Slide 1 of 38 Presentation to the Parliamentary Portfolio Committee on Public Works Strategic and Annual Performance Plan 2014/15.

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Presentation to the Parliamentary

Portfolio Committee on Public Works

Strategic and Annual Performance Plan

2014/15

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Presentation Layout

Mission and mandate

Revisions to Legislative and other Mandates

Organisational Structure

Strategic Outcome Oriented Goals

Description of Core Programmes

Overview of Key Performance and Deliverable

Budget 2014/15

Staffing

Past Performance and targets

Conclusion

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Mission

The mission reads as follows:

“To drive enhanced delivery management, capacity improvement and contractor development in the construction industry through strategic interventions and partnerships”.

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The mandate of the cidb is to:

Provide strategic leadership to construction industry stakeholders, to stimulate sustainable growth, reform and improvement of the construction sector;

Promote sustainable growth of the construction industry and the participation of the emerging sector in the industry;

Determine, establish, promote improved performance and best practice of public and private sector clients, contractors and other participants in the construction delivery process;

Promote uniform application of policy throughout all spheres of government, promote uniform and ethical standards, construction procurement reform, and improved procurement and delivery management – including the Construction Code of Conduct; and

Develop systematic methods for monitoring and regulating the performance of the industry and its stakeholders, including the Registration of Projects and Contractors.

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Revision to Legislative and other mandates :

Regulation Amendments

During the 2014/15 financial year, the cidb will focus on identifying further improvements to contractor registration criteria taking into account the state of development of the emerging sector and the purpose of the register as a macro risk management tool for the public sector. The improvements are to be informed by the inputs received from the cidb National Stakeholder Forum and Provincial Stakeholder Liaison workshops. A first draft of Regulation Amendments was submitted to DPW in June 2014 for discussion, including possible amendments covering:

Grade 1 registrations ; registration renewals and B-BBEE reporting requirements a demerit system for contractors with regard to reportable health and safety (H&S)

incidents the use of cidb registered sub-contractors the use of cidb registered contractors on homebuilding contracts

Regulation on CDPsThe cidb will continue to explore the registration criteria as well as regulations and possible amendments to the Act which will ensure the sustainability, participation, and growth of the emerging sector. Specifically the cidb will explore further entrenching and making tools of the NCDP mandatory and to move beyond implementation of CDP’s being voluntary by the client departments. The cidb will also investigate aspects that could become mandatory and input into regulation amendment processes will be considered.

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ORGANISATIONAL STRUCTURE

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Organisational Structure

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STRATEGIC OUTCOMES ORIENTED GOALS

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Strategic Priorities

NoSTRATEGIC OUTCOMES

ORIENTED GOALS 

GOAL STATEMENT1. Strengthen the awareness

on NCDP and rollout of contractor development programmes (CDPs) with a focus on monitoring and reporting on CDPs.

Increase the participation of the emerging sector in the construction industry.

Provide client capacitation and awareness on NCDP

Monitor client CDP’s 

2. Manage and improve the Construction Registers Service through business process management best practice and registration criteria review.

Improve the efficiency and integrity of the contractor and project registration process though the business process management best practice and the appropriate application of technology.

Improve the Construction Registers Service as a macro risk management tool for the public sector and a platform for the development of the emerging sector through review of contractor registration requirements.

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Strategic PrioritiesNo STRATEGIC

OUTCOMES ORIENTED GOALS

GOAL STATEMENT

3. Implementation of the anti- corruption strategy, improve compliance monitoring and enforce cidb prescripts.

Promote compliance with cidb’s prescripts Minimise the rate of fraud and corruption.

4. Promote uniformity of construction procurement in the organs of state.

Improving infrastructure delivery.

5. Monitoring the performance of the construction industry.

Monitor and evaluate the performance of construction industry.

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Strategic PrioritiesNo STRATEGIC

OUTCOMES ORIENTED GOALS

GOAL STATEMENT

6. Improve the performance of the sector, and value to clients.

Promote contractor development; and Promote performance improvement.

7. Improve infrastructure delivery skills in the construction industry

Support the development of infrastructure delivery skills

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DESCRIPTION OF CORE PROGRAMMES

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Core Programmes Programme 1: Construction Registers Service focuses on:

o Registration of Contractors (RoC) and Registration of Projects (RoP) of both public and private sector construction projects.

o Implementation of the regulations to align the Construction Registers Service with developments in the construction industry, ensuring that the Register is maintained as a macro risk management tool for the public sector while taking into account the state of development of the emerging sector.

Programme 2: Construction Industry Performance focuses on:

o Improved performance and best practice for an industry that delivers reliable value to clients, and other stakeholders, information on construction industry indicators to inform cidb strategy, policy makers and stakeholders.

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Core Programmes Programme 3: Procurement and Delivery Management focuses on:

o Enhanced public sector construction procurement and infrastructure delivery management capability of public sector clients enabling efficient and effective delivery of quality infrastructure to the public.

Programme 4: Provincial offices and Contractor Development focuses on:

o Enterprise and contractor development, with emphasis on increasing the participation of the emerging sector. The Programme also oversees the cidb Provincial footprint and associated support offerings via the nine Provincial cidb Offices.

