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National Contractor Development Programme
GUIDELINES FOR IMPLEMENTING
CONTRACTOR DEVELOPMENT PROGRAMMES
II
SEPTEMBER 2011
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
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CONTENTS
1. BACKGROUND 32. PURPOSE OF THIS DOCUMENT 53. WHAT IS A SUCCESSFUL CONTRACTOR DEVELOPMENT PROGRAMME? 74. IMPLEMENTING CONTRACTOR DEVELOPMENT 9
4.1. Establishing the needs, programme goals & strategy for contractor development 104.2. Getting started 11
4.2.1. Developing a programme business case 114.2.2. Establish a contractor development steering committee 114.2.3. Identify required role players and establish stakeholder forum 11
4.3. Staff resource planning 114.4. Targeting 12
4.4.1. Target groups 124.4.2. Identificationofprojects 12
4.5. Identifying support initiatives 124.6. Contractor assessment 13
4.6.1. Criteria for access 134.6.2. Competence 134.6.3. Financial upgrading factor 134.6.4. Contractor rating 15
4.6.4.1 Grade 2-6 contractors 15 4.6.4.2 Contractor prioritisation 16
4.6.5. Awarding points for socio-economic goals 164.6.6. Selecting contractors for development 16
5. MANAGING CONTRACTOR DEVELOPMENT 185.1 Training strategy 185.2 Training attendance: sharing the cost of contractor development 185.3 Dispute resolution 19
6 EVALUATION AND EXITING OF CONTRACTORS 217 MONITORING AND EVALUATION 23
Annexures: Annexure: Standard Operating Procedures Legends 25 Procedure for Implementing Contractor Development Programme 26Targeting Procedure 27 Contractor Assessment Procedure 28 Cost Sharing Principles for Contractor Development 29 Dispute Resolution Procedure for Contractor Development 30 Procedure for Evaluation and Exiting of Contractor’s 31 Monitoring and Evaluation Procedure 32
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BACKGROUND
The National Contractor Development Programme (NCDP) is a public sector led programme comprising of a partnership between the cidb, National and Provincial Public Works and other willing stakeholders and partners.
TheobjectiveoftheNCDPistoincreasethecapacity,equityownership,sustainability,qualityandperformanceofcidbregistered contractors – effectively raising the contribution of the construction industry to South Africa’s accelerated and shared growth initiative.
Toachieve this objective, participantswithin theNCDPshould commit to all or someof the followingdevelopmentaloutcomes:• Improvethegradingstatusofcontractorsintargetedcategoriesandgrades;• Increasethenumberofblackwomen,disabled,andyouth-ownedcompaniesintargetedcategories;• Createsustainablecontractingenterprisesbyenablingcontinuousworkthroughacompetitiveprocess;• Improvetheperformanceofcontractorsintermsofquality,employmentpractices,skillsdevelopment,safety,health
andtheenvironment;and• Improvethebusinessmanagementandtechnicalskillsofthesecontractors.
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PURPOSE OF THIS DOCUMENT
The purpose of this document is to assist committed clients to design and implement appropriate Contractor Development Programmes (CDPs) through direct targeting of contractors1 . The guidelines address the following aspects:
• GuidancefordesigningorimplementingCDPs.Theseinclude:o Targetingofbudgets,projectsandcontractors;o Evaluationofcontractorswhenenteringaprogramme;o Trainingandmentoring;o Sharingthecostofcontractordevelopment;o Riskandcostsharingincontracts;o Paymentdisputeresolution;o Exitingfromtheprogramme;ando Monitoring and evaluating the programme.
These guidelines are generally for government clients that intend establishing a CDP using direct procurement as a means of engaging contractors. It is applicable to Grade 2 to 6 contractors with a track record and excludes newly established contracting enterprises, but certain principles can be applied to other grades where clients deem it appropriate.
The guidelines only apply in detail to contractors in the General Building or Civil Engineering Classes of Works, but the principles can be applied to other Classes of Works.
1 For a discussion of “direct” and “indirect” targeting mechanisms, see “Targeting for Contractor Development Programmes; Background”, Construction Industry Development Board (2010), available on the cidb website
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WHAT IS A SUCCESSFUL CONTRACTOR DEVELOPMENT PROGRAMME?
