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Presentation to the Parliamentary Portfolio Committee on Public Works – cidb Strategic Plan

March 2015ACEO - Ms I Thumbiran

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Overview

• Vision, Mission & Values• Mandate:

– why do we exist?• External and Internal Environment:

– input into strategic planning• Strategic Goals:

– what are we going to do?• Priority Programme Outputs:

– what and when will we do it?• Resources

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Vision, Mission & Values

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Vision

Our vision is of a transformed construction industry

that delivers sustainable value

in a manner that is responsive to the socio economic needs of South Africa

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Mission

We exist in order to create an inclusive, sustainable and competitive construction industry

by

regulating, developing and transforming the construction industry

through monitoring and enforcement, standards and guidelines, capacity building and forging partnerships.

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Values

Service Excellence | Integrity | Innovation | Leadership | Cooperation and Teamwork | Personnel Development

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Mandate

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Mandate

• Strategic leadership to stimulate sustainable growth, reform and improvement of the construction sector

• Sustainable growth and participation of the emerging sector in the industry

• Improved performance and best practice• Uniform application of policy, uniform and ethical standards,

construction procurement reform, improved procurement and delivery management

• Monitoring and regulating the performance of the industry, including the Registration of Projects and Contractors

Note: Simplified Mandate

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External Environment

Planning Inputs

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External Environment

• Transformation:– progress towards a transformed industry is slow

• Industry performance:– delivering enhanced value to clients and society remains a focus

• Client performance:– a standard approach to the management and delivery capability

and capacity across the public sector is needed• Contractor development and participation of the emerging sector

remains a key focus point • Corruption and collusion:

– fraud, corruption and collusion is unacceptable

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Internal Environment

Planning Inputs

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Culture Survey

• Results of Culture Survey communicated earlier• SP and APP responds to the Culture Survey

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Five Year Review (draft) (i)

• Stakeholders are generally appreciative and supportive of the role of the cidb in the industry

• cidb is well regarded amongst stakeholders, and is seen as providing valuable guidance, leadership and direction to the industry

• Its outputs are perceived as useful and relevant• However ……

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Five Year Review (draft) (ii)

• However:– a common theme is that the cidb tends to place more

emphasis on its role as an industry regulator rather than its leadership role

– it often does not proactively monitor compliance to its prescripts, guidelines and regulations and usually reacts when issues are brought to its notice

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Five Year Review (draft); Extracts of Recommendations (i) Conduct a review of the Act Carry out a review of the organisational structure Continue to strengthen decentralization Strengthen internal legal resources Strengthen communications with stakeholders on the cidb’s

role and mandate• Direct the strategic foresight of the South Africa construction

industry in line with the NDP and global challenges – act as an industry think tank

Implement phase 2 of the Registers:– Best Practice Project Assessment Scheme– Best Practice Contractor Recognition Scheme

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Five Year Review (draft); Extracts of Recommendations (ii)• Revisit the criteria for grading of contractors to ensure that

both financial resources and technical ability are taken into consideration: Best Practice Contractor Recognition Scheme

Investigate establishing minimum criteria for the registration of Grade 1 contractors

Implementation of the Register of Professional Service Providers

Provide leadership in a comprehensive NCDP with clear targets Train client departments to utilise Best Practice Notes• Work closely with other research and higher education

institutions and reinvigorate the concept of Centres of Excellence

Formation of an [SDA] is welcome and encouraged

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Strategic Goals

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Strategic Goals

1) Strengthen and enhance compliance with cidb regulations to reduce construction risk, all forms of fraud and corruption in the sector

2) Build and capacitate in the industry to deliver quality infrastructure

3) Enhance transformation of the construction industry4) Position the cidb as a knowledge authority in the industry5) Maintain financial sustainability 6) Provide an excellent service to the contractors and clients

nationally7) Optimise organisational design that supports the effective

delivery of the mandate8) Strengthen and maintain good relationship with stakeholders

through effective communication

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Strategic Goal 1: Strengthen and Enforce cidb Regulations • Revision of the CIDB Act:

– internal review by end-July 2015• Regulation, Standards, Code of Conduct:

– ongoing review• cidb Register of Professional Service Providers (RoPSP) and

PSP Recognition Scheme:– ongoing development– target implementation of RoPSP in 2016

• Integrity Management Systems:– roll-out of anti-corruption model for clients in 2015/16– publish Standard for Integrity Management Systems for

Contractors in 2015/16 (as part of Contractor Recognition Scheme)

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Strategic Goal 2: Build and Capacitate