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OVERVIEW OF THE KEY PERFORMANCE AND

DELIVERABLE

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Key Performance Summary CRSPurpose Implement, manage and improve national registration

services covering the Register of Contractors (RoC), Register of Projects (RoP) and new Registers that may be implemented in terms of the CIDB Act.

Objective Statement

Registration of contractors in a manner that facilitates public sector procurement by ensuring an efficient registrations service and accurate assessments of applications.

Facilitate the registration of public sector projects and distribute quarterly reports on client compliance both internally and externally. The registration of projects forms the basis for the implementation of the best practice project assessment schemes designed to drive improved client performance.

Expected Outcome

Effective and Efficient Registration Processes.

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Key Performance Summary CRSThe programme’s targets are briefly outlined below:

Maintenance of an efficient registration service (process, quality and integrity) and an efficient query resolution process.

o The programme’s target is to achieve a turnaround time of the legislated 21 working days for processing and concluding compliant Grade 2-9 applications.

Two working day turnaround time for administration of queries.o All queries received by the Registers Department will be

administered within a period of two working days from the time of receipt of the query.

Produce high standard of data quality.o The focus will be on ensuring that quality control is effective in each

functional area within the CRS Programme. A quality assurance team has been established within the CRS Programme with a mandate to provide assurance on the quality of outputs and engaging the relevant business units on areas for improvement.

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Key Performance Summary CRSThe programme’s targets are briefly outlined below:

Fraud Prevention and Detection Plan.oThe Fraud Prevention and Detection Plan will cater for the entire registrations processing chain, from the time applications are received up to activation of grades at Head Office.

Regulation Amendment Recommendations.oThe cidb will focus on identifying further improvements to contractor registration criteria taking into account the state of development of the emerging sector and the purpose of the register as a macro risk management tool for the public sector.

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Key Performance Summary CIP

Purpose To determine, establish and promote appropriate measures aimed at improved performance and best practice of public and private sector clients, contractors and other participants in the construction delivery process.

Objective Statement

Improved performance and best practice for an industry that delivers reliable value to clients, investors and end-users, information on construction industry indicators to inform cidb strategy, policy makers and stakeholders.

Expected Outcome

Improved Performance of the Construction Industry, and Value for Money to Clients.

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Key Performance Summary CIP

The programme’s targets are briefly outlined below:

cidb Best Practice Contractor Recognition Scheme.o The cidb Best Practice Contractor Recognition Scheme is moving from

a phase of development to possible implementation.o Impact Assessment completed and submitted to cidb Board

cidb Best Practice Project Assessment Schemeo The following have been published or submitted to Board:

• cidb Standard for Indirect Targeting for Enterprise Development through Construction Works Contracts, published February 2013

• cidb Standard fro Developing Skills through Infrastructure Contracts, published August 2013.

• cidb Standard for Contractors Performance Reports for use on Construction works Contract(Grade 2 to 9), published August 2013.

• cidb Standard for Contractor Performance Reports for use on Construction Works Contract (Grade 1) completed

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Key Performance Summary CIP

The programme’s targets are briefly outlined below:

cidb Best Practice Project Assessment Scheme(continuation)o The following have been published or submitted to Board:

• cidb Standards for H&S Management Plans(draft) completed.

• cidb Best Practice: Minimum Requirements for Engaging Subcontractors on Construction Works Contracts published November 2013.

• cidb Best Practice: Green Building Certification published in April 2011

• cidb Standard for Performance Reports for professional Service Providers is targeting submission to the board by end March 2016.

• A Regulatory Impact Assessment for Project Assessment Scheme has been completed and submitted to DPW

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Key Performance Summary CIPThe programme’s targets are briefly outlined below:

Infrastructure Delivery Skillso Key Elements in the Programme’s alignment to the cidb’s

infrastructure Delivery Skills Strategy are outlined below:• cidb Competence Standard for Contractors.• cidb Standard for Developing Skills through Infrastructure

Contracts• cidb Skills Development Agency (SDA)• WorldSkills ZA Construction Chapter• cidb Post-Graduate Conference /Doctoral Workshop series• Youth in construction

Best Practice Guideso Building on Previous Practice guides for the industry, the

programme will continue to promote the uptake of these guides.

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Key Performance Indicator CIPThe programme’s targets are briefly outlined below:

Industry Performanceo Monitoring and evaluation of the construction industry will continue

to be a priority in 2014/15, providing an on-going base for a detailed understanding of the industry, including:

• cidb Construction Industry Indicators(CIIs)• cidb Quarterly Monitor• cidb SME Business Conditions Survey• cidb Compliance Monitor• Status Report on Employment and labour

Cross Programme Support and Other Strategic Objectiveso The Programme continues to provide cross-programme support to

other programmes including:• Export Promotion• CPD Statistics• National Infrastructure Maintenance Strategy(NIMS)

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Key Performance Indicator CIPThe programme’s targets are briefly outlined below:

Programmatic Approacho The Programme is facilitating a process of consultation on the cidb

Best Practice Feeo Draft gazette notice regarding Best Practice Fee was tabled at

Technical MinMec, and submitted to DPW for publication in the government Gazette

o The following are current recommendations regarding the cidb Best Practice Fee:

• Best Practice fee of 0.2% of the contract sum applied to projects of tender Grades 7 to 9.