A CDP should be a well-planned operation that aims to exit and graduate contractors from the programme with measurable improvements (e.g.NQF levelor improvement incontractorgrading)and involvescommitmentoffinancialandhumanresources by both the client and the contractor. Clients that commit to contractor development must use an appropriate portionoftheirprocurementofinfrastructurebudgettosupporttheobjectivesoftheNCDP.
The table below summarises the key requirements for a successful CDP.
Item RequirementsTick If Completed
√ or ×
Programme Strategy
A well designed and funded programme strategy aligned with the needs of the client
Projectsspecificallyselectedfortheircharacteristicsthatsupportthecontractordevelopment requirements and ensure sustainable development opportunities
Committed clients that use an appropriate portion of their procurement of infrastructurebudgettosupporttheobjectivesoftheNCDP
Contractor / Participants
Contractor selection must be based on predetermined criteria, aligned to envisaged development outcomes
Selectionmustbetransparentbasedonthecriteriaforselectionasidentifiedabove
Contractors must be assessed against predetermined criteria
Measure improvement against predetermined criteria on a regular basis and at exit
Client Capacity
SufficientcapacityforthemanagementoftheCDP
Appropriate monitoring, evaluation and quality control measures
Management of stakeholder expectations
An in-depth understanding of relevant procurement methods
AppropriatetrainingprogrammesthatleadtorelevantNQFqualifications
Business mentorship by experienced mentors
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IMPLEMENTING CONTRACTOR DEVELOPMENT
The purpose of this section is to guide clients through the key elements of implementing a contractor development programme. The key steps a client must follow to implement a CDP are listed in the table below and discussed in subsequent sections.
Item DescriptionTick If Completed
√ or ×
Needs,Programme Goals & Strategy
Assess and determine the need for contractor development
Setmeasurablelong-termprogrammegoalsandobjectivesforeachoftheyears(duration) of the programme
Determine contractor development outcomes for the programme
Assign a programme implementation timeline
Getting Started
Establish a Contractor Development Steering Committee
Identify required role players to support the implementation of contractor development,e.g.financialinstitutions,mentors,traininginstitutions,etc.
Conduct role player consultation sessions
Prepare a programme business case providing:
• Programme goals and description
• Scope of programme and interventions
• Contractor, organisational and institutional arrangements
• Resources and budget to support the programme and attain desired results
• Programme implementation timescale
• Measurable outcomes
• Programme operations monitoring and evaluation mechanisms
Resource Planning
Select appropriate organogram for contractor development
Determine manager, supervisors, and other staff roles and expected tasks in the programme
Determine mentor roles and expected tasks in the programme
Defineresourcesandbudgetneededtosupporttheprogramme
Targeting Collectportfolioofprojectstobeusedinthetargetingprocess
Selectprojectsanddetermine(quantify)targetsforeachyearwherepossible
Identify Projects
Determinecomplexityofprojects
Maplocalityofprojectsanddeterminecontractordevelopmentopportunities
Identify Support Initiatives
Determine mentoring approach
Develop training strategy and programme
Contractor Assessment
Determine criteria for inclusion in the programme
Invite contractors to register for contractor development
Apply assessment model
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The diagram below depicts the overall process for implementing contractor development.
4.1. Establishing the needs, programme goals & strategy for contractor development
As in any supplier development programme, clients must consider their own needs when designing a targeting strategy for a CDP. For example, if the typical delivery problems experienced by the client are construction quality related, the client may decide to only target contractors to ensure quality improvement. If there are not enough women-owned contractors in aspecificgrade,theclientmaytargetwomen-ownedcontractorsinaspecificgrade.
4. Training & Mentorship
3. Work Opportunities
Contractor Development Programme
To develop key contracting
competencies
5. Evaluation and Exiting of Contractors
6. Monitoring & Evaluation of the
Programme
1. Programme strategy & Targeting
2. Contractor Assessment
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4.2. Getting started
Asasector,CDPsdevelopmentinitiativenormallyrequiresignificantsupportfromthepoliticalstakeholdersintheprocess.It is important that the key role players in a CDP are involved from the start of the process.
