TRAINING AND DEVELOPMENT

Building capacity to promote professionalism, and in turn close the infrastructure gaps and promote a balanced economic infrastructure

development.

Author & Presenter: Revona Alice Botha, Pr. Techni. Eng, Pr. CPM

Managing Director (Robus Engineering Training Services) & CEO (Bamboo Rock - Engineering Construction)

07 October 2015

1. INTRODUCTION

Infrastructure Built Environment (Design, Supply & Construct)

Systems Engineering - Systems Development Life Cycle (SDLC)

Asset Creation Project Value Chain - Project Life Cycle (PLC)

o Project Management Principles; Safety, Health, Environmental, Risk and Quality (SHERQ)

Management; Project Delivery - Cost, Time & Quality

A Typical Project Labour Force Charter Required For SD&L (PLC) – MATRIX (Link)

Functions across the asset creation project value chain ; Case Study: HV & MV

Substation construction - 103 functions identified over a single major engineering project &

30 Legal Appointments

Statistics SA - Population, Employment & Registered Professionals (CBE)

Population: Labour Force (15-64yrs) - Employment, Unemployment & Not Economically

Active;

Registered Professionals – CBE & 6 Councils

Infrastructure Spending:

Budget 2015 (SONA) ; Criticism – Leadership; Challenges

Building Capacity & Professionalism: Dimensions

Career Path Development & Enterprise Development

Building Capacity & Professionalism: What Can be done?

2. CONCLUSION

Building Capacity for Sustainability and Growth

Promote Professionalism – Role responsibilities and organizational goals; direction

for accomplished; standards and principles; coaching, intervention, and support;

build a culture of accountability

Closing the Infrastructure gaps - engineering can provide a way forward

Promote a balanced Infrastructure Development – segregation of duties (IDoW) and

grow professionalism/expertise; effective spend (budget)

Failing to respond to Professionalism – Loss of Opportunity:

Increase in Cost / Decrease in Quality / Increase in Time

ASSET CREATION PROCESS Project Life Cycle (PLC) the project life cycle encompasses all the

activities of the project

INFRASTRUCTURE BUILT ENVIRONMENT (DESIGN, SUPPLY & CONSTRUCT)

De

sig

n

System Investigation

System Analysis

Initiation (Identifying the Need/Opportunity)

System Concept Development

(Defines scope or boundaries of the concept: Cost

Benefit, Analysis, Risk, Management Plan &

Feasibility Study)

Planning (Develop Project Management Plan)

Requirement Analysis (Analyse User needs &

develop user requirements)

Design (transforms detail requirements into

complete detailed systems – focus on how to deliver

the required function)

Development (acquiring and installing systems

environments, creating & testing databases

preparing test case procedures, test files, coding,

test readiness review & procurement activities)

Integration & Testing (includes implementation

and resolution of problems identified)

Training and Transition

Operations and Maintenance (Tasks of the how)

Disposition (end-of-system activities)

SYSTEMS ENGINEERING Systems Development Life Cycle (SDLC):

Realizing Product Requirements

HARD SYSTEM – Engineering Application /

Computer System development

SOFT SYSTEM - Approach to Organizational

(Business) Process modelling

Netw

ork

Asset

Cre

ati

on

R

eal T

ime

Bu

sin

ess:

Deliv

ery

PLANNING (New)

Network: Master Plan

Network: Development Plan

----------------------------------------------

PLANT (Existing)

Refurbishment: Master Plan

Refurbishment: Development Plan

-----------------------------------------------

PROJECT ENGINEERING

Preliminary Design

Detail Design Package

PROCUREMENT (Long Lead Items)

----------------------------------------------------------

TENDERING

----------------------------------------------------------

PROCUREMENT (Short Lead Items)

PROJECT MANAGAMENT

--------------------------------------------------------

CONSTRUCTION MANAGEMENT

---------------------------------------------------------

CONSTRUCTION

Monitor Design /

Defects (Latent)

