2
growth and explore potential within the new policy and regulatory environment to achieve greater impact in the targeting of development interventions aimed at SME’s. CONTRACTOR TIPS AND ADVICE BROCHURES Contractor Tips & Advice; Contract Pricing Strategy by the Client - September 2011 The pricing strategy is the method which the client uses to obtain a price for construction works and to pay the contractor for work completed. There are a number of different pricing strategies. Contractor Tips & Advice; Taxation for a Construction Business - September 2011 A good starting point to successful management of a business enterprise is to comply with the statutory/legal requirements. These include registration with the South African Revenue Service (SARS), as well as adhering to their guidelines. Contractor Tips & Advice; Tender Processes for Public Sector Procurement - June 2011 The purpose of this Tips and Advice is to assist tenderers intending to contract as the main contractor, or sub contractor, at tender stage. GUIDELINES FOR CONTRACTOR REGISTRATION Guidelines for Contractor registration April 2011 New and simplified guidelines are available to assist contractors to register on the cidb Register of Contractors. The detailed guidelines incorporate changes to the Register according to regulation amendments of November 2008. They also provide an updated registration checklist for contractors. Contractor Tips & Advice; Marketing your Construction Enterprise - February 2011 Marketing can be defined in simple terminology as activities executed by any business with the objective to place products or/ and services in the hands and at the top of the mind of potential customers. It includes diverse disciplines and tools. Contractor Tips & Advice: Financial Management Contractor Tips & Advice; Financial Management February 2011 Analysis of trends in the Register of Contractors indicates the need to assist and guide contractors on business management. This will further complement their existing technical capability for them to realise their full business potential. A significant percentage of contractors have the potential to grow from their current cidb grade to the next or higher grades. CONTRACT MANAGEMENT Contractor Tips & Advice; Contract Management - October 2010 Assisting the emerging contractor on the basics of contract management. Contractor Tips & Advice; Construction Health and Safety - October 2010 Advice to contractors on construction health and safety. Contractor Tips & Advice; Technical Guides December 2011 As a value add service to contractors, the cidb has assembled practice guides available from industry associations - including the Concrete Manufacturers Association, the Cement, Concrete Institute and the Claybrick Association. Contractor Tips & Advice; Sustainable Growth - January 2012 This tips brochure outlines some of the growth strategies adopted by major players in the construction industry. MORE INFORMATION For more information about the ncdp and contractor support publications contact: cidb Enterprise Development Unit (Growth and Contractor Development Programme); Tel: 012 482 7241 or visit our website www.cidb.org.za, or Provincial cidb offices (Construction Contact Centres) FRONT COVER ci d b BASELINE STUDY OF PROVINCIAL CONTRACTOR DEVELOPMENT PROGRAMMES OCTOBER 2011 REVIEW OF THE CONTRACTOR DEVELOPMENT PROGRAMMES: TOWARDS AN NCDP MONITORING AND EVALUATION SYSTEM CONSTRUCTION INDUSTRY FINANCIAL MODELING OPTIONS FOR CONTRACTOR SUPPORT AND DEVELOPMENT National Contractor Development Programme *8,'(/,1(6 )25 ,03/(0(17,1* &2175$&725 '(9(/230(17 352*5$00(6 TYFPMG [SVOW 5(38%/,& 2) 6287+ $)5,&$ 3XEOLF :RUNV TYFPMG [SVOW 5(38%/,& 2) 6287+ $)5,&$ 'HSDUWPHQW 3XEOLF :RUNV )UDPHZRUN 1DWLRQDO &RQWUDFWRU 'HYHORSPHQW 3URJUDPPH 1&'3 6XPPDU\ )UDPHZRUN Tips and Advice: Publications in Support of Contractor Development National Contractor Development Programme TargeTing for ConTraCTor DevelopmenT programmes: gUiDelines National Contractor Development Programme PUBLICATIONS IN SUPPORT OF CONTRACTOR DEVELOPMENT

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Page 1: Tips and Advice Brochure; Publications in Support of ... Tips...the necessary information and supporting documents when you apply. The Construction Industry Development Board V-2 :

TargeTing for ConTraCTor

DevelopmenT programmes:

BaCKgroUnD

National Contractor Development Programme

CIDB Targeting for Contractor Development Programmes backround COL.indd 1 2010/06/02 09:20:33 AM

growth and explore potential within the new policy and regulatory environment to achieve greater impact in the targeting of development interventions aimed at SME’s.

