Construction Industry Development Board (cidb) Strategic Plan, Business Plan and Budget - 2009/2010...

Construction Industry Development Board (cidb)

Strategic Plan, Business Plan and Budget

- 2009/2010 and MTEF-

Presentation to NCOP SC13 October 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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9

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-Sept 2009

GB CE ME EP EB SW TOTAL1 52880 16916 2174 1157 846 7915 81891

2 2198 1527 215 57 156 453 4606

3 490 452 71 35 81 79 1208

4 652 680 103 60 147 87 1729

5 365 409 100 68 117 113 1172

6 372 435 49 27 43 31 957

7 147 189 35 27 17 23 438

8 50 62 13 9 3 6 143

9 26 43 24 16 6 11 126

Total 57180 20713 2784 1456 1416 8718 92270

Class of worksGrade

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

There have been 4,801 upgrades on the Register to date. Black owned enterprises constitute 84% of all upgrades.

Grading by Province – September 2009

Region 1 2 3 4 5 6 7 8 9 Total

Eastern Cape 10064 442 144 166 103 65 38 6 4 11032

Free State 4219 233 59 76 58 36 24 6 3 4714

Gauteng 19814 1062 212 445 348 311 171 76 89 22528

International 4 3 0 0 1 0 5 1 11 25

Kw aZulu-Natal 22877 1309 322 415 209 187 68 26 9 25422

Limpopo 7560 456 142 182 161 131 40 0 1 8673

Mpumalanga 6803 366 129 175 119 82 22 3 0 7699

North West 4393 214 47 69 45 32 12 3 0 4815

Northern Cape 807 53 20 31 22 10 6 2 0 951

Western Cape 5349 467 133 169 106 103 52 20 7 6406

Gradings

Actual no. of companies registeredDesignation Active Suspended

No. of Companies

1 62308 951 63259

2 3247 756 4003

3 992 165 1157

4 1478 211 1689

5 950 106 1056

6 780 43 823

7 353 15 368

8 121 1 122

9 78 10 88

Total 70307 2258 72565

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

Per

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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: 23 Oct 2009• Nominations for new SF Members for next

two years – Finalised in Oct 2009• General Stakeholder engagements• 5-year 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

• Chaired by Board member• Review of “key risks”• Review of Risk Management Policy and

Procedures• Special audit process: integrity of

RoC/Compliance

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2009/2010 BUDGET


Focus of 2009/2010 Budget

• Building human resource capacity• Establishment of last 2 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


Focus of 2009/2010 Budget• 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-not necessary so far

• EDMS-prioritised


Focus of 2009/2010 Budget

• Stakeholder management• Upscale communication:

media/stakeholders/etc • ICT-hub of operations


09/10 10/11 11/12 12/13

Organizational income

Registers 34 113 38 272 41 252 44 552

Transfer payments 59 269 63 665 65 959 66 882

Interest income 2 200 2 420 2 662 2 890

Total revenue 95 582 104 357 109 873 114 324

Standard item: Expenditure

Personnel 42 738 49 686 50 887 55 677

Administrative 22 187 26 149 29 992 29 015

Capital 3 070 778 622 617

Operational 27 587 27 744 28 372 29 015

Total expenditure 95 582 104 357 109 873 114 324

Summary Budget (kR) (MTEF)

PROGRAMME

09/10 10/11 11/12 12/13

Office of the CEO 8 974 9 529 10 375 10 731

CorporateServices 24 995 29 400 28 234 29 887

Growth &ContractorDevelopment

21 133 22 441 24 433 25 270

Construction IndustryPerformance 9 395 9 977 10 862 11 234

Procurement &Delivery 10 687 11 349 12 386 12 811

Registers 20 398 21 661 23 583 24 391

95 582 104 357 109 873 114 324

Summary Budget per Programme (kR)

Thank YouThank You

Thank You………..Thank You


Construction Industry Development Board (cidb) Strategic Plan, Business Plan and Budget - 2009/2010...

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