development through partnership

Annual Report 2003/2004

of the
Construction Industry
Development Board

Empower- Growth
ment

Capacity Delivery

Performance

the development framework

cidb

cidb is constituted to lead construction industry development in South Africa.

Our aim is for a regulatory and development framework that builds:

• The total construction delivery capability for South Africa's social and
economic growth.
• A proudly South African construction industry that delivers to globally
competitive standards.

Our focus is on:

• sustainable growth, capability and empowerment
• improved industry performance and best practice
• a transformed delivery environment underpinned by consistent and
ethical procurement practice
• enhanced value to clients and society.

Our people drive this vision, united by common values, the ethos of effective
partnership and a “can do, will do!” commitment.

Our values reflect our ownership of the development challenge.

The Construction Industry Development Board (cidb) is a Schedule 3A public entity established in
terms of the CIDB Act, 2000 to provide leadership to stakeholders for sustainable growth, reform
and improvement of the construction sector and the industry's enhanced role in the country's
economy.
 Contents

Chairperson’s Report 1

CEO’s Report 3

Corporate Governance Report 21

Audit Committee Report 25

Board Approval of the Financial Statements 26

Report of the Auditor-General 27

Financial Statements 29

Members of the Stakeholder Forum 37

RP 138/2004
ISBN 0-621-35253-5
Copyright © CIDB 2004 development through partnership
 Chairperson's Statement

Brian Bruce, Chairperson of the cidb.

T
his third year of formalised construction But not all is working to gear the full potential of
industry development has crystallised into our industry. The resources sector is suffering
tangible action much of the great from the strength and volatility of our currency,
preparatory work done by so many people over forcing major cutbacks in capital expansion. A
the past seven years of both Task Team and Board resurgence in the Asian economies and China in
activity. The Construction Registers Service is a particular offers a competitive alternative to
significant milestone in creating a more regulated industrial investment in South Africa. We are
industry for the sustainable benefit of all industry challenged by our distance from global export
participants and its broader stakeholder group. markets, and again by the capacity of our
transport infrastructure. An approach is needed
The construction economy in South Africa is
that addresses the collective consequence of
performing at its best levels in more than a
these factors to stimulate a greater appetite for
decade. Investment into public infrastructure and
fixed investment into productive capacity.
services has grown at a steady rate over the past
few years, offering increased levels of opportunity
Growth of construction remains pivotal to South
to the empowerment and SMME sectors of the
Africa's economic prospect and is an indicator of
construction industry. Historically lower interest
progress. Our work of the past year has focused
and inflation rates seem to be sustainable,
on instruments to drive an enabling environment
boosting private investment into the commercial
within which construction industry growth,
building and residential sectors.
twinned with empowerment, can be realised.
Cement demand has reached record levels and Growth of construction is equally pivotal to
producers are considering a step-change in new Africa's economic progress and this vast
capacity investment for the first time in many opportunity seems out of reach at present, with
years. Building and construction material most South African contractors reporting
suppliers in general are benefiting and for the first difficulties with operating conditions and delayed
time in more than a decade, are utilising more payments. Much of the work crystallised by cidb
than 50% of previous installed capacity.

1 cidb - development through partnership

over the past year has broad relevance for the
continent, including streamlined procurement,
governance and the management of
infrastructure delivery.

The Construction Industry Development Board

has proved its early capacity in leading our
industry and its stakeholders on a journey of
transformation. I take this opportunity to thank
my Board colleagues and the CIDB executive
team under the leadership of Spencer Hodgson
for the exceptional dedication they have shown to
our common objective of industry development.
All South Africans will benefit in time from the
work that has been and is being done.

Minister Stella Sigcau formally accepts the cidb's

Brian Bruce SA Construction industry Status Report - 2004.

annual report 2004 2

 CEO's Report

Spencer Hodgson,CEO of the cidb.

T
he Construction Industry Development Board (cidb)
completes the financial year ready to roll-out the Key components of the framework delivered this
development framework envisaged in its founding Act. year
The strategic priorities of the cidb 2003/04 business plan have
been realized thanks to the achievement of our growing • Enabling Construction Industry Development
executive capacity and our partnership with industry and its Regulations promulgated by the Minister of Public
stakeholders. Board leadership has guided and continuously Works and articulating the regulatory framework for
tested progress against the principal objectives of construction development progress.
industry development. • Development and piloting of the Construction
In facing the challenges of the past year the process of Registers Service that will now be rolled out to
construction industry development has continued to draw on drive improved performance, delivery, sustainable
the championship role played by the Minister of Public Works, growth and empowerment.
Ms Stella Sigcau, the leadership and people in her department • Finalisation of a national procurement framework
and in provincial public works and transport departments to promote consistent procurement and delivery,
around the country. Common objectives have underpinned including
collaboration with leaders of industry, National Treasury,
• Library of Procurement Best Practice,
government departments and development agencies. Their
• Code of Conduct, and
support, advice and commitment have been instrumental at
• Standard for Uniformity in Construction
pivotal moments of the industry development process.
Procurement.
• Finalisation of the Toolkit Delivery Management
System which underpins government's public sector
Infrastructure Delivery Improvement Programme for
Empowerment Growth
roll-out in the year ahead.
• Publication of Construction Industry Indicators
to measure and reflect development progress by the
industry and its stakeholders.
• SA Construction Industry - Status Report 2004,
convergence
of that crystallizes challenges, opportunities and the
focus strategic way forward.
Capacity Delivery

We are indebted to the many stakeholder organizations and

individuals who have invested time and experience to deepen
our understanding and to shape the development framework
Performance and progress reflected in this report. Through partnership we
have moved the construction industry development process
from concept and strategy to the point of implementation that
marks our challenge for the year ahead.
the development framework to drive “…a conver- With this objective we have concentrated on key
gence of stakeholder focus for sustainable delivery, components of the regulatory and development framework that
will drive a convergence of stakeholder focus for sustainable
growth, empowerment and the improving capability
delivery, growth, empowerment, and improving capability and
and performance of the industry.”
performance of the industry.

3 cidb - development through partnership

Building CIDB

Over the past year we have continued to build an all-round

ability and to bed down standards of delivery and governance.
Once again we take pride in the unqualified Auditor General's
Report, which together with the year's output reflects a “can-
do, will-do!” ownership of the development and corporate
challenge.
Epitomising this commitment is our CFO, Nellie Pillay, who
retires for family reasons. She hands over to Amit Ramasar an
impeccable set of financial and corporate governance systems,
a capable team and a leadership contribution to the building of
cidb.
In our second full year of executive capacity, the
organization has taken up permanent accommodation on the
SABS campus. We are pleased to be able to share this facility
with our sister institution, the Council for the Built Environment
From the start of the financial year we were able to build on
a core executive team of 13 people, growing to 18 at year end.
Increasingly the executive has shouldered operational and
strategic responsibility, enabling cidb to respond to rising
demands on our service.
Internal growth continues to reflect the organisation's
resolve to ensure a representative make-up of management
and staff in terms of race, gender and skills. With over 80
percent black and 60 percent women, we remain well ahead of
the equity targets set out in our business plan. Our diversity Outgoing Chief Financial Officer, Nellie Pillay, with colleagues Gladness
reinforces an all-round appreciation of the implementation Moorosi, Astrid Swarts and the new CFO, Amit Ramasar.
tasks ahead.

Building our specialist capacity has required the executive

to stretch its conceptual understanding in a range of forums and
Construction Management Programme (CMP) in the development and presentation of peer-reviewed papers,
both nationally and internationally. These have covered key
This year the cidb's capacity building benefited from aspects of our development agenda including the role of
involvement in the intensive one-month Construction procurement and public sector delivery. A paper on client best
Management Programme (CMP) held bi-annually in practice and sustainable construction received a best paper
Stellenbosch. This premier development programme, award at the international conference on Knowledge
sponsored by the industry for construction executives, Construction in Developing Countries held in Singapore.
Among a range of focused capacity building activities was
ranks with the top international programmes of its kind,
the participation of three of our managers in the one-month
and over the years has helped to shape industry leaders.
Construction Management Programme held bi-annually in
The 2003 CMP programme embraced a two-prong
Stellenbosch. This intensive course consolidated their growth
focus on Construction Industry Development and
and linkage to stakeholders represented on the programme.
Construction Business Development. Into the future we will continue with industry to promote the
cidb support to the programme included various role and relevance of CMP in shaping the leading edge
presentations by the CEO and Board members, amongst performance of constructors and clients.
whom are former CMP graduates.

“I am pleased to say that the delegates from

cidb did the organisation proud with their input “…the year's output reflects a 'can-do, will-do!'
during the CMP 2003."
ownership of the development and corporate
Prof Fred Hugo
challenge.”

annual report 2004 4

Building the regulatory platform

Primary effort over the past year has been directed at delivering
the regulatory platform that will enable cidb to implement the
Our mandate: a regulatory and development
development mandate entrusted to it by Parliament. This finds
framework
expression in the new Construction Industry Development
Regulations.
cidb is a Schedule 3a public entity. The Board comprises
Grounded in the CIDB Act, the enabling regulations were
private and public sector individuals appointed by the
published for comment by the Minister of Public Works in March
Minister of Public Works on the basis of their individual
2004. Subsequent promulgation in June paves the way for
knowledge and expertise. It is supported by a knowledge-
implementation of the Construction Registers Service and for
based organization that is committed to the development
consistent and uniform construction procurement.
objectives defined in the CIDB Act (38 of 2000).
Government Gazette 26427 reflects the considerable input
of public and private sector stakeholders to formulate and refine
The cidb's mandate is to:
the conceptual framework for the Register of Contractors, the
Register of Projects and the Standard for Uniformity in
• Provide strategic leadership to construction
Construction Procurement. Reinforcing the regulatory
industry stakeholders and develop effective
framework is the cidb Code of Conduct - also published during
partnerships for growth, reform and improvement of
the year.
the construction sector
The regulations have also been firmly embedded in the
• Promote sustainable growth of the construction
Toolkit Delivery Management System, developed with National
industry and the sustainable participation of the
Treasury to provide the basis for improved public sector delivery
emerging sector in the industry
and capacity building.
• Promote improved performance and best
We are convinced that the newly published regulations will
drive a convergence in development focus by the industry and practice of public and private sector clients,
its clients. The challenge ahead is effective implementation to contractors and other participants in the
promote: construction delivery process
• enhanced infrastructure delivery, • Promote procurement and delivery
• improved performance of industry and clients, management, the uniform application of policy
• sustainable industry growth, capability and empowerment. throughout all spheres of government, uniform and
ethical standards including a code of conduct
• Establish the registration of projects and
contractors, and other suppliers, to systematically
regulate and monitor the performance of the
industry and its stakeholders for sustainable growth,
delivery and empowerment and for improved
performance and capability.

