KEY THEMES/ IMPRESSIONS, CLOSING REMARKS, WAY FORWARD, & THANKS

1. KEY THEMES/ IMPRESSIONS,CLOSING REMARKS,WAY FORWARD, & THANKS Gerard Naidoo cidb – Growth and Contractor Development 28 May 2009

2. Common Themes and Impressions • cidb CEO – Mr Ronnie Khosa : • SEDiC a Platform (need milestones, targets and evaluation) • Move away from talk-shops, theory, concepts and policy to IMPLEMENTATION and MONITORING • Innovative/ alternate models, new ideas, tools • Work with others/ together = PARTNERSHIPS • Co-ordination, up-skilling, and sustainability • Charter and legislative application • Challenges/ problems/ issues: Economy, skills – technical and business training, mentoring, finance • Differentiation between Grade 1’s/ Job seekers and enterprises • CDP’s important role in supporting the development of the construction industry and the development of emerging contractors • Prof. George Ofori: • Economy need small enterprises and small contractors • Role of governments / champions (Strategies with targets, M&E, and R&D) • SA reflects international trends on economy, stats, and challenges • The move from ‘reliance/ dependency’ to ‘Economic independence’

3. Common Themes and Impressions (cont.) • ABSA, FNB, UYF, IDC, NURCHA, CETA, SARS, Cashbuild • Theme of legislative compliance VS support • Risk management VS training/ support • Recession/NCA and public sector spending VS risk management • SANRAL CEO, Dr Watermeyer, SAIBL, NBI, IED, SAFCEC, SSI/Mafuri , Corefocus and cidb • All carried through issues related to targeted development (target to match needs/ right tool for job) • Leadership, buy-in, shared objectives/ targets • Use of procurement/ legislation in support of CD • Different models/ programmes are appropriate to different levels of development (no generic template for CD) • JV’s, subcontracting and alternate models • Required in-house capacity and resources to administer (contractors and clients) • Success factors inter alia being: Work opportunities, Training/ mentoring, Access to finance, Business and technical skills

4. Common Themes and Impressions (cont.) Pierre Blaauw, Paul Jackson and Andrew Bizzell's: - View of enterprise development (in construction) and links/ differentiation of contractor development ad viewed from private sector. - Focus on ED in the private sector- driven through public sector procurement - Must not confuse social objectives with delivery objectives - Lessons can be learn’t and drawn both ways ie. NCDP from private sector as well ito the methodolody / intent in the application of the Charter and BBBEE codes

5. CIDB STATUS ANALSIS OF CDP IN SA AND ROLE OF cidb WHAT IS ROLE OF cidb IN CONTRACTOR DEVELOPMENT? • Drive, co-ordinate and provide leadership ie. CHAMPION CD • Developing and roll-out/ implementing Framework (NCDP) – public + private • Research towards Good / Best practice • Support and Guidance to Provincial clients CDP’s • Providing support: Creating and enabling environment eg. CCC’s, legislation, best practice/ guides, regulate, delivery mgt, etc. • Facilitatory role- links, formal interactions and agreements/ partnerships, providing catalytic interventions. • R&D • Monitoring targets and evaluation WHAT NCDP (cidb) IS NOT (false expectations/ perceptions): • No work/ contract provisions (however shapes the procurement environment In support of CD) • Is not a training body/ provide CD training (however catalytic) • Does not provide funding/ finance (however facilitatory)

6. NCDP & Analysis of SA CDP’s Status Report National Contractor Development Programme (NCDP) Summary Framework Towards 2010 and beyond This document provides the summary framework for programme leadership and implementation by Public Works and cidb under the mandate of the Public Works MINMEC Produced by: Department of Public Works Construction Industry Development Board Version 9 29 January 2008 cidb carried out a review of major public sector sponsored CDP’s to: • identify challenges faced and lessons learned from these Programmes • identify good practices for promotion across all CDP’s (Dr Milford-CIDB covered the recommendations which set NCDP as the good/ best practice co-ordination framework)

7. Roles / Responsibilities - Government Government to: • Improve the grading status of contractors • Targeted categories and grades • Create sustainable contracting enterprises by enabling continuous work in competitive process = platform for sustained employment and skills development • Improve the performance of contractors in terms of quality, employment practices, skills development, safety, health and the environment; rewarding performance • Improve business management and technical skills

8. Roles / Responsibilities (beyond government) Within government NCDP is a key instrument BUT WE ACKNOWLEDGE WE NEED TO DO BETTER… NB: • Important to Note word ‘GOVERNMENT’ : not solely cidb’s responsibility. ie. Dti, IDC, DBSA, Khula, iThala, ECDC, CETA, CBE, SACPMP, SABS, NHF, CSIR, NHBRC, etc. • Role of cidb / Government is critical but also critical is the ROLE OF PRIVATE SECTOR/ ESTABLISHED INDUSTRY AND INDUSTRY ASSOCIATIONS AND ROLEPLAYERS eg. Banks, consultants, service providers, Material suppliers, etc. some progress – but more can also be done ie. Working together/ partnerships…

9. development through partnership Partners for development AMATHOLE ECONOMIC DEVELOPMENT AGENCY _________________________________________________________________________________________________________________________________________________________

10. WAY FORWARD & CLOSURE

11. SA’s DUAL ECONOMY, DEVELOPMENT GAP AND DUAL BUILT ENVIRONMENT cidb commits to Construction Enterprise and Contractor Development through leadership, facilitation, guidance and support .

12. FINAL REMARKS • Is SEDIC another talk-shop (Theory to implementation) • Recognition that enterprise development is a critical element of our economy and to the Construction Industry, and is distinctly different to emerging contractor development • No argument on relevance / need for Ongoing focus / support for ED & CD • Acknowledgement that ALL stakeholders have a role to play – not only government, but private sector as well – banks, contractors, consultants, professionals, associations, material suppliers and CI Role players, etc • Contractor development vs increasing contracting capacity across the whole supply chain ie. design, materials, suppliers, professionals, clients, contractors, etc • Need to treat Grade 1’s differently (Different models needed for different applications- workforce, contractor, enterprise) - must not confuse job creation with contractor development • Need to have targeted approach as resources are constrained • Need for a developmental focus at ALL levels – not only Grades 1 & 2 • Need for a champion and coordinated approach to CD with partnered and facilitated support, monitoring and evaluation

13. WAY FORWARD & CLOSURE • Outcomes of conference to be formulated into working document with recommendations which cidb will utilise to refine NCDP framework and bring together role players and stakeholders (to be availed on www.cidb.org.za and www.sedic.co.za) • cidb to partner with industry players in refinement and Implementation of NCDP and recommendations of SA Status analysis of CDP’s • Further questions not addressed at the conference can be posted on www.sedic.co.za or directed to cidb • cidb commits to facilitate links to those wishing to further explore, participate or implement contractor development (contact German or Gerard) • Ongoing interaction and robust debate, input, refinement, monitoring and evaluation towards our industry common goal of enterprise and contractor development • SEDIC has brought us together (a range of CI stakeholders) BUT we must achieve change, improvement, and make a difference

14. THANKS A special thank you to the Sponsors: Organisers Exhibitors Speakers and you the Delegates and Participants German, Rodney our CEO-Ronnie, staff Board, DPW and Minister Reagan & Team