cidb Performance Improvement Initiatives

Transcription

1 cidb Performance Improvement Initiatives cidb Provincial Stakeholder Liaison Meetings July - September 2016 By: Dr Rodney Milford Programme Manager; Construction Industry Performance 1

2 Overview Performance Environment: External environment (demand side) Delivery environment (supply side) Performance Improvement: External environment (demand side) Delivery environment (supply side) Transformation and performance improvement go hand-in-hand 2

3 Transformation; A Framework 1) Governance 2) Business conditions 3) Business factors 4) Skills development & competencies: professional construction; skilled- and semi-skilled 5) Developmental support 3

4 Performance Environment 4

5 Performance Environment cidb Construction Monitor: Q1: Supply & Demand Q2: Contractor Development Q3: Employment Q4: Transformation cidb SME Business Conditions Survey cidb Construction Industry Indicators (CIIs) cidb industry reports: SA Contractor Development Programmes; Status Quo Report The Construction Industry as a Vehicle for Contractor Development and Transformation 5

6 Source: cidb SME Business Conditions Survey Business Conditions; Grades 3 to 8 Business conditions deteriorating 6 since 2014Q3

7 Infrastructure Investment: Forecast % Growth (Real) f 2017f 2018f Total; % change 5,0% 1,0% -4,2% -6,6% -3,0% General Building; % change -2,9% -2,7% -0,8% -1,4% -0,8% Civil Engineering; % change 13,0% 4,6% -3,0% -9,0% -4,0% Source: Industry Insight Forecasts suggest negative 7 growth in the short-term

8 Municipal Expenditure Variance against Budget (Rm) yyyyqq 2015Q1 2015Q2 2015Q3 2015Q4 Metro District Municipality Local Municipality Total Source: cidb Construction Monitor; Supply & Demand National Treasury Around R13 billion of underspend on 8 infrastructure at Municipal level

9 Source: cidb Construction Monitor; Supply & Demand % Public Sector Contracts Awarded to Black-Owned Contractors (Limited Data) % Civil Engineering contracts awarded to blackowned contractors decreases with higher 9 Grade

10 Source: cidb SME Business Conditions Survey Business Conditions; Civil Engineering Largest constraint is insufficient demand for work 10 followed by skilled labour and access to credit

11 Source: cidb SME Business Conditions Survey Business Conditions; CE, Grades 3 & 4 Access to credit becoming a significant 11 constraint for CE Grades 3 & 4

12 Source: cidb CIIs Client Satisfaction Satisfied Dissatisfied Neither Satisfied or Dissatisfied Satisfied Dissatisfied Neither Satisfied or Dissatisfied Satisfied Neither Satisfied or Dissatisfied Satisfied Dissatisfied Dissatisfied Neither Satisfied or Dissatisfied % 25% 50% 75% 100% 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% Agent Contractor Quality Satisfaction of clients with contractors is decreasing 12 Likely to be due to business conditions and tight margins

13 Source: cidb CIIs Contractor Satisfaction Satisfied Neither Satisfied or Dissatisfied Dissatisfied Client Agent Variation Orders Satisfaction of contractors with clients is increasing 13 Largest source of dissatisfaction is variation orders and

14 Source: cidb CIIs Payment < 14 days 14 to to to % 25% 50% 75% 100% Only around 40% of payments to contractors 14 were made within 30 days after invoicing

15 Source: APL Pilot Study Competence; Grades 2 to 4, Business Management Only 51% of contractors tested were competent, overall, in business management 15 Only 40% were competent in financial management

16 Source: APL Pilot Study Competence; Grades 5 & 6, Works Management Only 57% of contractors tested were 16 competent in quality management

17 Summary External factors impacting negatively on contractors Public sector work accessed by black-owned contractors is low Satisfaction of clients with contractors is deteriorating Delayed payments is of concern Performance of some contractors is below industry norms 17

18 Performance Improvement 18

19 Work Opportunities (i) Monitoring of expenditure Working with stakeholders: Infrastructure Delivery Management System (IDMS) Cities Infrastructure Delivery Management System (CIDMS) Standard for Infrastructure Procurement and Delivery Management (SIPDM) National Infrastructure Asset Maintenance Management (NIAMM) Framework Export Council for Contracting Services (BEPEC) 19

20 Work Opportunities (ii) cidb initiatives (work in progress): Competence Framework for Procurement Officials Client Recognition Scheme Prompt Payment Regulations Reducing Red Tape etc. 20