CONTRACTOR TIPS AND ADVICE BROCHURES

2. Yellow Book : For use on Mechanical & Electrical process plant Contracts.

: The design of Mechanical & Electrical process works is designed mainly by the contractor.

3. Silver Book : For use on International major turnkey projects. : The design of major turnkey projects works is

by the contractor who shall also be responsible for the accuracy and completeness of the Employer’s Requirements, with some limited exceptions.

D. The NEC3 Engineering and Construction Works Contract provides for the following options:

I. Priced contract with activity schedule - the contractor takes the bulk of the financial risk while the employer carries some risk through the compensation event procedure.

II. Priced contract with bill of quantities - transfers a little more of the risk to the employer who takes a risk of his quantity assessment being changed in final construction.

III. Target contract with activity schedule - allows for a spread of risk between the priced and cost reimbursable extremes. Adjusting the target share between the employer and the contractor will vary the risk between one principally carried by the employer to one principally carried by the contractor.

IV. Target contract with bill of quantities – same as above.V. Cost reimbursable contract - the employer takes the bulk of the

risk but has complete flexibility. The contractor does, however, carry some risk as he has to allow for the “disallowed costs”.

VI. Management contract - a cost reimbursable contract as the contractor is paid costs plus a percentage fee; the cost being the cost of works subcontracted to others and the fees for his management services.

Contractor Tips & Advice: CONTRACT PRICING STRATEGY BY THE CLIENT

National Contractor Development Programme

Gauteng CCCSABS Campus, Blocks N & RNo 2 Dr Lategan RoadGroenkloof, Pretoria, 0001Tel: 0861 428 222,Fax: 0866 808 569

Eastern Cape CCCDept of Public WorksQhasana BuildingIndependent Avenue, Bisho, 2485Tel: 0861 222 327,Fax: 0866 742 908

Free State CCCDept of Public WorksMedfontein Building, Ground FloorSt. Andrews St, Bloemfontein, 9300Tel: 0861 377 222,Fax: 0865 571 832

KZN CCCDept of Public Works428 Blink Bonnie RoadMayville, Durban, 4000Tel: 0861 596 222,Fax: 0866 854 024

Limpopo CCCDept of Public WorksWorks Towers Building43 Church Street, Polokwane, 0700Tel: 015 293 9626/7or 015 293 9658/9

Mpumalanga CCCNelcity BuildingOffice No G15, Corner Samora Machel & Paul Kruger, Nelspruit, 1200Tel: 0861 678 222,Fax: 0866 856 733

North West CCCDept of Public WorksOld Parliament BuildingModiri Molema RdGate House, MmabathoTel: 018 387 2435

Northern Cape CCCDept of Roads andPublic Works45 Schmidtsdrift RoadKimberley, 8301Tel: 053 861 9632,Fax: 0866 906 295

Western Cape CCC140 Long StreetCorner Long and Dorp Street, Cape Town, 8000Tel: 0861 927 222,Fax: 0866 740 914

More InformationFor more information about the ncdp and contract pricing strategy by the client, contact: cidb Enterprise Development Unit(Growth and Contractor Development Programme);Tel: 012 482 7241, or visit our website www.cidb.org.za, or Provincial Construction Contact Centres:

Contractor Tips & Advice; Contract Pricing Strategy by the Client - September 2011The pricing strategy is the method which the client uses to obtain a price for construction

works and to pay the contractor for work completed. There are a number of different pricing strategies.

Contractor Tips & Advice: TAXATION FOR A CONSTRUCTION BUSINESS

National Contractor Development Programme

Gauteng CCCSABS Campus, Blocks N & RNo 2 Dr Lategan RoadGroenkloof, Pretoria, 0001Tel: 0861 428 222,Fax: 0866 808 569

Eastern Cape CCCDept of Public WorksQhasana BuildingIndependent Avenue, Bisho, 2485Tel: 0861 222 327,Fax: 0866 742 908

Free State CCCDept of Public WorksMedfontein Building, Ground FloorSt. Andrews St, Bloemfontein, 9300Tel: 0861 377 222,Fax: 0865 571 832

KZN CCCDept of Public Works428 Blink Bonnie RoadMayville, Durban, 4000Tel: 0861 596 222,Fax: 0866 854 024

Limpopo CCCDept of Public WorksWorks Towers Building43 Church Street, Polokwane, 0700Tel: 015 293 9626/7or 015 293 9658/9

Mpumalanga CCCNelcity BuildingOffice No G15, Corner Samora Machel & Paul Kruger, Nelspruit, 1200Tel: 0861 678 222,Fax: 0866 856 733