4.2.1. Developing a programme business case
The Programme Manager: Contractor Development must develop a programme business case that addresses the following aspects:• Programmegoalsanddescription;• Scopeofprogrammeandinterventions;• Contractor,organisationalandinstitutionalarrangements;• Resourcesandbudgettosupporttheprogrammeandattaindesiredresults;• Programmeimplementationtimescale;• Measurableoutcomes;and• Programmeoperationsmonitoringandevaluationmechanisms.
4.2.2. Establish a contractor development steering committee
A steering committee is an important part of the success of any CDP as this will ensure buy-in and improved communication. The purpose of the steering committee is to direct initiatives that do not fall directly under the management of the Programme Manager: Contractor Development. Examples of this would include supply chain management arrangements and payments and contract conditions. The steering committee must approve the business case for contractor development.
4.2.3. Identify required role players and establish stakeholder forum
Appropriate consultation with key role players will ensure that there is a common understanding of the CDP anditwillsignificantlyincreasethechancesofsuccess.Althoughspecifickeyroleplayersmustbeidentifiedby the client, the following participants are recommended:• Thecontractordevelopmentsteeringcommitteemembers;• ThelocalConstructionContactCentre(CCC)manager;• OtherclientsthatmaywanttoparticipateinCDPs;• Constructionsectorrepresentative;and• Trainingauthoritiesandtraininginstitutions
4.3. Staff resource planning
As contractor development is an initiative of the client, the client must ensure appropriate resourcing of the contractor development initiative. The structure should incorporate a unit which is focused on contractor development, with the following functions:• Planningcontractordevelopmentinterventions;• Coordinatingcontractortrainingduringtheprogramme;• Coordinatingmentoringactivities;• Procurementspecialisationspecificallyfocusingonsourcingstrategiesthatwillpromotecontractordevelopment;• Stakeholdermanagementandcommunicationofcontractordevelopmentactivities, includingcoordinationwith
financialinstitutions;and• Monitoringandevaluation.
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4.4. Targeting
TargetingofspecificcontractorsformsanintegralpartofthedesignofaCDP.Anill-conceivedCDPwillnotsupporttheobjectivesofeithertheclientorthecontractors.Itisimportantthattheinterrelationshipbetweenthetargetedgroups,theneedsofthecontractors,thesupply-sidesupport initiativesandtheprojects identifiedforcontractordevelopmentarealigned.TargetingshouldbereadinconjunctionwiththeTargeting for Contractor Development Programmes: Guidelines available on the cidb website.
4.4.1. Target groups
CDPs should apply the following guidelines in identifying target groups:i) Ownership: CDPs should target the development of black, women, disabled, and youth-owned
companies.Specifically,CDPsshouldtargetthedevelopmentofcompanies inthoseClassesofWorks (CoWs) and Grades where imbalances in such ownership exist.
ii) Supply and Demand: CDPs should target the development of new contracting capacity only where demonstrableshortagesexistthatarealignedwiththeservicedeliveryobjectivesoftheclient.
iii) Performance Improvement (or competence development): CDPs should target to improving the performance of contractors – in particular in those areas which are aligned with the service delivery objectivesoftheclient.
iv) Local Economic Objectives:Wherefeasible,targetingofcontractorsshouldreflectlocaleconomicobjectives.
4.4.2. Identification of projects
Clientsshould identify theprojects forcontractordevelopmentbasedon thecidbgradeofcontractorstargeted.Projectidentificationshouldconsiderprojectcomplexityandlocality,andmustbematchedwiththe capability of the contractor.
4.5. Identifying support initiatives
The most critical element in any CDP is the support initiatives provided or arranged by clients which includes mentoring, technicalskillsdevelopment,businessandfinancialmanagementtraining,accesstofinanceoracombinationoftheabove.
• Training: This initiative requires the client to organise training with an accredited institution. The training should be aligned with the Requirements and Guidelines for cidb Contractor Competence Accreditation which is available from the cidb, which are deemed to be minimum standards necessary for running a contracting enterprise and for supervisingbuildingandconstructionworkswithinthefieldsoff:o Businessmanagement;o Buildingandconstructionworksmanagement(operationalandsupervision);ando Legislative issues.
