1. For a better built environment 1 Presentation to the Portfolio Committee meeting Highlights of 2013/14 Annual Report Date: 04 November 2014 Presented by: Gugu Mazibuko gugu@cbe.org.za gugu@cbe.org.za

2. For a better built environment 2 Definition and Centrality of the Built Environment (Slide 3) CBE Mandate and Objectives, CBE Act 2000 (Slide 4) CBE Functions & Powers, CBE Act 2000 (5-6) CBE Vision & Mission & Strategic Goals (Slide 7) Key Priorities for CBE in 2013/14 (Slide 8) Key Highlights for CBE in 2013/14 (Slide 9) CBE’s Historical Performance (Slide 10) Outline of CBE Operational Programmes & Targets for 2013/14 Annual Performance Plan (Slide 11-Programme 1) (Slide 12-Programme 2) (Slide 13-Programme 3) (Slide 14-Programme 4) Financial Information (Slides 16,17,18) Performance Enablers & Key Challenges Risks and Risk Mitigation Strategies (Slide 19) Transformation Implementation Model (Slide 20) Workplace Training Model (Slide 21) Progress to date on the Transformation and Workplace Training Implementation (Slide 22) CBE TEAM: 1)Mr Isaac Nkosi – Chairperson of the CBE Council / Board 2)Ms Gugu Mazibuko – CEO 3)Mr Rhulani Mhlanga – Interim CFO 4)Mr Zola Skosana – Acting Manager Strategic Planning & Monitoring& Evaluation ====================================================================================== Presentation Outline

3. For a better built environment 3 The Definition and Centrality of the Built Environment The term built environment refers to the structures, and infrastructure, that are made by humans. Built Environment “ every structure that is humanly created, modified, or constructed, arranged, or maintained. Construction is the broad process/mechanism for the creation of infrastructure that supports development. The built environment (which includes buildings, infrastructure, and transportation, energy and telecommunications networks and equipment) plays a crucial role in societies and economies. The provincial and local governments alike allocate considerable financial, technical and human resources for construction, management and maintenance of the built environment to ensure its physical integrity and durability. Our dependence on various infrastructure, and the high degree of interdependence between different types of infrastructure, makes us more vulnerable when they break down or fail. Depending on their location, some infrastructure and segments of networks can be critical; a system or infrastructure failure can result in serious consequences for the population and country, countries and the whole continent. In South Africa, BE environment skills are at the centre of govt’s infrastructure roll-out programme, also, the BE products that are at the centre of service delivery protests.

4. For a better built environment 4 Mandate as set out in the Council for the Built Environment Act (no.43 of 2000) : Objects of the Council (CBE Act of 2000, Section 3 a-i) a) Promote and protect the interest of the public in the built environment; b) Promote and maintain a sustainable built environment and natural environment; c) Promote ongoing human resources development in the built environment; d) Facilitate participation by the built environment professions in integrated development in the context of national goals; e) Promote appropriate standards of health, safety and environmental protection within the built environment; f) Promote sound governance of the built environment professions; g) Promote liaison in the field of training in the Republic and elsewhere and to promote the standards of such training in the Republic; h) Serve as a forum where the built environment professions may discuss the relevant i) required qualifications ii) standards of education iii) training and competence iv) promotion of professional status v) legislation impacting on the built environment; and i) Ensure uniform application of norms and guidelines set by the Professional Councils throughout the built environment.