North West CCCDept of Public WorksOld Parliament BuildingModiri Molema RdGate House, MmabathoTel: 018 387 2435

Northern Cape CCCDept of Roads andPublic Works45 Schmidtsdrift RoadKimberley, 8301Tel: 053 861 9632,Fax: 0866 906 295

Western Cape CCC140 Long StreetCorner Long and Dorp Street, Cape Town, 8000Tel: 0861 927 222,Fax: 0866 740 914

More InformationFor more information about the ncdp and Taxation for a Construction Business, contact: cidb Enterprise Development Unit(Growth and Contractor Development Programme);Tel: 012 482 7241, or visit our website www.cidb.org.za, or Provincial Construction Contact Centres:

VAT system, which requires businesses to submit an average

of 10 returns a year.

Turnover Tax is voluntary, so qualifying small businesses can

choose whether to register for it or not, depending on their

individual circumstances. Small businesses already registered

for VAT that opt to register for Turnover Tax will automatically

be deregistered from the VAT system if their application for

Turnover Tax is successful.

It is beyond the scope of most small contractors to be able to

submit Company Tax Returns without appointing specialists to

help them. (Pty) Ltd companies are required by law to appoint

an auditor. Sole proprietor, partnerships or CCs do not have

to appoint an auditor. It is recommended that these forms of

businesses either appoint an accounting officer, or a company

tax “expert” to complete these returns. Such experts will advise

on how much deductions are permitted from the gross income

to determine company profits.

Businesses are advised to calculate their tax obligations based

on profits before tax at regular intervals so that provision can

be made to meet tax obligations which are to be paid twice

a year.

TAX EVASION IS A SERIOuS cRImE. A buSINESS ShOulD APPROAch SARS If IT hAS PROblEmS IN PAyINg ITS TAXES AS ARRANgEmENTS cAN bE

mADE TO PAy ThE TAXES OVER TImE.

Contractor Tips & Advice; Taxation for a Construction Business - September 2011 A good starting point to successful management of a business enterprise is to

comply with the statutory/legal requirements. These include registration with the South African Revenue Service (SARS), as well as adhering to their guidelines.

Contractor Tips & Advice; Tender Processes for Public Sector Procurement - June 2011 The purpose of this Tips and Advice is to assist tenderers intending to contract as the main

contractor, or sub contractor, at tender stage.

development through partnership

GUIDELINES FORCONTRACTOR REGISTRATIONThank you for your interest in being registered as a contractor on the cidb Register of Contractors.

To ensure successful registration and avoid delays please ensure that you furnish the cidb with all

the necessary information and supporting documents when you apply.

The Construction Industry Development Board

V-2 : 2011

Guidelines for Contractor registration April 2011 New and simplified guidelines are available to assist contractors to register on the cidb Register of Contractors. The detailed guidelines incorporate

changes to the Register according to regulation amendments of November 2008. They also provide an updated registration checklist for contractors.

Contractor Tips & Advice: Marketing your construction enterprise

This system can as quickly rise you to fame and fortune, also serve to destroy your image and reputation if you deviate from the fundamental original principles that you initially promoted and were recognised for.

networking

The value of networking opportunities to make your company visible should not be underestimated. But no matter how outgoing your personality, you must have a clear strategy when attending networking events.

Networking is the new buzzword for doing business and there are many formal and informal ways of creating this type of occasion to get your business profiled. Regular lunch dates, socials, cocktail functions with clients or the odd round of golf to events arranged by local business chambers are such opportunities. The theme in marketing is constant interaction and reinforcement in a non-forceful but inviting and unthreatening manner with your clients and potential clients.

The key word here is “regular”. While time is often an issue for the average entrepreneur, you need to put networking high on your list of priorities. Not every event will produce a business deal, but the intention is to develop relationships, build your list of contacts and for you to come to their mind when the need for your services arises.

National Contractor Development Programme

A liTTle plAnning And CreATiviTy CAn mAke for A suCCessful mArkeTing drive ThAT brings CusTomers To your door. And remember, This

shouldn’T jusT be A onCe-off evenT when running The business or when Times Are Tough.

mArkeTing should be pArT of your quArTerly/AnnuAl business plAnning And onCe The

CusTomer hAs been enTiCed, your Core business deliverAble (serviCe And produCT) musT Then

disTinguish you from oThers.

tips to being an effective networker:• Your image, branding, grooming etiquette and business card

on hand are simple areas to give attention in preparation for planned interactions.