• Mentoring: A contractor’smentorship needs are to be identified and an appropriatementorship interventionshould be developed. Mentorship should revolve primarily around the contractor’s business management skills and knowledge,suchastenderingandmarketing.MentorsmustberegisteredasmentorswiththeCouncilofProjectand Construction Management Professionals.
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4.6. Contractor Assessment
The purpose of the assessment is to select contractors that meet the entry level requirements in line with the focus of the CDP and to determine their developmental needs. All contractors applying for development must be registered in the cidb Register of Contractors.
4.6.1. Criteria for access
Clients should apply the following criteria to determine which contractors get access to contractor development programmes:• Competence• Financialupgrading;and• Socio-economicgoals
4.6.2. Competence
The contractor must be assessed to determine their level of competence, as outlined in the Requirements and Guidelines for cidb Contractor Competence Accreditation. The competence assessment can be done intermsofformalqualificationsandexperiencerequirements,orintermsoftherequirementsforanexternalcompetence assessment undertaken by a cidb recognised external Competence Assessment Panel. The diagram below outlines the required competencies per grade and class of works.
Category Grade NQF Level
Minimum Qualifications for building and construction management and for building and construction technology
Minimum Experience
GB: General BuildingCE: Civil Engineering
5 & 6 5 •DimplomaorNationalCertificate;or•CETAaccreditedRPLCertificate 5 years
2 to 4 4•NationalCertificate;or•IndustryrecognisedCETAaccredited
training programme3 years
TC: Trade Contractor/Artisans 1 to 50 3 to 5
•NationalCertificate;•CETAaccreditedRPLCertificate;or•Registrationwithrelevanttrade
association
3 years
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Once the contractors’ competence has been determined, contractors should be rated as indicated in the table below for assessing their suitability for enrolment into the CDP. The competence assessment will then also be used for evaluating the mentoring and training requirements of contractors that are enrolled within a CDP.
Description Rating
Contractorpossessingtherequiredqualificationsandminimumexperience 2
Contractorpossessingtheminimumexperiencebutwithouttherequiredqualification. 1
Contractorpossessingtherequiredqualificationbutwithouttheminimumexperience 0
Contractorwithouttherequiredqualificationandexperience -1
4.6.2.1 Determining Competence Rating The rating must be conducted based on the following principle for a Grade 5 or 6 General Building/Civil
Engineer Contractor: • AContractorpossessingofanNQF5Qualificationorabove(DiplomaorNationalCertificate
oraCETAaccreditedRPLCertificate)inbuildingandconstructionmanagement;andbuildingandconstructiontechnology;with5ormoreyear’sexperience,mustscorea(2);
• AcontractorpossessingofanNQF4Qualificationandlessonthespecifiedareas,with5years’ormoreexperiencemustscorea(1);
• AcontractorpossessingofanNQF5Qualificationoraboveonthespecifiedareas,with4years’orlessexperience,mustscorea(0);and
• AcontractorpossessingofanNQF4orlessQualificationonthespecifiedareas,with4year’sor less experience, must score a (-1).
This principle must be applied to other classes of works and grades, based on the requirements outlined by the Requirement and Guidelines for cidb Contractor Competence Accreditation.
4.6.3. Financial upgrading factor
Thecontractormustbeassessedtodetermineafinancialupgradingfactorandtomeasurehowclosethecontractor is to upgrading to the next grade designation.
ThefinancialupgradingfactorisdeterminedinlinewiththerequirementsofthecidbRegisterofContractorsbased on the following:• bestannualturnover;• largestcontract;and• available capital as indicated in the table on the following page (based on the current cidb
requirements).
