1. Construction Industry Development Board (cidb) Business Plan and Budget - 2008/2009 - Second Term Parliamentary Portfolio Committee 09 May 2008 development through partnership

2. Presentation Content Overview –Distilled mandate & Structure –Achievements –Challenges Key Focus for 2008/09 Key Internal Focus for 2008/09 Performance measurement Focus on long-term staffing & systems BP approval process Budget development through partnership

3. 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 sustainable industry development cidb Act - Distilled Mandate Context – Purpose of cidb development through partnership

4. Dual responsibility of cidb An enabler/developer - WIP A regulator/enforcer of compliance - a new focus Change of direction critical to demonstrate value add in the industry sustainable industry development Implications of Distilled Mandate Context – Purpose of cidb development through partnership

5. STAFFING STRUCTURE development through partnership

6. Achievements: Now > 65 000 registrations (ca 50 000 active) vs ca 27 500 (2006) More than 3 000 contractors upgraded (ca 87% black) Assessments done on a weekly basis Backlog cleared early last year Launched Registers Communication Drive: Nov 07-Improved understanding of requirements and quality as well as rate of applications New implementation challenges! Progress and building momentum development through partnership

7. Achievements: Construction Contact Centres –Established in partnership with Prov DPWs –4 already established: Gauteng(PTA), WC(CT), EC(Bisho), KZN(Durban) –Last 5 being established this FY Signed MOU’s –Workforce Group –FNB Fraud cases and Fraud reporting hotline New implementation challenges! Progress and building momentum development through partnership

8. Achievements: Registration process simplified-latest Regs Amendments –Gr 1 effective Jan 2008- over the counter registration, no certificate no annual updates in second and third year, no annual fees, linked to development –Gr 2-9 amendments to regs published for public comments, till 30 May Remove certificate Remove bank rating Adjust upper tender limits New implementation challenges! Progress and building momentum development through partnership

9. Achievements: Current Status-Registers Statistics development through partnership

10. 10 Achievements: Stats- Exponential Growth Increase in registrations  Dec 2004 – 1500  Dec 2005 – 7500  Dec 2006 – 27500  July 2007 – 42000  Dec 2007 – 55 000  End March 2008 > 65 000 Total registrations = (active + suspended)

11. Achievements: Current Status-Registers Statistics National & provincial targets development through partnership

12. Black owned by Grade only Medium sized contractors = 80% black ownership 80% 3693 4624 gaps

13. Women owned by grading

14. Women owned – Mechanical Engineering Development targeting gaps

15. Class of Works by grading – Eastern Cape

16. Class of Works by grading – Free State

17. Class of Works by grading – Gauteng

18. Class of Works by grading – KwaZulu Natal

19. Class of Works by grading – Limpopo

20. Class of Works by grading – Mpumalanga

21. Class of Works by grading – North West

22. Class of Works by grading – Northern Cape

23. Class of Works by grading – Western Cape

24. Achievements: …..Continued Developed Code of Conduct-already incorporated in the UCT curriculum for Construction Management- to expand into other academic institutions Standard for Uniformity (SfU) incorporated into UCT’s library of resources – to expand into other academic institutions Toolkit/IDIP (Infrastructure Delivery Improvement Programme) & Rollout 2010 Procure Manual Progress and building momentum development through partnership

25. Achievements: …..Continued Client capacitation workshop on construction procurement now accredited by ECSA-CPD pts for registered professionals Stakeholder Forum-June 2007, report to SF members 5-Year Independent Review Jan/Feb 2007, report published, handed over to Minister Dec 2007 Progress and building momentum development through partnership

26. Achievements: State of Industry Reports Skills for Infrastructure Delivery in South Africa; The Challenge of Restoring the Skills Pipeline (2006/07) The State of Municipal Infrastructure (2007/08): –led to National Infrastructure Maintenance Strategy The Building and Construction Materials Sector; Challenges and Opportunities (2007/08): –materials “shortages”, opportunities for enterprise development, quality concerns Health and Safety (in progress) development through partnership

