 411 2375 082 398 328 839 Depreciation 439 947 369 948 69 999 Operating expenses4 447 6864 424 299 23 387 Total operating expenditure 10 298 8709 876 645 422 225 Finance income 185 755 182 508 3 247 Margin for the year-165 624 84 828 -250 452

15. Saturday, 21 November 2015 www.agrement.co.za Slide 15 of 32. Revenue  Grant income: Increased by 5%  Contract Income: Reduced by 21% and is based on actual amounts charged to applicants for Agrement certification  Finance Income: Increased by 2%  Total Income: Increased by 2% overall Expenditure  Employees’ remuneration: Increased by 6%.  Operating expenses: Increased by 1%  Depreciation: Increased by 16%  Total operating expenditure: Increased by 4% Notes on Revenue and Expenditure for Agrément South Africa

16. www.agrement.co.za Slide 16. Financial statement  Agrément South Africa (Agency) operates under ministerial delegation of authority from the Minister of Public Works.  The grant funding for the Agency is channeled from the Department of Public Works (DPW).  The funds are ring fenced within the Built Environment Unit in a separate Competence Area.  The CSIR received an unqualified audit report.

17. www.agrement.co.za Slide 17. Contribution of Agrément South Africa products  Provides independent authoritative assessment of system performance thus peace of mind & assurance of fitness for purpose of certificated products.  Leads to improvement in performance of existing products.  Allows for the safe introduction of innovative construction products.  Enhances the export potential of South African manufactured products.

18. www.agrement.co.za Slide 18. Cost-effective building and construction activities Efficient building and construction activities Environmentally sustainable building and construction activities Operating costs – Risk of immovable asset failure Socially acceptable building and construction activities Improved quality service by the construction sector Enhanced role of the construction sector in economic growth Better-skilled construction companies and construction workers Skill transfer to local community Job creation – local and national Outcomes

19. www.agrement.co.za Slide 19. Performance criteriaConstructionMaterials Thermal comfortDesignType Energy efficiencyConstruction speedSuitability Durability & maintenanceFlexibilityAvailability Air-tightnessAdaptability QualityModularity AccuracyLabour intensity Construction costsLocal economic contribution Maintenance costsEquipment required Community acceptanceMaterial intensity & waste EnvironmentalDeconstruction Recyclability Innovation Assessment Framework

20. www.agrement.co.za Slide 20. Procurement of Built Environment Professionals Scope of Works & tender Documentation Performance-based specification Norms and Standards Tender Adjudication & adjudication Guidelines Decision-making Tool Contract Amendments Liability Agrément South Africa certification Durability, Maintenance, Green issues Management of imported technologies Prerequisite Institutional Arrangements

21. www.agrement.co.za Slide 21. Viable alternatives have distinct advantages which can be explored by the public sector for the delivery of social infrastructure Advantages are largely in the following areas: Speed of construction Project delivery costs (largely due to time related savings) Construction quality Thermal properties and environmental friendliness Attention must be paid to maintenance to ensure durability Prerequisite Institutional Arrangements

22. www.agrement.co.za Slide 22. Ensure the greater majority of the public can benefit from the use of the technologies e.g. developing national standards like SANS 517 for light steel framed construction. Professionals need to educate themselves on alternative technologies to be able to manage & supervise them. Technologies can be enhanced by a “Government led targeted emerging contractor development programme.” Careful match between the client needs and the specific advantages & benefits should always inform the selection decision. Prerequisite Institutional Arrangements

23. www.agrement.co.za Slide 23. Thank you… SUPPORT EFFORT GOAL