Portfolio Committee on Public Works
The Construction Industry Development Board’s (CIDB) register of contractors has seen a dramatic increase in the number of contractors registered in recent years. The CIDB presented its annual report to the portfolio committee on public works in Parliament.
The CIDB was established to promote a regulatory and developmental framework that delivers an adequate construction industry capable of supporting South Africa’s social and economic growth.
The Construction Industry Development Board Act mandated the board to regulate the construction industry. The CIDB was also tasked with providing strategic leadership to industry stakeholders to “stimulate sustainable growth, reform and development”.
The CIDB illustrated certain challenges experienced during the 2008/9 financial year. Understandably, the credit crunch had impacted negatively on the construction industry. The continued excessive growth of the register of contractors had necessitated internal growth within the CIDB to keep pace with the changes. This had placed additional strain on the board’s resources and systems. As a consequence, a budget shortfall had arisen.
The register of contractors was important in supporting contractor development and promoting better performance by contractors. The register also allowed contractors to be categorised in accordance with their abilities. Registrations had seen a dramatic increase since 2004 when 1500 contractors had registered. Now approximately 80 000 had signed up.
The CIDB was also responsible for the national register of projects. The register listed all public and private sector projects indicating the types of projects in place and their location.
During the year under review, three construction contact centres had been established. The national contractor development programme and the national infrastructure maintenance strategy had been initiated.
Memorandums of understanding were signed with ABSA and Standard Bank as part of the national contractor development programme. The programme aims to grow South Africa’s contracting base and raise the performance and quality of contractors.
The CIDB also played an important role in the infrastructure development improvement programme. The programme seeks to build capacity in the public sector around infrastructure delivery.
The CIDB noted that the government had disbursed less money to it than the previous year. Approximately R42 million was received in comparison with R50 million in 2007/8. However, revenue from registers increased by 21% to R35.3 million from R29.1 million in the previous year.
In terms of strategy going forward, CIDB aimed to further improve the contractor registration process. The public procurement process would be streamlined.
Discussions would also be held with academic institutions to ensure that relevant skills were being produced. Measures to enforce compliance would also be strengthened.
Sabinet Cape Town Office