----------------------------------------------------------

COMMISSINING

Monitor Commissioning

---------------------------------------------------------

PLANT

Database / Monitoring Performance /

Maintenance Plan

-----------------------------------------------

OPERATIONS & MAINTENANCE

Training & Transition

-----------------------------------------------

DISPOSAL (RECYCLING)

Co

nc

ep

tua

l

(Pla

nn

ing

) E

xe

cu

tio

n (

Co

ns

tru

cti

on

)

Clo

se

-Ou

t

PROJECT MANAGEMENT PRINCIPLES

Project INTEGRATION

Project SCOPE Management

Project TIME Management

Project COST Management

Project QUALITY Management

Project HUMAN RESOURCES Management

Project COMMUNICATION Management

Project RISK Management

Project CHANGE CONTROL Management

COST

TIME QUALITY

SA

FE

TY,

HE

ALT

H, E

NV

IRO

NM

EN

TA

L, R

ISK

&

QU

AL

ITY

(S

HE

RQ

) M

AN

AG

EM

EN

T

A TYPICAL PROJECT LABOUR FORCE CHARTER REQUIRED FOR SD&L (PLC)

CASE STUDY:

Link: TYPICAL FUNCTIONS IDENTIFIED OVER A PROJECT LIFE CYCLE – 103 FUNCTIONS + 30 LEGAL APOINTMENTS (An example of a matrix compiled to map the functions (activities)

over the Asset Creation Project Life Cycle of a single HV/MV substation construction project, using the 21 Point System Application (Check)

High Level: Activities

103

Functions

IT 3

Legal Authorities 8

Land &Rights (L&R) 3

Customer Executive 1

Supply Chain Manager 4

OEM (Design & Supply) 3

Housekeeping (Site Camp) 3

Engineering Design

(Engineer/Technologists/Technician) 15

Project Management 6

Installation & Maintenance: Facilities & Plants 15

Security 2

Fencing 3

Environmental 2

Quality 2

Health & Safety (H&S) 8

Practicioners 2

Other Support Services 19

Training Department (SD&L) 4

To achieve success in optimise capacity building, is an Effective Integrated Programme for Identification of Work (IDoW)

AMEU Training and Development: Building Capacity

STATISTICS - POPULATION, EMPLOYMENT & REGISTERED PROFESSIONALS: SA (2012 - 2015 1st Quarter) & CBE JUNE 2014

Ave 65% of Labour Force (only 29%

Employed -Economically Active)

*1/3 of population expected in 2015 < age of 18 (30% < 15 years)