Government Gazette
Staatskoerant
R E P U B L IC OF S OU TH A FR IC A
REPUBLIEK VAN SUID-AFRIKA
June
Pretoria,
Junie
2004 No. 26427

AIDS HELPLINE: 0800-0123-22 Prevention is the cure

Government Gazette 26427, Notices No. 692, 62, 63.

5 cidb - development through partnership

 Development context

Engaging the environment

To both focus our work and shape a common understanding of

the industry's strategic direction, we have engaged the broader Client responsibility in enterprise sustainability
strategic debate and the implementation environment. and skills
(Extract from cidb input to a study on industry skills and
Growth capability)
All indicators and stakeholder perceptions recorded in Status Decades of declining demand and demand volatility has
Report 2004 confirm our conviction that the construction led to a decline of specialist skills and capability within
industry will need to double its output over the next 10 years to the industry at management, supervisory and artisan
meet rising demand and South Africa's objectives for economic level. Linked to this, the procurement practices of major
and social growth. This growth presents challenges to all clients focused on lowest price awards of contract have
stakeholders in respect of employment, empowerment, driven the industry into unsustainable levels of com-
capacity, delivery and performance. petition. This has resulted in the shedding of labour and
a reliance on labour brokers, who are not part of the
Employment skills development equation.
Engaging the job creation focus of the Expanded Public Works cidb has advanced a set of principles to underpin the
Programme, cidb has commenced a process to declare best role of clients, including the need to:
practice guidelines for labour-based construction. Similarly we • Recognise that clients are the drivers of positive
initiated a review of the new regulations that promote client change and that their delivery and procurement
responsibility for occupational health and safety. practices shape the development and sustainability
of the industry
Empowerment • Ensure that major projects are planned, scheduled
In the context of the Broad-based Black Economic and procured with cognizance of the need to develop
Empowerment Act (BEE Act) cidb has aligned the potential of and retain capability
the Construction Registers Service to underpin empowerment • Recognise that win-win outcomes are the basis for
in the sector. In response to a request of industry constituents, partnership and therefore ensure that client procure-
we have engaged our capacity in support of the charter process. ment practices minimize waste and maximise the
Towards this process cidb commissioned a study on use of existing capability by:
empowerment progress, opportunities and challenges. It is • promoting greater consistency in the procure-
clear that significant investment prospects provide the potential ment process
to deliver empowerment objectives. • promoting value based solutions rather than
A key finding of the study captured in the Status Report lowest price
confirms a perception that stakeholders believe a shift is • optimising the potential of the contracting sector
needed from the current increase in number of enterprises to a to innovate.
focus on sustainability, capacity and enterprise growth. With
this objective we have shaped the Register of Contractors and
its grading system to provide a framework for targeted success-
driven enterprise development and for monitoring and
promoting empowerment progress against targets that will be
established by government and industry in the Construction
Charter.

Capacity
The capacity challenge was raised at the November 2003
Stakeholder Forum and also emerged in the context of major
private sector projects, including minerals and mining. A study
developed by the National Advisory Council for Innovation
promoted debate on skills gaps and shortages in specific sectors
of the industry. cidb was called upon to draft a chapter on
Structural Issues Impacting on Capacity to Deliver Major
The Construction Industry Stakeholder Forum, 2003.
Projects.
This input for sustainable skills development highlights the “…the construction industry will need to double
responsibility of clients and proposes a set of principles to
its output over the next 10 years to meet rising
promote partnership for development. cidb has also called on
the industry to take ownership of the new skills training
demand and South Africa's objectives for
environment and to invest in people. economic and social growth.”

annual report 2004 6

Delivery
We have also highlighted the positive impact that will derive
from major public sector reform initiatives and the roll-out of
the Toolkit Infrastructure Delivery Management system to build
public capacity.
In this context and in response to requests from the Eastern
Cape, cidb in cooperation with Coega Development Corporation
and the Rapid Infrastructure Development Agency (RIDA), has
mobilized technical capacity to support the provincial
government's drive to build delivery capability. Our input in
terms of the Toolkit and the new Framework for Supply Chain
Management and procurement aims at reinforcing the initiative
of the poorest province with the largest infrastructure backlog
and largest planned expenditure over the next five years.

Phumelele Siphayi and Thuli Manana of SAWIC at the

Construction Industry Stakeholder Forum, 2003.

cidb workshop on the Register of Contractors in Limpopo.

7 cidb - development through partnership

 Development context

Building partnership

Our commitment to a partnership model is founded on the

understanding that construction industry development
addresses the role and contribution of all who add value to the
construction delivery process, and all those who influence the
industry's performance and transformation.

CIDB Act 38 of 2000:

The Board must constitute a ”Stakeholder Forum to

inform it on matters that affect the development of
the construction industry.”

In November 2003, the cidb again convened the

Stakeholder Forum of over 80 delegates appointed from all key
sectors. Under the theme “A better industry for all!”, the
meeting was attended by Minister Sigcau and Deputy Minister
of Public Works, Rev Musa Zondi and reviewed cidb progress
and plans since the inaugural meeting in 2002.
Breakaway groups led by Board and executive members
reviewed the role of stakeholders towards an improved
industry. The central themes and issues informed the findings
and conclusions of the Status Report that was presented to
stakeholders in April 2004. In the year ahead we will call for Mmapula Ikaneng of NUM at the Construction Industry Stakeholder
Forum, 2003.
nominations to reconstitute the forum in accordance with the
CIDB Act.
The November Forum meeting was preceded by workshops
in Bloemfontein, Durban, Port Elizabeth and Midrand where November Stakeholder Forum:
staff and Board members engaged discussion on the breakaway themes and some issues
Construction Registers Service, procurement best practice, the
Toolkit and Code of Conduct. In Limpopo, piloting and
Growth and sustainable empowerment
refinement of the Registers has been further informed by
• repeat work, long-term relationships and improved
workshops with contractors across the province.
profit margins
Expanding international partnership, the organisation
• access to finance and credit
hosted delegations from sister institutions in Africa, including
• opportunities across the supply chain.
Malawi, Zambia and Tanzania. Responding to a request from
Delivery and procurement
Tanzania's National Construction Council, cidb delivered a
• improved public sector delivery management
keynote address to its conference on “Construction Industry
Development in a Changing Global Environment”. We were also • uniform, efficient, transparent and fair procurement
able to mobilize associate industry expertise to provide insight • tender award on the basis of best value, not lowest
to the conference on South Africa's experience in the price.
development of public private partnerships. Employment, skills and capacity
Continued cooperation with the Building Construction • improved employment practices by contractors &
Authority (BCA) of Singapore was consolidated by a visiting subcontractors
delegation that peer-reviewed the principles, technical • investment in human capital, management training
infrastructure and business processes of the pilot Construction and mentoring
Registers Service. • safety, health and HIV/Aids awareness.
Industry and client performance
“Construction industry development addresses the • improved safety and health, including HIV/Aids
awareness
role and contribution of all who add value to the
• improved definition of project scope, and prompt
construction delivery process, and all those who
payment
influence the industry's performance and • improved industry image.
transformation.”

annual report 2004 8

Building the construction registers service

Intensive focus through the year has delivered the Construction

Registers Service that will shape and reflect progress in the
transformation of the South African construction industry.
With publication of regulations in June this year, we are able
to commence the 2004 national roll-out of the Register of
Projects and the Register of Contractors in line with our
business plan commitment.
Promulgating the Construction Industry Development
Regulations, Minister Sigcau said “The CIDB will implement the
Construction Registers Service as legislated by Parliament to
create an enabling regulatory environment that supports
improved industry performance and more effective delivery.”
As required by the Act, contractors registered with the cidb
will be assessed in terms of their construction works and
financial capability. The assessment criteria are built around
basic business sustainability criteria, which will ensure that
contractors only execute construction works within their
CIDB Act 38 of 2000:
capability. This will result in a more sustainable tendering and
contracting environment for contractors, and in significantly
The CIDB Act stipulates that to promote best practice,
reduced project failures.
the Board must establish and maintain:
We have now concluded the pilot phase of the Registers with
support of a client steering committee including the Limpopo
• “…a national Register of Contractors …, which
and Gauteng Department of Public Works and Transport, the
provides for categories of contractors in a
National Department of Public Works and eThekwini Metro. The
manner which facilitates public sector
pilot phase registered almost 2000 contractors and has enabled
procurement.
valuable feedback to improve a range of criteria relating to
grading, fees, cidb capacity and other aspects of the service. • a best practice contractor recognition scheme
Registration has received the broad support of industry and …which promotes contractor development
stakeholders in a wide range of workshops held with clients and and monitors contractor performance.
contractors. Clients like the Department of Public Works await
the registers roll-out as a basis for targeted enterprise • the Register of Projects and the best practice
development initiatives such as the envisaged incubator project assessment scheme…for the promotion,
programme. assessment and evaluation of best practice on
construction contracts
In Limpopo, where 80% of public construction is delivered
and may establish and maintain “…a register of
by black contractors, many complained that industry
suppliers, manufacturers or service providers.”
opportunity is being raided by “part-time” players, who win
tenders and subcontract to real contractors. Their aspiration is The CIDB Act and the new regulations stipulate that:
that registration will promote more sustainable opportunity and • All contractors undertaking work for the public
growth for committed industry participants. The unsustainable sector must be registered
tendering environment is borne out by client experience. • All public and private sector projects above a
Limpopo Public Works has reported receiving over 100 tenders certain value must be registered by clients.
for a classroom block with an estimated value of R300 000.
A case study conducted by cidb on a tender for housing
services at Hammanskraal illustrates the tender evaluation
dilemma facing public officials and the wasteful cost of construction industry development and the CIDB Act. We will
tendering to the industry, with 21 tenders ranging from R6 also be challengened to expand the full potential of the registers
million to over R60mn. An analysis of the capabilities of to:
tenderers in terms of the proposed cidb contractor grading • incorporate empowerment criteria agreed by industry and
system indicated that 6 tenderers were competent to tender. government
Their offers ranged from R11m to R17m, demonstrating the • introduce the phase two requirements for client and
potential of the Register to regularize the tendering contractor best practice
environment. • measure and report on impact
Phased implementation in the year ahead will be closely • promote the grading system as a basis for targeted
monitored to ensure that the system design and requirements development interventions by clients
are practically aligned with the principles and intentions of • conceptualise a register of professional service providers.

