1 Quality in Construction; cidb Mandate & Focus February 2014

2 Overview cidb Legislative Framework and Mandate Quality in construction cidb Focus on quality: –Programme Structure Concluding comments

3 cidb Legislative Framework & Mandate

4 cidb Legislative Framework White Paper (DPW; 1999): Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry cidb Act (Act ): –to provide for the establishment of the Construction Industry Development Board –to implement an integrated strategy for the reconstruction, growth and development of the construction industry Construction Industry Development Regulations (DPW; 2004; as amended)

5 cidb Mandate Provide strategic leadership Promote sustainable growth and participation of the emerging sector Promote improved performance and best practice Promote uniform application of policy and improved procurement and delivery management Monitoring and regulating the performance of the industry and its stakeholders, including the registration of projects and contractors

6 cidb Act & Mandate: Quality (i) 4.(d) promote best practice through the development and implementation of appropriate programmes and measures aimed at best practice and improved performance of public and private sector clients, contractors and other participants in the construction delivery process 16.(1) ….. establish a national register of contractors, which categorises contractors in a manner that facilitates public sector procurement and promotes contractor development 21. …. establish a best practice contractor recognition scheme which: –(a) enables organs of state to manage risk on complex contracting strategies –(b) promotes contractor development ….

7 cidb Act & Mandate: Quality (ii) Risk management in procurement Performance improvement contractor development No mandate in terms of quality assurance

8 Regulations; Home Building 4.1 Any contractor who is registered as a homebuilder …. is exempt from registration in terms of these Regulations for the purpose of construction works in relation to the provision of a home as contemplated in those Regulations –i.e. it is not a requirement that homebuilders register with the cidb

9 Quality in Construction

10 Base Documents Construction Quality in SA; A Client Perspective cidb Construction Industry Indicators (CIIs): –annual survey: client satisfaction quality of construction defects

11 CIIs; Quality (2009/13; GB & CE)

12 CIIs; Quality (2009/13; GB & CE) Clients were neutral on 25% of the projects surveyed (R43b) Clients were dissatisfied on 1% of the projects surveyed (R2b)

13 CIIs; Level of Defects (2009/13; GB & CE)

14 CIIs; Level of Defects (2009/13; GB & CE) Around 2% of the projects surveyed had major defects or were totally defective (R3b)

15 State of Quality; Quality per Sector Scale: 1 = very poor; 3 = average; 5 = very good Sector Overall Mean Rank Commercial3.52 Industrial3.53 Infrastructure3.34 Residential: Low-income1.96 Middle-income2.95 Upper-income3.91

16 Barriers to Construction Quality Scale: 1 = minor; 3 = average; 5 = major influence Interventions / Situations Overall Mean Rank Poor site management4.41 Lack of contractor quality expertise4.42 Corruption4.33 Inadequate resourcing by contractors4.14 Lack of understanding of quality4.15 Level of subcontracting4.16 Inadequate information4.17 Detail4.18 Focus on cost by contractors4.09 Poor constructability4.010

17 CIIs; Level of Defects (2009/13; GB & CE) Largely design or construction related barriers, together with client monitoring Largely procurement related barriers, including functionality, procurement capacity, corruption

18 cidb Focus on Quality Programme Structure

19 Construction Registers Service (CRS) cidb Register of Contractors: –financial capability –established 2004 cidb Best Practice Contractor Recognition Scheme: –capability and performance –subject to Regulatory Impact Assessment –establish 2014? cidb Register of Projects –performance of contractor, agent and client –subject to Regulatory Impact Assessment –establish 2014?

20 Procurement and Delivery Management (PDM) Standard for Uniformity in Construction Procurement Code of Conduct for the Parties Engaged in Construction Procurement: –non-performance, corruption, … –sanctions Practice Notes: –PN 9; Evaluation of Quality in Tender Submissions: encourage use of functionality –PN 30; Blacklisting of Contractors for Non-Performance –PN 31; Requirements for Registered Professionals on Construction Works Contracts Capacity building of procurement officials Integrity Management System for clients (draft)

21 Construction Industry Performance (CIP) (i) Best Practice Contractor Recognition Scheme: –Contractor Performance Reports (Grades 2 to 9) (2013): includes quality management –Best Practice; Construction Management Systems SANS 1393: H&S, quality and environment (site) –Competence Standard for Contractors minimum acceptable standards necessary for running a contracting enterprise and for supervising building and construction works –Standard for Contractor Integrity Management Systems (under development) –subject to Regulatory Impact Assessment –establish 2014?

22 Construction Industry Performance (CIP) (ii) Best Practice Project Assessment Scheme: –Standard for Indirect Targeting for Enterprise Development (2013) Best Practice Register of Professional Service Providers (under development) Piloting and testing the BCA Construction Quality Assessment Scheme (CONQUAS) system in South Africa: –feasibility report complete

23 Provincial offices and Contractor Development (PCD) National Contractor Development Programme (NCDP): –NCDP Framework (2011): endorsed by DPW MinMEC; September 2012 endorsed by SALGA and COGTA MinMEC; September 2013 –Guidelines for Implementing Contractor Development Programmes (CDPs) (2011): work opportunities, training, mentoring graduating –Monitoring of CDPs Capacity building of officials

24 Concluding Comments

25 Concluding Comments cidb is collaborating with National Treasury on building procurement capacity in national and provincial departments cidb and NHBRC should consider encouraging clients to require cidb registered contractors on home building cidb collaborates with the NHBRC to share knowledge and systems in the area of quality improvement cidb is collaborating with built environment professionals (BEPs) to enhance focus on contractor development cidb is collaborating with SACPCMP in establishing the necessary mentoring capacity for contractors

26 Concluding Comments Building a strong government focus on quality and contractor development

27 Thank You