Presentation to DPW Executive Commitee 26 January 2001

1
Emerging Contractor Development Program
A National Initiative of the Department of Public
Works Presentation to Road Pavement Forum 7 8
May 2002
2
Contents

• Approach to contractor development
• Framework of ECDP support
• Impact and lessons
• Challenges ahead
• Concluding remarks

3
What is an emerging contractor?

• Defined as an enterprise owned,managed and
  controlled by historically disadvantaged
  individuals which is still overcoming business
  impediments arising from the legacy of apartheid

4
HARSH REALITIES
5
Development Approach
Public Sector Delivery
Demand side access
Supply side support
Affirmative Procurement (APP) ACCESS TO WORK
OPPORTUNITIES
Emerging Contractor Development Programme
ACCESS TO SUPPORT

• transparent
• competitive
• cost effective

• information advice
• training mentoring
• finance credit

• Delivery
• Empowerment, transformation
• Consolidation, emergence

6
Principles of Contractor Development

• Target contractors who make best use of the
  support provided
• Clearly defined entry and exit criteria
• Systematic monitoring and evaluation of
  contractors Performance
• Uniform and standard procurement documents,
  practises and procedures
• NQF principles should form the basis for skills
  development ( Training should promote career
  progression)
• Enabling programme must not perpetuate the
  existing division of the industry

7
Essence of ECDP
Department of Public Works
ECDP
Emerging Contractors
Other Organisations
8
Framework of ECDP Support
ECDP regional offices
HELP DESK Direct Support
ECDP Database
EXTERNAL SUPPORT Private Sector, NGOs
Work Opportunities
Monitoring Evaluation
9
ECDP Help Desk

• Registers Contractors
• Provides information, advice training
• -Quotes and tenders
• - Performance and payment procedures
• Inter-active video/multi-media programmes
• Facilitates access to external support

10
ECDP Data Base

• Categorises contractors
• Matches contractor with work opportunities
• Supports monitoring and evaluation
• Enables progression/ exit
• Creates a track record

11
Financial Support SpectrumDevelopment in Progress
Prompt Payment
Guarantees (APP, Waiver of Guarantees)
Supplier Credit (Supplier-based Programs)
Working Capital Project Finance (Financial
Institution),
12
Achievements

• Database of contractors
• CET Training RPL
• Promotion of women in construction
• Reduced delayed payments
• Access to finance IDC and Khula

13
Number of Registered contractors
14
CET Training
15
Challenges

• Matching contractors with the contracts
• Volatility of workload
• Monitoring of performance
• Screening of contractors
• Job creation or empowerment ????
• Support framework
• Lack of organisational capacity

16
Concluding Remarks

• The skewed business ownership patterns in the
  South Africa is a problems.
• The sub- standard skills level of emerging
  contractors and their continued lack of access
  to resources is a much bigger problem.
• We have to intensify support to contractors to
  create real entrepreneurs.

17
THANK YOU
18
THANK YOU