% Number of Registered Professionals by Race & Gender - June 2014

Gender African White Indian Coloured Totals Gender African White Indian Coloured

Male 3 859 20 563 1 585 549 26 556 Male 84% 97% 92% 94%

Female 759 547 146 33 1 485 Female 16% 3% 8% 6%

Total 4 618 21 110 1 731 582 28 041

% 16,5% 75% 6,2% 2,1%

Gender African White Indian Coloured Totals Gender African White Indian Coloured

Male 885 4 123 451 453 5 912 Male 93% 77% 85% 91%

Female 71 1 263 80 44 1 458 Female 7% 23% 15% 9%

Total 956 5 386 531 497 7 370

% 13% 73% 7% 7%

Gender African White Indian Coloured Totals Gender African White Indian Coloured

Male 257 1 733 100 54 2 144 Male 94% 99% 95% 93%

Female 17 26 5 4 52 Female 6% 1% 5% 7%

Total 274 1 759 105 58 2 196

% 12% 80% 5% 3%

Gender African White Indian Coloured Totals Gender African White Indian Coloured

Male 242 1 170 127 30 1 569 Male 73% 85% 86% 94%

Female 88 211 21 2 322 Female 27% 15% 14% 6%

Total 330 1 381 148 32 1 891

% 17% 73% 8% 2%

Gender African White Indian Coloured Totals Gender African White Indian Coloured

Male 112 955 42 43 1 152 Male 65% 85% 76% 78%

Female 60 169 13 12 254 Female 35% 15% 24% 22%

Total 172 1 124 55 55 1 406

% 12% 80% 4% 4%

Gender African White Indian Coloured Totals Gender African White Indian Coloured

Male 1 84 - - 85 Male 100% 52% 0% 0%

Female - 77 2 1 80 Female 0% 48% 1% 100%

Total 1 161 2 1 165 Total

% 0,6% 98% 1,21% 0,6%

African White Indian Coloured Totals Male Female

0 1 0 0 41 069 91% 9%

ECSA BY RACE ECSAP BY GENDER

SACAP BY RACE SACAP BY GENDER

SACLAP BY RACE SACLAP BY GENDER

SACPCMP BY RACE SACPCMP BY GENDER

SACQSP BY RACE SACQSP BY GENDER

SACPVP BY RACE SACPVP BY GENDER

Total Professionals - December 2014

0,3

% o

f E

mplo

yed

(Econom

ically

Active)

Population 15-24yrs 10 272 10 281

Labour Force 2 523 2 853

Employed 1 291 1 418

Unemployed 1 231 1 435

Not Economically Active 7 750 7 428

‘000 ‘000 ‘000 ‘000

Labour Force: Population 15-64 yrs 34 405 35 022 35 643 35 799

Labour Force 19 233 20 007 20 228 20 994

1) Employed 14 524 15 177 15 320 15 456

Formal Sector 10 266 10 773 10 911 10 796

Informal Sector 2 351 2 446 2 448 2 483

Agriculture 718 713 742 891

Priviate households 1 189 1 244 1 219 1 288

2) Unemployed 4 709 4 830 4 909 5 535

3) Not Economically Active 15 172 15 015 15 415 14 805

Discouraged work-seekers 2 301 2 200 2 403 2 397

Other (not economically active) 12 870 12 815 13 012 12 408

Rates(%)

Unemployment 25 24 24 26

Employment/population ratio 42 43 43 43

Labour force participation rate 89 57 57 59

4th Quarter 4th Quarter 4th Quarter 1st Quarter

2012 2013 2014 2015 (Est)

‘000 000 ‘000 000 ‘000 000 ‘000 000

52,27 52,98 53,15 53,49

TOTAL POPULATION

Infrastructure Delivery Management System (IDMS)

The CBE & the 6 Councils – promoting the involvement of built environment professionals in

improved service delivery, in turn makes it critical for the built environment professionals involvement

to embrace the IDMS as a government tool to enhance service delivery.

INFRASTRUCTURE SPENDING – BUDGET 2015 (SONA)

Government Spend - R813 billion ( over the next 3 years)

Transport and Logistics : R339-billion (42%)

Energy : R166-billion (20%)

R62-billion for Medupi, Kusile and grid projects to revamp transmission and substations.

Water & Sanitation : R117-billion (14%)

Moloto Road (Gauteng): R1.1-billion upgrade

Health Facilities (built, upgrading & maintenance): R16.6-billion

Education Department (schools meet basic norms and standards - replacing old, unsafe or inappropriate school structures) - R7.4-billion school infrastructure backlogs conditional grant

2015/16 financial year – expected capital expenditure programme - R274 billion

• Infrastructure challenge goes beyond energy constraints.

• National Development Plan - emphasises - South Africa to improve its economic infrastructure (roads and transport, energy, water and sanitation)

“A major criticism of the government’s infrastructure development programme is that it is riddled with poor management leading to delays and

cost-overruns” and poor quality.

