Construction Industry Development Board (ci d b) Business Plan and Budget - 2009/2010 -

Construction Industry Development Board (cidb)

Business Plan and Budget- 2009/2010 -

Presentation to PPC

09 June 2009

development through partnershipcidb

Presentation Content

• Overview– Distilled mandate– New Vision, Mission and Strategy

• External Context for 2009/10• Internal Context for 2009/10• Strategic Objectives• Operational Plan• Key focus for 2009/10• Performance measurement• Risk and Fraud • Budget


to provide: strategic 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 sustainable industry developmentdevelopment

cidb Act - Distilled MandateC

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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 developmentsustainable industry development

Implications of Distilled MandateC

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– Purp

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Vision & Mission:

• Vision 2012 and Beyond“A dynamic, innovative and development organisation that provides strategic leadership and an efficient service to stakeholders, leading to a transformed and competitive construction industry that delivers quality infrastructure, promotes economic growth, and an organisation that is caring for its employees”.

New implementation New implementation challenges!challenges!

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Vision & Mission:

• Mission“To direct and drive an integrated construction industry development strategy that transforms the role of industry and stakeholders for sustainable growth, improved delivery, performance and value to public and private sector clients, and investors through strategic partnerships; to strategically and deliberately promote the empowerment of small, medium and micro enterprises to improve their capability and grow the economy; to develop employees to be meaningful participants in the organisation”.


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External Context:

Supporting interventions

• Infrastructure delivery skills: • Public sector delivery:

Stakeholder Analysis & Management

5 – Year Review recommendations


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Internal Context:

• Operation and growth of RoC-see graphs and tables following this slide

• Specialisation

• Risk Exposure

• Business Systems-– EDMS– CRS Software Upgrade


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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; End March 2009 >80 000

Total registrations = (active + suspended)

Projected growth based on historical data

0100002000030000400005000060000700008000090000

100000

Dec 04 Dec 05 Dec 06 Dec 07 Apr 08 Dec 08

No. o

f reg

istra

tions

Series1

Class of Works by grading

GB CE ME EP EB SW TOTAL1 47004 14689 1947 788 728 6473 71632

2 2157 1445 229 42 190 476 4539

3 533 454 69 27 110 71 1264

4 626 669 94 49 179 78 1695

5 345 419 91 48 128 89 1120

6 362 431 48 16 49 25 931

7 152 192 32 24 22 21 443

8 40 56 11 10 2 6 125

9 24 44 25 14 3 11 121

Total 51243 18399 2546 1018 1411 7250 81870

GB: General Building CE: Civil Engineering ME: Mechanical Engineering EP: Electrical Engineering (Infrastructure) EB: Electrical Engineering (Building) SW: Specialist Works

Class of worksGrade

There have been 4674 upgrades on the Register to date. Black owned enterprises constitute 87 % of all upgrades.

Grading by Province – 29 May 2009

Region 1 2 3 4 5 6 7 8 9 Total

Eastern Cape 8686 448 158 157 113 63 36 5 4 9670

Free State 3910 243 51 84 56 40 27 5 3 4419

Gauteng 17420 1087 217 420 317 283 187 66 83 20080

International 3 2 0 0 1 0 3 1 11 21

Kw aZulu-Natal 19994 1264 334 410 197 178 66 23 9 22475

Limpopo 6458 493 162 191 153 133 37 1 1 7629

Mpumalanga 6085 355 141 175 118 86 21 2 0 6983

North West 3734 194 52 72 46 38 17 1 0 4154

Northern Cape 662 50 17 32 19 7 6 2 0 795

Western Cape 4679 402 132 153 100 103 43 19 8 5639

Gradings

National & provincial targetsNational & provincial targets

Actual no. of companies registered

Designation Active SuspendedNo. of

Companies

1 55042 2306 57348

2 3005 1360 4365

3 1040 322 1362

4 1422 434 1856

5 952 165 1117

6 763 96 859

7 357 32 389

8 106 6 112

9 78 14 92

Total 62765 4735 67500

Strategic Objectives:

• Organisational Capacitation• “Value-added” service delivery• Research and Development Agenda• Phase II of the Registers• Procurement Reform


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OPERATIONAL PLAN & STAFFING STRUCTURE


Operational Programmes:

• Programme 1: Growth and Contractor Development(GCD)- focuses on promotion of enterprise development, investment and spending as the basis for a stable, developing industry and the participation of the emerging sector.


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• Programme 2: Construction Industry Performance- focuses on 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.