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GradeUpper limit of tender value
rangeBest annual turnover Largest contract Available capital
Turnover Rating Value Rating Amount Rating
2 R 650 000 R 1 000 000 2 R 500 000 2 R 100 000 2
R 750 000 1 R 383 333 1 R 75 000 1
R 500 000 0 R 266 666 0 R 50 000 0
R 250 000 -1 R 150 000 -1 R 25 000 -1
3 R 2 000 000 R 2 000 000 2 R 1 000 000 2 R 200 000 2
R 1 666 666 1 R 833 333 1 R 166 666 1
R 1 333 333 0 R 666 666 0 R 133 333 0
R 1 000 000 -1 R 500 000 -1 R 100 000 -1
4 R 4 000 000 R 3 250 000 2 R 1 600 000 2 R 650 000 2
R 2 833 333 1 R 1 400 000 1 R 500 000 1
R 2 416 666 0 R 1 200 000 0 R 350 000 0
R 2 000 000 -1 R 1 000 000 -1 R 200 000 -1
5 R 6 500 000 R 7 800 000 2 R 3 250 000 2 R 1 300 000 2
R 6 283 333 1 R 2 700 000 1 R 1 083 333 1
R 4 766 666 0 R 2 150 000 0 R 866 666 0
R 3 250 000 -1 R 1 600 000 -1 R 650 000 -1
6 R 13 000 000 R 24 000 000 2 R 10 000 000 2 R 4 000 000 2
R 18 600 000 1 R 7 750 000 1 R 3 100 000 1
R 13 200 000 0 R 5 500 000 0 R 2 200 000 0
R 7 800 000 -1 R 3 250 000 -1 R 1 300 000 -1
Oncetherateforeachareahasbeendetermined,theclientshouldallocateanoverallfinancialupgradingfactorratingusingthe following formula:
Best annual turnover + largest contract + available capital
3 = Overall financial upgrading factor rating
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4.6.4. Contractor Rating Thefinancialupgradingfactorratingcanbecrossreferencedagainstthecontractor’scompetenceratingtoidentify
the contractors which are close to upgrading to the next grade designation but require assistance on competency. A score of 20, 40, 60 or 80 out of a maximum of 80 is then given to contractors that fall within the highlighted areas as shown in the following table.
Determining Contractor Rating for Grade 2 - 6 Contractors
Grade 2 – 8 Competence Rating
Financial Upgrading Rating
-1No qualifications or
Experience
0Qualifications & No
Experience
1Experience & No
Qualification
2Experience
& Qualifications
2 Very close 0 0 0 0
1 Close 0 80 60 0
0 Far 0 40 20 0
-1 Very far 0 0 0 0
4.6.4.1 Contractor Prioritisation
The focus of the CDPs should be on contractors functioning within the highlighted area for further assessment on socio-economic goals. However the client may select contractors functioning outside the recommended area at their own discretion.
4.6.5. Awarding points for Socio-Economic Goals
The selection process for the contractors should give preference to enterprises with Historically Disadvantaged Individual equity ownership which have Women, Disabled and Youth ownership. Therefore contractors must be scored out of a maximum of 20 points for socio-economic goals in line with the Preferencing policy of the department. The table above depicts an example of how the socio-economic goals can be determined and scored.
Example of how socio-economic goals can be determinedGoal Points
PE Status 4
Women 6
Disability 4
Youth 6
Total 20
4.6.6. Selecting contractors for development
Thecontractorrating(outof80)shouldbeaddedtothepointsawardedforsocio-economicobjectives(out of 20) to determine the overall score awarded to the contractor. Contractors should then be ranked from highest score to lowest score and the cut-off point is determined by the budget available. In order for a contractor to be selected for contractor development, a minimum score of 20 should be obtained for the overall score awarded.
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MANAGING CONTRACTOR DEVELOPMENT
During the operational phase of a contractor development programme, a number of key processes need to be implemented. The following list contains most of the critical functions relating to contractor development which will be further discussed below:
• Implementtrainingandmentorship;• Sharingthecostofcontractordevelopment;and• Facilitating dispute resolution.
5.1 Training strategy
A training strategy determines the overall training programme and logistics to conduct training. It should address the trainingapproach,objectivesandoutcomes,basedonthecontractorstrainingrequirements(section4.5.2),andalsotheprocess of identifying and mobilising training institutions which can provide the required training. The following logistical arrangements should be addressed:• Thenumberofpeopletobetrained• Thevenueanddateofthetraining• Thetrainingmaterialsrequired• Theexpectedinputandoutputofthetraining• Thetrainingserviceprovidermustidentifysuitabletrainingserviceproviderstoprovidethetraining.Thetraining
should be accredited with the Construction Education and Training Authority.
