Construction Industry Development in South Africa Status and Challenges

Construction Industry Development Board

development through partnership

Construction Industry Construction Industry Development in South Development in South

AfricaAfrica Status and Challenges

Presentation to the Portfolio Committee on Public works – 12 June

2002



Background

Post 1994 ElectionsFrom policy to

establishment of the CIDB



The South African Industry

Post 1994 ElectionA NATIONAL ASSET

Strategically Developed InfrastructureEstablished World Class Capability

BUT Investment Volatility and DeclinePublic sector delivery managementSkills Decline and Workforce InstabilityRacially Skewed

Ownership/Participation

RELATIVE TO OTHER DEVELOPING NATIONS



Services Infrastructure & Facilities Tourism & Leisure Transport Infrastructure & Systems Natural Resources & Industrialisation Housing, Clinics & Schools Commercial & Retail Buildings Refurbishment & Renewal

INVESTMENT PERCEPTIONS BEYOND 2000

Background - Development

Prospects



Affordability in Society Labour Market Public Sector Capacity Social Investment & Empowerment Management and Skills Resource Crime & Violence, Instability Health & Safety (Aids, Malaria, etc)

INVESTMENT PERCEPTIONS BEYOND 2000

Background - Development Challenges



Strategic Consequences

A DELIVERY GAP

A Structural Gap Between A Structural Gap Between

intent and realityintent and reality

Need and Capacity (Institutional) Demand and Affordability (Societal) Process and System (Structural)



Background; Timetable

Green Paper & Inter-Ministerial Task Team

Nov 1997

CIDB Legislation Dec 2000

CIDB Board May 2001

White Paper April 1999

CEO appointed Dec 2001



Background – Construction Policy

Green Paper Nov 1997

“Creating an Enabling Environment for Reconstruction,

Growth & Development in the Construction Industry”



Aim & Vision

“Our vision is of a construction industry policy and strategy that:promotes stability,fosters economic growth and

international competitiveness,creates sustainable employment, andaddresses historic imbalances as it

generates new industry capacity”



Background – Construction Policy

CIDB Act Dec 2000

Establishes a framework for implementation of the vision




Statutory body established by legislation - Members appointed on merit from public and private sectors (9-13)

REPRESENTS A PUBLIC PRIVATE PARTNERSHIP



CIDB - PURPOSE

To provide leadership to industry stakeholders for growth, reform and improvement

Drive a comprehensive industry development strategy

Our commitment to the vision and principles of construction industry development is

unwavering!



Objective

GrowthPublic & privatesector investment/

DEVELOPMENT STRATEGY



Objective

Growth

Performance

Public & privatesector investment/

Supply side best practice




Objective

Growth

Delivery

Performance



Demand side best practice




Objective

Growth

Delivery

Performance

Tra

nsfo

rmati

on



Demand side best practice

Transformed delivery environment and the

continuous inclusion of historically disadvantaged



CIDB ProgrammesObjective

GrowthBusiness,

Economic &Market Development

DeliveryProcurement &

DeliveryManagement

PerformanceIndustry

Development

Tra

nsfo

rmati

on

1

2

3

CIDB STRUCTURE



CIDB ProgrammesObjective

GrowthBusiness,

Economic &Market Development

DeliveryProcurement &

DeliveryManagement

PerformanceIndustry

Development

Tra

nsfo

rmati

on

Supported and driven byRegistration of:-Contractors and

Projects

1

2

3

4

CIDB STRUCTURE



CIDB Structure

BoardBoard

Chief Executive OfficerChief Executive Officer

Stakeholder ForumStakeholder Forum

Business, Economic &Market Development

Business, Economic &Market Development Industry DevelopmentIndustry Development Procurement &

Delivery Management

Procurement & Delivery Management RegistersRegisters

Register of ContractorsRegister of Contractors

Register of ProjectsRegister of Projects



CIDB Consultation

BoardBoard

Chief Executive OfficerChief Executive Officer

Stakeholder ForumStakeholder Forum

Business, Economic &Market Development

Business, Economic &Market Development Industry DevelopmentIndustry Development Procurement &

Delivery Management

Procurement & Delivery Management RegistersRegisters

Register of ContractorsRegister of Contractors

Register of ProjectsRegister of Projects

Accountable to Minister (DPW)

Industry and Client consultation

Focus Groups to refine outputs – Board Champions



Programme 1Business, Economic

and Market Development

Promote a stable delivery environment, increasing expenditure in fixed investment and sustained targeted real growth for construction products and businesses.

Promote export opportunities



Programme 2 Industry Development

Enhance industry performance, yielding value for money to clients and protection of the public. best practice standards aimed at

quality, productivity, health and safety and environmental management;

promote appropriate best practice programmes.



Programme 3 Procurement and

Delivery Management

Improve the construction procurement and delivery environment as well as the capacity of public sector delivery agencies, enhancing client value and reducing risk to the client.



Statutory Instruments

Code of ConductRegister of Contractors

Best Practice Contractor Recognition Scheme

Register of ProjectsBest Practice Project Assessment

Scheme

TO DRIVE IMPROVEMENT



Industry Performance Improvement

Register of Contractors I:Registration(Information)

Register of Contractors II:Drive

Industry Best Practice

Register of Projects I:Accreditation(Information)

Register of Projects II:Drive

Client Best Practice

CIDBCIDB

LINKING DEMAND WITH SUPPLY



Current Status

Building the CIDB Developing the mandate



Current Status (i)

Business planStaff recruitmentOffices and equipmentGovernance

BUILDING THE CIDB



Current Status (ii)

Strategic Projects – Board Champions

Stakeholder ForumOverview of State of IndustryPilot Registers of Contractors/

Projects

DEVELOPING THE CIDB MANDATE



Current Status (ii)

Strategic ProjectsProcurement Reform - fundamentalPublic Sector Delivery Management

- Toolkit “Delivery Management System”

- “Centres of Excellence- Capacity building to promote best practice




Current Status (ii)

Strategic Projects“3Rs” Best Practice Guide –

Contracts “Know your rights, responsibilities & risks”

Code of Conduct for all participants




Current Status (ii)

Strategic ProjectsSocio-economic Benefits of

Infrastructure Investment Report

State of Industry ReportsDevelopment of Industry

Performance IndicatorsClient Forum




Current Status (ii)

Strategic ProjectsNational research agendaProfessional Skills

- Procurement and delivery- Industry development issues




In Summary

CIDB Projects are geared to development outcomes



growth

In Summary

CIDB Projects are geared to development outcomes that promote



growth

delivery

In Summary




growth

delivery

performance

In Summary




growth

delivery

performance

transformation

In Summary




partnership

In Summary




fundamental transformation, innovation and improvement

In Summary




The CIDB sets goals and standards:

In Summary

BEST PRACTICE AND IMPROVEMENT TARGETS



The CIDB monitorsprogress & improvement

In Summary

CONSTRUCTION INDUSTRY INDICATORS



construction delivery and innovation

The CIDB Promotes:

In Summary

BEST PRACTICE DELIVERY MANAGEMENT



i bdcdevelopment through partnership

The CIDB Promotes:

Thank You

Documents

Construction Industry Development in South Africa Status and Challenges