*Basically means lack of project management, to satisfy the criteria of a successful infrastructure project delivery “for sustainability & growth” – within cost, budget and quality

Leadership (Management) Lacks: o Professionalism

o Sound knowledge to project management (exposure to different type of projects) – experience will learn every project is unique (the risk exposure determines the project

approach)

o Identification of Challenges/Risks – to devise a coherent approach to overcome associated risks.

o Providing vision and motivation and to act as the change agent.

o “Poor leadership” can lead towards corporate insolvency.

o Leaders are “in a state of denial.”

o Lack of Character: attributes encompassing ethics ( no adherence to a Code of Conduct)

o Lack of Vision: vision is not in alignment with the corporate strategies and targets

o Lack of Execution: deploying the necessary resources to ensure that the largest risks are adequately managed, and/or that the biggest opportunities are exploited to avoid failure.

o No Innovation: “Innovation must be mission critical”

o Poor Professional Advice: All entrepreneurs and CEOs require quality professional advice. “No man is an Island,” so there is no excuse to having a “blind spot” to support

limitations or added recommendations to strengthen ones’ knowledge or wisdom in making informed decisions. It is pure arrogances not to recognize the need for advice that has

led many companies down the wrong path.

o Failure to Attract and Retain Talent: great talent attracts more talent (build on it).

Lack of Management Depth: management lack adequate skills – holistic / systems approach

Ultimately lacks decision-making

INFRASTRUCTURE SPENDING – CHALLENGES

Gaps – Challenges!!!

Employment by Occupation

Manager 1 230 1 337 1 252 8%

Profession 893 654 782 5%

Technician 1 637 1 467 1 419 9%

Clerk 1 624 1 750 1 670 11%

Sales & Services 2 298 2 448 2 449 16%

Skilled Agriculture 75 94 83 1%

Craft & Related Trade 1 847 1 957 1 873 12%

Plant & Machine Operator 1 251 1 315 1 324 9%

Elementary 3 310 3 356 3 600 23%

Domestic Worker 1 012 943 1 009 7%

'000 '000 '000

Employment by Industry 15 177 15 320 15 456 29%

Agriculture 713 742 891 6%

Mining 426 427 443 3%

Manufacturing 1 766 1 749 1 779 12%

Utilities 127 104 143 1%

Construction 1 204 1 334 1 322 9%

Trade 3 224 3 247 3 046 20%

Transport 961 952 899 6%

Finance & Other Business

Services 2 037 2 039 2 195 14%

Community & Social Services 3 470 3 501 3 450 22%

Private households 1 244 1 219 1 288 8%

C

A

P

A

C

I

T

Y

……

C

A

P

A

C

I

T

Y

STATS: Contractors; Black Ownership (50%+) by

Financial Grade

Grade Black-Owned (50%+)

9 23%

7 & 8 61%

5 & 6 80%

2 to 4 92%

Contractors; BB-BEE Level by Financial

Grade; Level 3+ and Level 4+

Grade 3+ 4+

9 65% 91%

7 & 8 67% 83%

5 & 6 84% 95%

2 to 4 91% 99%

1. Infrastructure Spend R 813 Billion vs. Capacity (Labour Force – actively

employed, 29 % of entire population) vs. growing economy

2. Growing economy vs. Infrastructure backlog vs. skills shrinking

3. Growing Population: 53,5 Million –

• Labour force 67% :

o 29% Employment & 38% (Unemployed & Economically Inactive)

• 15-24 yrs: 86% (Unemployed & Economically Inactive)

• 1/3 of population expected in 2015 < age of 18 (30% < 15 years)

5. Registered Professionals

• 41,069 Members (0,08% of population & 0,3% of Employed Labour

Force)

6. Technology

• New build – refer Medupi cost escalations & upcoming Nuclear Power

Station

• Ageing Infrastructure (Upgrade & Refurbishment)

• Obsolescence – South Africa moving backwards (as country still

struggles with existing technology)

• Industrialization (Local Content)

7. Supply Chain

• Procurement

• PPPFA vs. Capacity of black participation

o Tendering (Open vs. Close vs. Set-aside)

o Local Content (EPWP, NYDA, Universities & Colleges)

o Skills Development & Learning (*Transfer)

Development Plan – exposure + timing + opportunity

(Emerging / Entrepreneur / Professional)

Coaching & Mentoring,

Evaluation, Monitoring and Control

o Equity in workforce (Segregation of duties) – Identification of

Work

8, Leadership/Management

BUILDING CAPACITY & PROFESSIONALISM: DIMENSIONS (CAREER PATH DEVELOPMENT)

Learner

Gr12

Youth (Student)

4yrs

Innovator

3yrs Entrepreneur

1-2yrs

Developer

3yrs

Advisor/Consultant

3 yrs.