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• Programme 3: Procurement and Delivery Management- focuses on 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.


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• Programme 4: Construction Registers Services focuses on:– Registration of contractors and both public

and private sector projects– Regulation to effect improved performance

and best practice of clients and suppliers.


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• Programme 5: Chief Executive’s Office focuses on:– overall strategic leadership and governance

in support of the Board;– stakeholder consultations and

communications.


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• Programme 6: Corporate Services, responsible for:– financial management including registers

fees;– human resource administration-HR Admin;– supply chain management-SCM;– information technology-IT.


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Key Focus for 2009/10

• 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



• 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 – NIMS-cidb role and budget for implementation



• Phase II of the Registers-Best Practice– Quality– H&S– Environment

• Benchmarking- benchmarking clubs


cidb Best Practice Contractor Recognition Scheme

9

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SANS / ISO / OSHASManagement Systems ANDSupply Chain Development

Enablers;Business, H&S, Quality, Env, etc

Grade

cidb AccreditedManagement Systems

cidb Competence Assessment

Results

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cidb Best Practice Project Assessment Scheme

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• Establish ESDA: funding, operation• HR Development• Internal audit process, Risk Management

& Corporate Governance• EDMS• Project Database



• Contractor Development:

– Revised framework - National Contractor Development Programme -NCDP• Continue rollout in conjunction with DPW

– W/shops with Provincial DPWs/other infrastructure department/entities

• New Construction Contact Centres (CCC): LIMPOPO; NW

• Phase in value-add through CCCs



• Stakeholder Forum (SF) 2009-est Sept 2009• Nominations for new SF Members for next

two years – July 2009• General Stakeholder engagements• 5-Review recommendations


Performance Measurement

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

• Example


Performance MeasurementProgramme Strategic

ProjectOperational

ObjectiveTarget

Construction Registers Service

Service Excellence Using Business Process Management (BPM) best practice to deliver sustained, measurable service excellence. Service areas include head office registrations processing, call centre and internal query resolutions unit.

31 Mar 2010

Enhancement of software systems

Software systems to support flexible business processes, work flow integration and performance monitoring. Software to support integration of registration services across head office and CCC's.

31 Dec 2010.


Risk and Fraud

• New Risk Committee appointed

• 3 Board members, CEO, CFO, Ext member of Audit Committee; Risk & Governance Manager (vac)

• Chaired by Board member

• Review of “key risks”

• Review of Risk Management Plan

• Special audit unit: integrity of RoC/Compliance

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2009/2010 BUDGET


Focus of 2009/2010 Budget

• Building human resource capacity• Establishment of last Construction

Contact Center/s• Improve value-add at the Construction

Contact Centres• Improvement of Registers service

delivery• NIMS staffing and operationalisation• Focus on fraud and corruption/forensics• Enforcement of compliance



• Facilitating the establishment of the ESDA• Phase II of the Registers (Quality, H&S,

Environment)-Best Practice• Promotion of R&D agenda• Academic institutions to teach cidb

requirements- start the process• Benchmarking with international bodies &

benchmarking clubs• Continued support to 2010 Soccer World Cup

infrastructure procurement• EDMS-prioritised



• Stakeholder management• Upscale communication:

media/stakeholders/etc • ICT-hub of operations


08/09 09/10 10/11 11/12

Organizational income

Registers 34 340 34 113 38 272 41 252

Transfer payments 41 891 59 269 59 687 64 308

Interest income 600 2 200 2 420 2 662

Total revenue 76 831 95 582 100 379 108 222

Standard item: Expenditure

Personnel 39 233 49 402 53 354 57 623

Administrative 15 597 15 523 16 392 17 310

Capital 4 406 3 070 1 000 1 200

Operational 17 595 27 587 29 633 32 089

Total expenditure 76 831 95 582 100 379 108 222

Summary Budget (kR) (MTEF)

PROGRAMME

08/09 09/10 10/11 11/12

Office of the CEO 6 139 8 974 9 423 10 161

CorporateServices 25 882 24 995 26 249 28 300

Growth &ContractorDevelopment

15 907 21 133 22 194 23 928

Construction IndustryPerformance 7 029 9 395 9 867 10 637

Procurement &Delivery 8 351 10 687 11 224 12 101

Registers 13 523 20 398 21 422 23 095

76 831 95 582 100 379 108 222

Summary Budget per Programme (kR)

Thank YouThank You

Thank You………..Thank You


Construction Industry Development Board (ci d b) Business Plan and Budget - 2009/2010 -

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