Construction Quality: A cidb Perspective · Construction Quality: A cidb Perspective Rodney...

Construction Quality:

A cidb Perspective

Rodney Milford; cidb

CESA Infrastructure Indaba

10 November 2015

Overview

• Construction Quality:

– some findings

• cidb Project Assessment Scheme:

– contractor performance

• cidb Contractor Recognition Scheme:

– towards functionality

• cidb Register of Professional Service Providers:

– towards functionality

• Concluding Comments

Construction Quality:

some findings

References

• Construction Quality in South Africa; A

Client Perspective (2012)

• cidb Construction Industry Indicators

(2014)

• Labour & Work Conditions in the South

African Construction Industry (2015)

Quality of Completed Work (2014)

0.1 1 10 100 1000

Project Cost (Rm)

Satisfied

Neither

Satisfied or

Dissatisfied

Dissatisfied

84%

16%

Level of Defects (2014)

0.1 1 10 100 1000

Project Cost (Rm)

Few Defects

Major Defects

Totally

Defective

Some Defects

Apparently

Defect Free

86%

14%

Documentation (2014)

0.1 1 10 100 1000

Project Cost (Rm)

Satisfied

Neither

Satisfied or

Dissatisfied

Dissatisfied

78%

22%

Barriers to Construction QualityScale: 1 = minor; 3 = average; 5 = major influence

Interventions / Situations Overall

MeanRank

Poor site management 4.4 1

Lack of contractor quality expertise 4.4 2

Corruption 4.3 3

Inadequate resourcing by contractors 4.1 4

Lack of understanding of quality 4.1 5

Level of subcontracting 4.1 6

Inadequate information 4.1 7

Detail 4.1 8

Focus on cost by contractors 4.0 9

Poor constructability 4.0 10

Barriers to Quality

• Design related:

– largely intricate and impractical details, poor design

coordination and unrealistic specifications

• Procurement related:

– price and preference, not functionality (or quality)

– fraud and corruption, or “political interference”

– institutional barriers (inadequate procurement and/or

monitoring capacity)

– procurement and delivery model on complex projects

(“design by employer” model)

• Construction related:

– inability of contractor to deliver required quality

Barriers to Construction Qption

0% 10% 20% 30% 40%

1

2

3

4

5

6

7

8

9

10

Satisfied

Neither Satisfiednor Dissatisfied

Dissatisfied

Largely procurementrelated barriers,

including fraud andcorruption

Largely design orconstruction

related barriers

Summary

• Clients were neutral or dissatisfied with construction quality on 16% of projects

• 14% of projects had unacceptable levels of defect

• Contractors were neutral or dissatisfied with construction documentation on 22% of projects

• Key barriers include;

– client / client agent monitoring capability

– procurement capabilities & competence standards

– procurement based on price and preference, not functionality (or quality)

– matching capabilities to the requirements

– fraud and corruption

cidb Project Assessment Scheme:

contractor performance

cidb Act; Project Assessment Scheme

1) The Board must …. establish a best practice project

assessment scheme, based on the best practices identified by

the Board …..

2) After a date determined by the Minister … all construction

contracts above a prescribed tender value are subject to an

assessment ….. of compliance with best practice standards

and guidelines published by the Board

cidb Project Assessment Scheme

• cidb Standard for Indirect Targeting for

Enterprise Development (February 2013)

• cidb Standard for Developing Skills through

Infrastructure Contracts (August 2013)

• cidb Standard for Contractor Performance

Reports for use on Construction Works

Contracts (Grades 2 to 9) (August 2013)

• cidb Best Practice: Green Building Certification

(April 2011)

cidb Project Assessment Scheme

• cidb Standard for Indirect Targeting for

Enterprise Development (February 2013)

• cidb Standard for Developing Skills through

Infrastructure Contracts (August 2013)

• cidb Standard for Contractor Performance

Reports for use on Construction Works

Contracts (Grades 2 to 9) (August 2013)

• cidb Best Practice: Green Building Certification

(April 2011)

cidb Standard for Contractor

Performance Reports• Assessment of the performance of the

contractor with respect to the following project

parameters:

– time, cost and quality management

– health and safety management

– management of site conditions

– management of subcontractors (including

payment)

• Summary report will also include record of any

breaches of contract as well as non-

compliance with mandatory cidb Best

Practices

Prompts for Judgement

Indicator Prompt for judgement

Poor

(-1)Adequate (0)

Good

(1)

Excellent

(2)

QUALITY MANAGEMENT

Skill and

commitment in

managing quality

on site

Need for close

attention by

inspectors

Significant re-

working

required

Handover

subject to list

of defects

Slow attention

to defects

after

handover

Inspections

regarded as

necessary

Little rework

required

Some defects

at handover

Defects

attended to

efficiently

after

handover

Inspections

largely a

formality

Some rework

required, but

all initiated by

contractor

Few defects,

very

efficiently

cleared

No re-work

attributable to

contractor

Substantially

free of any

defects

attributable to

contractor

Client

completely

satisfied.