Innovation

Evolution of Capacity Building: • Human Aspect

• Professional Aspect (Benchmarking & RPL)

• Building: Business Aspect (Most Influence)

Strategizing

Life Orientation

Start at the Start

(Learning Institutions -

Schools)

Optimize Value

Integration

Rapid Change

Environment

(Conduct)

Independency

Demands

Spending

Access

Control

Good & Services

Segregation

Equity/Balance

Tools (Cost &

Consequences)

Diversify

Elements

Technology

Management

Innovation Behaviors Population Procurement

(Industrialization)

Economy

Legislation and

Regulation

Rise of Emerging

Markets

"Globality" Phenomenon/Patterns

Demographic

Shifts

Work Models

Re-design

Financial

Crisis effects

Adoption Ownership – Take Responsibility

Influence Capacity to have an effect

Shape Outline and Form

Guidance

Differentiator

Education

Exploration

Implementation

Create an Enabling

Environment for

Development

Success =

Exposure +

Timing (12yrs)

+ Opportunity

Graduate / Artisan

Candidate

Associate

Professional/Expert

Member/Owner

Operations & Maintenance

Industrialization

Technology Management

Engineers

Tools

Optimize Value

Social Spending

Cultivate

Capacity Building

Entr

ep

ren

eur

Dev

elo

pm

en

t

Follow Principle of Adopting An

Emerging Enterprise Provide support to Enterprises operating in

specific industries and locations – strengthen

professionalism (develop expertise)

Sustainability – medium to long term contracts

Growth – Creation of jobs

Lower capital & operating costs

Optimise Professional & Shared Services

Provide a combination of specialist and

generalist support to qualifying Suppliers

– in line with future commercial needs

Optimise Industrialization

Identify Niche Markets

Effective Research & Development

(Product & Services)

Quick response to change in industry

Database: Encourage and

maintain pool of qualifying

SME’s and QSE’s local suppliers

– with right skills and desired

quality

Compliance

Alignment with Emerging Markets Two Pillars

2. C

rea

tin

g a

Fo

ste

rin

g H

ub

(Su

pp

ort

Str

uctu

re)

1.C

rea

tin

g E

nab

lin

g

En

vir

on

me

nt

BUILDING CAPACITY & PROFESSIONALISM: DIMENSIONS (ENTERPRISE DEVELOPMENT)

Holistic approach to Capacity Building for Sustainability & Growth:

• Enforce Enterprise Development (and encourage supporting & shared services)

• Effective Outline Agreements (optimise profit margins) – contracts over medium to long term agreements (3-5 years)

• Contacting & Subcontracting

• Maximise Capital & Operating Costs (PPE: Machinery, Warehousing, Logistics, SHERQ Requirements, Administration)

• Evaluation, Monitoring, Control & Reporting

• Optimise Efficiency / Productivity

Preferential Procurement

R10.2-billion - Manufacturing development incentives and support for growing service industries, such as

business process outsourcing.

R5.4-billion - Manufacturing competitiveness enhancement programme; Financial aid for 1 450 companies -

upgrade facilities and skills development.

Special economic zones - R3.5-billion over the medium term (mainly for infrastructure development)

R3.5-billion on mentoring and training support to small businesses

Jobs Fund will spend R4-billion in partnership with the private sector on projects that

create new employment, support work-seekers and address structural constraints to

more inclusive growth.