9 cidb - development through partnership

 Framework for transformation

Addressing his aspiration, Pepi Silinga, cidb Deputy

Chairperson and CEO of Coega (a major industry client), said
that the “grading assessment envisaged in the regulations will "the Registers will begin to close the gap between
enable clients to target their development programmes in a
the formal and informal sectors. Importantly, we
more focused way so that contractors are able to grow and
evolve within the framework. believe the Registers will support sustainable
By promoting best practice and compliance with statutory
obligations throughout the delivery chain, the Registers will broad based Black Economic Empowerment.”
begin to close the gap between the formal and informal sectors. Pepi Silinga, cidb Deputy Chairperson”
Importantly, we believe the Registers will support sustainable
broad based Black Economic Empowerment.”

Construction Registers Service - an overview Reduced risk to public sector clients through the
Register of Contractors that will categorise contractors in
The registers drive a macro risk management process for accordance with their capability
clients and contractors regulating the construction industry Streamlined procurement with reduced wastage,
around a common development agenda underpinned by best including reduced tendering costs to industry, and reduced
practice procurement and project processes. tender evaluation costs to public sector clients.
As envisaged by the legislation, the registers are the Improved construction delivery through
principle instruments driving improved demand and supply- • requirements on private and public sector clients that
side industry performance. They constitute a regulatory promote consistent procurement practice, sustainable
framework that supports sustainable delivery, development development and transformation
and empowerment. • a contractor recognition scheme that promotes supply-
The data assembled by the registers will provide a side performance in terms of quality, safety, health and
comprehensive overview of construction demand and supply the environment
across the country as well as information on the transforming A framework that supports sustainability in the
practices of clients and contractors. tendering environment and enables clients to structure
The national Register of Contractors supports public their contracting and development strategies to target
sector risk management, reduces the administrative burden appropriate sectors of the market
associated with the award of contracts, and promotes the An established track record for emerging contractors
performance and development of contractors. that will facilitate public and private sector confidence and
The national Register of Projects registers all public and access to credit, finance and opportunity
private sector projects above a prescribed value. The Access by decision makers, clients and service
Register provides information on the nature and distribution providers to live and comprehensive geographic
of projects and promotes the performance of public and information on construction demand and supply, including
private sector clients in the development of the construction size, nature and distribution of projects and service
industry. providers
In its design and piloting, the cidb has aimed to ensure Business to business linkages
that the service meets the following objectives: An improved industry image that fosters investment.

The cidb Registers team from left to right (back) Enoch Masibi, Caswell Mtombeni (associate), Pregan Pillay, Mthetheleli Baqwa, Ebrahim Moola, Katlego
Molibeli (front) Annah Modiba, Tiego Vuma.

annual report 2004 10

 Streamlined and uniform procurement

development through partnership

Construction Procurement
Best Practice Library

The regulatory framework for public sector procurement in South Africa - highlighted are the cidb components
finalised during the year in review.

11 cidb - development through partnership

 Procurement

This year we were able to report on delivery in relation to the

June 2003 Growth and Development Summit agreement CIDB Act 38 of 2000:
stating that “…the construction industry is working with the cidb
to address the confusion amongst participants in construction The establishment and gazetting of construction
contracts and bring a modicum of standardization to the procurement best practice and the Standard for Uniformity
in Construction Procurement realizes the cidb's obligation
delivery process…” The report requested by Business Unity
to:
South Africa acknowledges the significant effort of private and
“determine and establish best practice that
public sector stakeholders. promotes procurement and delivery manage-
In 2003, the cidb convened a focus group of over 50 ment reform
industry specialists, practitioners and stakeholders, including “provide information to stakeholders on best
client representatives, to peer-review and refine: practice”
a) A Code of Conduct for all participants in the construction and “within the framework of the procurement
policy of government, promote the standardi-
procurement process, including the private sector.
sation of the procurement process with regard to
b) Construction Procurement Best Practice guidelines for the construction industry.”
public and private sectors.
These were published for comment in the government
gazette. Comment was reviewed by the focus group and the
cidb Board. The refined outcome has subsequently been Standard for Uniformity in Construction
published in accordance with the CIDB Act. Procurement: an overview
c) The Standard for Uniformity in Construction Procure-
ment The cidb Standard for Uniformity in Construction Procure-
In line with regulations promulgated by the Minister of ment establishes requirements for construction
Public Works on the 9th June 2004, the cidb has finalized and procurement that are aimed at bringing about stan-
dardisation and uniformity in procurement documentation,
published the Standard for Uniformity in Construction
practices and procedures. This Standard establishes
Procurement, which incorporates best practice. The regulations
minimum requirements which are consistent with the
and the standard reflect government's determination to
provisions of the regulatory framework for public
promote uniform procurement practice throughout the public
procurement. It provides the overarching framework for
sector.
the inviting of tender offers, for procurement documents
The Standard is aligned with National Treasury's regulations on and procedures.
Supply Chain Management (December 2003) and is The Standard references best practice and is published
underpinned by the Public Finance Management Act. cidb has in Government Gazette 26427 of 09 June. It is also
ensured that the standard is also embedded in the Toolkit available on the cidb website.
Delivery Management System which provides the platform for The cidb has worked with a focus group of industry
roll-out and capacity building throughout the public sector. experts to develop a library of best practices relating to
procurement in the construction industry.
The Construction Best Practice Library has been peer
reviewed by industry experts and is referenced in the
Standard for Uniformity in Construction Procurement and
in the Toolkit Delivery Management System. The Library
comprises best practices in the following categories:
• Procurement procedures
• Procurement documentation
• Contracting strategies
• Alternative dispute resolution
• Subcontracting arrangements
• Joint venture arrangements

The Best Practice Library is available on CD and can be

downloaded from the cidb website - www.cidb.org.za.

“Procurement arrangements bind the supply

chain and define the obligations, liabilities and
risks that link the parties together in the delivery
Delivery and Procurement Team. Osafo Gyimah, Bridgette Gasa,
process."
Linda Vabaza and Malcolm Pautz.

annual report 2004 12

Delivering the Code of Conduct

The construction industry in South Africa now has a Code of to have all parties committed and to do business only with those
Conduct for all parties engaged in construction procurement, who apply the code in all business processes.
including clients, the professions and all service providers. This Promoting the Code of Conduct is an industry wide
is a landmark achievement for industry development and challenge. cidb will ensure its distribution to all registered
transformation. It aligns industry and its partners with contractors and all clients that register projects. In cooperation
international standards for good corporate governance and the with the South African Institution of Civil Engineering, we have
provisions of the King Report 2002. The code was developed in embarked on workshops around the country to promote the
consultation with stakeholders through the procurement focus Code and the role of the professions in best practice procure-
group and was published in Government Gazette No. 25656 of ment.
October 2003. Our joint commitment must also translate into a programme
that supports the empowerment of SME's to know their “rights
responsibilities and risks” in construction contracts. The cidb
“3R's guide to contracts” produced last year provides a basic
tool for this purpose and has been much in demand from
code stakeholders.

of
CIDB Act 38 of 2000:
conduct
The CIDB Act mandates the cidb to establish and promote
for all parties engaged
in construction procurement
uniform and ethical standards “that regulate the
actions, practices and procedures of parties engaged
in construction contracts” and stipulates that:
“To promote uniform and ethical standards within the
construction industry the Board: must publish a code
October 2003 development through partnership of conduct for all construction-related procurement
and all participants involved in the procurement
process.”
The construction industry operates in a uniquely project-
specific environment, continuously combining different clients,
consulting professions, as well as different contractors and
subcontractors in a variable supply chain. Procurement Code of Conduct:
arrangements, which also vary considerably, bind this supply
chain and define the obligations, liabilities and risks that link the The six-point Code of Conduct deliberately avoids the pitfall
parties together in the delivery process. of detail. The Code states that the parties in any public or
The conduct of parties throughout the supply chain impacts private construction-related procurement should in their
on the ability of the construction industry to deliver value and to dealings with each other:
perform efficiently and competitively. A high standard of
conduct is essential to the growth, development and • Behave equitably, honestly and transparently.
sustainability of enterprises and to the objectives of • Discharge duties and obligations timeously and with
empowerment and transformation. Conduct impacts directly on integrity.
project costs, timely completion and delivered quality. • Comply with all applicable legislation and associated
The cidb Code of Conduct for construction represents an regulations.
important step in the management of integrity and the creation • Satisfy all relevant requirements established in pro-
of an environment within which business can be conducted in a curement documents.
fair and transparent manner. It also forms an essential first line • Avoid conflicts of interest.
of defence in combating the scourge of corruption, including the • Not maliciously or recklessly injure or attempt to injure
practice of fronting. The Act provides for enforcement of the the reputation of another party.
Code. But it is in the interests of a better construction industry
The Code has been published with a set of examples that
“Our joint commitment must also translate into illustrate good conduct and, by implication, conduct that
would breach this Code.
a programme that supports the empowerment of
The Code is available in hard copy and can be
SME's to know their 'rights responsibilities and downloaded from the cidb website.
risks' in construction contracts.”