Summary Results

Section B: Contractor Performance Information

Number of performance reports considered

Minimum Average Maximum

Time Management • • •

Cost Management • • •

Quality Management • • •

H&S Management • • •

Site Conditions • • •

Subcontractor Management • • •

Aggregate Score •

Scale Poor -1 Adequate 0 Good 1 Excellent 2

CONQUAS®

• Construction Quality Assessment System

• Architectural works:

– floors

– internal walls

– ceilings

– doors

– windows

– components

– basic mechanical and electrical (M&E) fittings

CONQUAS®

• Walls meet at right-angles – not more than 4mm over 300mm

CONQUAS®

• No visible cracks from a distance of 1,5m

CONQUAS®

• No stain marks or any visible damage

CONQUAS®

• No hollow sound when tapped with a hard object

CONQUAS®

Summary

• Contractor Performance Reports provide for a uniform

assessment of a contractor’s performance:

– will be mandatory on public sector contracts from mid-2016

– will in time be available to clients for procurement purposes

• CONQUAS® is a simple and effective scheme to obtain a

consistent evaluation of quality:

– cidb is investigating introducing CONQUAS® for General

Building Class of Works

– included in Contractor Performance Reports

cidb Contractor Recognition Scheme:

towards functionality

CIDB Act

The Board must … establish a best practice contractor

recognition scheme which:

a) enables organs of state to manage risk on complex contracting

strategies

b) promotes contractor development

Eligibility and Functionality

Eligibility FunctionalityPrice &

Preference

Contractor

Recognition

Scheme

cidb Contractor Recognition Scheme

(21 August 2015)Enablers:

• Competence Standard for Contractors (Grades 2 to 6)

• Best Practice: Construction Management Systems (Grades 5 to

9)

• Best Practice: Specification for a Fraud and Corruption

Management System (Grade 9)

• Standard for Financial and Project Management Systems

(under development)

Results:

• Standard for Contractor Performance Reports (Grades 2 to 9)

cidb Contractor Recognition Scheme

(21 August 2015)Enablers:

• Competence Standard for Contractors (Grades 2 to 6)

• Best Practice: Construction Management Systems (Grades 5 to

9)

• Best Practice: Specification for a Fraud and Corruption

Management System (Grade 9)

• Standard for Financial and Project Management Systems

(under development)

Results:

• Standard for Contractor Performance Reports (Grades 2 to 9)

cidb Best Practice: Construction

Management Systems• The cidb will recognise contractors that have accredited

Construction Management Systems:

– SANS 1393

– SANS ISO 9001, 14001 and/or SANS OHSAS 18001

SANS 1393

• ISO 9001, ISO 14001 and OHSAS 18001 often

largely appropriate for large organisations

(Grade 8 and 9)

• For (say) Grades 5 to 9, cidb developed an

integrated CMS, based on recognisable

industry minimum standards covering:

– health and safety management

– quality management

– environmental management (covering air,

water, land and waste)

• Published September 2013

Guidelines for Functionality

Maximum Number Points

Evaluation CriteriaComplex

Projects

Simple

Projects

Experience and past performance: 35 30

cidb Contractor Performance Reports X X

Other objective criteria (specify) 35-X 30-X

Organisation & staffing: 20 25

cidb Competence Assessment Y Y

Other objective criteria (specify) 20 - Y 25 - Y

Management systems: 15 10

cidb Best Practice: Construction Management

SystemsZ Z

Other objective criteria (specify) 15 - Z 10 - Z

Plant and equipment 15 15

Programme schedule 15 15

Threshold (minimum out of 100) 60 50

cidb Register of Professional Service

Providers:

towards functionality

Water Treatment Works; Poor Design

Pavel Polasek Pr.Eng

Poor Design

Pavel Polasek Pr.Eng

Poor Design

Pavel Polasek Pr.Eng

Poor Construction Supervision

Pavel Polasek Pr.Eng

cidb Register of Professional Service

Providers• Under development

cidb Register of Professional Service

Providers; Grades

Grade Estimated Maximum

Capacity for Professional Fees Value (Rm)

1 ≤ R 0.5 million

2 > R 0.5 million and ≤ R 5 million

3 > R 5 million and ≤ R 13 million

4 > R 13 million

cidb Register of Professional Service

Providers; Financial Capability

Grade

Estimated Maximum

Capacity for Professional Fees

Value (Rm)

Available

Capital

(Rm)

Best Annual

Turnover

(Rm)

1 ≤ R 0.5 million

2 > R 0.5 million and ≤ R 5 million 0,25 4,5

3 > R 5 million and ≤ R 13 million 0,5 6

4 > R 13 million 1 9

cidb Register of Professional Service

Providers; Technical Capability

Designation Grade

Num. of

Registered

Prof.

Grade

Num.

Registered

Prof.

CE or

SE or

EE or

ME

3

2 off:

Pr.Eng and/or

Pr.Tech.Eng/or

Pr.Cert.Eng

4

1 off:

Pr.Eng and 2

off: Pr.Eng

and/or

Pr.Tech.Eng

and/or

Pr.Cert.Eng

cidb Register of Professional Service

Providers; Performance Reports

Summary

• PSPs play an important role in construction quality:

– design

– adjudication

– supervision

• cidb Register of Professional Service Providers aims to

enhance construction quality and overall value for money

Concluding Comments

Concluding Comments

• Areas of concern:

– quality of design and documentation

– adjudication

– supervision of contractors

• Underlying areas of concern:

– procurement of PSPs

– procurement of contractors

Concluding Comments

• cidb focus:

– cidb Project Assessment Scheme

– cidb Contractor Recognition Scheme

– cidb Register of Professional Service Providers:

• PSP Recognition Scheme

Thank You