The training should be provided and structured so that the contractor can meet the requirements for cidb Contractor Competence Accreditation(seeSection4.4.2).ThistypicallyinvolvestheattainmentofformalNQFlevelqualifications,orwork place training and experience leading to the equivalent competence.
5.2 Training attendance: sharing the cost of contractor development
It is considered good practice to require contractors to contribute to their own development. Such contribution may take many forms, for example some contractor development programmes insist that contractors attend night classes to improve their skills while delivering on the contract. Other programmes require contractors to contribute 1% of turnover towards defrayingthecostofmentorship.SuchcommitmentensuresthatcontractorsarenotjustparticipatingintheCDPtoobtainwork, but actually progresses towards attaining the contractor development goals.
Clients should introduce measures to ensure commitment from contractors as follows:• Acontractorshouldatleastbear20%ofthedirectcostofskillsdevelopmentandtrainingcoursesand100%ofthe
indirect cost by making employees own time available to attend training courses.• Acontractorshouldatleastcontribute20%ofthedirectcostofmentorshiptoamaximumof1%ofturnover.
Should a contractor fail to pass the training courses or needs continuous mentorship, the contribution of the contractor should increase as follows:• Acontractorbearthefulldirectcostofskillsdevelopmentandtrainingand100%oftheindirectcostbymakingits
employees time available to attend training courses.• Acontractorshouldatleastcontribute40%ofthedirectcostofmentoringtoamaximumof2.5%ofturnover.
If a contractor does not meet the requirements as stated above, the contractor should exit the programme.
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5.3 Dispute resolution
Where there are established processes in respect of a particular form of contract, the Dispute Resolution Procedure for a CDP contract will be as set out in this guideline. The intention is to ensure that:• Contractorsarenotdisadvantagedduetolengthydisputeresolutionprocesses;and• Matterswhicharesubjecttodisputesareseparatedfrommatterswhicharenot.
Disputes arising in contracts awarded through the CDP should be resolved as expeditiously as possible. At all times the parties to a CDP contract should attempt to settle any claim without the need to enter into formal dispute resolution processes. However where it is not possible to resolve a claim, the dispute resolution process should be followed as set out in this guideline.
Adisputewillarisewhereaclaimbyonepartyisrejectedbytheotherpartyandattemptstoresolvethematteramicablywithinthestipulatedtimeframehasfailed.Aclaimwillbeconsideredasbeingrejectedifthepartytowhomtheclaimissubmitted, either:• Expresslyrejectstheclaim;• Doesnotrespondtotheclaimwithintheprescribedtimeframe;or• Thepartiesfailtoreacharesolutionwithinthestipulatedtimeframeandthereisnoagreementbetweentheparties
to extend the timeframe for the purpose of resolving the claim.
Claimswillnotberejectedinitsentiretyifthereisaproblemwithonlycertainaspectsofit.Thepartiesmustensurethataspectsof theclaimwhicharenot rejectedaresettled.Alldisputesarising inaCDPcontractwillbesubjectedtoanadjudicationprocess.AtthetimeofenteringintothecontractwiththeCDPcontractor,thepartiestotheCDPcontractshouldchooseanadjudicator.
The party to a CDP contract, instituting a claim that arises out of any act or omission by another party to a CDP contract wouldfirstgivenoticetotheotherpartytosettletheclaimwithin5daysofreceiptoftheclaim.Theclaimshouldbesupported with relevant details and any documentary evidence that will allow the other party to deal with the matter adequately.
Shouldtheclaimberejected,thepartiesmustattempttoresolvethematteramicablywithinfivedaysoftheclaimbeingrejected.Shouldthepartiesnotbeabletoresolvethematterintheprescribedtime,thepartythatisnotsatisfiedwiththeoutcome must issue a notice of dispute to the other party within two days after the expiry of the stipulated time period.
