Presentation to the Parliamentary Portfolio Committee on Public Works – Annual Performance Plan 2018/19 24 April 2018

Presentation Layout Overview Legislative mandate Vision and Mission Strategic Pillars Strategic Goals Programmes Strategic Objectives and Targets Key Performance Indicators Key Projects Financial Budget

Overview – Mandate, Vision, Mission, Pillars, Goals and Programmes

Legislative 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 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

Vision A transformed construction industry that is inclusive, ethical and contributes to a prosperous South Africa and the World

Mission We exist in order to regulate and develop the construction industry through strategic interventions and partnerships

Strategic Pillars Transformation Development Regulation Partnership High Performing Organisation

Strategic Outcome Orientated Goals A transformed construction industry that is inclusive, ethical and contributes to a prosperous South Africa and the World Inclusive growing construction industry Innovative and thriving construction environment Sound corporate governance Reputable Regulator Working in alliance

Programmes Focus areas for 2018/19 aligned to the following core programmes and respective sub programmes: Programme 1 - Administration Sound corporate governance Programme 2 - Regulation and Advocacy Reputable Regulator Programme 3 - Development and Capacitation Innovative and thriving construction environment Programme 4 - Industry Performance and Transformation Inclusive growing construction industry

Strategic Objectives and Targets

Administration Strategic Objective 5 year target 2018/19 target 1 To increase alternate revenue streams to 75% by 2020 75% 67.5% 2 Achieve a 4th level of maturity of ICT governance framework by 2020 4th level 3rd level 3 Become a high performing organisation that will achieve all objectives and set targets 90% 85% 4 Ensure that the cidb complies with all legislative requirements

Administration Strategic Objectives 5 year target 2018/19 target 5 Grow talented human capital by achieving a human capital value-add rating of 10% by 2020 10% 6 Ensure that sound governance practices are implemented through effective implementation of all Board decisions and resolutions 100% 80% 7 Become a reputable organisation through sound stakeholder relations and improved customer satisfaction levels by 2020 65% 60%

Regulation and Advocacy Strategic Objectives 5 year target 2018/19 target 1 Enhance compliance with the regulatory framework by increasing the registration of construction projects with cidb: % Public Sector Project Compliance Index 70% 65% 2 To achieve a 98% correlation of contracts awarded to correct level of contractor or PSP by 2020: % of Projects Awarded on Correct Grade Level of Contractor 98% 85% 3 To enhance provincial footprint in support of cidb strategic objectives: % customer registration satisfaction rating (walk-in customers) 96% PSP: Professional Service Provider

Development and Capacitation Strategic Objectives 5 year target 2018/19 target 1 To improve availability of developmental support to at least 0.05% of the total construction Gross Fixed Capital Formation by 2020: % Developmental Support of Construction GFCF 0.05% 0.01% 2 Improve the skills development pipeline by providing 4 000 learners with access to workplace learning opportunities by 2020: Number of Learners Receiving Workplace Learning Opportunities 4 000 1 000 3 To grow and develop contractors through establishment of partnerships and other collaborative initiatives: Number of contractors grown through partnerships and collaboration 5

Industry Performance & Transformation Strategic Objectives 5 year target 2018/19 target 1 To monitor the growth and transformation of the construction industry in support of achieving transformational targets by 2020: % Industry Black-Ownership Transformation Index 78% 75% 2 To support risk management within the industry to ensure that by 2020 at least 85% of projects achieve a performance rating of adequate or better: % Client Satisfaction with Contractors 85% 3 Improve the capacity and competitiveness of the construction industry by 2020: % Contractor and PSP Recognition Index 20% 5%

Key Performance Indicators Annual Performance Plan (APP)

Number of Key Performance Indicators; Annual Performance Plan Total: 30 Administration: 14 Regulation & Advocacy: 6 Development & Capacitation: 5 Industry Performance & Transformation: 5