5. For a better built environment 5 Functions, Powers and Duties of the Council (CBE Act of 2000, Section 4 a-z): Functions, Powers and Duties of Council (CBE Act of 2000, Section 4 a-z) The council may— a) advise government on any matter falling within the scope of the built environment, including resource utilisation, socio- economic development, public health and safety and the environment, and for this purpose carry out such investigations as it or the relevant Minister deems necessary; b) communicate to the Minister information on matters of public importance acquired by the council in the course of the performance of its functions under this Act; c) make recommendations to the Minister on the composition, functions, assets, rights, employees or financing of the council d) advise the Minister with regard to the amendment of this Act, if necessary, in order to support the norms and values of the built environment professions; e) facilitate inter-ministerial co-operation concerning issues relating to the built environment; f) provide advice and consultation on national policy that could impact on the built environment, human resource development in relation to the built environment professions, and the recognition of new professions; g) comment, if necessary on all proposed legislation impacting on health and safety in the built environment; h) direct communication from the Minister or the relevant Minister to the councils for the professions; i) advise the councils for the professions on matters of national importance where the needs of State as communicated to the council through the relevant Minister, require joint and co-ordinated action by the built environment professions: j) coordinate the establishment of mechanisms for professionals to gain international recognition; k) ensure the consistent application of policy by the councils for the professions with regard to i) accreditation; ii) the registration of different categories of registered persons; iii) key elements of competence testing of registered persons; iv) codes of conduct to be prescribed by the councils for the professions; v) the principles upon which the councils for the professions must base the determination of fees which registered persons are entitled to charge in terms of any of the professions’ Acts, and in accordance with any legislation relating to the promotion of competition; vi) standards of health, safety and environmental protection within the built environment; vii) the recognition of voluntary associations for the built environment professions, by approving the framework for that recognition submitted by the councils for the professions, taking due cognizance of the characteristics of each built environment profession; l) investigate or initiate investigations into matters pertaining to its functions and policies with regard to the built environment and, if necessary, recommend legislation in this regard;

6. For a better built environment 6 Functions, Powers and Duties of the Council (CBE Act of 2000, Section 4 a-z): Functions, Powers and Duties of Council (CBE Act of 2000, Section 4 a-z) (cont...) m) act as an appeal body with regard to matters referred to it in terms of the law regulating the built environment professions; n) in consultation with councils for the professions, obtain recognition for the councils for the professions as bodies responsible for the establishment of education and training standards in terms of the South African Qualifications Authority Act, 1995 (Act No. 58 of 1995); o) ensure the consistent application of policy throughout the built environment by encouraging coordination between the councils for the professions; p) promote coordination between the Council on Higher Education and the councils for the professions in relation to the accreditation of education institutions; q) liaise with the Competition Commission, established in terms of the Competition Act, 1998 (Act No. 89 of 1998), on behalf of the councils for the professions regarding the identification of work for the built environment professions; r) review fees published by the councils for the professions to ensure the consistent application of the principles regarding such fees; s) charge— (i) membership fees in the prescribed manner from the councils for the professions, calculated pro rata to the number of persons registered with that council; (ii) fees payable for appeals in terms of section 21; and (iii) any other fee it considers necessary. t) institute legal proceedings to recover all outstanding membership fees payable under this Act; u) consider proposals from the councils for the professions with regard to the determination of policy contemplated in paragraph (k); v) receive and assimilate the annual reports of the councils for the professions and submit a summary to the Minister; w) purchase hire or otherwise acquire or dispose of property, borrow money on the security of the assets of the council or accept and administer any trust or donation; x) subject to this Act, approve standing orders for the regulation of its proceedings and of all other matters relating to the management, powers and duties of the council; y) perform such functions as may be prescribed; and generally do all such things as the council deems necessary or expedient to achieve the objectives of this Act. z) generally, do all such things as the council deems necessary or expedient to achieve the objectives of this Act.

7. For a better built environment 7 CBE’s Vision And Mission & 5 Year Strategic Goals Vision: An environment built to meet people’s needs and aspirations. Mission: Implementing projects and programmes that address built environment issues and add value to the built environment professions, government and the general public. 5 Year Strategic Goals: 1.Support government priorities in relation to built environment matters. 2.Facilitate and monitor continued sustainable, dynamic and competent and transformed built environment professions and professionals. 3.Establish and maintain a centre of excellence for an integrated built environment body of knowledge. 4.Strengthen public protection and educate public in relation to the built environment.

8. For a better built environment 8 Key Priorities For The CBE In 2013/14 Alignment of CBE’s activities to the government’s development priorities relating to the built environment. Skills development initiatives at the schools and tertiary levels, establishment of structured candidacy programme to address bottlenecks in the skills pipeline, workplace training and transformation. Research and information on built environment issues. Strengthening monitoring and regulatory work on delegated public functions of the professional councils and ensuring public awareness on built environment issues.