The notice of dispute should provide sufficient information and documentary evidence related to the dispute to givethe other party adequate opportunity to prepare its response. The aggrieved party will simultaneously give notice to the adjudicatorappointedthroughtheadjudicator’scontractascontainedinanyformofcontractcallingontheadjudicatortosetthematterdownforadjudicationwithin5daysofthedisputenoticedate.
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EVALUATION AND EXITING OF CONTRACTORS
In order to graduate from a CDP, contractors should be re-evaluated and should meet the requirements for:• cidbContractorCompetenceAccreditation;and• Upgrading to a higher grade designation.
Furthermore, a formal application must have been submitted to the cidb for an accreditation of the contractor’s competence and for a contractor upgrade.
Notwithstanding the requirements for graduating from a CDP, all contractors should exit contractor development after the agreedperiodspecifiedintheCDPbusinesscase,whethertheygraduateornot.Generallythisshouldnotexceedthreeyears, (which is the time it normally takes to acquire the competence and experience) except in the case of contractors whohaveshownsignificantprogressbuthavenotyetgraduated.Inthesecases,theclientcandecidewhethertoprovideadditionalsupportforaspecifiedperiodorbyextendingthecontractor`speriodwithintheCDP.
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MONITORING AND EVALUATION
As part of the NCDP, the cidb intends to monitor and evaluate CDPs. Clients are expected to monitor their own programmes and report to the cidb on a quarterly basis. The table on the next page provides the key performance indicators per CDP which must be measured to determine the success of the CDP.
Indicator Description Frequency
Budget Annual budget put aside for the CDP Annually
Enrolments Number of contractors enrolled Quarterly
Projectawards
Number of tender awards within CDPValue of tender awards within CDP
Quarterly
Mentoring & training
Total number of mentors appointedApproximate total contact time between mentors and contractors
Quarterly
Loans Total number of loans accessedTotal value of loans accessed
Quarterly
Costs Cumulative planned expenditure on CDPCumulative actual expenditure on CDP
Quarterly
Cost-sharing Total contractor direct contributions to mentoring and training Quarterly
Qualifications TotalnumberofNQFqualificationsawarded Annually
Upgrades Number of contractors that meet the requirements improved their cidb grading Annually
Graduations Number of contractors graduating Annually
Exits Number of contractors exiting CDP (inclusive of graduations) Annually
The table below provides the key reporting requirements to the cidb for a CDP.
Report Description Frequency
Enrolments Name and CRS numbers of contractors enrolled Annually
Graduations Name and CRS Number of contractors graduating Annually
Qualifications Name and CRS numbers of contracting entity, together with names of individuals andthecidbrecognisedNQFqualificationsawarded
Annually
Exits Name and CRS numbers of contractors exiting Annually
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ANNEXURE
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ess
case
Selec
t org
anog
ram
for
cond
ucto
r dev
elopm
ent
Cond
uct r
ole
play
ers
cons
ulta
tion
sess
ion
Dete
rmin
e m
ento
ring
appr
oach
Selec
tprojec
ts
and
dete