27. Achievements: State of Industry Reports Construction Industry Indicators; 2007: performance of the contractor (26%) defects (25%) quality of tender documents and specifications (30%) safety delayed payments (5% longer than 90 days) –breakfast launch May 2008 –focuses cidb interventions development through partnership

28. Achievements: State of Industry Reports cidb Quarterly Monitor: –overview of the state of contractor development at Provincial level –input to developing targeted development intervention strategies in support of the NCDP –being presented to Provincial HoDs development through partnership

29. Achievements: cidb Quarterly Monitor Black Owned “Competition” Upgrades Public Sector Contracts development through partnership

30. Achievements: Performance Improvement Contractor Guidelines: –Series 1 & 2 (of 3) in print Establishing a construction business Operating a construction business Executing a construction project Benchmarking Clubs: –launch; KZN May 2008 development through partnership

31. Achievement: Performance Improvement Work progressing well on: –cidb Best Practice Contractor Recognition Scheme; Supply Chain Development (7 & 8) Construction Management Systems (5 & 6) –H&S, Quality, Environment Competence Assessment (2 to 4) –cidb Best Practice Project Accreditation Scheme; Close-out Reports Competence Assessment 9292 Simplified Management Systems Supply Chain Development Enablers; Business, H&S, Quality, Env, etc Grade Close-out reports development through partnership

32. Achievements: National Infrastructure Maintenance Strategy Strategy approved by Cabinet August 2006 Strategy and Brochure published Task Teams 2 & 3 established Programme Steering Committee to be established May Launch by Minister: 21 May 2008 Cabinet Minister of Public Works Programme Steering Committee Programme Manager Task Teams Advisory Group Presidential Co-ordination Committee development through partnership

33. Achievements: …..Continued New Audit Committee- Mid 2007 New Board appointed Dec 2007 –Chair and Deputy Chair appointed Feb 2008 –Both Audit and Remuneration Committees as board subcommittees constituted Induction for Audit Committee and Board Feb and April 2008-completed Progress and building momentum development through partnership

34. Empowerment Delivery Performance Growth Capability Consistent procurement & delivery environment Quality, safety, health and environment, employment Skills & systems efficiency Sustainable enterprises and emergence into mainstream economy convergence in focus Triple output – 10 years, dep on power gen cap cidb Strategic Challenge Confirming the vision & challenges development through partnership

35. Challenges Current boom in the industry: –Skills shortage-Demand side-Clients and supply side-contractors –Power generation capacity will dampen projected growth Unprecedented volume of registered contractors continues to pose a challenge Unemployment in the country Shifting priorities development through partnership

36. Challenges Structure as a national organisation with provincial presence vs expectations, poverty alleviation, performance, growth, support by clients & est business Alignment of register with the Construction Charter- not yet gazetted as Section 9 Code Revenue model-registers (long term sustainability and functionality?) Partnerships with sister organisations/stakeholders development through partnership

37. Key Focus for 2008/09 Contractor Registration –Continuous improvement of registration process –Regulation amendments Project Registration –Been slow/relaxations –Reprioritise & Fast track and prioritise I- Tender RoP Develop revenue model-consultation development through partnership

38. Key Focus for 2007/08 Continue with public sector procurement reform – streamlining, public sector capacitation, etc Register of Professional Service Providers (RoPSP)- consultation, regs, pilot, rollout Compliance enforcement-NB! Public sector delivery improvement – continue with IDIP: DPW & DoE; DoH, Municipalities National Infrastructure Maintenance Strategy – cidb role and budget for implementation development through partnership

39. Key Focus for 2007/08 Phase II of the Registers –Quality –H&S –Environment Benchmarking- benchmarking clubs HR Development Internal audit process, Risk Management & Corporate Governance EDMS Project Database development through partnership

40. Key Focus for 2007/08 Contractor Development: –Revised framework - National Contractor Development Programme Continue rollout in conjunction with DPW –W/shops with Provincial DPWs/other infrastructure department/entities New Construction Contact Centres (CCC): FS, LIMPOPO, MPU, NW & NC-mid to later this year-cost implications Phase in value-add through CCCs development through partnership