13 cidb - development through partnership

 Delivery and capacity

Building public sector capacity

cidb has delivered on the strategy conceived last year for a the Department of Public Works. Our investment of effort has
systematic approach to improved delivery of public helped to leverage a R20 million capacity building programme
infrastructure. for 2004/05 that is supported by the European Commission in
The Infrastructure Delivery Management Toolkit has been cooperation with the Development Bank of South Africa.
developed in collaboration with National Treasury. Consultation In the year ahead, cidb resources will be severely tested to
with provincial treasuries and delivery departments has ensure our obligation to train the 13 Technical Assistants
brought the prototype Toolkit to completion. recruited for the pilot roll-out, to monitor success of the
The Toolkit provides a systematic guide to the full cycle of capacity building process, and to adapt and maintain the Toolkit
infrastructure delivery from needs identification, planning and and its integrity.
budgeting through to procurement, construction, handover and
maintenance. It provides a common platform for public sector
delivery which accounts for about 40% of construction
investment.
The Toolkit underpins the planned implementation of
government's Infrastructure Delivery Improvement Pro-
gramme (IDIP) that will be rolled out in a phased approach over
the next 2 years.

the infrastructure delivery

toolkit for the public sector
Pepi Silinga, Deputy Chairperson of the cidb with James Maseko,
Director-General of Public Works at the Construction Industry
Stakeholder Forum, 2003.

The Toolkit Delivery Management System:

The IT-based methodology will enable public-sector

delivery managers to:
development through partnership

The Prototype Delivery Management System • Design infrastructure & maintenance programmes
October 2003 using simple templates and guides to formulate
effective programme implementation plans
CIDB Act 38 of 2000: • Locate policy guidelines relevant to each delivery
stage
The Act mandates the cidb to: • Appropriately allocate budget in alignment with
“…determine and establish best practice that programmes
promotes improved public sector delivery • Identify and prioritise projects
management; promote uniform application of policy • Manage planning and the design of projects
with regard to the construction industry throughout • Procure professional services, goods and supplies
all spheres of Government;” and in this regard “develop • Manage construction procurement
and promote appropriate training programmes for • Oversee the implementation of projects and administer
public sector officials.” contracts
• Consistently report on progress using a Management
Information System.
The key strategy of the roll out programme is to facilitate the
The Toolkit incorporates the cidb Standard for Uniformity in
development of appropriate capacity in each identified
Construction Procurement and client procedures in terms
provincial department. An extensive induction, capacity
of contractor and project registration. It forms the basis for
building, mentoring and coaching programme on the Toolkit will
be initiated in key provincial departments. roll-out of government's Infrastructure Delivery and
It is particularly rewarding that our early conceptual work Improvement Programme, commencing in 2004.
has led to this programme and partnership, which is expressed "A holistic model that provides guidance for the
in a Memorandum of Understanding with National Treasury and management of public-sector processes.”
Dr Sean Phillips, who leads implementation of the
“a R20 million capacity building programme
Expanded Public Works Programme.
for 2004/05.”

annual report 2004 14

Shaping best practice for development

This year we have responded to government's focus on job

creation and poverty alleviation as embodied in the Expanded
Public Works Programme (EPWP). Using labour-based
construction methods, the EPWP will promote short-term work
opportunities and training in the delivery of national, provincial
and municipal infrastructure.
On the request of the EPWP we have started a process to
establish Labour-Based Best Practice Guidelines that extend
the job creation potential of existing guidelines. Building on the
work of the Inter-ministerial Task Team on Construction
Industry Development which preceded the cidb, our executive
has expanded the application of technologies and methods to
increase the employment generated per unit of expenditure.
A focus group of industry specialists and stakeholders has
reviewed and refined these guidelines with a view to their
publication and promotion during 2004.
Referring to the agreement reached by the social partners at
the Growth and Development Summit, Minister Sigcau has
highlighted “the special responsibility placed on the
construction industry to spearhead job creation and skills
development so that our growing economy is increasingly
accessible to all citizens and in turn is injected with the vigour
of expanding productive participation.”
Beyond the pressing need for job creation lies the challenge
of sustainable and improved employment. Enterprise con- Lietsiso Mohapeloa cidb Board member, at the Bloemfontein
solidation and growth are fundamental to meeting this preliminary Stakeholder Forum 2003 workshop.
challenge and will be fostered by the Construction Registers
Service as it begins to stabilize the market, providing a
framework for targeted enterprise development initiatives. The
service will also drive improved health and safety practices and Labour-Based Best Practice Guidelines in
client responsibility to ensure HIV/Aids awareness on development
construction projects.
It is generally accepted that employment intensive
CIDB Act 38 of 2000: methods are technically feasible for a wide range of
construction activities and, with the appropriate use of
equipment, can generally produce the same quality as
The Act defines best practice as “a desirable and
equipment-intensive methods.
appropriate standard, process, procedure, method
The cidb best practice guidelines establish desirable
or system in relation to the delivery process and the
and appropriate standards, processes, procedures and
life cycle of fixed assets.”
methods relating to the design and implementation of:

The Act tasks the Board to determine and establish best • Labour-based construction methods for earthworks.
practice that promotes national social and economic • Labour-based methods for materials manufacture
objectives including labour absorption in the covering:
construction industry, growth of the emerging sector, - precast concrete products using hand methods and
improved labour relations, positive safety, health and light equipment,
environmental outcomes. - stabilized adobe block walling.
• Labour-based construction technologies for open flow
channels, rubble masonry, dam and arch bridge
construction, roads and pavements.
Special responsibility is "placed on the • Procurement methods for implementing labour based
construction industry to spearhead job creation construction works projects.

and skills development so that our growing

The draft guidelines are available on the cidb website and
economy is increasingly accessible to all will be published and promoted in the year ahead.

citizens.” Stella Sigcau, Minister of Public Works

15 cidb - development through partnership

 Performance

Building a research and development agenda

In partnership with industry and academics the cidb held a Post

Graduate Student Conference as a step towards a national CIDB Act 38 of 2000:
research agenda for construction industry development.
The Conference received support from the provincial MEC The Act mandates the Board to “promote appropriate
for Public Works, Ms Gloria Barry and Minister Stella Sigcau, research” and “to develop, promote and update a
who engaged students and academics in a special imbizo on construction industry research agenda that defines
research issues and priorities. The generous contributions and national development priorities.”
commitment of industry players including FEM, Lafarge SA,
Coega, AAAMSA Group, UPE and the Peninsula Technikon
ensured the conference viability.
Thirty research papers highlighted current areas of
academic interest. The conference enabled greater focus of 1st post graduate student conference:
South Africa's intellectual capability on the critical challenges of
construction industry development. It provided students, The conference attracted 30 research papers from
researchers and practitioners with a unique opportunity to students, researchers and educational institutions across
network, share ideas and learn from each other's work. the country, with some papers co-authored by
We have taken the work of the conference forward to international researchers. These were peer reviewed by a
develop a research database. The second post graduate student
scientific and technical committee comprising academics
conference to be held in Cape Town will be facilitated in
from the Peninsula Technikon, the universities of Pretoria,
partnership with the University of Cape Town and cidb intends
Free State, Botswana, Witwatersrand, South Africa and
to present a survey of current tertiary research on the built
environment. Port Elizabeth.
A key challenge in development of the R&D agenda is the Three award-winning papers came from the University
limited availability of funding impairing the ability of industry, of Witwatersrand and one from the Peninsula Technikon.
government and clients to sustain a national built environment Papers were called for on the following themes:
research capability that stimulates innovation and underpins a
quality teaching capability. In collaboration with CSIR, the cidb Construction Demand Capacity
has developed a preliminary concept document to promote Empowerment Quality and Productivity
discussion on a research and development partnership by
Business Performance Procurement Strategies
government, private sector clients and industry.
Emerging Contractor Briefing, Planning and
Development Design
Construction Management Best Practice and
Benchmarking
Human Resource Safety, Health and
Development Environment
Information Technology Construction Industry
in Construction Policy
Value based approaches Role of clients and the
professions

The conference report and papers are available on the cidb

website.

“Technical capability and a culture of innovation

are the cornerstones for Research and
Development, driving academic institutions in
their quest to shape the human capital of industry.”
Status Report 2004

Ms Edith Nyandoro, Winner of Best Paper at 1st post graduate

student conference, Port Elizabeth.

annual report 2004 16

Construction Industry Indicators (CIIs)

The cidb framework of CII's has been developed with the Client Performance
support of CSIR Boutek and initial work by DPW. The framework
is based on a review of international benchmarking and Contractors: average number of days
performance indicators for the construction industry. A focus delay before payment
group of industry experts provided guidance to the cidb in the Prompt payment: The average number of days’
delay between certification of work and receipt of payment.
finalisation of indicators that encompass the specific objectives
100
of industry development in South Africa.
The summary results included in this report reflect selected 80
indicators measured for the 2001, 2002 and 2003 calendar
60
years. In 2001 the project based pilot measurement was based
on 250 returns from a mix of clients and contractors. In 2002 40

and 2003 the measurement was expanded to include the 20 Payment is the single
consulting professions, with a total of 900 and 1 250 returns overriding obligation of
0 clients in terms of their
received, respectively. <30 days 30+ days 60+ days 90+ days
contractual relationships
On the basis of the unfolding 2003 BEE strategy and 2001 2002 2003
with contractors and
scorecard, a company-based pilot measurement was consultants. The general
Consultants: average number of days
undertaken to measure broad based black economic contractual norm is 30
delay before payment days from receipt of
empowerment in the contracting sector for the year 2003. Fifty Prompt Payment: The average number of days invoice.
delay from receipt of invoice.
four firms were measured. The consulting professions were not
100
surveyed as a similar survey was being undertaken at the time
by SAACE. 80

The samples for the various measurements have been taken 60

from a cross-section of project or enterprise type and size, or
40
value. Except for the pilot BEE indicators, the 2003
measurement was based on a sample designed to provide at 20

least a confidence level of 90% and a reliability of 5%. Further 0

<30 days 30+ days 60+ days 90+ days
expansion of the sample is planned in order to increase the
2001 2002 2003
confidence level and reliability of future measurements.
The indicators are expected to show improvement over
time. However, experience elsewhere has shown that as Percentage (by number) of contracts
meeting the principles of modern contracts
performance improves, the expectation of participants also
Use of modern contracts: Types of contract considered to
grows in relation to some of the perception based indicators meet the principles of modern contracts were unaltered versions
of: GCC-90, GCC, NEC, JBCC 1991, JBCC 2000, and FIDIC.
such as defects and client satisfaction.
100

80

60

40

20

0
2001 2002 2003

Modern forms of contract are those that appropriately

allocate risks, liabilities and obligations and contain
administrative procedures that enable proactive
management of the delivery process.

