Download
1 / 20
200 likes | 211 Vues
PRESENTATION TO THE DEPARTMENT OF PUBLIC WORKS’ PARLIAMENTARY PORTFOLIO COMMITTEE 28 November 2017. Vision. To be the foremost transformation agent in the South African built environment landscape. Mission.
E N D
PRESENTATION TO THE DEPARTMENT OF PUBLIC WORKS’ PARLIAMENTARY PORTFOLIO COMMITTEE 28 November 2017
Vision • To be the foremost transformation agent in the South African built environment landscape.
Mission • To lead the evolution of the built environment legislative and regulatory landscape in order to create a transformed, empowered, inclusive, modern, caring and economic enhancing built environment sector. • To actively contribute to the sustainable development of South Africa’s social and economic infrastructure in support of national development objectives.
Institutional Alignment The BBC is the overarching confederation representing professional and business associations and chambers, with the main purpose to lobby government on policy related matters in order to accelerate the participation of black South Africans in the mainstream economy. The affiliates of the BBC cut across the various sectors of the economy and the Black Business Council in the Built Environment (BBCBE) concerned with the construction and built environment sector.
Context • Total number of companies registered on the CIDB Register of Contractors (RoC) is 204 911. • 185 735 of these companies are registered in Grade 1. This represents 91% of the companies on the RoC. • The median percentage of black owned companies stands at 95% and the woman owned percentage stands at 41%. This has no relationship with the turnover level they generate relative to the industry the entire turnover. • DPW as the custodian of the industry must exert its authority.
Context Cont.: • Implementation of the PPPFA Regulations 2017. • Government invests billions of rand in cooperatives annually. Generally they are viewed as survivalist and don’t play a meaningful role hitherto in the construction industry. • SAWIC is currently implementing a successful cooperative model in the construction of their 1956 Woman Empowerment Programme.
Challenges: • Lack of traction for Contractor Development Programmes both within the DPW Family and other public sector client bodies. • Application of the Potentially Emerging Status. • Unbundling of projects. • Outsourcing to Implementing Agents (IA’s). • Access to project opportunities. • Access to finance (construction performance guarantees & working capital).
Challenge Cont.: • Late/on-payment by public sector clients and main contractors. • Instability on construction sites due to the Localization Phenomenon. • Unsustainable margins. • Political Currency Phenomenon. • There has been no developmental strategy coming out of the CIDB.
Solutions: • We are working together with DPW to ensure sufficient market take-up of the CDP opportunities especially in Grades 3 – 7. The market responded poorly to the last advert issued by DPW targeting this category. • The department must significantly increase its capacity in order to effectively and efficiently implement the CDP. • The department must undertake advocacy work to ensure implementation of the CDP beyond the DPW Family.
Solutions Cont.: • The CIDB shouldn’t be lax in implementing policies meant to empower emerging businesses. The PE Status must enjoy mandatory application. Client bodies must see to it that they are capacitated. • The impotency of the CIDB in instructing public sector clients to unbundle projects to allow for meaningful participation by the emerging sector must be reviewed. The CIDB must be given the necessary powers to enforce this as it also falls outside of the scope of National Treasury’s Office of the Chief Procurement Officer.
Solutions Cont.: • Outsourcing to Implementing Agents must be accompanied with a clear instruction to undertake contractor development. • 30% Mandatory Subcontracting: PPPFA Regulations: • List of potential beneficiaries can be obtained from the: • Client; • Central Supplier Database; and • Main Contractor. • Beneficiaries to be paid directly by the client to avoid abuse by main contractors. • Balancing of rates before the subcontractors appointment. • Retention Guarantee in lieu of 10% Cash Retention.
Solutions Cont.: • Funding from the Tirisano Trust will be accessed to assist emerging players with performance guarantees and working capital. The BBCBE has proposed that 50% of the trust proceeds (R1.5bn over the next 7 years) should be set-aside for access to finance. We have also proposed a partnership with the IDC to co-fund. • Private sector funding initiatives (Std Bank, ABSA, etc.) must still gain market traction. • Through the BBCBE Export Desk we are working in partnership with the CIDB and Built Environment Professionals Export Council (BEPEC) to encourage our SMME’s to export their services to the rest of the continent. • Unpacking of the SAWIC Coop Model.
Solutions Cont.: • Identify opportunities to partner with the South African Council for Graduates Co-operative to place more interns with our members and industry at large. • The CIDB must be instructed by the Portfolio Committee to separately issue statistics of cooperatives registered on the RoC. This will further assist in tracking their progress and development in the industry. • The CIDB has assisted somewhat by suspending downgrading. However, there is a need for a permanent solution which covers contractors all the way to Grade 9.
Matters to discuss with the Portfolio Committee in our next engagement: • Voluntary Rebuilding Programme (Settlement Agreement); • Black Industrialists Programme (BIP) in the Construction Industry; • Review of the CIDB Act and Regulations; • Review of the CBE Act; • Establishment of the Construction Waste Stream; and • Establishment of a State-Owned Construction Bank and Construction Company.
