cidb CEO Bongani Dladla
Public Works and Infrastructure Deputy Minister Bernice Swart and industry regulator the Construction Industry Development Board (cidb) on March 14 officially launched the B.U.I.L.D Programme, aimed at accelerating transformation in the construction industry, increasing its capacity to deliver infrastructure and supporting the growth of emerging contractors.
The programme enables national departments and public entities to build social development goals into infrastructure projects valued at more than R20-million, when calling for tenders.
It also creates a national fund for implementation of development initiatives to grow delivery capacity in construction.
Contractors awarded projects valued at more than R20-million will have to contribute at least 5% of the project value towards developing people and enterprises, cidb CEO Bongani Dladla pointed out during the programme’s launch in Centurion.
Details of the programme were published in a Government Gazette in 2020, and it has gradually been phased in at various levels of government and the private sector.
The cidb, a public entity with the mandate to promote improved performance in construction, oversees the programme and manages the B.U.I.L.D Fund.
The programme determines that public sector entities which implement construction projects must include developmental goals among the deliverables defined in the tenders.
Contractors are required to include these goals in the plans and pricing when they submit their tender bids.
The programme sets prescribed minimum standards for project contributions to social development and introduces standard measurements of reporting and accountability for the public and private sector clients.
The cidb will collect the individual project contributions towards the B.U.I.L.D. Fund and act as the implementing agency for the allocation of money to the development initiatives that will be supported.
Clients must register their contracts and report their contributions to the fund through the cidb’s register of projects.
cidb chairperson Khulile Nzo informed that implementation of the programme had already started, with beneficiaries including the UJ Centre of Excellence, the Wits Centre of Excellence, those who participated in construction management system training, BRICS Future Skills participants and the World Skills participants.
He added that the cidb was seeking the participation of large infrastructure clients that are key for the successful implementation of the programme, including Eskom, Rand Water, Pikitup and the Small Enterprise Finance Agency (Sefa), besides others.
Nzo also informed that the cidb had collected R99-million, with Sefa to match this contribution (up to a limit of R150-million), which means that R200-million will be flowing back to the industry for training and development.
“The B.U.I.L.D. Programme is a major step forward to create development opportunities for people and enterprises in the construction sector and to enable emerging contractors to grow their businesses. Investment in infrastructure is a prominent feature of our economy as we expand services to the people.
“B.U.I.L.D. will ensure social development goals are achieved through construction tenders issued by government,” Swart averred.
She added that the programme would contribute meaningfully to achieve national priorities such as skills development, enterprise development, job creation and a healthier and safer construction sector.
“Through this fund, we are uplifting the entire construction industry through investments in skills development and the wider participation of emerging contractors, including women and the youth,” Dladla posited.
This was echoed by Swart, who emphasised the need to bolster gender parity in the industry.
She added that the industry could play a pivotal role in tackling the country’s high inequality, through the creation of new jobs and leveraging this programme.
She posited that the programme would help to rebuild the construction sector in an inclusive manner and ensure higher levels of participation by emerging contractors in the major projects that emerge from government’s investments in infrastructure.
The programme aims to provide a clear framework for the private sector to ensure their participation in infrastructure projects contribute to broader national priorities.
This will build on work already being undertaken by the cidb to support emerging enterprises that seek to participate in future infrastructure projects.
“Through B.U.I.L.D, we are addressing some of the fundamental stumbling blocks that inhibit the meaningful participation of small and emerging entrepreneurs. Their potential is often stifled by lack of access to finance and credit as well a shortage of opportunities for vocational and management training,” Dladla pointed out.