9. For a better built environment 9 Key Highlights For The CBE In 2013/14 All Six Built Environment Professional Councils (BEPCs) co-signed the Construction Health and Safety Accord; CBE co-championed the Skills Plan for the government’s infrastructure roll-out programme under the leadership of the Department of Higher Education and Training; Research projects were undertaken on application of labour intensive construction techniques locally and internationally, as well as research on the state of technical built environment skills in the thirteen largest municipalities in South Africa; A workplace training model for built environment graduates was formulated to enhance competency and promote professional registration; and The legal appeals backlog was eliminated and all appeals presented in 2013/14 were processed within the legislated 60 days. Other achievements are elaborated on the slides detailing the Performance of the 4 CBE Programmes (Slides 11, 12, 13 and 14).

10. For a better built environment 10 2011/122012/132013/14 59% APP Targets Achieved 41% APP Targets Not Achieved 71% APP Targets Achieved 29% APP Targets Not Achieved 86% APP Targets Achieved 14% APP Targets Not Achieved Unqualified audit report CBE’s Historical Performance

11. For a better built environment 11 CBE PROGRAMMES AND PROJECTS IN 2013/14 ProgrammeProgramme purpose and objectives Projects/Annual Targets Performance in 2013/14Alignment to DPW Outcome PROGRAMME 1 Alignment to government policies and priorities in the built environment PURPOSE: To provide a capacitated and capable CBE that is responsive to government’s developments priorities in the built environment. STRATEGIC OBJECTIVE: Support government’s development priorities within the built environment, including infrastructure delivery programme, Health and Safety in Construction, Environmental Sustainability and Job Creation. 1.BEPs support of government’s infrastructure delivery prgramme. 2.Initiatives to support health and safety in construction. 3.Initiatives to support environmental sustainability within the built environment. 4.Initiatives to support job creation with a focus on labour intensive construction methodologies 5.An unqualified audit report 1.Achieved - a) Report on contract conditions to support skills development in construction contracts in line with the CIDB’s best practice standard for skills development. b) Report on BE scarce skills with DHET completed for submission to the PICC. 2.Achieved – a) 6 BEPCs signed Construction Health and Safety Accord. b) Research report on H&S content of BE curricula completed. 3.Achieved – a) Partnered with the DPW Construction Policy Regulation department and CIDB to complete DPW Green Building Policy. 4.Achieved – a) Completed a research report on comparative analysis of labour intensive models on the African continent and internationally. b) Partnership and action plan forged with the DPW/ILO EPWP for implementing labour intensive techniques by BEPs in support of the EPWP. 5.Achieved – CBE had an unqualified audit report for the 2013/14 financial year Direct outcomes Outcome 4 – decent employment through inclusive growth, Outcome 6 – an efficient, competitive and responsive economic infrastructure network, Outcome 12 – an efficient, effective and development orientated public service. Indirect outcomes Outcome 5 – skilled and capable workforce to support an inclusive growth path, Outcome 10 – protect and enhance our environmental assets and natural resources.

