1. Improving the capability of the state to deliver infrastructure
Inba Thumbiran
10 November 2014

2. Overview cidb Legislative Framework and Mandate
Strengthening capability to deliver
Strengthening skills and capacity
Combatting fraud and corruption
Concluding comment

3. cidb Legislative Framework & Mandate

4. cidb Act 38 of 2000
Promote sustainable growth of the construction industry and the sustainable participation of the emerging sector in the industry
Promote improved performance and best practice of public and private sector clients, contractors and other participants
Promote procurement and delivery management, the uniform application of policy throughout all spheres of government, uniform and ethical standards including a Code of Conduct
Establish Registers as a tool to systematically regulate and monitor the performance of the industry and its stakeholders

5. cidb Strategic Plan – 2014 to 2019
Strengthen the awareness on NCDP
Manage and improve the Construction Register Service
Implement the anti-corruption strategy, improve compliance monitoring and enforce cidb prescripts
Promote uniformity of construction procurement
Monitor the performance of the state
Improve performance of the sector and value to clients
Improve infrastructure delivery skills in the industry

6. Infrastructure Delivery
Increased investment in infrastructure to promote growth and development of the economy
Plan
Budget
Execute
Monitor
Standard processes and institutionalised systems across all infrastructure departments
Skilled people to implement the processes and manage the systems
NDP Priorities
Employment
Job creation
Skills development
Empowerment

7. Challenges – the reality ….
Poor planning
Poor response to the social agenda
Poor interdepartmental relationships
Poor procurement / contract management strategies
Limited technical capacity in the public sector
Weak procurement systems
High incidence of fraud / corruption in procurement systems
Collusion in the industry
Poor value for money outcomes

8. Strengthening capability to deliver infrastructure

9. What is in place?
Introduction of standards and guidelines – uniformity promotes better and improved procurement practices
CIDB Regulations /Standard for Uniformity / iTender System
CIDB Practice Notes / Best Practice Guides
Delivery Management
Infrastructure Delivery Management System (IDMS)
Module for Procurement Strategy
Monitoring and annual review
Specification for social and economic deliverables
Guidance to Clients on approaches for socio-economic deliverables through execution of large contracts
Methodology to identify targeted development and participation of the emerging sector

10. Construction Procurement
Construction Procurement defined as procurement in the construction industry, including the invitation, award and management of contracts.
Relates to engineering and construction works contracts, and also supplies contracts that involve the purchase of construction materials and equipment, professional services, disposals of surplus materials and equipment and demolitions.
Standard for Uniformity (SFU) in Construction Procurement is comprehensive set of rules with very limited latitude for discretion which needs to be applied in the soliciting and evaluation of tenders and the development of procurement documents in support of the Register of Contractors

11. PROCUREMENT IS CENTRAL TO THE DELIVERY OF INFRASTRUCTRE

12. Framework for public sector procurement
CIDB Framework for public sector procurement
Legislative Framework
The Constitution
PFMA / MFMA
PPPFA
BBBEE
CIDB Act + Regulations
Other relevant Act’s
Client
Procurement Policy
Procurement directives / categories
Standard Operating Procedures (SOP’s)
Standard for Uniformity
CIDB Best Practice Guidelines
CIDB inform Practice Notes
CIDB CODE OF CONDUCT!!!

13. Controlling risks in procurement
Committee System (Control points) linked to the Supply Chain Management process
Bid Specification Committee
Bid Evaluation Committee
Bid Adjudication Committee
Auditable processes – CIDB Standard for Uniformity
Work in progress (CIDB)
Competence standards for procurement skills

14. What is in place?
Introduction of standards and guidelines – uniformity promotes better and improved procurement practices
CIDB Regulations /Standard for Uniformity / iTender System
CIDB Practice Notes / Best Practice Guides
Delivery Management
Infrastructure Delivery Management System (IDMS)
Module for Procurement Strategy
Monitoring and annual reviews
Specification for social and economic deliverables
Guidance to Clients on approaches for socio-economic deliverables through execution of large contracts
Methodology to identify targeted development and participation of the emerging sector