• Confidence is key! Even if meeting new people is not your forte’, don’t be afraid to approach people. Often, many of the attendees are just as nervous as you are, so they will appreciate you breaking the ice. This will get easier as you attend more events.

• Be strategic about who you speak to. Make a point of talking to a few people you have never met before. It’s pointless speaking to only people you know, or those who will never bring you business or may never need your service.

• Do as much listening as talking. By being genuinely interested in what the other person has to say, you’ll be able to ask thoughtful and insightful questions. In this way, you build relationships that could bear mutual benefit over time. Exchanging e-mail addresses and keeping each other updated on what you’re doing could result in work opportunities or viable business leads.

• You don’t have to speak to everyone in the room. A few meaningful interactions are better than having many forgettable conversations. Having said that, don’t monopolise one person’s time. Be able to give a brief description of what you do and don’t forget to follow up. If you’ve made some good contacts, follow up on these. A brief e-mail post the event to merely say you enjoyed meeting them will put you on their radar for possibly interacting on future business.

These pointers form just the pinnacle of an effective networking strategy. Now that you’ve planned your approach, start getting yourself out there.

Further useful information can also be obtained from the Contractor Management Guidelines; CMG 101, available from the cidb website at http://www.cidb.org.za.

Special thanks go to the Business Partners Ltd and affiliates for permission to draw from the content contained in the SME Toolkit South Africa. For more information visit the Marketing & Sales section of the SME Toolkit at http://southafrica.smetoolkit.org.

Contractor Tips & Advice; Marketing your Construction Enterprise - February 2011 Marketing can be defined in simple terminology as activities executed by any

business with the objective to place products or/ and services in the hands and at the top of the mind of potential customers. It includes diverse disciplines and tools.

Contractor Tips & Advice: Financial Management

The Construction Industry Development Board

Contractor Tips & Advice; Financial ManagementFebruary 2011 Analysis of trends in the Register of Contractors indicates the need to assist and

guide contractors on business management. This will further complement their existing technical capability for them to realise their full business potential. A significant percentage of contractors have the potential to grow from their current cidb grade to the next or higher grades.

public works

REPUBLIC OF SOUTH AFRICA

Department:Public Works

National Contractor Development Programme

Contractor Tips & Advice: CONTRACT MANAGEMENT

Assisting the emerging contractor with the basics of contract management

National Contractor Development Programme

5. CONTRACT ADMINISTRATION

Contract administration is a formal governance of the contract, including the following: • Contract maintenance and change control, • Charges and cost monitoring, • Ordering and payment procedures, • Management reporting.

The importance of contract administration to the success of the contract, and to the relationship between the contractor and client, should not be underestimated.

Clear administrative procedures ensure that all parties to the contract understand who does what, when, and how.

The contract documentation itself must continue to accurately reflect the arrangement, and the changes to it.

Responsibility for authorising different types of changes will often rest with different people, and documented minutes will need to reflect this.

6. ENDING OF A CONTRACT

Contracts come to an end when parties have performed their obligations. Sometimes contracts may be formally terminated by one or more parties for a variety of different reasons and some of which may lead to disputes. To minimise disputes and possible litigation, it is important that certain good practices are implemented when managing contracts. Such good practices include:

º Ensuring that what has been agreed upon is delivered to appropriate quality standards

º Keeping relations between the parties open and constructiveº Managing the formal governance of the contract and changes

to the contract documentationº Keeping records of all the critical dates

Also refer to the cidb Construction Contracts – The 3Rs Basic Guide for SME’s (Know your Rights, Responsibilities and Risks) or refer to http://www.cidb.org.za/knowledge/publications/practice_documents

Review every contract carefully and clarify any confusing information. Make sure you are provided with contact information, financial payment arrangements and any other information needed to maintain and complete the contract terms. Update all contract management tools including date reminders

Keep records of all the critical engagements and meetings Ensure that what has been agreed to, is delivered to appropriate quality standards

Keep the relations between the parties open and constructive Manage the formal governance of the contract and changes to the contract documentation

More InformationFor more information about the ncdp and Contract Management Contracts, contact:

cidb Enterprise Development Unit (Growth and Contractor Development Programme);Tel: 012 482 7241, or visit our website www.cidb.org.za

Flexibility of contractsContracts may in instances be long term but a client may

opt to change direction, focus or scope.If the contract does not meet your needs, by mutual

agreement the scope of contracts can be refined and amended to agree to changes that will be in the interests

of both parties.That doesn’t mean the original contract had failed, instead, it suggests the contract management team has succeeded.