12. For a better built environment 12 CBE PROGRAMMES AND PROJECTS IN 2013/14 ProgrammeProgramme purpose and objectives Projects/Annual TargetsPerformance in 2013/14 Alignment to DPW Outcome PROGRAMME 2 Skills development PURPOSE: To drive and facilitate skills and human resource development in the built environment with the ultimate goal of transforming the built environment. STRATEGIC OBJECTIVE: Drive and facilitate skills development and transformation within the built environment. 1.200 schools reached in two provinces by the CBE’s career awareness campaign. 2.150 students benefiting from Maths, Science and Technology support programmes at school level. 3.120 top performing Maths and Science girls participating in the Girl Engineering events. 4.Structured candidacy framework developed. 5.Feasibility research report on workplace training. 6.Three BEPCs’ CPD programmes aligned to the CBE’s policy framework. 7.Monitoring report on accreditation of learning sites. 8.One monitoring report on implementation of the registration function (including RPL) by one BEPC (SACPCMP). 9.Transformation targets signed off by all six BEPCs. 1.Achieved – 299 schools reached in Limpopo, Eastern Cape, Northern Cape, Gauteng and North West. 2.Not Achieved – Contracts signed with SP in Limpopo, Gauteng, North West and Free State provinces to benefit 200 under-privileged learners in 2014. 3.Achieved – 240 girl learners reached in Limpopo, Gauteng, Western Cape and KwaZulu- Natal provinces. 4.Achieved – Structured Candidacy programme developed and submitted to QTCO for accreditation. 5.Achieved – a) Workplace training report completed. b) secured agreement with CETA to provide support for 50 candidates to undergo a candidacy training programme and the placement of 100 learners for workplace experiential training costing R6,6 million. 6.Achieved – policies of 5 BEPCs aligned to CBE policy framework. 7.Achieved – Monitoring visits to 6 HEI undertaken. 8.Achieved – Monitoring report completed. 9.Not Achieved – Only 2 BEPCs committed to transformation targets. Direct outcomes Outcome 4 – decent employment through inclusive growth, Outcome 6 – an efficient, competitive and responsive economic infrastructure network, Outcome 12 – an efficient, effective and development orientated public service. Indirect outcomes Outcome 1 – quality basic education Outcome 5 – skilled and capable workforce to support an inclusive growth path, Outcome 10 – protect and enhance our environmental assets and natural resources.

13. For a better built environment 13 CBE PROGRAMMES AND PROJECTS IN 2013/14 ProgrammeProgramme purpose and objectives Projects/Annual TargetsPerformance in 2013/14Alignment to DPW Outcome PROGRAMME 3 Research, knowledge and Information PURPOSE: To provide research, knowledge and information to advise government on built environment issues. STRATEGIC OBJECTIVE: To provide research, knowledge and information on built environment issues pertinent to professionals, DPW, and built environment issues impacting on service delivery and on the economy. 1.Needs Analysis Report on establishment of research hub (infrastructure and resources)platform for BE issues. 2.Two research reports on issues that are of priority to the six Built Environment Professional Councils (BEPCs). 3.One Research report on issues that are of importance to DPW. 4.Research agenda on BE issues hampering service delivery. 5.Research agenda on BE issues impacting on the economy. 1.Achieved – Needs analysis reports produced with recommendation for a Master Systems Plan. 2.Achieved – Two research reports on BE graduates competencies and on the role of BEPs in human settlements development completed. 3.Achieved – Research report on the strategic review of BEPs industry competed. 4.Achieved – Research agenda on issues hampering service delivery established. 5.Achieved - Research agenda on issues hampering service delivery established. Direct outcomes Outcome 4 – decent employment through inclusive growth, Outcome 6 – an efficient, competitive and responsive economic infrastructure network, Outcome 12 – an efficient, effective and development orientated public service. Indirect outcomes Outcome 5 – skilled and capable workforce to support an inclusive growth path,.

14. For a better built environment 14 CBE PROGRAMMES AND PROJECTS IN 2013/14 ProgrammeProgramme purpose and objectives Projects/Annual TargetsPerformance in 2013/14 Alignment to DPW Outcome PROGRAMME 4 Public protection PURPOSE: To promote and protect the interests of the public in the built environment. STRATEGIC OBJECTIVE: To act as an appeal body and to ensue high standards of professional ethics and conduct within the built environment. 1.The decision of the CC on IDoW exemption implemented. 2.Submit the Engineering Council of South Africa (ECSA) IDoW to the Competition Commission (CC). 3.Appeal cases finalised (within 60 days) from the date of lodgement. 4.Best practice model for holding disciplinary proceedings implemented. 5.Expanded CBE website to create a public interface platform. 6.Two public awareness and education campaigns (on citizens rights and recourse) within the BE. 7.Three awareness and education campaigns targeting government departments and municipalities. 8.Corporate governance framework for BEPCs completed. 1.Achieved – Public consultations were held as per CC decision. 2.Achieved – ECSA IDoW lodged with the CC. 3.Achieved – All appeal cases and backlogs completed. 4.Achieved - A Best Practice Model was developed and adopted for implementation by all 6 BEPCs. 5.Achieved - A public interface platform was created on the CBE current website and two articles were placed on the website during the year. 6.Achieved - Codes of Conduct and 6 BEPCs Acts were distributed to the South African Local Government Association (SALGA) and the Consulting Engineers South Africa (CESA) Congresses. 7.Achieved – Consultations with the City of Johannesburg’s Building Control Department Management Team, the National Home Builders Regulatory Council (NHBRC) and SALGA were undertaken. 8.Achieved - Corporate Governance Framework was developed and approved by Council as a working document. All professional councils were consulted for implementation in the new financial year. Direct outcomes Outcome 12 – an efficient, effective and development orientated public service.

