THOUGHT LEADER
The implementation of the BUILD programme
The Construction Industry Development Board’s (cidb’s) Best Practice Project Assessment Scheme – coined the BUILD programme to underscore its objective – sets out to professionalise, grow and transform the industry. IMIESA speaks to Ishmail Cassiem, BUILD leader and director: Construction Industry Performance Programme, about practical implementation, and funding mechanisms to achieve this.
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argeting projects valued at R60 million and above, the BUILD programme places joint responsibility for its execution on public and private sector clients and contractors. The goal is to foster greater collaboration and commitment by pooling financial and mentorship resources, repositioning the construction sector, and placing it on a sustainable growth path. The cidb’s BUILD programme came into effect in April 2021 and is mandated in terms of the cidb Act (No. 38 of 2000). In total, 14 best practice, or performance, standards will govern the BUILD programme’s roll-out – the first two having been gazetted by the Minister of Public Works and Infrastructure in September
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IMIESA October 2021
2020, as per Government Gazette 43726. The first two, as well as future standards, will be a contractual requirement in current and future tender documents. The initial two standards comprise: The Standard for Indirect Targeting for Enterprise Development through Construction Works, where, for each project above R60 million, public and private sector clients are required to provide a financial contribution based on a 0.2% fee and capped at a maximum of R2 million. To qualify, project should have a minimum six-month duration. The Standard for Indirect Targeting focuses on the development of emerging contractors on public and private sector projects through subcontracting and joint venture partnerships. Also factored in are the 30% community participation goals as stipulated by National Treasury. In turn, the Standard for Developing Skills through Infrastructure Contracts, aims to increase the pool of qualified young professionals, as well as learners from TVET colleges in terms of their experiential training. To facilitate this process, clients must allocate 0.25% to 0.5% of the project’s contract value, depending on the class of works. This standard applies to projects with a minimum duration of one year. These initial two standards are currently only applicable to the cidb’s General Building and Civil Engineering categories for cidb Grade 7 to 9 contractors. However, over time, all cidb categories, like Electrical and Mechanical, will be incorporated. Each cidb grade has a maximum tender value limit that they qualify for, as determined by a range of criteria and capabilities. For Grade 7 cidb contractors, their threshold is currently capped at R60 million – the starting point for BUILD. Grade 8 contractors are capped at R200 000 million, while there are no project value limitations for Grade 9s.
No cost for contractors “The important point to emphasise is that BUILD does not place any additional financial pressure on the contractor. In fact, contractors don’t pay a cent towards the implementation of BUILD. So, there’s nothing to distract from their role and responsibility