As an annual snapshot in time the indicators

provide a benchmark against which, clients,
consultants and constructors can measure and
improve their own performance in relation to
Part of the cidb Status Report team (from left to right) Sheila Hughes,
Steve van Huyssteen (CSIR), Llewelyn van Wyk (CSIR), industry norm.
Maurice Makhathini and Lizette van Heerden.

17 cidb - development through partnership

 Benchmarking progress

Industry Performance Black economic empowerment

contracting sector

Percentage of contracts completed Average % dividend accruing to black owners

within or under budget across small, medium and large enterprises
Cost predictability: Was the project completed BEE ownership and accrued benefit: The graph illustrates that, for the
within the proposed budget? sample measured, the percentage black ownership is lower among
firms of high turnover than among firms of low turnover.
67
66 80%
65
64 60%
63
62 40%
61
60 20%
59 Many factors contribute to time and cost
58 predictability, including the more ac- 0%
<R2m R2m-R10m R10m-R50m >R50m
57 cepted factors of inclement weather,
2001 2002 2003 Enterprise turnover category (Rands)
unexpected founding conditions, etc.
Percentage of contracts completed on time Poor pre-contract planning and “scope BEE ownership excludes the listed contracting
or earlier creep”, late design, over-commitment companies, which express difficulty identifying
and poor implementation can be shareholders. Listed companies account for about 20% of
Time predictability: Was the project completed
within the proposed schedule? attributed to industry performance. Late total turnover in South Africa.
interim payments by clients can also be
68 a factor.

66

64

62 Average % black participation at

senior management level
60
Management equity: The percentage black senior management
at the level of contracts manager or above is lower among firms
58 of high turnover.
2001 2002 2003
80%
Percentage of contracts where the product
was relatively defect-free or better 60%
Defects: The percentage of contracts, where the product
was defect-free or relatively defect-free and where defects
had little or no impact on the client. 40%
70
20%
60
0%
<R2m R2m-R10m R10m-R50m >R50m
50
Enterprise turnover category (Rands)

40 Percentage procurement from

black owned enterprises
30
Procurement from black-owned and black-empowered
enterprises: The percentage of the value of goods and services
20 that was procured from black owned and black empowered
2001 2002 2003 enterprises by the contracting enterprise during the last financial year.
80%
Percentage of contracts with a high level Client satisfaction and the perception
of client satisfaction of defects are subjective indicators
60%
Client satisfaction: The percentage of contracts where clients had and the perception of performance
a high level of satisfaction with the process and outcome of the depends on the sophistication and
project and the service received. 40%
70 expectation of the client.
20%
60

0%
50 <R2m R2m-R10m R10m-R50m >R50m
Turnover category (Rands)
40
The results of the BEE pilot survey need to be treated with
30
some caution, particularly those relating to procurement
which appear high. Future measurement will need to
20
2001 2002 2003 ensure greater understanding and clarity in relation to the
Consultants Contractors survey questions.

annual report 2004 18

Mapping a path forward

This year we fulfilled our undertaking to deliver a structural

review of the industry and its development.
cidb Status Report 2004 is a milestone product of
stakeholder collaboration that takes stock of the state of the
construction industry and its preparedness for key
development challenges facing our country. The report has
been tabled in parliament and at NEDLAC to inform the
Construction Summit planned by government, business and
labour.
The Status Report offers a comprehensive view of current
dynamics impacting on the creation of an enabling environment
for construction industry development. The report draws on the
views and insights of a wide range of stakeholders who engage
in the delivery process and affect the performance of
construction. The views were obtained through a survey of over
200 representatives of key sectors, including: investors, public
and private sector clients, the built environment consulting
professions, contractors and subcontractors, organised labour,
academics, materials manufacturers and suppliers. Status Report 2004:
The cidb project team included associate researchers of Synthesis review of the SA construction industry
CSIR Boutek, associate practitioners and academics.
Interpretation of trends and challenges also took account of Status Report 2004 documents the role of the industry in
the June 2002 and November 2003 Stakeholder Forum the context of South Africa's growth and transformation
meetings. The views expressed in the survey were interpreted agenda.
against factual information, reports and research studies. Based on surveys, stakeholder perceptions, studies and
A “Strategic Group” of over twenty leading informants in factual data, it assesses the performance of the different
different sectors helped to shape the survey and its findings, sectors that influence the construction delivery process
and provided insight on interpretation. Many people provided and the development of the industry. Crosscutting findings
valuable comment on draft documentation. are organised within the strategic framework of growth,
In finalising the report, cidb has provided a documentary delivery performance, capacity and empowerment.
framework for future debate and engagement of the challenges In this context the report highlights a range of
ahead, including a value proposition that supports sustainable challenges and opportunities. It invites discussion by all
construction, the built environment needs of present and future stakeholders and endeavours to plot a path into the future.
society and the development of the industry and its people. A central challenge lies in the dispersed nature of the
industry and its client base requiring a convergence of
stakeholder focus for improved performance with regard to
CIDB Act 38 of 2000: product, process and people issues.
The way forward offers a crystallized perspective of
Status Report 2004 responds to the cidb's mandate: to actions and initiatives deemed necessary to advance
“facilitate communication between construction industry development from the platform created over the
industry stakeholders, all spheres of Government", past few years. It suggests measures to:
”, to publish “reports on the state of the industry” and • boost delivery capability and skills
• engender a culture of respect for people and pride in the
to “… provide strategic leadership to stakeholders
industry
for growth .”
• deliver sustainable empowerment
• implement an improved regulatory and procurement
framework
“The way forward offers a crystallised perspective • promote greater public and private sector partnership.

of actions and initiatives deemed necessary to

advance industry development from the platform
created over the past few years.”

19 cidb - development through partnership

 Into the future

The year ahead

The way forward presents new and exciting challenges to cidb

and all stakeholders as we roll out the development framework
created jointly over the past year. We will continue to expand
partnership with clients and constructors in our quest to shape
an enabling environment for growth, performance and
sustainable empowerment.
Central to this transforming environment is the
Construction Registers Service rolling out nationwide into late
2005. Our joint progress further equips stakeholders with
procurement best practice, a Code of Conduct and a Toolkit
infrastructure delivery management system to drive consistent
procurement and improved delivery capacity. We will establish Special thanks
benchmarks to measure progress.
Implementing the development framework is a collective It has been a great privilege to participate in the thirty Board
challenge for the year ahead. meetings that have guided the cidb's growth and progress over
the past three years. Every Board meeting has constructively
challenged our assumptions and outputs in order to validate the
strategic direction of construction industry development.
It gives me great pleasure to thank the Chairperson Brian
Bruce and the Deputy Chairperson, Pepi Silinga, the
Remuneration Committee led by Carl Grim, and all Board
members for leadership, wise advice and a commitment that
has extended way beyond the boardroom. I also wish to thank
the Minister of Public Works, Ms Stella Sigcau, and all
stakeholders for continued championship and support.
We will continuously evaluate progress to ensure that our
programmes are performing as the instruments of development
and transformation they are intended to be.

Spencer Hodgson
Chief Executive Officer

The staff of the cidb.

“Leadership and collaboration are needed to
Bottom left:
Maurice Makhathini, Linda enhance the capability and focus of all who
Vabasa and Kotli Molise.
engage in the delivery process; a focus to grow,
transform and nurture the national asset base of
our construction industry.”
Stella Sigcau, Minister of Public Works

annual report 2004 20

Corporate Governance Report

T
he cidb is a schedule 3A national public entity under the CIDB Board
executive authority of the Department of Public Works.
It is charged with the role of strategic leadership for
The Board of the cidb has a mandate to approve the annual
construction industry development. In this regard, the cidb
financial statements and assure the auditors of their integrity
has a comprehensive vision and programme that is concretized
and reliability. The Board also reviews the entity's corporate
in the annual strategic and business plans, in accordance with
performance and its levels of responsibility, communication and
the enabling legislation of the entity, (CIDB Act 38, 2000). The
accountability as a public body. This responsibility
operating policy of the cidb upholds the principles of corporate
encompasses approval of strategic plans, the review and
governance through its adherence to the PFMA, Treasury
monitoring of strategic deliverables, the determination of
Regulations and the advisory principles of the second King
internal control procedures, plus the appointment and
Report.
performance of the CEO.
The cidb Board, supported by an Audit Committee,
The Board is appointed by the Minister of Public Works and
Remuneration Committee, the CEO and the executive
members are selected for their range of complementary
leadership team ensure the effectiveness of the enterprise's
knowledge and skills, their public and private sector experience
good governance. Proper controls are in place to identify and
and understanding, and their ability to provide collective
report any material breakdown and ensure that corrective
leadership for construction industry development in accordance
action is taken.
with the entity's founding legislation. The members of the cidb
As part of the overall strategy to ensure that PFMA
Board serve a three year term as recommended by the enabling
requirements are met and good corporate governance policies
legislation. To ensure continuity, the CIDB Act requires that at
are adhered to, internal controls have focused on areas of risk
least one third of the Board should be re-appointed to serve a
management, accountability of assets, staff policies and sound
further term.
procurement practice as well as the reliability and integrity of
The Act requires the Board to meet at least four times per
the financial statements.
annum. However, to ensure its strategic role, the Board has
scheduled monthly meetings and during the financial year in
review has held nine meetings, providing effective direction to
the operation of the entity. The Audit and Remuneration
Committees meet three to four times per annum and as
necessary.