SO

NA

20

15

S

pend/B

udget

Supplier Development

LABOURER • Unskilled

LABOUR • Semiskilled

ARTISAN • Skilled Trade

PROFESSIONAL / CERTIFIED

/SPECIFIED CATOGERIES Acts Related To The Built Environment

Professions

• Council for Built Environment – Act, 2000

(Act No,43 of 2000)

• Engineering Council of South Africa -

Engineering Professions Act, 2000 )(Act

No. 46 of 2000)

• South African Council for the Project

Construction Management Professions

(SACPCMP) – Project & Construction

Management Act (Act No 48 of 2000)

• Architectural Professions Act, 2000 (Act

44 of 2000)

• Property Values Profession’ Act, 1982

(Act No. 23 of 1982

• South African Council for the Landscape

Architectural Profession Act – Act 45 of

2000

• Quantity Surveying Profession Act, 2000

(Act No. 49 of 2000)

MANAGEMENT SERVICES • Specialists / Experts

• Advisors

• Mentors/Coaches

REQUIREMENTS FOR PROFESSIONALISM – CHALLENGES

POLICIES

Overall intentions and direction of an organisation (principles of action)

-------------------------------------------------------------------------------------------------

STANDARDS

Use as a measure, norm, or model in comparative evaluations

-------------------------------------------------------------------------------------------------

PRACTICES

Method, procedure, process, or rule used in a particular field or profession;

a set of these regarded as standard.

------------------------------------------------------------------------------------------------

PROCEDURES

Documented steps to be carried out in an logical order (Standard

Operating Procedures (SOPs) – Who, What, Where, When & Why and

How) and Work Instructions

------------------------------------------------------------------------------------------------

RULES

Guides that sets acceptable limits of conduct (general ; work specific;

permits) – enforce

------------------------------------------------------------------------------------------------

REGULATIONS

Official rules designed to control the conduct

------------------------------------------------------------------------------------------------

ACTS

Legal requirements (instituted over time) - result from actions//practices –

Lessons learned - (contravention can result in prosecution)

------------------------------------------------------------------------------------------------

CODE OF CONDUCT

Guide of principles - conduct ito of a organizations values, responsibilities

and business ethics (demand for adherence to a higher standard); uphold

and advance the honour and dignity of these professions/occupation

1. Occupational Health & Safety Act 85 of 1993

• Asbestos Regulations (AR)

• Construction Regulations (CR)

• Driving Regulations (DR)

• Driven Machinery Regulations (DMR)

• Electrical Installation Regulations (EIR)

• Environmental Regulations (ER)

• Facilities Regulations (FR)

• General Administrative Regulations (GAR)

• General Machinery Regulations (GMR)

• General Safety Regulations (GSR)

• Hazardous Biological Agents Regulations (HBAR)

• Hazardous Chemical Substances Regulations (HCSR)

• Major Hazardous Installation Regulations (HCSR)

• Noise Induced Hearing Loss Regulations (NIHLR)

• Vessel Under Pressure Regulations (VUPR)

Occupational Health & Safety Related Legislation

2. Basic Conditions of Employment Act 75 of 1997

3. Constitution of the Republic of South Africa Act 108 of

1996

4. Employment Equity Act 55 of 198

5. Fire Arms Control Act Register

6. Hazardous Substance Act 15 of 1973

7. Health Profession Act 56 of 1974

8. Labour Relations Act 66 of 1995

9. Medicines and Related Substances Act 101 of 1965

10. National Road Traffic Act 93 of 1996

11. Nursing Act

12. Promotion of Access to Information Act 2 of 2000

13. Security Officers Act

14. Skills Development Act 27 of 1998

15. Tobacco Products Act 83 of 1993

16. Provincial Ordinances and Local Bylaws

17. Compensation for Occupational Injuries and Disease Act 130

of 1993

18. Mine Health and Safety Act, Act 29 of 1996, and Regulation

19. National Water Act, Act 36 of 1998, as amended

20. National Environmental Management: Air Quality, Act 32 of

2002

21. National Environmental Management Act, Act 107 of 1998

22. National Environmental Management, Waste Act 59 of 2008

23. Corporate Governance issues and standards of “best

practice”