• Best Practice Fee of 0% applied to projects of tender Grades 2 to 6.

• Phased introduction of cidb Best Practice Standards is adopted and implementation is rolled out.

• Best Practice Fee will initially only apply to public sector projects• Payments of the Best Practice Fee by clients is due within 30 days

of registration and awarding of the contract.

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Key Performance Summary PDMPurpose Develop, promote and monitor uniform application of

cidb prescripts throughout all organs of state and industry stakeholders including procurement standards, construction procurement reform, improved infrastructure delivery management practices and the cidb Code of Conduct.

Objective Statement

Provide leadership to stakeholders and to stimulate sustainable growth, reform and improvement of the construction sector for effective delivery and the industry’s enhanced role in the country’s economy.

Expected Outcome

Enhanced compliance to construction procurement and infrastructure delivery management.

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Key Performance Summary PDM

The programme’s targets are briefly outlined below:

Improving Public Sector Construction Procurement and Delivery Management.

o The cidb remains a committed key strategic partner to the Infrastructure Delivery Improvement Programme (IDIP) and as such the PDM Programme continues to support the IDIP initiatives aimed at improving infrastructure delivery.

o The 2010 Infrastructure Delivery Management Toolkit (IDMT) which comprises three key Delivery Processes, namely, Portfolio Management (including Programme Management), Project Management, Operations and Maintenance is due for an upgrade in 2014/15.

o The IDMT is anchored on the Infrastructure Delivery Management System (IDMS) which is the backbone of the body of knowledge provided in the delivery processes.

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Key Performance Summary PDM

The programme’s targets are briefly outlined below:

Improving the Effectiveness of Client Capacitation.o Construction Procurement Officers (CPO) Forums established in all

provinces will continue to provide a platform for provincial procurement officers including strategic partners such as Provincial Treasuries and Auditor General to interact, share information and deliver infrastructure in an integrated manner. These Forums assist in the consolidation of a fragmented client base.

Implementation of the Anti-corruption Model.o This model will also call for the alignment of the Infrastructure Gateway

System and the Register of Projects where integrity, accountability and transparency can be upheld.

Improving Compliance Monitoring and Enforcement.o All cases of non-compliance will be investigated and sanctions will be

imposed against guilty parties and such information will be published on the cidb website and government gazette.

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Key Performance Summary PCD

Purpose To develop and promote measures that assist organs of state in the planning, decision making, implementation and monitoring of contractor development.

Objective Statement

Provision of leadership and support to the public sector and other stakeholders in the support of increasing emerging sector participation.

Expected Outcome

Increased emerging sector participation and adoption by client departments of CDP’s with improved grading status of contractors within these CDP’s, as well as relevant and efficient provincial office cidb service offerings.

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Key Performance Summary PCD The programme’s targets are briefly outlined below:

Enterprise Development Unito The ED Unit is specifically mandated to provide guidance and

support to clients on Contractor Development, and in partnership with the National Department of Public Works the unit provides overall programme management of the National Contractor Development Programme (NCDP) including monitoring and evaluation, across all willing and participant public sector infrastructure clients.

o ED strategic Objectives:• To expand and entrench the NCDP awareness and CDP

implementation;• Strengthen the Enabling environment; and• Provide technical support and targeted programmatic training to clients

on CDP’s towards enhanced reporting and monitoring.

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Key Performance Summary PCD

The programme’s targets are briefly outlined below:

Provincial offices Unito The Provincial offices will ensure the following:

• An efficient and effective registration service;

• cidb provincial offices services customer satisfaction;

• Supporting improvement of client body’s capability and capacity on construction procurement;

• Pursuing sustainable growth of contractors through client and contractor awareness and programmatic support; and

• Promoting customer relations and provincial office efficiencies and sound management.

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BUDGET

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Budget

Sub programme Medium-term expenditure estimate (2014/15)

Provincial and contractor development 31,104

Construction industry performance 9,904

Procurement and Delivery management 11,264

Contractor register services 22,685

CEO’s office 11,743

Other Objectives 41,840

Total 128,540

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STAFFING

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Staffing

Programme Number of Employees

CEO’s office 13 positions + 4 ATE’s

Construction Register: Services 64 positions

Construction Industry Performance 9 positions

Procurement and Delivery Management 9 positions

Provincial Offices and Contractor Development 76 positions

Corporate Services 53 positions

Total Positions: 224 + 4 ATE’s

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Performance •  

Audit findings 2010/11

2012/13 2013/14( Interim)

Submission deadline None None None

Misalignment - SP and APP

Yes None None

Indicators not well defined

53% None 5%

POE (Non exist) 36% None None

Not meeting smart criteria

72% None 5%

Performance threshold 75% 53% 81%

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2014/15 Performance Targets •  

Programme Number of Targets

CRS 6

CIP 14

PDM 9

PCD 7

Total 36

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Questions?Questions?

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THANKSTHANKS