requires a UNIFORM approach Building a CAPABLE construction sector

Competitive countries, economies and industries are shaped by policies that enable entrepreneurial leadership.

What are some of the key milestones since the formation of the cidb?

BD From the onset of the cidb’s formation in 2001, the primary mandate as a construction industry regulator has logically evolved to include our allied role as a developmental agent.

More specially, our mandate includes efficient and effective infrastructure delivery, construction industry performance improvement, and uniformity in construction procurement. The ultimate objective is the professionalisation of the industry and its sustainability as a major contributor to GDP and employment.

This was the rationale for the establishment of the cidb Register of Contractors (RoC) and the 1 to 9 cidb grading system. At present, we have a standard set of criteria that every South Africa-based contractor must adhere to – foreign or domestic. So, it levels the playing field and weeds out non-compliant or ineligible contractors.

Having successfully established the framework, we need to ramp up the process by focusing on contractor development, especially in the lower grades and building up the top tier. Simply put, untransformed industries are not sustainable. We must provide the platform and through cidb business intelligence tools –like our annual Compliance Monitor, and the Small and Medium-sized Enterprises Business Conditions Survey – we keep a finger on the pulse of the industry.

What are the priority objectives?

Ultimately, we need world-class players with long-term commitment and vision so that we can ensure a robust construction sector that supports South Africa’s Economic Reconstruction and Recovery Plan (ERRP). Moreover, we need more black-owned toptier construction companies that are ‘export ready’ for the opportunities presented by the African Continental Free Trade Area (AfCFTA) agreement.

In the meantime, we continue to refine the RoC, both the regulatory framework and process. Our regulatory framework will need to continue providing risk mitigation while still being developmental in nature. To create an enabling business environment for stakeholders in the sector, the cidb must continue to modernise, using advances in digitalisation to simplify online contractor administration. Information will be automatically verified based on ID numbers, company registration details and tax details. This will be a huge game changer, also helping to speed up the submission of tenders.

Has there been meaningful progress in terms of facilitating transformation and skills development?

The mechanisms are in place, and strong gains have been made, but we need to move at a much faster pace. However, that is interdependent on the level of construction activity in the market.

Alastair Currie speaks to Bongani Dladla, CEO, Construction Industry Development Board (cidb), about the organisation’s role in transforming and revitalising the South African construction sector.

Many aspiring small, medium and micro enterprises see opportunity in the construction sector and the first step is a cidb Grade 1 registration, where there are no qualifying criteria. However, from Grade 2 up to 9, there are financial and other qualification requirements to register.

Progressing to Grade 2 is a substantial jump, where contractors may tender for work on projects less than or equal to R1 million. In turn, the threshold for Grade 3 is R3 million. So, we need to ensure that Grade 1s – and there are a substantial number registered – have adequate support to ensure that they have a meaningful chance of succeeding. That includes exposure to mentorship programmes, skills training (technical, project management, financial, HR and legal), and applicable 4IR technologies like building information modelling (BIM).

Are private and public sector stakeholders fully supportive of the BUILD programme?

The BUILD programme – which stands for Best Practice, Unity, Implementation, Leadership and Development – came into law in April 2021 and has been well accepted by industry. BUILD will comprise performance standards, the first two having been gazetted by the Minister Patricia de Lille of the Department of Public Works and Infrastructure (DPWI) in September 2020 (Government Gazette 43726), with a scheduled timeline for public sector implementation.

The initial two standards comprise the Standard for Indirect Targeting for Enterprise Development through Construction Works, and the Standard for Developing Skills through Infrastructure Contracts.

The Standard for Indirect Targeting focuses on the development of emerging contractors

About The Cidb

The cidb is a statutory body established under the Executive Authority of the Department of Public Works and Infrastructure, and enabled by the Construction Industry Development Board Act (No. 38 of 2000), from which it derives its mandate – to regulate and develop the construction industry through strategic interventions and partnerships. The construction regulator strives to build an industry that is comprehensive and reputable, whereby all participants equally drive the construction sector. www.cidb.org.za on public sector projects through collaboration on projects between infrastructure clients and larger contractors. There is a formal responsibility on clients to provide budgets on infrastructure projects for the development of emerging contractors through subcontracting and joint ventures, and for cidb grades 7, 8 and 9 to implement action plans for the advancement of lower-graded construction companies (1 to 6).

In turn, the Standard for Developing Skills focuses on nurturing greater professional competency via the mentorship input of registered built environment practitioners and tradespeople. The objective is to increase the pool of qualified young