Contractor Tips & Advice: CONTRACT MANAGEMENT Contractor Tips & Advice; Contract

Management - October 2010 Assisting the emerging contractor on the basics of contract management.

Contractor Tips & Advice: CONSTRUCTION HEALTH & SAFETY

National Contractor Development Programme

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Gauteng CCCSABS Campus, Blocks N & RNo 2 Dr Lategan RoadGroenkloof, Pretoria, 0001Tel: 0861 428 222,Fax: 0866 808 569

Eastern Cape CCCDept of Public WorksQhasana BuildingIndependent Avenue, Bisho, 2485Tel: 0861 222 327,Fax: 0866 742 908

Free State CCCDept of Public WorksMedfontein Building, Ground FloorSt. Andrews St, Bloemfontein, 9300Tel: 0861 377 222,Fax: 0865 571 832

KZN CCCDept of Public Works428 Blink Bonnie RoadMayville, Durban, 4000Tel: 0861 596 222,Fax: 0866 854 024

Limpopo CCCDept of Public WorksWorks Towers Building43 Church Street, Polokwane, 0700Tel: 015 293 9626/7or 015 293 9658/9

Mpumalanga CCCNelcity BuildingOffice No G15, Corner Samora Machel & Paul Kruger, Nelspruit, 1200Tel: 0861 678 222,Fax: 0866 856 733

North West CCCDept of Public WorksOld Parliament BuildingModiri Molema RdGate House, MmabathoTel: 018 387 2435

Northern Cape CCCDept of Roads andPublic Works45 Schmidtsdrift RoadKimberley, 8301Tel: 053 861 9632,Fax: 0866 906 295

Western Cape CCC140 Long StreetCorner Long and Dorp Street, Cape Town, 8000Tel: 0861 927 222,Fax: 0866 740 914

More InformationFor more information about the ncdp and Construction Health and Safety, contact: cidb Enterprise Development Unit(Growth and Contractor Development Programme);Tel: 012 482 7241, or visit our website www.cidb.org.za, or Provincial Construction Contact Centres:

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7200 Contractor Tips & Advice; Construction Health and Safety - October 2010 Advice to contractors on construction health and safety.

Contractor Tips & Advice: Technical Guides

ContraCtor tips & adviCe: teChniCal Guides

National Contractor Development Programme

this brochure contains a synopsis of industry association publications available on the cidb website.Acknowledgementthe cidb would like to thank the CMa, C&Ci and Claybrickfor the use of their publications.

C&CI Technical Guides

Guide to the safe use of portland Cements and ConcreteThis 2-page information sheet describes how to manage potential risks involved in handling or working with Portland cement or mixes made using Portland cement. The document is intended to inform users of the risks, provide

guidance on how to avoid the effects of unprotected exposure, and outline basic first aid procedures.

how to make Concrete Bricks and BlocksThe aim of this publication is to provide information needed to set up and run a block yard to manufacture concrete bricks and blocks on a small scale. The small-scale manufacture of concrete bricks and blocks for

masonry is well suited to small businesses.

no-fines Concrete: a practical GuideNo-fines concrete (NFC) consists of course aggregate and cement paste. In the hardened state, aggregate particles are covered by a thin layer of cement paste and are in point-to-point contact with each other. At each contact

point the paste forms a small fillet; these fillets hold the particles together and give strength to the concrete.

the Manufacture of Concrete paving BlocksThis 4-page technical note covers basic principles for the manufacturing of concrete paving blocks and aims to assist manufacturers, particularly new manufacturers, to produce a durable and consistent product.

sand-cement screeds and concrete toppings for floorsThe aim of this 4-page publication is to provide information needed by architects, engineers and contractors for specifying and laying floor screeds and toppings of

acceptable quality. Information is provided on monolithic, bonded and unbonded screeds and toppings.

Claybrick Technical Guides

technical Guide: Clay Brick Manufacture - part 1–7Modern clay brick making is a capital intensive ceramic process that requires long-term planning sensitive to the cyclical nature of the building and construction industries.

Cleaning of Clay paved surfacesClay paving provides a durable, hardwearing surface but, like any surfacing material, this may suffer from time to time from staining, due to general trafficking and contamination from other sources. As for any other surfacing material

regular maintenance and good cleaning practice will enhance the overall appearance of the paving.

Building Contractors pocket handbookThis builder’s pocket manual which has been designed as a quick handy reference guide to most of the basic principles required for planning, setting out, and constructing new buildings.

