Construction Industry Development Board Business Plan for 2007/2008 Presentation to

Construction Industry Development Board

Business Plan for 2007/2008

Presentation to Parliamentary Portfolio Committee

15 March 2007

development through partnershipcidb

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


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 developmentsustainable industry development

cidb Act - Distilled MandateC

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– Purp

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Achievements: Beginning to see impact

• Improved public spend (26,8% higher)• Now > 23 000 registrations (4000 Oct 2005)• More than 1200 contractors upgraded (ca 85%

black)• 500 applications per week• Over 800 projects registered – 150 000 i-Tender

notifications (e-mail/ 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

New implementation New implementation challenges!challenges!

Pro

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GradeGB CE ME EE SW Total

1 12659 2700 485 475 1568 178872 1279 536 110 119 166 22103 454 227 55 54 37 8274 382 382 63 81 70 9785 161 184 62 66 42 5156 135 161 26 27 19 3687 50 101 16 17 12 1968 12 36 3 3 4 589 15 21 9 2 4 51

Total 15147 4348 829 844 1922 23,090CE Civil Engineering EE Electrical Engineering GB General BuildingME Mechanical Engineering SW Specialist Works

Class of works

There has been >1200 successful upgrades on the register, i.e. contractors improving on their gradings. 85% are by black owned enterprises.

Achievements: Current Status – Registers Statistics

Region 1 2 3 4 5 6 7 8 9 Total

EC 1294 137 59 92 36 36 20 3 1 1678

Free State 1022 130 23 42 19 22 11 2 2 1273

Gauteng 5113 516 134 248 139 104 77 35 39 6405

International 0 0 0 0 0 0 0 0 7 7

KZN 4119 529 188 226 93 68 35 7 1 5266

Limpopo 2452 398 183 159 103 39 9 1 0 3344

Mpumalanga 1767 199 127 86 32 21 3 2 0 2237

North West 1102 93 29 40 16 17 3 0 0 1300

NC 178 42 17 13 17 6 6 0 0 279

WC 840 166 67 72 60 55 32 8 1 1301

Total 17887 2210 827 978 515 368 196 58 51 23090

Gradings

National and provincial targetsNational and provincial targets

Achievements: …..Grading by Province

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

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• Client capacitation workshop on construction procurement now accredited by ECSA

• GCC training guidelines completed and JBCC in first draft

• 5-Year Independent Review

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• 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



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

convergencein

focus

Double output – 10

years

cidb Strategic ChallengeC

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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


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


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)


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


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


Key Focus for 2007/08 (iv)

• Skills:

– Report on Restoring the Supply Pipeline• JIPSA

– Framework for Employment Skills Delivery Agency (ESDA)


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


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


Performance Measurement (i)

• Output targets set for each focus area (Section 6 of Business Plan)

• Example


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


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)


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


2007/2008 BUDGET


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


Chief Executive Officer

Programme Manager: Growth and Contractor

Development

Programme Manager: Construction Industry

Performance

Programme Manager: Procurement Delivery

Programme Manager: Registers

Chief Financial Officer

New positions = 66 Total staff = 112 Current positions = 46

BOARD

EXPANDED STAFFING STRUCTURE

6 37

CURRENT = 46 NEW = 66 TOTAL = 112

7 7 7 10 11 41 11 12

4 5

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

Total Budget (R’m)

R2.5 m cash surplus


R5.5 m

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 44 512 67 890 71 597 74 989

Summary Budget (kR) (MTEF)

06/07 07/08 08/09 09/10


Registers 4 500 12 500 19 706 20 947


Carried forward - 5 499 - -

Total revenue 44 512 67 890 71 597 74 989


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


25 % 4 % 4 %


06/07 07/08 08/09 09/10


Registers 4 500 12 500 19 706 20 947


Carried forward - 5 499 - -

Total revenue 44 512 67 890 71 597 74 989


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



PROGRAMMEActual 06/07

Total07/08

StaffOpera-tional

CapitalItems

AdminCosts

Contact Centers

Office of the CEO 4 104 4 716 2 692 1 500 - 524 -

CorporateServices 9 418 13 638 3 526 1 900 1 000 7 212 -

Growth &ContractorDevelopment

5 596 20 397 10 088 1 000 - 459 8 850

IndustryPerformance 4 129 5 332 3 270 1 540 - 522 -

Procurement &

Delivery7 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 1 000 10 465 8 850

Summary Budget per Programme (kR)

PROGRAMME Total StaffOpera-tional

CapitalItems

AdminCosts

Contact Centers

Office of the CEO 4 716 2 692 1 500 - 524 -

CorporateServices 13 638 3 526 1 900 1 000 7 212 -

Growth &ContractorDevelopment

20 397 10 088 1 000 - 459 8 850

IndustryPerformance 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 1 000 10 465 8 850

Summary Budget per Programme (kR)

Capital items = R6.35 m

Operational items = R2.5 m

Thank YouThank You

Thank You………..Thank You


Construction Industry Development Board Business Plan for 2007/2008 Presentation to

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