Board Members 2003 / 2004

The cidb Board consists of the following members, who were

appointed for a three-year term of office.

Non Executive Board Members Date of appointment:

Brian Bruce (Chair) 1 April 2001
Pepi Silinga (Deputy Chair) 1 April 2001
Carl Grim 1 April 2001
Mahlape Sello 1 April 2001
Khanyile Mlambo 1 April 2001
Cannon Noyana 1 April 2001
Sam Amod 1 April 2001
James Henrey 1 April 2001
Lietsiso Mohapeloa 1 April 2001
Rodney Milford 1 April 2001
Lydia Bici 20 Nov 2002
Mandla Ndlovu 20 Nov 2002

Executive members
Spencer Hodgson (CEO) 1 December 2001
The 30th cidb Board meeting. Executive staff by invitation

21 cidb - development through partnership

Breakaway session during the Construction Stakeholder Forum, 2003.

Resignations Date of resignation The committee's specific terms of reference include direct
Giovanna Fenster 30 September 2003 authority for consideration of and recommendation to the Board
on matters relating to general staff policy, remuneration,
In addition to the nine Board meetings held, Board members
bonuses, executive remuneration and review of service
have engaged a range of other duties including the Stakeholder
contracts and other benefits. The remuneration committee also
Forum, focus groups meetings, staff interviews, Remuneration
evaluated and approved staff salaries and performance
and Audit Committees, procurement panels and presentations
bonuses for the period ending March 2004.
at industry and stakeholder functions. Board members have
variously championed specific areas of cidb endeavour The Audit Committee is appointed by the board and is chaired
including the Construction Registers Service, procurement by an independent chartered accountant who is neither an
reform, delivery management, HIV/Aids, R&D, industry status, executive, nor a cidb Board member. The Committee further
including growth, capability and empowerment. includes 2 non-executive members and 2 board members.
Meetings are attended by the CEO, chief financial officer,
Attendance Other members of the Auditor General's office and members of the
at board Engagements Earnings internal audit unit. The functions of the audit committee are to:
meetings No. Of Days for Year • review the effectiveness of the internal audit function
1. Brian Bruce 8 6 R 21 318 • evaluate the annual financial statements
2. Pepi Silinga 6 5 R 15 664 • monitor internal control systems
3. Carl Grim 6 3 R 9 149 • agree the scope of the external audit by the Office of the
4. Mahlape Sello 6 1 R 9 052 Auditor-General
5. Khanyile Mlambo 5 1 R 4 895 • monitor compliance with the PFMA and Treasury
6. Giovanna Fenster 2 3 R 3 077 regulations.
7. Cannon Noyana 9 30 R 49 616
8. Sam Amod 7 11 R 17 464 Internal Audit Unit
9. James Henrey 8 23 R 20 759
10. Lietsiso Mohapeloa 5 9 R 15 369 The internal audit unit plays an important role in corporate
11. Rodney Milford 8 4 R 11 748 governance. cidb has outsourced this service to MSGM Masuku
12. Lydia Bici 4 1 R - Jeena Inc which has subsequently amalgamated with
13. Mandla Ndlovu 6 1 R 6 356 Pricewaterhouse Coopers. The function is mandated by the
Audit Committee and advises the Committee and the CEO. The
Remuneration Committee internal audit unit measures and evaluates the effectiveness
and application of policies, procedures, systems and processes
Carl Grim (Chair) designed to fulfill the requirements of the risk management
Mahlape Sello (Board member) policy. It also measures general compliance with governance
Rodney Milford (Board member) principles, regulation and the safeguarding of assets.
The internal audit unit presented its quarterly reports to the
The Remuneration Committee is comprised of 3 Board audit committee on 3rd June 2003, 7th October 2003 and 3rd
members appointed by the Board, who are tasked with the February 2004.
evaluation and review of human resource strategy and
operations. The CEO and the CFO attend meetings by invitation.

annual report 2004 22

 The cidb Board
from left to right (back): Rodney Milford, Cannon Noyana, Giovanna Fenster,
Brian Bruce (Chairperson), Carl Grim, Mandla Ndlovu, James Henrey, (front)
Lietsiso Mohapeloa, Spencer Hodgson (CEO), Lydia Bici, Khanyile Mlambo, Pepi
Silinga (Deputy Chairperson).

Inset: Mahlape Sello and Sam Amod.

External Audit Materiality Framework

The external audit for the period ending March 2004 was Related to the management of risk is the development of the
performed by a team from the Office of the Auditor General. Materiality Framework, as defined by Treasury Regulations and
the PFMA. This framework defines the varying levels of
Risk Management significance of any wasted resources whether through criminal
behaviour, negligence or fruitless expenditure. This develop-
As the accounting authority, the Board of cidb is accountable for ment of the Materiality Framework forms part of the cidb's
the process of Risk Management and the system of internal ongoing commitment to corporate governance. In accordance
control. This review includes regular monitoring of the risk with the PFMA, the Materiality Framework was submitted by
management policy and its effectiveness, together with the the Board for approval by the Minister of Public Works.
control policies of the organisation.
A comprehensive risk management process was once more
Executive Leadership Team
undertaken during the course of the year to effectively identify
and re-assess risk, thereby enabling management to adopt a
proactive stance to risk management and potential failures in This internal team consists of the Chief Executive Officer, the
controls, systems and the achievement of strategic objectives. Chief Financial Officer and three programme managers. The
To this effect each business unit developed its own risk team ensures that cidb business outputs are strategically
profile and these were consolidated and reviewed by aligned to enterprise objectives, and that measures are in place
independent risk management experts. The involvement of to assess outcomes and performance. It reviews and makes
each business unit results in an overall culture of risk awareness recommendations on business unit strategy and delivery, and
enabling management to identify and take action in terms of monitors budget expenditure.
risks related to both governance and delivery. The Leadership Team also reviews the human resource
The yearly risk assessments are reviewed by the Audit policies and procedures of the entity. These include the plans
Committee. A comprehensive risk assessment was undertaken for human resource equity, personal staff development and
on the contractors register system during the period under capacity building. The team provides leadership in promoting
review and tabled at the Audit Committee meeting of 3rd the values, commitment and ethics that underpin the
February 2004. organisation's mandate.

23 cidb - development through partnership

Code of Ethics and to build a committed and professional executive, capable of
delivering on the organisations key objectives. This capability
cidb believes in the principles of good conduct, honesty and has expanded significantly over the past year as a result of
several factors, including:
transparency. To this effect, it has adopted the following core
values that guide the behaviour and belief system of the • focused capacity building, including attendance by three
managers of the one-month intensive Construction
organization and to which the staff have committed:
Management Programme sponsored by industry and held
bi-annually
• To behave equitably, honestly and transparently
• attendance of a range of relevant workshops and seminars
• To discharge duties and obligations timeously and with
• continuous learning from engagement with industry role-
integrity
players in both cidb focus groups and in industry and
• To comply with all applicable legislation and associated
stakeholder events
regulations
• collaboration in the development of peer-reviewed papers
• To avoid conflicts of interest
presented at national conferences and in Tanzania, Russia
• To not maliciously or recklessly injure or attempt to injure
and Singapore, including an award-winning paper
the reputation of another party
• collaboration on the cidb SA Construction Industry Status
• To adhere to and promote the values of the cidb.
Report
• regular presentation and testing of cidb work in progress
These principles are discussed and reinforced at each
with industry and stakeholders.
individual's performance review.

Analysis of leave No. of days all

Health, Safety and the Environment
staff

The cidb is committed to ensure that employees work in a safe,

Sick Leave 83
healthy and clean environment. The company's activities at
Paternity Leave 5
present have no adverse effect on the environment. Any activity
Family Responsibility Leave 10
that may do so would be accompanied by a risk management
Study Leave 22
plan to ensure compliance with relevant regulations and
legislation. The cidb is aware of the importance of continuing
good environmental corporate governance. In the
refurbishment of its permanent accommodation we have
Employment Equity
endeavoured to implement the principles of sustainable
The cidb has committed to the principles of employment equity
construction through the reuse of materials, installation of
as prescribed in the Employment Equity Act, 55 of 1998.
water saving toilets and an energy efficient cooling system.
Accordingly the Board has applied principles of fairness and
In respect to HIV/Aids all employees have access to
equity when recruiting and appointing staff. The cidb has met its
awareness materials and precautionary medical advice upon internal employment criteria of 60% black and 30% women for
request. The cidb HIV/Aids Specification on the website the period under review.
provides guidelines for best practices in awareness and
information services, accessible to the construction industry
and all interested parties.
Overview of cidb Core Team

Disaster Management Age Spread Representivity

The cidb is aware of the importance of managing accidents in 27 - 34 35 - 46 47 - 57 Black Coloured Indian White Women
the workplace, and of external risk management regarding fire, 52% 26% 22% 65% 4% 13% 18% 61%
flood or personal injury. In the comming year, it will develop an
appropriate policy in this regard.

