CESA Presentation_11Nov2014_V3

Report
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Improving the capability of
the state to deliver
infrastructure
Inba Thumbiran
10 November 2014
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Overview
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cidb Legislative Framework and Mandate
Strengthening capability to deliver
Strengthening skills and capacity
Combatting fraud and corruption
Concluding comment
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cidb Legislative Framework &
Mandate
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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
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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
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Infrastructure Delivery
• Increased investment in infrastructure to promote growth and
development of the economy
NDP Priorities
– Plan
• Employment
– Budget
• Job creation
• Skills development
– Execute
• Empowerment
– Monitor
• Standard processes and institutionalised systems across all
infrastructure departments
• Skilled people to implement the processes and manage the systems
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Challenges – the reality ….
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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
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Strengthening capability to deliver
infrastructure
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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
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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
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PROCUREMENT IS CENTRAL TO THE
DELIVERY OF INFRASTRUCTRE
CIDB Framework for public sector procurement
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Framework for public sector procurement
Standard for
Uniformity
Client
Procurement
Policy
Legislative Framework
The Constitution
PFMA / MFMA
PPPFA
BBBEE
CIDB Act + Regulations
Other relevant Act’s
Procurement directives /
categories
CIDB Best
Practice
Guidelines
Standard Operating Procedures
(SOP’s)
CIDB CODE OF CONDUCT!!!
CIDB inform
Practice Notes
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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
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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
14
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IDIP / IDMS
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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
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
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Alternative delivery models
Better planning
Manage risks effectively
Cost control
Transparency
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Management Companion
Delivery Management Guidelines
PG1:
Prov Infr
Strategy
PG3:
Perform
Mgt
Practice
guides
PG2:
Constr
Proc
Strat
Delivery Management System
(IDMS)
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April 2010 and March 2013
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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
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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)
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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
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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
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Strengthening skills and capacity
Work-in-progress
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DRAFT COMPETENCY STANDARDS
1.
2.
3.
4.
5.
6.
7.
8.
9.
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
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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
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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
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HOW THEY LINK…
Competency Cluster
Competency Titles
Develop and Maintain
Construction Procurement Policy
Framework
Construction Procurement Policy,
Processes and Procedures
√
√
√
Construction Procurement Tender
Committees
√
√
√
Identify Construction
Procurement Needs
Determine Construction
Procurement Strategy
Role 1
Role 2
Role 3
Role 4
Role 5
Identify projects for procurement
√
√
Prepare Broad Scope of Work
√
√
Estimate budget
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Develop Delivery Management
Strategy, determine Contracting
Arrangements and determine
Procurement Arrangements.
√
√
Role 6
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COMBATTING FRAUD AND
CORRUPTION
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Compliance and enforcement
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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
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The Client
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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
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Base Document
• Construction Quality in SA; A Client
Perspective
• cidb Construction Industry Indicators (CIIs):
– annual survey:
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client satisfaction
quality of construction
defects
….
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Barriers to Construction Quality
Scale: 1 = minor; 3 = average; 5 = major influence
Interventions / Situations
Poor site management
Lack of contractor quality expertise
Corruption
Inadequate resourcing by contractors
Lack of understanding of quality
Level of subcontracting
Inadequate information
Detail
Focus on cost by contractors
Poor constructability
Overall
Mean
4.4
4.4
4.3
4.1
4.1
4.1
4.1
4.1
4.0
4.0
Rank
1
2
3
4
5
6
7
8
9
10
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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
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Compliance; Tender Notices, Provincial
Departments
EC
FS
GP
KZ
LP
MP
NC
NW
WC
Total
2012Q3
42%
85%
45%
19%
73%
0%
51%
37%
85%
44%
2014Q1
84%
92%
78%
23%
89%
32%
58%
98%
95%
63%
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Enforcement
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Monitor compliance
Investigate offenders (prescripts / Code of Conduct)
Investigation
Lay charges
Conduct hearings
Execute outcome of the Investigating Committee
Publish information on our website
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Integrity Management System
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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
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Concluding Comments
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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)
• www.cidb.org.za/delivery
– Register of BEP’s (performance reporting / work in progress)
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Thank You

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