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.

Targeting 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 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

The cidb is currently at an advanced stage of finalising pro formas and practice notes that need to be included in future tender documents to accommodate the requirements of the first two BUILD standards.”

for implementing the standards according to their conditions of contract. The client – public or private – is responsible for the funding provision,” explains Cassiem.

Register of Projects

The BUILD programme’s management control mechanism is the cidb’s Register of Projects. It is a legal requirement for all public sector projects above a value of R200 000 to be registered. Additionally, all SOE and private sector projects above R10 million must be listed on this register.

“The cidb is currently at an advanced stage of finalising pro formas and practice notes that need to be included in future tender documents to accommodate the requirements of the first two BUILD standards,” says Cassiem.

“This will ensure that there’s a uniform process for mandatory reporting – within set timeframes – once a project has reached practical completion,” he continues.

The first three cidb practice notes in the pipeline will comprise a general overview of the BUILD programme. The second will provide guidelines for client implementation, while the third will explain the ins and outs to contractors and professional service providers.

Contractor and supply chain development

As the BUILD programme gains momentum, a portion of the funds collected will be reinvested to capacitate and develop cidbregistered contractors, especially those in the upcoming Grade 1 to 6 band (projects valued at R10 million and below). The BUILD fund will be ringfenced and governed by a specialist team within the cidb, who will be responsible for monitoring and auditing.

Business development advisory services and construction mentors will be provided regionally via the cidb’s provincial offices.

“Helping SMME contractors to grow and sustain their businesses is a fundamental objective in closing competency gaps and effecting meaningful transformation in the construction sector,” says Cassiem. “As the starting point, we will assess each CIDB contractor against local and internationally accepted performance benchmarks.

“To be sustainable, contractors must master project management and financial management, as well as have a solid understanding of the legislative requirements and law of contract. In addition to this, courses will focus on safety, health, environment and quality programmes, with the intention of guiding individual contractors through to formal registration with industry-recognised certification bodies,” Cassiem expands.

A portion of the funds derived from the BUILD programme will also be used to upskill government personnel responsible for supply chain management. “Capacitating officials within infrastructure departments is crucial so that budgets allocated are correctly spent, and contractors get paid within the legislated 30-day timeframe,” he explains.

Other standards in the pipeline

The first two BUILD standards will bed down the process as the initiative progressively evolves to integrate all the players within the South African built environment. Other BUILD performance standards themes planned include: Contractor Performance Reports, Green Buildings, Health and Safety Plans and Auditing, Occupational Health, Building Information Modelling Systems, and Quality Management.

“With the foundations and frameworks established, BUILD is now moving into the implementation stages with a measureable platform to develop people, communities and lasting infrastructure. It’s certainly a new, exciting era for the cidb as we translate policy into practice,” Cassiem concludes.

Ishmail Cassiem, BUILD leader and director: Construction Industry Performance Programme