Construction Industry Development in South Africa Status and Challenges

1. Presentation to the Portfolio Committee on Public works – 12 June 2002 Construction Industry Development in South AfricaStatus and Challenges

2. Background Post 1994 Elections From policy to establishment of the CIDB

3. The South African IndustryPost 1994 Election A NATIONAL ASSET • Strategically Developed Infrastructure • Established World Class Capability BUT • Investment Volatility and Decline • Public sector delivery management • Skills Decline and Workforce Instability • Racially Skewed Ownership/Participation RELATIVE TO OTHER DEVELOPING NATIONS

4. Background - Development Prospects • Services Infrastructure & Facilities • Tourism & Leisure • Transport Infrastructure & Systems • Natural Resources & Industrialisation • Housing, Clinics & Schools • Commercial & Retail Buildings • Refurbishment & Renewal INVESTMENT PERCEPTIONS BEYOND 2000

5. Background - Development Challenges • 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

6. Strategic Consequences A Structural Gap Between intent and reality • Need and Capacity (Institutional) • Demand and Affordability (Societal) • Process and System (Structural) A DELIVERY GAP

7. Green Paper & Inter- Ministerial Task Team CIDB Legislation CIDB Board White Paper CEO appointed Nov 1997 Dec 2000 May 2001 April 1999 Dec 2001 Background; Timetable

8. Green Paper Nov 1997 Background – Construction Policy “Creating an Enabling Environment for Reconstruction, Growth & Development in the Construction Industry”

9. Aim & Vision • “Our vision is of a construction industry policy and strategy that: • promotes stability, • fosters economic growth and international competitiveness, • creates sustainable employment, and • addresses historic imbalances as it generates new industry capacity”

10. CIDB Act Dec 2000 Background – Construction Policy • Establishes a framework for implementation of the vision

11. Construction Industry Development Board Statutory body established by legislation - Members appointed on merit from public and private sectors (9-13) REPRESENTS A PUBLIC PRIVATE PARTNERSHIP

12. 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!

13. Objective Public & private sector investment/ Growth DEVELOPMENT STRATEGY

14. Objective Public & private sector investment/ Supply side best practice Growth Performance DEVELOPMENT STRATEGY

15. Objective Public & private sector investment/ Supply side best practice Demand side best practice Growth Performance Delivery DEVELOPMENT STRATEGY

16. Objective Public & private sector investment/ Supply side best practice Demand side best practice Growth Performance Transformation Delivery Transformed delivery environment and the continuous inclusion of historically disadvantaged

17. Objective CIDB Programmes Growth Business, Economic & Market Development 1 Performance Industry Development 2 Transformation Delivery Procurement & Delivery Management 3 CIDB STRUCTURE

18. Objective CIDB Programmes Growth Business, Economic & Market Development 1 Performance Industry Development 2 Transformation Delivery Procurement & Delivery Management 3 4 Registration of:- Contractors and Projects Supported and driven by CIDB STRUCTURE

19. CIDB Structure

20. CIDB Consultation

21. 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

22. Programme 2Industry 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.

23. Programme 3Procurement 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.

24. Statutory Instruments • Code of Conduct • Register of Contractors • Best Practice Contractor Recognition Scheme • Register of Projects • Best Practice Project Assessment Scheme TO DRIVE IMPROVEMENT

25. Industry Performance Improvement Register of Projects I: Accreditation (Information) Register of Contractors I: Registration (Information) CIDB Register of Contractors II: Drive Industry Best Practice Register of Projects II: Drive Client Best Practice LINKING DEMAND WITH SUPPLY

26. Current Status Building the CIDB Developing the mandate

27. Current Status (i) • Business plan • Staff recruitment • Offices and equipment • Governance BUILDING THE CIDB

28. Current Status (ii) Strategic Projects – Board Champions • Stakeholder Forum • Overview of State of Industry • Pilot Registers of Contractors/ Projects DEVELOPING THE CIDB MANDATE

29. Current Status (ii) Strategic Projects • Procurement Reform - fundamental • Public Sector Delivery Management - Toolkit “Delivery Management System” - “Centres of Excellence - Capacity building to promote best practice DEVELOPING THE CIDB MANDATE

30. Current Status (ii) Strategic Projects • “3Rs” Best Practice Guide – Contracts “Know your rights, responsibilities & risks” • Code of Conduct for all participants DEVELOPING THE CIDB MANDATE

31. Current Status (ii) Strategic Projects • Socio-economic Benefits of Infrastructure Investment Report • State of Industry Reports • Development of Industry Performance Indicators • Client Forum DEVELOPING THE CIDB MANDATE

32. Current Status (ii) Strategic Projects • National research agenda • Professional Skills - Procurement and delivery - Industry development issues DEVELOPING THE CIDB MANDATE

33. In Summary CIDB Projects are geared to development outcomes

34. In Summary CIDB Projects are geared to development outcomes that promote growth

35. In Summary CIDB Projects are geared to development outcomes that promote delivery growth

36. In Summary CIDB Projects are geared to development outcomes that promote performance delivery growth

37. In Summary CIDB Projects are geared to development outcomes that promote performance delivery growth transformation

38. In Summary CIDB Projects are geared to development outcomes that promote partnership

39. In Summary CIDB Projects are geared to development outcomes that promote • fundamental transformation, innovation and improvement

40. In Summary The CIDB sets goals and standards: BEST PRACTICE AND IMPROVEMENT TARGETS

41. In Summary The CIDB monitorsprogress & improvement CONSTRUCTION INDUSTRY INDICATORS

42. In Summary The CIDB Promotes: construction delivery and innovation BEST PRACTICE DELIVERY MANAGEMENT

43. Thank You The CIDB Promotes: d b c i development through partnership