Other Technical Guides

the sMMe Business toolkitThe toolkit is a ‘Step by Step Approach to Starting and Running a Small Business in Southern Africa’. The toolkit hardcopy is A5 size, full colour and contains a cd with tendering information. Available in hard copy only.

Contractor Tips & Advice; Technical Guides December 2011 As a value add service to contractors, the cidb has assembled practice guides available from

industry associations - including the Concrete Manufacturers Association, the Cement, Concrete Institute and the Claybrick Association.

Contractor Tips & Advice: SUSTAINED GROWTH OF CONTRACTORS

Contractor tips & advice: SUSTAINED GROWTH OF CONTRACTORS

National Contractor Development Programme

Good Supplier Relationships

The companies also acknowledged the importance of paying suppliers on time, even when their own clients had not paid them for services rendered. A five per cent discount offered by suppliers was found to significantly improve company profits and cash flows.

Increasing Market Share

Each company said that geographic spread contributed to an increase in market share, with almost all companies having a presence in at least two different locations. Several had expanded into specialist divisions, the most common being civil engineering, general building, and property and housing development.

As these companies developed, employee numbers grew and the nature of the managerial responsibilities of the founder/owners changed. Many operated on two managerial layers, while a significant number worked with three. In almost all cases, the founder/owners were managing the managers and had a clear idea of what had to be done, when and by whom. The organisational structure of these companies also evolved as they grew, and most were structured into at least three main sections or departments. These were typically:

• Project and contract management• Finance and procurement• Human resources and administration• Commerce and marketing.

In Summary

Some of the key lessons from the cidb survey can be summarised as follows:

• Construction companies require time to grow – successful enterprises only achieve sustained growth at an average rate of three grades every three years.

• Although government policies play a crucial role in promoting the growth of contractors, they do not guarantee success. Enterprises have to use their organisational strengths to be effective and efficient.

• Successful companies have tended to be formed by leaders who have acquired good individual and collective experience in the construction industry. Strong teams have the requisite experience and education to develop faster.

• Successful companies focus on developing a strong financial base, delivering quality, building a strong track record and investing in fixed assets.

• They focus on developing and maintaining a strong workforce and work closely with their supply chain.

• Geographic spread and product diversification are necessary growth spurs.

• Delegation is important so that senior management can focus on strong strategic focus. They must manage the managers and have a clear idea of what has to be done, when and by whom.

Conclusion

Construction companies (including small and mid-sized entities) can adopt strategies which will place them firmly on the path to Grade 9 status. Success does not come overnight, but can be fairly rapid, as is demonstrated here. Nevertheless, the age-old recipe of delivering what the client wants at the right price and on time still applies - and always will.

Contact Details

web: www.cidb.org.zaTel: 0860 103 353 | fraud line 0800 112432

Contractor Tips & Advice; Sustainable Growth - January 2012 This tips brochure outlines some of the growth strategies adopted by major players in the

construction industry.

MORE INFORMATION

For more information about the ncdp and contractor support publications contact: cidb Enterprise Development Unit (Growth and Contractor Development Programme); Tel: 012 482 7241 or visit our website www.cidb.org.za, or Provincial cidb offices (Construction Contact Centres)

FRONT COVER

cidb

BASELINE STUDY OF PROVINCIALCONTRACTOR DEVELOPMENT PROGRAMMES

OCTOBER 2011

REVIEW OF THE CONTRACTOR DEVELOPMENT PROGRAMMES: TOWARDS AN NCDP MONITORING AND EVALUATION SYSTEM

CONSTRUCTION INDUSTRY FINANCIAL MODELING OPTIONS FOR

CONTRACTOR SUPPORT AND DEVELOPMENT

National Contractor Development Programme

Tips and Advice: Publications in Support of Contractor Development

National Contractor Development Programme

TargeTing for ConTraCTor

DevelopmenT programmes:

gUiDelines

National Contractor Development Programme

PUBLICATIONS IN SUPPORT OF CONTRACTOR DEVELOPMENT

Page 2: Tips and Advice Brochure; Publications in Support of ... Tips...the necessary information and supporting documents when you apply. The Construction Industry Development Board V-2 :

ncdp Summary Framework - September 2011 The objective of the ncdp is to promote equity ownership across the different contracting categories and grades, as well as improving skills and performance in the delivery and

maintenance of capital works across the public sector.