• Compliance and enforcement:– continue to implement compliance strategy– proactive and reactive components

• Contractor development:– continue to strengthen contractor development

• Performance improvement: – roll-out and implementation of cidb Best Practice Project

Assessment Scheme – consider improvements to IDMS for application by all levels of

government – nurture key partnerships in roll-out and training of infrastructure

managers and professionals to use IDMS– feasibility of a Client Recognition Scheme

• Skills Development:– roll-out and implementation

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Strategic Goal 3: Transformation

Transformation of the construction remains an overarching focus within the cidb’s Strategic Plan and an overarching focus across all Programmes within the cidb

•Regulation & Policy•Macro-economic / Business conditions:

– grow the pie•Access to work / Participation:

– redistribute the pie•Business factors:

– enterprise development•Commitment

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Strategic Goal 4: Knowledge Authority

• Performance monitoring: – continue with

• cidb Construction Industry Indicators;

• cidb Construction Monitor;

• cidb SME Business Conditions Survey

• cidb Compliance Monitor

• Status Reports (Export Promotion and Labour & Work Conditions)

• Research and development:– support and encourage postgraduate and research activities– Post-graduate Conference

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Strategic Goal 5: Financial Sustainability

Review income generation model opportunities to generate alternative revenue streams:•including the cidb Best Practice Fee

YearBest Practice Fee (Rm)

@ 0,05% @ 0,1% @ 0,2%1 10 19 392 19 39 783 29 58 1164 39 78 1555 49 97 194

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Strategic Goal 6: Service Excellence

• Continue focus on delivery of excellent service:

– processing contractor applications within stipulated turnaround times

– provide efficient and effective head office and provincial registration call centre service

– improve head office and provincial office customer service levels

– enhanced provincial service implementation/outreach and visibility

– strengthen enabling environment to promote infrastructure delivery procurement uniformity and contractor development

•  Integrity of registrations process:

– increased focus

• Customer satisfaction surveys:

– ongoing and new surveys

– monitoring of service delivery against targets

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Strategic Goal 7: Optimal Organisational Culture Addressing the outcome of the cidb Culture Survey, to inculcate a culture of high performance, employee satisfaction and to reduce the low staff morale

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Strategic Goal 8: Effective CommunicationEnhance communications strategy to ensure that cidb maintains good relationships with stakeholders

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Alignment with NDP, Government and Minister Priorities

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Alignment with NDP

National Development Plancidb alignment to NDP

Chapter 3: Economy and Employment.

Develop and capacitate the industry skills to deliver quality infrastructure to grow the country economy (Goal 2)

Contribute to the transformation of the construction industry (Goal 3)

Chapter 4: Economic Infrastructure

Develop and capacitate the industry skills to deliver quality infrastructure to grow the country economy (Goal 2)

Chapter 14: Fighting Corruption

Strengthen, implement and enforce the cidb regulations to reduce risk, fraud and corruption in the sector (Goal 1)

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Alignment with DPW

DPW Strategic Goals

Transformation in the construction sector

Contribute to the transformation of the construction industry (Goal 3)

Combating fraud and corruption

Strengthen, implement and enforce the cidb regulations to reduce risk, fraud and corruption in the sector (Goal 1)

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Alignment with Minister priorities

Government outcomes  

cidb alignment   

Outcome 4: Decent Employment through inclusive growth.

Develop and capacitate the industry skills to deliver quality infrastructure to grow the country economy (Goal 2)

Contribute to the transformation of the construction industry (Goal 3)

Outcome 6: An efficient, competitive and responsive economic infrastructure network.

Develop and capacitate the industry skills to deliver quality infrastructure to grow the country economy (Goal 2)

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Resources

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Staff

• Structure is dependent on the proposed organizational design• Decentralisation business plan by July 2015

2014/15 2015/16 2016/17 2017/18CRS 64 64 64 64CIP 9 9 9 9PDM 9 9 9 9PCD 76 76 76 76CEO’s Office 13 13 13 13Corp. Services 52 53 53 53Total 223 224 224 224

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Budget (Rk)

• Note: 2015/16 and 2016/17 budget includes funding out of retained surplus

2014/15 2015/16 2016/17 2017/18CRS 22,685 23,729 25,081 26,335 CIP 9,904 10,360 10,950 11,497PDM 11,264 11,782 12,454 13,078 PCD 31,104 32,535 34,389 35,029CEO 11,743 12,283 12,983 14,904 Other 41,840 43,765 46,259 48,634 Total 128,540 134,453 142,117 149,477

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Thank You