Human Capital

The cidb executive grew during the year from thirteen, to a total
of eighteen at financial year-end. It further employed 5
temporary staff members. One staff member resigned during
the period under review.
The cidb fosters and encourages personal development
plans in order to retain and nurture the best quality personnel l

annual report 2004 24

 Audit Committee Report

We are pleased to present our report for the financial year Evaluation of financial statements
ended 31 March 2004.
The Audit Committee has
Audit Committee members and attendance
• reviewed and discussed with the Auditor-General and the
The Audit Committee consists of the members listed hereunder, Accounting Authority the audited annual financial
who were appointed on 20 September 2002, and meets twice statements to be included in the annual report; and
per annum as per its approved terms of reference. During the • reviewed the Auditor-General's management letter and
current year three meetings were held. management response.

Name of member No. of meetings The Audit Committee concurs and accepts the conclusions of
attended the Auditor-General on the annual financial statements and is
of the opinion that the audited annual financial statements be
1 Prof Herman de Jager (Chairperson) 3 accepted and read together with the report of the Auditor-
(External member) General.
2 Mr Roy Parbhoo (External member) 3
3 Mr Thabo Pooe (External member) 3
4 Mr Carl Grim (Board member) 3
5 Mr Pepi Silinga (Board member) 2

Audit Committee responsiblity

The Audit Committee reports that it has complied with its

Chairperson of the Audit Committee
responsibilities arising from Treasury Regulation 27.1.1. The
6 July 2004
Audit Committee also reports that it has adopted appropriate
formal terms of reference as its audit committee charter, has
regulated its affairs in compliance with this charter and has
discharged all its responsibilities as contained therein.

The effectiveness of internal control

The system of internal control is effective as the audit report on

the annual financial statements, the internal audit reports and
the management letter of the Auditor-General have not
reported any significant or material non-compliance with
prescribed policies and procedures.

Discussion during a cidb Board meeting.

25 cidb - development through partnership

 Board Approval of the Financial Statements

The Board is responsible for the presentation to stakeholders of

the financial position of the entity at the end of the financial
year.

cidb Board members are responsible for the integrity of the

entity's annual financial statements and related information in
its annual report to parliament. In order for the Board to
satisfactorily discharge its responsibilities, there are a number
of procedures and controls in place to facilitate the role of the
Board in this respect.

Management has been delegated with the responsibility of

implementing systems of internal control and maintaining
accounting and information systems designed to provide
reasonable assurance as to the reliability of the financial
statements. These have been prepared in accordance with
South African Statements of Generally Accepted Accounting
Practice (GAAP).

The cidb receives transfer payments from the national

department of public works as per the MTEF. The cidb is
confident that it will remain a going concern in the year ahead
and that no event of significance has occurred subsequent to
balance sheet date.

The Auditor-General is responsible for auditing and reporting

on the financial statements and his report is set out on page 27.

The annual financial statements for the period ended 31 March

2004 are set out on pages 29 to 36. These statements were
approved by the Board on 6 July 2004.

Chairperson Chief Executive Officer

6 July 2004 6 July 2004 Pepi Silinga, Deputy Chairperson of the cidb Board
addressing stakeholders.

annual report 2004 26

Report of the Auditor-General

A U D I T O R - G E N E R A L

REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS OF THE CONSTRUCTION

INDUSTRY DEVELOPMENT BOARD FOR THE YEAR ENDED 31 MARCH 2004

1 AUDIT ASSIGNMENT

The financial statements as set out on pages 29 to 36, for the year ended 31 March 2004, have been audited in terms of
section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), read with sections 3 and 5 of
the Auditor-General Act, 1995 (Act No. 12 of 1995). These financial statements, the maintenance of effective control
measures and compliance with relevant laws and regulations are the responsibility of the chief executive officer. My
responsibility is to express an opinion on these financial statements, based on the audit.

2 NATURE AND SCOPE

The audit was conducted in accordance with Statements of South African Auditing Standards. Those standards require
that I plan and perform the audit to obtain reasonable assurance that the financial statements are free of material
misstatement.

An audit includes:
• examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
• assessing the accounting principles used and significant estimates made by management, and
• evaluating the overall financial statement presentation.

Furthermore, an audit includes an examination, on a test basis, of evidence supporting compliance in all material
respects with the relevant laws and regulations which came to my attention and are applicable to financial matters.

I believe that the audit provides a reasonable basis for my opinion.

3 AUDIT OPINION

In my opinion, the financial statements fairly present, in all material respects, the financial position of the Construction
Industry Development Board (CIDB) at 31 March 2004 and the results of its operations and cash flows for the year then
ended, in accordance with generally accepted accounting practice and in the manner required by the Public Finance
Management Act, 1999 (Act No. 1 of 1999).

4. APPRECIATION

The assistance rendered by the staff of the CIDB during the audit is sincerely appreciated.

J M Scott
for Auditor-General

Pretoria
26 July 2004

27 cidb - development through partnership

 Financial Statements

Contents
of the Financial
Statements

Balance Sheet 29

Income Statement 30

Statement of Changes in Equity 30

Cash Flow Statement 31

Notes to the Annual Financial Statements 31

Schedule to the Annual Financial Statements 36

annual report 2004 28

Financial Statements

BALANCE SHEET
AS AT 31 MARCH 2004 2004 2003

Notes R R
ASSETS

NON-CURRENT ASSETS 2 715 456 2 851 557

Property, plant and equipment 2 2 715 456 2 851 557

CURRENT ASSETS 4 092 365 3 251 101

Stock 3 - 51 76 1
Accounts receivable 4 716 255 9 74 320
Prepayments 5 2 543 252 1 740 980
Cash and cash equivalents 11 832 858 484 040

TOTAL ASSETS 6 807 821 6 102 658

EQUITY AND LIABILITIES

CAPITAL AND RESERVES 5 281 127 4 933 436

Accumulated surplus 5 281 127 4 933 436

CURRENT LIABILITIES 1 526 694 1 169 222

Accounts payable 6 736 648 823 476

Provisions 7 790 046 345 746

TOTAL EQUITY AND LIABILITIES 6 807 821 6 102 658

29 cidb - development through partnership

 INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2004 2004 2003

Notes R R
OPERATING INCOME

Transfers from Department of Public Works 20 086 858 13 181 000

Interest Received 317 768 496 048
Other income 8 2 042 1 734

Total Income 20 406 668 13 678 782

OPERATING COSTS ( 20 058 977) ( 11 182 576)

OPERATING SURPLUS FOR THE YEAR 9 347 691 2 496 206

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2004 Accumulated Surplus

R R

Balance at 31 March 2002 2 437 230 -

Surplus for the period ending March 2003 2 496 206 2 437 230

Balance at 31 March 2003 4 933 436 2 437 230

Surplus for the year ending March 2004 347 691 2 496 206

BALANCE AT 31 MARCH 2004 5 281 127 4 933 436

annual report 2004 30

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2004 2004 2003

Notes R R

CASH FLOWS FROM OPERATING ACTIVITIES 1 349 535 1 962 621

Cash generated by operations 10 1 031 767 1 466 573

Interest received 317 768 496 048

CASH FLOWS FROM INVESTING ACTIVITIES (1 000 717) (2 118 759)

Property, plant and equipment - acquired (1 000 717) (2 118 759)

Net (decrease) / increase in cash and cash equivalents 348 818 (156 138)

Cash and cash equivalents at beginning of the year 484 040 640 178

CASH AND CASH EQUIVALENTS AT END OF THE YEAR 11 832 858 484 040

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2004

1. ACCOUNTING POLICIES
The financial statements are prepared on a historical cost basis and incorporate the following principal accounting
policies, that have been applied on a basis consistent with the prior period.

These financial statements comply with generally accepted accounting practice.

1.1 Property, plant and equipment

Assets costing less than R2 000 are written off in the year of acquisition.
Property, plant and equipment are stated at historical cost less depreciation. Depreciation is calculated on a
straight-line basis at rates considered appropriate to reduce the cost of the assets over their estimated useful
lives.

The depreciation rates are as follows:

Computer equipment 33.33%

Office equipment 20%
Furniture and fittings 20%
Books 33.33%

1.2 Cash and cash equivalents

This figure includes monies held in call accounts as well as cash in the bank and cash on hand.

31 cidb - development through partnership

 1.3 Revenue

Revenue comprises of funds transferred from Department of Public Works.

1.4 Expenditure

All amounts are recorded exclusive of value-added tax (VAT).

1.5 Financial instruments

Financial instruments carried on the balance sheet include cash and bank balances, receivables and payables.

Measurement
Financial instruments initially measured at cost.
Subsequent to initial recognition, these instruments are measured as set out below:
• Accounts receivable are stated at cost
• Cash and cash equivalents measured at cost plus interest income as it accrues
• Financial liabilities recognised at cost namely original debt less principal payments

Credit Risk - where one party to a financial instrument fails to discharge an obligation and cause the other party
to incur a financial loss.
Interest rate risk - where the value of a financial instrument will fluctuate due to changes in interest rates.
Offsetting of financial assets and liabilities - not recognised as a legally enforceable right, and will not be settled
on a net basis nor will the asset be realised or the liability settled simultaneously.
Gains and losses that arise from a change in the fair value of financial instruments are included in the income
statement in the period in which it arises.