Key Performance Indicators Administration Strategic Objective Key Performance Indicators Targets 1 To increase alternate revenue streams to 75% by 2020 Rand Value of revenue generated through other revenue streams R 91,9m 2 Achieve a 4th level of maturity of ICT governance framework by 2020 % Downtime of multiple systems 15% 3 Become a high performing organisation that will achieve all objectives and set targets % of items approved in line with the 5-year strategy 50% 4 Ensure that the cidb complies with all legislative requirements % of service provider paid within 30 days 100%

Administration (Continued) Strategic Objectives Key Performance Indicators Target 5 Grow talented human capital by achieving a human capital value-add rating of 10% by 2020 % Average employee performance assessment rating 3.3 6 Ensure that sound governance practices are implemented through effective implementation of all Board decisions and resolutions Internal audit risk rating on final report Strong internal controls 7 Become a reputable organisation through sound stakeholder relations and improved customer satisfaction levels by 2020 % stakeholder perception index 25%

Regulation and Advocacy Strategic Objectives Key Performance Indicators Target 1 Enhance compliance with the regulatory framework by increasing the registration of construction projects with cidb % private sector project compliance index 5% 2 To achieve a 98% correlation of contracts awarded to correct level of contractor or PSP by 2020 % of Grade 2 to 9 contractors registered within 21 working days 100% % of Grade 2 to 9 contractors correctly graded through validation and verification sampling 96% PSP: Professional Service Provider

Regulation and Advocacy (Continued) Strategic Objectives Key Performance Indicator Target 3 To achieve a 98% correlation of contracts awarded to correct level of contractor or PSP by 2020 % of Grade 2 to 9 contractors satisfied/very satisfied with registration services 65% 4 To enhance provincial footprint in support of cidb strategic objectives % of Grade 2 to 9 applications captured by provincial offices within 7 working days 85%

Development and Capacitation Strategic Objectives Key Performance Indicators Target 1 To improve availability of developmental support to at least 0.05% of the total construction Gross Fixed Capital Formation by 2020 % of contractors graduating from CDP's 20% 2 Improve the skills development pipeline by providing 4 000 learners with access to workplace learning opportunities by 2020 Rand value of Skills Development support provided R1m 3 To grow and develop contractors through establishment of partnerships and other collaborative initiatives # of export advisory services provided to contractors at grades 5 to 9

Industry Performance & Transformation Strategic Objectives Key Performance Indictors Target 1 To monitor the growth and transformation of the construction industry in support of achieving transformational targets by 2020 Number of Construction Monitor and Transformation reports 2 To support risk management within the industry to ensure that by 2020 at least 85% of projects achieve a performance rating of adequate or better % Projects with Contractor and PSP Performance Ratings by Clients 5% 3 Improve the capacity and competitiveness of the construction industry by 2020 % of contractor payment within 30 days Index 50%

Key Projects

Strategic Goal 1: Inclusive growing construction industry. Enhancement and roll-out of contractor recognition scheme Development of professional service providers (PSP) recognition scheme Enhancement and roll-out of project assessment scheme Development and piloting of client recognition scheme Establishment of credit fund

Strategic Goal 2: Innovative and thriving construction environment Facilitating establishment of development support strategy Enterprise development Enhancing the development of construction skills Client capacitation Support for export promotion of construction services

Strategic Goal 3: Reputable regulator Development of integrated government construction projects monitoring system Review of contractor registration criteria Assessment and development of register of professional service providers (ropsp) Decentralisation of registration services footprint Develop enhanced compliance strategy

Strategic Goal 4: Working in alliance Development of partnership and working in alliance

Strategic Goal 5: Sound corporate governance Rollout of revised structure Implementation of corporate governance of ICT policy framework Business process architect Certification of cidb to SANS 1734; Anti-bribery management system

Financial Budget

Budget (Rk) 2018/19 2019/20 2020/21 Administration 77 693 82 044 86 556 Regulation and Advocacy 67 628 71 415 75 343 Construction Industry Performance and Transformation 15 188 16 039 16 921 Development and Capacitation 13 914 14 693 15 502 Total 174 423 184 191 194 321

Budget (Rk) 2018/19 2019/20 2020/21 Government Grant 73 323 77 429 81 688 Registration fees 92 766 97 961 103 348 Finance income 8 334 8 801 9 285 Total 174 423 184 191 194 321

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