National Contractor Development Programme

More InformationFor more information about the ncdp, contact: cidb Enterprise Development Unit (Growth and Contractor Development Programme); Tel: 012 482 7241, or visit our website www.cidb.org.za

or

ncdp aims to be the umbrella programme which consolidates, standardises, guides and aligns various initiatives towards sustaining Contractor Development (CD) in South Africa.ncdp Framework publication is available on the cidb website.

Eastern Cape CCCDept of Public WorksQhasana BuildingIndependent AvenueBisho, 2485Tel: 0861 222 327, Fax: 0866 742 908

Free State CCCDept of Public WorksMedfontein Building Ground FloorSt. Andrews StBloemfontein, 9300 Tel: 0861 377 222, Fax: 0865 571 832

Gauteng CCCSABS CampusBlocks N & RNo 2 Dr Lategan RoadGroenkloofPretoria, 0001Tel: 0861 428 222, Fax: 0866 808 569

KZN CCCDept of Public Works428 Blink Bonnie Road,Mayville, Durban, 4000Tel: 0861 596 222, Fax: 0866 854 024

Limpopo CCCDept of Public WorksWorks Towers Building43 Church Street, Polokwane, 0700Tel: 015 293 9626/7 or 015 293 9658/9

Mpumalanga CCCNelcity BuildingOffice No G15, Corner Samora Machel & Paul KrugerNelspruit, 1200Tel: 0861 678 222, Fax: 0866 856 733

North West CCCDept of Public WorksOld Parliament BuildingModiri Molema RdGate House, MmabathoTel: 087 350 3183 Fax: 086 677 0805

Northern Cape CCCDept of Roads and Public Works45 Schmidtsdrift RoadKimberley, 8301 Tel: 053 861 9632, Fax: 0866 906 295

Western Cape CCC140 Long StreetCorner Long & Dorp StreetCape Town, 8000Tel: 0861 927 222, Fax: 0866 740 914

Provincial cidb Provincial Offices:

National Contractor Development Programme (ncdp): Framework

National and Provincial Infrastructure Departments

Municipalities

Developments agencies and corporations

Client Entities

Organisations and associations

Established industry

From ‘Policy’ to Realisation:Guidelines for implementing CDPsAvailable at www.cidb.org.za

The purpose of this document is to assist government clients that intend establishing a CDP using direct procurement as a means of engaging contractors. The guidelines address the following aspects: o Targeting of budgets, projects and

contractors;o Evaluation of contractors when

entering a programme;o Training and mentoring;

o Sharing the cost of contractor development;o Risk and cost sharing in contracts;o Payment dispute resolution;o Exiting from the programme; ando Monitoring and evaluating the programme.

National Contractor Development Programme

National Contractor Development Programme

ncdp Brochure - January 2012 The ncdp is a government programme comprising of a partnership between the cidb, national and provincial public works and other willing

stakeholders. The participating stakeholders commit their efforts and resources to develop previously disadvantaged contractors.

National Contractor Development Programme

Guidelines for Implementing Contractor Development Programmes - September 2011 These guidelines are generally for government clients that intend establishing a CDP using direct procurement as a means of engaging

contractors. It is applicable to Grade 2 to 6 contractors with a track record and excludes newly established contracting enterprises, but certain principles can be applied to other grades where clients deem it appropriate. The guidelines only apply in detail to contractors in the General Building or Civil Engineering Classes of Works, but the principles can be applied to other Classes of Works.

TargeTing for ConTraCTor

DevelopmenT programmes:

BaCKgroUnD

National Contractor Development Programme

CIDB Targeting for Contractor Development Programmes backround COL.indd 1 2010/06/02 09:20:33 AM

Targeting for Contractor Development Programmes; Background - January 2010This document provides the background to the development of the Guidelines for Targeting for Contractor Development Programmes that have

been developed by the cidb in support of the Framework for the National Contractor Development Programme (ncdp).

TargeTing for ConTraCTor

DevelopmenT programmes:

gUiDelines

National Contractor Development Programme

Guidelines for Targeting for Contractor Development Programmes - January 2010 have been developed by the cidb in support of the Framework for the National Contractor Development Programme (ncdp). The Guidelines

provides guidance on identifying target groups (the “who”) that should be the focus of Contractor Development Programmes (CDPs), as well as guidelines for the number of contractors that could be enrolled into CDPs (the “how many”).