15. For a better built environment 15 FINANCIAL INFORMATION

16. For a better built environment 16 Overview Of The 2013/14 Budget And MTEF Estimates R Thousand Audited outcome Medium-term estimate Revenue 2009/10 2010/11 2011/12 2012/13 2013/14 %  2014/15 %  2015/16 %  Levies Received 1 706 1 617 1 657 1 784 1 8403.14% 1 803 -2% 1 803 0% Interest Received 1 065 93 378 32218-94.41% 150 733% 150 0% Total other revenue 2 771 1 710 2 035 2 106 1 858-11.78% 1 953 5% 1 953 0% Grant allocation received 24 155 25 527 27 433 28 146 37 95934.86% 41 572 10% 44 291 7% MERSETA Grant 0000200100.00% Total Revenue 26 926 27 237 29 468 30 25240 01732.28% 43 525 9% 46 244 6%

17. For a better built environment 17 R in Thousands 2012/ 2013 2013/ 2014 2014/ 20152015/ 2016 Overall % ChangeReasons for % change CBE Consolidated Budget 30 625 35 665 43 525 46 24422% Compensation for Employees 15 822 15 488 19 13819 778 24% Detail to be provided in the detail programme below Goods and Services 12 357 15 753 21 40023 548 36% Detail to be provided in the detail programme below Professional services 2 096 2 560 2 5762 208 1% Detail to be provided in the detail programme below Capital Assets 350 1 864 370317 -80% Detail to be provided in the detail programme below P1: Government Priorities Programme 17 24219 091 19 015 17 3060% Compensation for Employees 5 713 6 638 7 137 7 3838% Projected inflationary increase Goods and Services 9 083 8 029 8 9327 398 11% Council fees to cater for Additional meeting sitting Professional services 2 096 2 560 2 576 2 208 1% Capital Assets 350 1 864 370 317-80% Less capital assets needed for the current year as more assets were purchased in the prior year.

18. For a better built environment 18 2012/ 2013 2013/ 2014 2014/ 20152015/2016 Overall % Change Reasons for % change P2 : Skills Development 1 886 4 937 8 604 10 63274% Compensation for Employees 1 386 1 106 1 643 1 70049% Additional capacity & inflationary increase Goods and Services 500 3 831 6 961 8 93382% Increased projects to be undertaken Professional services - - - - Capital Assets - - - - P3: Research and Information 8 707 8 245 10 985 13 19633% Compensation for Employees 6 833 6 085 8 118 8 37833% Additional capacity & inflationary increase Goods and Services 1 874 2 160 2 867 4 81833% Increased projects to be undertaken plus inflationary increase Professional services - - - - Capital Assets - - - P4: Public Interest 2 790 3 392 4 880 4 71744% Compensation for Employees 1 890 1 659 2 240 2 31735% Additional capacity & inflationary increase Goods and Services 900 1 733 2 640 2 40052% Additional Projects envisaged Professional services - - - - Capital Assets - - - -