15. IDIP / IDMS
The Infrastructure Delivery Improvement Programme (IDIP) originated in 2001 as a response to substantial under spending of infrastructure budgets at provincial level
Driven through a partnership with National Treasury as the lead partner, the National Department of Public Works, Development Bank of Southern Africa (DBSA) and the CIDB
Infrastructure Delivery Management System (IDMS) developed to support the methodology of the IDIP
Standardised rule based intergovernmental system to deliver infrastructure
Defined work methodology
Comprises a set of interrelating and interacting elements required for delivery
Establishes processes that transform inputs activities outputs
IDMS comprises the following systems
Infrastructure Planning System
Infrastructure Gateway System
Construction Procurement System
Programme and Project Management System
Operations and maintenance System

16. Infrastructure Delivery Improvement
IDIP: Responding to institutional weaknesses
Improving infrastructure delivery at all levels of government (phasing in of municipalities in 2014)
Technical advice and oversight
Infrastructure Delivery Management System (IDMS)
Infrastructure Gateway System (IGS)
Infrastructure needs to be managed and controlled in a logical, methodical and auditable manner
Stages = processes & Gates = control point
Decision is required before proceeding from one stage to another
Reinforces responsibility and accountability of decisions
Promoting procurement strategies for improvements in delivery
Alternative delivery models
Better planning
Manage risks effectively
Cost control
Transparency

24. April 2010 and March 2013
Upgrade of the IDIP Toolkit – launched the IDMS in October 2010
Construction procurement standards were developed and elevated to strategic importance in the IDMS
Promote new options
Alternative delivery models
A Human Resource Capacitation Framework for infrastructure units developed which defined core competencies and expertise required to sustain effective delivery
A foundation and executive training course referred to as the Infrastructure Delivery Management Programme (IDMP) developed and successfully piloted by the University of Pretoria
IDMS Strategic Agreements developed by provincial departments to establish and define the roles, responsibilities and accountability requirements of each stakeholder

25. Infrastructure Gateway System (IGS)
Improves transparency which reduces opportunity for mismanagement and corruption in planning and implementation;
Enables the procurement strategy to be reviewed and improved when delivering similar future projects;
Enables post implementation reviews to take place to examine whether planned benefits are achieved and risks are being effectively managed;
Removes perverse incentives relating to the promotion of one project or a solution over another (best fit)
Work-in-progress
Standard for the IGS
Standard for Gateway Reviews (auditing function)

26. Gateway Reviews
Gateway reviews are an internationally accepted best practice, and have proven to have the following potential benefits:
more accurate project scoping and estimates
reduced time and cost overruns
improved alignment of service delivery with available funds
improved procurement discipline
better risk management
reinforcing responsibility and accountability for decisions

27. IDIP / IDMS FOCUS AREAS
IDIP as a change enablement programme aims to impact on the following:
Capacity and skills development for infrastructure planning, programme management, procurement & project management
Institutionalise good practices & systems
Implement alignment model to ensure better planning and alignment with budgets and project implementation
Explore innovative approaches to address identified systems and capacity bottlenecks
Mentor and coach the departmental staff responsible for infrastructure
Improve infrastructure monitoring and reporting
Contribute to more effective cooperative governance
Contribute to the body of knowledge regarding best practices in capacity building in government

28. Strengthening skills and capacity
Work-in-progress

29. DRAFT COMPETENCY STANDARDS
Develop and Maintain Construction Procurement Policy Framework
Identify Construction Procurement Needs
Determine Construction Procurement Strategy
Solicit Tender Offers
Evaluate Tender Offers
Awards of Contracts
Administer Contracts and Confirm Compliance with requirements
Supply Chain Management Reporting on Outcomes
Provide Logistical Support

30. KNOWLEDGE LEVELS Level 1
Requires a working knowledge with a practical understanding to be applied in straightforward circumstances
Level 2
Requires a working knowledge with a good understanding to be applied in circumstances of limited complexity
Level 3
Requires a thorough knowledge with an in-depth understanding to be applied in complex circumstances
Level 4
Requires an expert knowledge with a comprehensive understanding to be applied in highly complex circumstances

31. OCCUPATIONAL ROLES Occupational Role Agreed Role 1
Administrative Personnel in Construction Procurement Units of all Institutions
Role 2
Supervisors in Construction Procurement Units of all Institutions
Role 3
Managers in Construction Procurement Units of all Institutions
Role 4
Built Environment Professionals involved in the planning, design and delivery of construction projects (for example Engineers, Quantity Surveyors, Construction Project Managers, Architects, Engineering Technicians, Engineering Technologists, and Town and Regional Planners)
Role 5
Managers of Built Environment Professionals in different Infrastructure Units
Role 6
Legal Advisors in Institutions

32. HOW THEY LINK… Competency Cluster Competency Titles Role 1 Role 2
Develop and Maintain Construction Procurement Policy Framework
Construction Procurement Policy, Processes and Procedures √
Construction Procurement Tender Committees
Identify Construction Procurement Needs
Identify projects for procurement
Prepare Broad Scope of Work
Estimate budget
Determine Construction Procurement Strategy
Develop Delivery Management Strategy, determine Contracting Arrangements and determine Procurement Arrangements.