FRONT COVER

cidb

BASELINE STUDY OF PROVINCIALCONTRACTOR DEVELOPMENT PROGRAMMES

OCTOBER 2011

REVIEW OF THE CONTRACTOR DEVELOPMENT PROGRAMMES: TOWARDS AN NCDP MONITORING AND EVALUATION SYSTEM

Baseline Study of Provincial Contractor Development Programmes - October 2011This study on provincial Contractor Development Programmes in South Africa extends and updates the Status Quo Review of Contractor Development

Programmes previously carried out by the Construction Industry Development Board (cidb) in March 2009. The study reviewed the performance of existing Contractor Development Programmes and identified their key success factors; best practice for the programmes; appropriate impact indicators for monitoring and evaluation; and baseline information on the programmes.

cidb

STATUS QUO REPORTMARCH 2009

SA CONTRACTOR DEVELOPMENT PROGRAMMES

SA Contractor Development Programmes; Status Quo Report - March 2009The cidb carried out a review of current major public sector sponsored CDP’s, in order to identify challenges faced and lessons learned from these Programmes,

and to identify good practices for promotion across all CDP’s. This review was supported by an assessment of selected CDPs, focusing primarily on Programmes located within Works Departments.

T h e C o n s t r u c t i o n I n d u s t r y D e v e l o p m e n t B o a r d

CMGCO N T R A C T O R MA N A G E M E N T GU I D E L I N E S

CO N S I S T I N G O F1 ESTABLISHING A CONSTRUCTION BUSINESS

2 OPERATING A CONSTRUCTION BUSINESS

3 EXECUTING A CONSTRUCTION PROJECT

101Contractor Management Guidelines; CMG 101Part 1 & 2 - July 2010 Part 3 - September 2011These practical guidelines for small contractors have been developed by the cidb in partnership with PPC and Nurcha. Parts 1 and 2 are currently

available and cover “Establishing a Construction Business” and “Operating a Construction Business”. Part 3 covering “Executing a Construction Project” is also available.

The cidb Construction Industry Indicators Summary Results

The Cons t ruc t ion Indus t r y Deve lopment Board

The cidb Construction Industry Indicators (CIIs) are measures of the performance of the industry, focusing on clients, the client’s agent / consultant and contractors. The CIIs have been captured annually since 2003, and are currently being captured by the cidb in partnership with the Department of Quantity Surveying and Construction Management of the University of the Free State.

2011

The cidb Construction Industry Indicators Summary Results: 2011 - February 2012The cidb Construction Industry Indicators (CIIs) are measures of performance of the industry, focusing on clients, the client’s agents/ consultant

and contractors. The CIIs have been captured annually since 2003, and are currently being captured by the cidb in partnership with the Department of Quantity Surveying and Construction Management of the University of the Free State.

Demand for Skills: An Analysis of the Proposed Infrastructure Spending Programme November 2006The cidb commissioned a study to assess the demand for skills that is expected to arise from the

infrastructure spending programme announced by Government and the State Owned Enterprises (SOEs) and other major private sector clients over the next twenty years. This study provided an input into the cidb’s report on Skills for Infrastructure Delivery in South Africa: The Challenge of Restoring the Skills Pipeline.

Labour-based methods andtechnologies for employment-intensive construction works

A cidb guide to best practice

Best Practice Guideline – Part 1

An overview of labour-based technologiesand methods in employment-intensive works

Labour-based Methods and Technologies for Employment Intensive Construction Works - A cidb Guide to Best Practice - March 2005These practice guidelines present current state of the art practices in on wide range of labour-

based construction methods, manufacturing methods and technologies which have been successfully utilised in South Africa in recent years. They are intended to provide sufficient technical information on such methods and technologies to enable those responsible for the design of projects to make confident and informed choices on their use in project.

The 3Rs Basic Guide For SME’s - August 2004This guide provides help on basic issues around construction contracts. It is an overview of the contracting process, and also helps contractors become aware of all stages of the process and

warn of possible dangers and risks.

Construction Procurement Best Practice LibraryThe cidb has published a Construction Procurement Best Practice Library in Government Gazette 26427 of June 9 2004 as amended in Government Gazettes 27831 of July 2005 and 28127 of October 2005. The library documents may be used to implement construction procurement in accordance with the requirements of the cidb Standard or Uniformity in Construction Procurement construction contracts. It is an overview of the contracting process, and also helps contractors become aware of all stages of the process and warn of possible dangers and risks.

Towards Sustainable Contractor Development 2005: National Contractor Workshop March 2005This national workshop held in March 2005, which was the first since 2000, was structured to bring together clients, development agencies

and industry role-players to share experiences in contractor development, review successes, lessons learned, discuss the need for a new emphasis on sustainable enterprise

PUBLICATIONS IN SUPPORT OF CONTRACTOR DEVELOPMENT