19. For a better built environment 19 KEY PERFORMANCE ENABLERS Alignment with National priorities DPW Support and Involvement RiskMitigation strategy Dependency on 3 rd parties to deliver on some of the key mandates eg. 6 Councils, academic institutions, infrastructure departments etc. Entering and signing of MoUs with key stakeholders. Slow pace of transformation in built environment professions demographics. Focused interventions at school level, tertiary level, candidacy phase and workplace training, skills pipeline approach. (A transformation implementation model & a workplace training model to drive transformation, as well as progress to date; are included in the next 3 slides.) Lack of research infrastructure.Provision of research infrastructure and expertise. Legal - Finalisation of the BE Policy that suggests the repeal of the CBE Act. Amendment of CBE Act by DPW. KEY RISKS AND RISK MITIGATION STRATEGIES KEY CHALLENGES, RISKS AND RISK MITIGATION STATEGIES KEY CHALLENGES, RISKS AND RISK MITIGATION STRATEGIES Registered Professionals White:76%African:15%Indian:6%Coloured:3% CandidatesWhite:35%African:52%Indian:10%Coloured:3%

20. For a better built environment 20 SOLUTIONS - TRANSFORMATION MODEL FOR BUILT ENVIRONMENT PROFESSIONS Proposals from the Draft Transformation Implementation Model : Proposed Structure Establishment of a Non-Profit Organisation comprising of a Board of Trustees from CBE, DPW, Dept of Higher Education and Training, Infrastructure Departments,Construction SETA, representatives of the 6 Prof Councils and the Private Sector. Proposed Key Programmes and Proposed Funding Mechanisms 1. Education Upliftment Programme Maths and Science Grade 8 to 12 upliftment program & (Grade 2 to 7 - primary school support ) Maths and Science Teacher support programme Career Awareness Proposed Funding: The National Skills Fund. 2. Bursary Fund Scheme and University Capacity Programme Central Bursary Scheme University student support program Retention of built environment lecturers and programmes Lecturer support programmes Built Environment Research Fund with partners Academic Institutions, NRF and Industry Proposed Funding: Board of Trustees raises 50% of funding and 50% from National Student Financial Aid Scheme (NSFAS), SETAs, Employer bodies, DHET, etc. 3. Workplace Learning Support Programme Structured Candidacy Workplace training that enables professional registration Work integrated learning opportunities for University of Technology or Comprehensive University national diploma students Post training placements in the workplace Proposed Funding: Board of Trustees approach SETAs, employer bodies, DHET (NSF), CIDB Standard for construction contracts, etc, for funding. 4. Registered Professionals Support Programme Retention program for built environment professionals Proposed Funding: Employer bodies. 5. Public Sector Professionals Support Programme Program for built environment professionals in the public sector including municipalities Proposed Funding: Departmental Budgets, SETAs, DHET (NSF), Treasury

21. For a better built environment 21 WORKPLACE TRAINING AND CANDIDACY MODEL FOR THE PUBLIC SECTOR BUILT ENVIRONMENT PROFESSIONS / GRADUATES CAPACITATION & SKILLS DEVELOPMENT Priority Beneficiaries: BE Professionals in National & Provincial infrastructure departments as well as municipalities, unemployed, Black and women.

22. For a better built environment 22 Progress To Date On The Transformation Model & Workplace Training Model 1.Transnet keen to participate in the NPO for the transformation model and share their bursary management and admin system and also career awareness expos. 2.Dept of Water Affairs keen to participate in the central bursary scheme as envisaged by the NPO. 3.Coega Development Corporation, keen to participate in the maths & science support programmes in schools in E-Cape & KZN as well as workplace training of candidates and interns. 4.50 Candidates have been identified to pilot the workplace training model. (engineering, construction & project management, QS & architecture) 5.48 Interns (employed) + 53 (unemployed) Interns, have been identified, for workplace training. 6.Commitment has been secured with ESKOM (48 interns); Water Affairs (30 interns) Sanral (4 interns) & Transnet (Number to be determined). 7.ESKOM, Water Affairs, Sanral, Transnet, have committed to take the candidates in construction & project management and civil engineering. 8.DPW Limpopo, KZN, E-Cape – To take the candidates in construction & project management and civil engineering.

23. For a better built environment 23 Thank you