41. Key Focus for 2007/08 Skills: –Report on Restoring the Supply Pipeline Disseminate/distribute JIPSA –Framework for Employment Skills Development Agency (ESDA) – cidb facilitating –Work with CETA Presidential/Government projects –Eradication of mud schools –National Skills Development Strategy –Support DRC and others –Continue Support to NYS development through partnership

42. Key Focus for 2008/09 Stakeholder Forum (SF) –June 07 SF – report sent to SF members –Task Teams with SF members, championed by cidb managers –Planned for August/September –Consulting with Minister for actual date –Provincial stakeholder workshops: June- July –Nominations for new SF Members later in 2008 for next two years. development through partnership

43. Key Internal Factors 2007/08 Organisational Capacitation: –Expansion programme –Stability of Leadership level –Long-term staffing structure, incl CCC staff –Incl HR Development Service Quality: –Staff Training –Restructuring for efficiency---Registers & CCC as service pt Management Systems: –to support the expanded business processes including financial management, risk management and performance management systems Stakeholder Management development through partnership

44. Performance Measurement Output targets set for each focus area (Section 6 of Business Plan) Example development through partnership

45. Performance Measurement ProgrammeStrategic Project Operational Objective Target Construction Registers Service  Phasing out of Help Desks  Phasing out of Help Desks and replacement with CCCs  End of FY 2008/09  Reduced no. of complaints on the quality of service offered  80% compliant applications received through CCCs  Quality and integrity enhancement s  Ongoing enhancements, quality and integrity of registrations on the CRS  Ongoing quality improvement to registration turnaround </= 21 working days  Ongoing alignment of CRS with industry needs and trends development through partnership

46. Revised Long-Term Staffing Structure Structure should begin to stabilise from FY 2009/10-other things held constant Challenge with NIMS- clarity soon RoPSP To ensure sufficient programme depth Current positions : 112 Projected ca 161 development through partnership

47. BP Approval Process Presentation to Board Oct 07 Incorporation of Board inputs and submission to DPW for approval by Minister Oct 07 Interaction with DPW-Progress review - Dec 07 Updating of BP based on review Feb/ April 08 (for information to Board-May 08) Special motivation for budget adjustment-DPW Adjustment of BP-April/May 2008 Submission of final BP to DPW May 08 Approval by Minister development through partnership

48. 2008/2009 BUDGET development through partnership

49. Focus of 2008/2009 Budget Building human resource capacity Establishment of last 5 Construction Contact Centers Improve value add at the Construction Contact Centres Improvement of Registers service delivery Restructuring CRS for efficiency NIMS staffing – may change depending on rollout requirements development through partnership

50. Focus of 2008/2009 Budget Facilitating establishment of the ESDA Phase II of the Registers (Quality, H&S, Environment Promotion of R&D agenda Academic institutions to teach cidb requirements Benchmarking with international bodies & benchmarking clubs Continued support to 2010 Soccer World Cup infrastructure procurement EDMS development through partnership

51. 07/0808/0909/1010/11 Organizational income Registers12 50026 52029 17232 090 Transfer payments49 89175 07867 35472 158 Carried forward from 06/075 499--- Total revenue67 890101 59896 526104 248 Standard item: Expenditure Personnel30 77537 47938 28441 346 Administrative12 96532 55919 84121 428 Capital7 35011 24014 88816 079 Operational16 80020 32023 51325 395 Total expenditure67 890101 59896 526104 248 Summary Budget (kR) (MTEF)

52. PROGRAMME Actual 07/08 (unaudited) Total 08/09 Total 09/10 Total 10/11 Office of the CEO 11 101 8 800 5 3355 762 Corporate Services 23 63129 65720 70622 362 Growth & Contractor Development 17 740 24 98924 20626 142 Construction Industry Performance 4 0448 91711 67812 612 Procurement & Delivery 10 54710 03119 05620 581 Registers 16 334 19 20415 54516 789 83 397101 59896 526104 248 Summary Budget per Programme (kR)

53. Thank You ………..Thank You development through partnership