24. Public Preferential Procurement Framework Act (PPPFA)

South African National Standards – OH&S related Codes of Practice

ISO STANDARDS – International Organisations for Standards

• Quality Management ISO 9001:2015

• Environmental Management ISO 14001:2015

• Hazard Identification and Risk Assessment (HIRAC) OHSAS

18004:2008 & ISO 45001:2016

• Risk Management ISO 31000:2009

*ISO collaborates closely with the International Electrotechnical

Commission (IEC)

BEN

CH

MA

RK

ING

ALT

ERN

ATI

VE

RO

UTE

R

eco

gnit

ion

of

Pri

or

Lear

nin

g (R

PL)

Brid

gin

g

SUPPORT SERVICES • Scientists (e.g. Geotechnical & SHERQ)

BENCHMARKING FRA

MEW

OR

K F

OR

PR

OFE

SSIO

NA

L C

ON

DU

CT/

PR

OV

IDIN

G A

SER

VIC

E

ENH

AN

CE

PR

OFE

SSIO

NA

LISM

– G

IVES

CO

MP

ETIT

IVE

AD

VA

NTA

GES

Skilled Personnel (Competency)

Effective Spending (Budget)

Adequate Technology:

knowledge, expertise, know-how, equipment, machinery

& tools

Effective Infrastructure Development

Healthy Population:

Demand & Supply

CAPACITY BUILDING & PROFESSIONALISM: WHAT CAN BE DONE?

To close the

infrastructure gaps and

promote a balanced

economic infrastructure

development.

1) Capacity Building Requires Efficiency & Adequacy

2) Employer (Management/Client) commitment: Sound Knowledge / Professional Advice of the project environment and

Strong Leadership

Adequacy – ability to reasonably satisfy a requirement (the purpose)

Efficiency – accomplishment with the least waste of time and effort

Governance – good decision making (control & direction) & implementation

3) Employee (Individual/Service Provider) commitment: Professionalism

Ethics

4) An Effective Infrastructure Development: An effective Integrated Development Programme (across the asset creation

project value chain)

Evolution To Promote Capacity Building - Responses (Status Quo):

Skills Development Act, act 27 of 1998

The Construction Charter and skills development

Accelerated Shared Growth Initiative of South Africa

CETA Construction Education and Training Authority

CIDB Construction Industry Development Board

Emerging Contractor Development Programme ECDP) – DPW (1994)

EPWP Expanded Public Works Programme

PPPFA Public Preferential Procurement Framework Act

RPL Recognition of Prior Learning

SETA Sector Education Training Authority

SMME Small Medium and Micro Enterprise

BEE Black Economic Empowerment

Why No Success?

Lack an Integrated Programme Strategy

Lack sustainable development and growth

Lack professionalism (i.e. success = exposure + time + opportunity)

Procurement lacks adequate instruments for targeted procurement

Bridge the gap of socio-economic development

Barriers For Capacity Building (Development):

Lack of Tools To Sustain & Grow A Business

Supply Chain Management (Client) - Competency

Systems & Processes

Human Resources

Finances (Funding/Investment)

Plant, Property & Equipment (PPE)

Type & Sizes of Projects (Tenders)

Size of Company vs. Independent Contractor vs. Emerging Contractor

Outline Agreements vs. Close Tenders vs. Open Tenders , i.e. Emerging / Small Contractor

does not mean compromising on fees – CPI does not accommodate that.

Monitoring, Evaluation & Control – multi way communication & reporting

Supplier Database (Central Organization) – be a very dynamic tool (starting point)

Budget for capacity building (programmes for SD&L)

Marketing – Type of Clients

High commercial risk area (emerging contractors)

• Legal & Statutory Compliance – misappropriation (refer SHEQ) – duplication

What Can Be Done?

Seek to continually improve on our operations (business efficiency)

Strive to overcome barriers to effective capacity building

Identification of Work (IDOW) – segregation of duties