33. COMBATTING FRAUD AND CORRUPTION

34. Compliance and enforcement
R4-trillion infrastructure plan over the next 15 years
Monitor infrastructure roll out programmes across all three tiers of government and the State Owned Companies (SOC’s)
Improve expenditure monitoring and the visibility of the status of the projects under construction – mitigate chronic underspending
Developed compliance strategy to improve and maximise compliance to the cidb regulatory framework and taking action to enforce compliance.
The strategy focuses on enhancing compliance to the following identified key priority areas:
iTender/ Register of Projects
Code of Conduct for all parties engaged in construction procurement
Proactive and reactive approach adopted to achieve compliance

35. The Client Business model redesign
Identify the service delivery objectives
Re-engineering the service delivery model
Improving the weak supply chain management system
Dedicated supply chain management function
Establish a competence standard for infrastructure
Performance Management
Employ the correct skilled staff
Train staff (competence)
Authority and Accountability
Establish control
Financial effectiveness
Gates and control points
Documentation control
Reviews
Transparency of information
Monitoring and reporting

36. Base Document Construction Quality in SA; A Client Perspective
cidb Construction Industry Indicators (CIIs):
annual survey:
client satisfaction
quality of construction
defects ….
cidb undertook a report on the state of construction quality in 2011
cidb undertakes annual Construction Industry Indicator surveys on client and contractor perceptions – including quality of construction, levekl of defects, etc

37. Barriers to Construction Quality
Scale: 1 = minor; 3 = average; 5 = major influence
Interventions / Situations
Overall Mean
Rank
Poor site management
4.4 1
Lack of contractor quality expertise 2
Corruption
4.3 3
Inadequate resourcing by contractors
4.1 4
Lack of understanding of quality 5
Level of subcontracting 6
Inadequate information 7
Detail 8
Focus on cost by contractors
4.0 9
Poor constructability 10
The survey undertaken for the Quality Report identified key barriers:
lack of contractor expertise
corruption

38. Compliance Monitor
Provides indicators of the level of compliance and non-compliance with the i.Tender/RoP by client bodies
Published quarterly on the cidb website
Currently, focus includes a selection / sample of clients:
national and provincial infrastructure departments
public entities
metropolitan councils
high capacity municipalities

39. Compliance; Tender Notices, Provincial Departments
2012Q3
2014Q1 EC
42%
84% FS
85%
92% GP
45%
78% KZ
19%
23% LP
73%
89% MP 0%
32% NC
51%
58% NW
37%
98% WC
95%
Total
44%
63%

40. Enforcement Monitor compliance
Investigate offenders (prescripts / Code of Conduct)
Investigation
Lay charges
Conduct hearings
Execute outcome of the Investigating Committee
Publish information on our website

41. Integrity Management System
Construction industry has suffered significant reputational damages due to the high level of corruption and lack of integrity, transparency and accountability.
Anti corruption model – effort to rebuild trust among stakeholders
CIDB Business Plan (2014/15)
development of an anti-corruption model where transparency requirements in the procurement system are being developed
investigating the feasibility of a best practice standard for an Integrity Management System which could lead to the recognition of such a system for grades 5 to 9 contractors.
Work-in-progress: Framework for an Integrity Management System
improved transparency
reduction in corruption,
improved service delivery,
improved value for money,
improved governance and accountability

42. Concluding Comments

43. The challenge…..
Government requires stronger partnerships with industry – much has been done; so much more to do.
cidb is collaborating with National Treasury on building procurement capacity across government departments
Role of Built Environment Professionals
cidb is collaborating with built environment professionals (BEPs) to enhance focus on contractor development (procurement strategy)
IDMS (Role 5)
Register of BEP’s (performance reporting / work in progress)

45. Thank You