Construction Industry Development Board

1
Construction Industry Development Board
Business Plan for 2007/2008 Presentation to
Parliamentary Portfolio Committee 15 March
2007
2
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

3
cidb Act - Distilled Mandate

• to provide leadership and an enabling
  regulatory and development framework
• for
• A total construction delivery capability to
  achieve South Africas economic and social growth
• Sustainable growth and empowerment of
  historically disadvantaged
• Global standards of performance and value to
  clients and society

Context Purpose of cidb
sustainable industry development
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Achievements Beginning to see impact

• Improved public spend (26,8 higher)
• Now gt 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

Progress and building momentum
New implementation challenges!
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Achievements Current Status Registers
Statistics
There has been gt1200 successful upgrades on
the register, i.e. contractors improving on their
gradings. 85 are by black owned enterprises.
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Achievements ..Grading by Province
National and provincial targets
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Achievements ..Continued

• Developed Code of Conduct-already incorporated in
  the UCT curriculum for Construction Management
• Standard for Uniformity SfU) incorporated into
  UCTs library of resources
• Toolkit/IDIP (Infrastructure Delivery Improvement
  Programme) Rollout
• 2010 Procure Manual

Progress and building momentum
8
Achievements ..Continued

• Client capacitation workshop on construction
  procurement now accredited by ECSA
• GCC training guidelines completed and JBCC in
  first draft
• 5-Year Independent Review

Progress and building momentum
9
Achievements ..Continued

• 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

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cidb Strategic Challenge
Double output 10 years
Empowerment
Growth
Sustainable enterprises and emergence into
mainstream economy
convergence
Confirming the vision challenges
in
focus
Capability
Delivery
Consistent procurement delivery environment
Skills systems efficiency
Performance
Quality, safety, health and environment,
employment
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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

12
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

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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)

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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

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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

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Key Focus for 2007/08 (iv)

• Skills
• Report on Restoring the Supply Pipeline
• JIPSA
• Framework for Employment Skills Delivery Agency
  (ESDA)

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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

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Key Internal Factors 2007/08 (i)

• Building the senior management team
• Appointment of Prog Manager-Procurement
  Delivery
• Strengthening the cidbs 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

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Performance Measurement (i)

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

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Performance Measurement (ii)
Operational Objective Target
Construction Registers Service Service quality Average turnaround lt/ 21 days Minimal complaints on the quality of service offered 95 compliant applications received from help desks and CCC
Construction Registers Service 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
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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)

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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

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2007/2008 BUDGET
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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

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EXPANDED STAFFING STRUCTURE
4
5
6
37
7
7
7
10
11
41
11
12
CURRENT 46
NEW 66
TOTAL 112
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EXPANDED STAFFING STRUCTURE
4
5
6
37
7
7
7
10
11
41
11
12
CURRENT 46
NEW 66
TOTAL 112
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EXPANDED STAFFING STRUCTURE
4
5
6
37
7
7
7
10
11
41
11
12
CURRENT 46
NEW 66
TOTAL 112
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Total Budget (Rm)
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

R2.5 m cash surplus
R5.5 m
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Summary Budget (kR) (MTEF)
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
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Summary Budget (kR) (MTEF)
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 - 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
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4
4
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Summary Budget (kR) (MTEF)
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 - 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
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Summary Budget per Programme (kR)
PROGRAMME Actual 06/07 Total 07/08 Staff Opera- tional Capital Items Admin Costs Contact Centers
Office of the CEO 4 104 4 716 2 692 1 500 - 524 -
Corporate Services 9 418 13 638 3 526 1 900 1 000 7 212 -
Growth Contractor Development 5 596 20 397 10 088 1 000 - 459 8 850
Industry Performance 4 129 5 332 3 270 1 540 - 522 -
Procurement Delivery 7 215 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
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Summary Budget per Programme (kR)
PROGRAMME Total Staff Opera- tional Capital Items Admin Costs Contact Centers
Office of the CEO 4 716 2 692 1 500 - 524 -
Corporate Services 13 638 3 526 1 900 1 000 7 212 -
Growth Contractor Development 20 397 10 088 1 000 - 459 8 850
Industry Performance 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
Capital items R6.35 m Operational items R2.5
m
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