21 Contractor Development Programmes; CDPs Province CDP Number Coega IDZ 29 Incubator 101 Mainstream 16 Eastern Cape Masakhe-Sonke 43 Outreach 17 SCI - Mainstream 8 SCI Outreach 30 Vukuphile 16 Free State Contractor Development Programme (CDP) 125 Gauteng ekurhuleni (Vuk uphile) 111 Seda Construction Incubator (SCI) 12 KwaZulu-Natal Vukuphile 23 Dept. of Transport (Vukuzakhe) 391 Limpopo Contractor Develoment Programme 20 Mpumalanga IDT (Sakabakhi) 19 Northern Cape Prov. Roads and Transport (Upington Hospital) 1 Construction Incubator Programme (CIP) 10 North West Vukuphile (CIP) 61 Vukuphile 8 Western Cape Department of Transport & Public Works (Senyuka) 22 Total

22 Setting the Standards for Development Framework: National Contractor Development Programme NCDP Guidelines for Contractor Development Programmes cidb Competence Standard for Contractors Construction Management Guidelines; CMG 101 cidb Standard for Contractor Performance Reports Monitoring Contractor Development: on-line web system 22

23 Source: cidb Construction Monitor; Contractor Development Contractor Upgrades (since date of entry) Entry Grade CDP Contractor Upgrades (%): to Grand Total; from date of entry 2013Q3 to 2014Q3 to 2014Q2 2015Q2 2015Q3 to 2016Q2 GB 7 & 8 0% 0% 0% 5 & 6 50% 15% 3% 2 to 4 57% 19% 9% 1 17% 14% 5% Total 39% 15% 6% CE 7 & 8 0% 0% 0% 5 & 6 38% 36% 6% 2 to 4 72% 27% 7% 1 50% 52% 10% Total 60% 43% 8% Around 60% of Civil Engineering contractors and around 40% of General Building contractors have upgraded over the past 3 years 23

24 Contractor Development Programmes (CDPs) CDPs offer significant potential to support development and transformation: but, we can improve: compliance with NCDP Guidelines allocation of work training in line with cidb Competence Standard exiting of CDPs 24

25 cidb Competence Standard for Contractors Minimum acceptable competencies that are recognized by industry as being necessary for running a contracting company and for supervising building and construction works: Gazette notice of 23 August 2013 cidb encourages all contractors in Grades 2 to 6 in General Building (GB) and Civil Engineering (CE) to register their competencies with the cidb, as well as contractors in Grades 1 to 6 that want to be recognized as specialist trade contractors: Gazette notice of 11 September

26 cidb Competence Standard for Contractors Rollout campaign: training requirement for Contractor Development Programmes (CDPs) cidb developmental support media campaign You have the grade Now add the advantage 26

27 Developmental Opportunities: Indirect Targeting cidb Standard for Indirect Targeting for Enterprise Development: R7,0b of contracts to developing enterprises per year 500 contractors receiving developmental support per year Gazette of 25 February 2013 cidb Project Assessment Scheme to be 27 published shortly for public comment

28 Developmental Opportunities; cidb Best Practice Fee Contractor Recognition Scheme Project Assessment Scheme Best Practice Fee cidb Project Assessment Scheme and Best Practice 28 Fee to be published shortly for public comment

29 Developmental Opportunities; cidb Best Practice Fee Contractor Recognition Scheme Project Assessment Scheme Best Practice Fee R500m over 5 years cidb Project Assessment Scheme and Best Practice 29 Fee to be published shortly for public comment

30 Contractor Recognition Scheme Project Assessment Scheme 80% of R500m over 5 years for development Best Practice Fee R500m over 5 years cidb Project Assessment Scheme and Best Practice 30 Fee to be published shortly for public comment

31 Summary of Developmental Interventions Item Total; Rm 5 yr Total; 5 yr Construction Management Systems (CMS) contractors Assessment of prior learning (APL) contractors Top-Up training in line with cidb Competence Standard contractors Mentoring on CDPs contractors Contractor Performance Reports; Adjudication contractors Sponsorship of Construction Mentor training (CMentor) mentors WorldSkills learners/yr ave 31 Subject to Board approval

32 Summary cidb Focus: access to work performance of clients performance of contractors development opportunities skills development 32

33 A Value Proposition 33

34 Performance Improvement The public sector will adopt best-practice to which the industry as a whole can aspire to to improve delivery practices which deliver enhanced value for money and enhance transformation 34

35 Blocks N&R, SABS Campus 2 Dr. Lategan Rd Groenkloof Pretoria South Africa PO Box 2107 Brooklyn Square 0075 Tel Fax or Anonymous Fraud Line cidb@cidb.org.za 35