1.6 Provisions

Provisions are recognised when the CIDB has a present legal or constructive obligation as a result of past
events; it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are reviewed at
each statement of financial position date and adjusted to reflect the current best estimate.

annual report 2004 32

2. PROPERTY, PLANT AND EQUIPMENT

2004 2003

R R

Cost Accumulated Net Cost Accumulated Net

Depreciation Book Value Depreciation Book Value

Computer equipment 2 451 186 (1 205 173) 1 246 013 2 064 114 ( 442 542) 1 621 572
Furniture and fittings 1 234 162 ( 277 018) 957 144 672 209 ( 62 193) 610 016
Office equipment 625 169 ( 151 862) 473 307 573 477 ( 31 481) 541 996
Books 116 954 ( 77 962) 38 992 116 954 ( 38 981) 77 973

4 427 471 (1 712 015) 2 715 456 3 426 754 ( 575 197) 2 851 557

The carrying values of property, plant and equipment can be reconciled as follows:

Carrying value Additions Depreciation Carrying value

at beginning of year at end of year

Computer equipment 1 621 572 387 072 ( 762 631) 1 246 013
Furniture and fittings 610 016 561 953 ( 214 825) 957 144
Office equipment 541 996 51 692 ( 120 381) 473 307
Books 77 973 - ( 38 981) 38 992

2 851 557 1 000 717 ( 1 136 818) 2 715 456

2004 2003

R R

3. STOCK

Stock of stationery on hand - 51 761

4. ACCOUNTS RECEIVABLE

Debtors Control 159 313 -

Deposits - 79 257
VAT refunds receivable 556 942 895 063

716 255 974 320

5. PREPAYMENTS

Rentals prepaid 2 543 252 1 740 980

Rentals prepaid are in respect of a lease agreement

entered into with the lessor whereby the entity undertakes
to refurbish the offices in lieu of 5 years free rental

33 cidb - development through partnership

 2004 2003

R R

6. ACCOUNTS PAYABLE

Trade payables 763 648 823 476

7. PROVISIONS

Carrying amounts Additional Amounts Carrying amounts

at beginning of year provisions applied at end of year

Audit fees 112 000 109 935 (132 216) 89 719

Bonus 96 464 344 581 (96 464) 344 581
Accruals - 153 398 - 153 398
Payroll liabilities 43 931 68 870 (43 931) 68 870
Provision for leave 93 351 40 615 (488) 133 478

345 746 717 399 (273 099) 790 046

8. OTHER INCOME

Income from 3R's Guide ( Rights, Responsibilities and Risks) 2 042 1 734

9. OPERATING SURPLUS FOR THE YEAR

Operating surplus is stated after taking into account the following items
of expenditure:

Auditors' remuneration
• Fees for audit
- current year provision 123 474 112 000
- prior period over provision (6 025) 24 814

Board expenses 184 467 189 474

Depreciation 1 136 818 575 197

- Computer equipment 762 631 442 542
- Furniture and fittings 214 825 62 193
- Office equipment 120 381 31 481
- Books 38 981 38 981

Employee costs 5 538 607 3 055 951

- CEO 630 856 585 205
- Other personnel 4 907 751 2 470 746

Professional services 9 455 779 5 208 596

Staff training 125 464 38 536
Staff recruitment 391 376 345 905

Rentals paid in respect of :

- Premises 757 575 170 200
- Telephone and other - 10 225

Other operating expenses 2 351 442 1 451 678

annual report 2004 34

 2004 2003

R R

10. RECONCILIATION OF SURPLUS TO CASH GENERATED BY OPERATIONS

Operating surplus 347 691 2 496 206

Adjustment for items not affecting the movement of cash
- Depreciation 1 136 818 575 197
Less: Interest received ( 317 768) ( 496 048)

Operating surplus before working capital changes 1 166 741 2 575 355
Working capital changes ( 134 974) (1 108 782)

Increase in stock, accounts receivable and prepayments ( 492 446) (2 206 315)
Increase in accounts payable 357 472 1 097 533

Cash generated from operations 1 031 767 1 466 573

11. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash on hand and

balances with bank including investments in call accounts.

Cash and cash equivalents included in the cash flow

statement comprise the following balance sheet amounts:

Bank 208 432 381 679

Cash on hand 1 671 3 975
Investments 622 755 98 386

832 858 484 040

12. COMMITMENTS

Amounts approved and contracted - outstanding

contractual obligations at year end. 2 593 100 6 784 794

Capital commitments - 270 331

Current commitments 2 593 100 6 514 463

13. INCOME TAX EXEMPTION

The cidb is exempt from income tax in terms of section 10 (1) (cA) (i) of the Income Tax Act

14. FINANCIAL INSTRUMENTS

Credit risk
Financial assets that could subject the Board to credit risk consist principally of cash at bank and cash equivalents, deposits and
accounts receivable.
The Board's cash equivalents are placed with high credit quality financial institutions. Accounts receivable is presented at cost.

Interest Rate Risk

The cash flow is not significantly affected by fluctuations in interest rates. All cash is placed with reputable financial institutions.

Fair values
The carrying amount of cash and cash equivalents, deposits, accounts receivable and accounts payable approximated their fair
values due to the short-term maturities of those assets and liabilities.

35 cidb - development through partnership

SCHEDULE TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2004
2004 2003

R R
OPERATING COSTS

Audit fees - external

- provision for current year 123 474 112 000
- prior period over provision ( 6 025) 24 814
Audit fees - internal 83 225 -
Advertising 17 600 20 174
Bank charges 11 368 15 009
Board member expenses 184 467 189 474
Computer expenses 288 505 110 586
Conferences and seminars 180 118 159 886
Depreciation 1 136 818 575 197
Interest paid - -
- bank overdraft 333 338
- late payment to suppliers - 173
Insurance 121 203 39 459
IT service 71 078 52 197
Legal fees 3 250 4 200
Levies 36 855 16 641
Office supplies 45 318 13 873
Printing, stationery and postage 247 073 43 667
Professional services 9 847 155 5 593 037
Publications, books and subscriptions 158 337 270 380
Rent/Rates/Electricity/Security 757 575 180 425
Repairs, maintenance and cleaning 134 507 5 625
Salaries 5 153 411 2 883 656
- bonus 344 581 96 464
- leave pay 40 615 75 831
Sponsorships 24 500 -
Staff training & welfare 125 464 -
Telephone 327 187 130 152
Traveling and entertainment 600 985 569 318

20 058 977 11 182 576

annual report 2004 36

Members of the Stakeholder Forum

During 2004 cidb will call for nominations to appoint new Stakeholder Forum members as required by legislation.

Sector Nominating Organisation Full Name

Academic Institutions Department of Construction Management, University of Prof JJ Smallwood

Port Elizabeth
South African Subcontractors Association Prof PD Rwelamila
Technikons for Programmes in the Building Construction Industry Mr M Massyn
Pretoria Technikon Mr MJ van Rensburg
University of Pretoria Prof E Horak
Prof DG Brümmer
University of Stellenbosch Prof F Hugo

Contractor Employer Building Industries Federation South Africa Mr B van Breda

Bodies Mr NF Maas
Mr NL Klopper
Mr PC Fourie
Mr SD Moffat
Mr R Lavarinhas
Mr G Roberts
Mr CH Waterson
Eastern Cape Master Builders Association Mr GB Steele
Mr JS Strydom
Gauteng Master Builders Association Mr P Rude
Dr HKJ MacDonald
South African Federation of Civil Engineering Contractors Mr BJ Westcott
South African Subcontractors Association Mr H Rademan
Southern African Institute of Steel Construction Dr H de Clercq

Emerging Contractors African Builders Association of South Africa Mr C Kadwa

Black Construction Council Mr SL Moleshiwa
Mr S Sibiya
Black Contractors Federation Mr K Dlamini
Mr J Shibambo
Mr MJ Skosana
Mr C Jiyane
Greater Soweto Business Chamber Mr B Makhetha
NAFCOC - Limpopo Mr TT Tebeila
South African Women in Construction Ms KM Choma
Ms P Siphayi
Ms TH Manana
Black Construction Council - North West Province Mr SJ Marumole

Organised Labour Building Construction and Allied Workers' Union Mr JK Mpe

National Union of Mineworkers Ms MC Ikaneng

Financial Institutions Glenrand MIB Ltd Mr DHH Campbell

Khula Enterprise Finance Ltd Mr M Mothibedi
Mr T Makhetha
SME Investments Dr DHH Randall
Theta Investments Mr P Allsopp

37 cidb - development through partnership

Sector Nominating Organisation Full Name

Local Government Individual Cllr SS Mhlongo

City of Tshwane Mr KC Rosenberg
Ethekweni Metro Mr K Barnett
Mr N Macleod

Material Suppliers Aggregate and Sand Producers Association of South Africa Mr N Pienaar
Association of Architectural Aluminium Manufacturers of
South Africa Mr HA Schefferlie
South African Cement Producers Association Dr GRG Grieve
Southern African Bitumen Association Mr PA Myburgh
Waterproofing Federation of Southern Africa Mr CL Tintinger

Public Entities Agrément South Africa Mr TT Knoetze

National Home-builders Registration Council Mr PN Makgathe
Transportek (CSIR) Mr PJ Hendricks
Independent Development Trust Mr M Msiwa
Airports Company of South Africa Mr JR Neville
Construction Education and Training Authority Mr TTC Dlamini

Private-Sector Client National African Federated Chamber of Commerce and Industry Mr J Mbetse
Bodies South African Property Owners’ Association Mr A Diepeneroek

Professions Association of Construction Project Managers Mr C Israelite

Chartered Institute of Building [SA] Mr BJ Hindle
Engineering Council of South Africa Mr M Deeks
Mr B Havenga
Institute of Municipal Engineers of Southern Africa Mr LV Naude
South African Council for the Quantity Surveying Profession Prof G le Roux
South African Council for the Architectural Profession Ms R Naiker
South African Association of Consulting Engineers Mr HP Silbernagl
Mr G Pirie
South African Federation of Civil Engineering Contractors Mr RA Saxby
Mr HP Langenhoven
South African Institute of Civil Engineers Mr DB Botha
Mr TT Goba
Association of South African Quantity Surveyors Mr RL Chauke
Mr O Narker
South African Institute of Architects Mr LV van Wyk

Provincial Government Department of Public Works - Limpopo Dr S Phillips

Department of Public Works - Gauteng Mr C Mthombeni

National Government National Treasury Mr WM Dachs

Department of Public Works Mr G Damstra

cidb thanks all stakeholders for their contribution during the past year.

annual report 2004 38

Celebrating 10 years of democracy
development through partnership
Construction Industry Development Board
Tel: +27 (0)12 481 9030
Fax: +27 (0)12 343 7153
E-mail: [email protected]
Website: www.cidb.org.za
PO Box 1027, Brooklyn Square, 0075
Pretoria, South Africa
Registers Helpline: 0860 103 353