rmin
e ta
rget
sCo
llect
por
tfolio
of
projects
Dete
rmin
e m
ento
r rol
es
and
expe
cted
task
sDe
term
ine
staf
f rol
es
and
expe
cted
task
s in
the
prog
ram
me
Defineresourcesand
budg
et n
eede
d
Cond
uct c
ontin
uous
m
onito
ring
and
repo
rting
Deve
lop
M&E
app
roac
hDe
velo
p ex
istin
g cr
iteria
Esta
blish
cos
t sh
arin
g pr
incip
lesEs
tabl
ish d
isput
e re
solu
tion
proc
ess
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
27
TARG
ETIN
G P
ROCE
DURE
Iden
tify
targ
et g
roup
s fo
r co
ntra
ctor
dev
elopm
ent
Obtain
projec
tlist
Measureprojec
tcomplexityperprojec
tM
easu
re th
e or
gani
satio
nal
capacityperp
rojec
t
Base
d on
the
mea
sure
men
t outcom
e,identifyprojects
for c
ontra
ctor
dev
elopm
ent
Measureprojec
tsu
itabi
lity in
term
s of
locality
perprojec
t
ProjectList
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
28
CONT
RACT
OR
ASSE
SSM
ENT
PRO
CEDU
RE
Cont
ract
or is
not
suita
ble
for f
urth
er s
cree
ning
Dete
rmin
e if t
he c
ontra
ctor
is
regi
ster
ed in
the
regi
ster
of
con
tract
s
Asse
ss a
nd s
core
co
ntra
ctor
s co
mpe
tenc
e ba
sed
on c
ompe
tenc
e re
quire
men
ts
Asse
ss a
nd s
core
contractorsfinancia
lup
grad
ing
fact
or
Awar
d po
ints
for
socio
-eco
nom
ic go
alsDe
term
ine
cont
ract
or ra
ting
Selec
t con
tract
ors
from
hig
h to
low
with
th
e cu
t-off
poin
t det
erm
ined
by
the
avail
able
budg
et
Add
cont
ract
or ra
ting
scor
e to
poi
nts
awar
ded
for s
ocio
-eco
nom
ic go
al
No
Yes
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
29
COST
SHA
RING
PRI
NCIP
LES
FOR
CONT
RACT
OR
DEVE
LOPM
ENT
Cont
ract
or b
ears
20%
of
the
dire
ct c
ost o
f skil
ls de
velo
pmen
t and
train
ing
cour
ses
and
100%
of t
he
indi
rect
cos
t, an
d co
ntrib
utes
20
% o
f the
dire
ct c
ost o
f m
ento
rshi
p to
a m
axim
um o
f 1%
turn
over
Cont
ract
or b
ears
full d
irect
co
st o
f skil
ls de
velo
pmen
t an
d tra
inin
g an
d 10
0% o
f th
e in
dire
ct c
ost
Cont
ract
or c
ontri
bute
s 20
% o
f the
dire
ct c
ost
of m
ento
rshi
p to
a
max
imum
of 1
% tu
rnov
er
Cont
ract
or c
ontri
bute
s 40
% o
f the
dire
ct c
ost o
f m
ento
ring
to a
max
imum
of
2.5
% o
f tur
nove
r
Does
con
tract
or re
quire
co
ntin
uous
men
torin
g?
Cont
ract
or b
ears
20%
of t
he d
irect
co
st o
f skil
l dev
elopm
ent a
nd tr
ainin
g co
urse
s an
d 10
0% o
f the
indi
rect
cos
t
Cont
ract
or a
ttend
s su
ppor
t ini
tiativ
eDi
d th
e co
ntra
ctor
pas
s th
e tra
inin
g co
urse
s?
No
No
Yes
Yes
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
30
DISP
UTE
RESO
LUTI
ON
PRO
CEDU
RE F
OR
CONT
RACT
OR
DEVE
LOPM
ENT
Awar
d co
ntra
ct
to C
DP c
ontra
ctor
Appo
intanAd
judicator
for c
idb’
s Pa
nel o
f Ad
judicators
Subm
it no
tice
to
settl
e cla
im w
ithin
5
days
Settl
emen
t re
ache
d?Co
ntin
ue w
ith
project
Rece
ive n
otice
of
disp
ute
Rece
ive n
otice
of
disp
ute
Subm
it no
tice
of
disp
ute
Sche
dule
mee
ting
foradjudica
tionof
the
disp
ute
No
Yes
Docu
men
tary
evid
ence
to
sup
port
the
claim
Docu
men
tary
evid
ence
th
at s
uppo
rt di
sput
e
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
31
PRO
CEDU
RE F
OR
EVAL
UATI
ON
AND
EXIT
ING
OF
CONT
RACT
OR’
S
Cont
ract
or e
xitCO
P un
succ
essf
ully
Cont
ract
or e
xitCO
P su
cces
sful
lyRe
- as
sess
con
tract
or
afterthedefinedperiod
whe
ther
he/
she
com
plies
w
ith th
e gr
adua
tion
crite
ria?
Prov
ide
addi
tiona
lsupp
ortforadefined
perio
d (p
refe
rabl
y on
e ye
ar)
Decid
e w
heth
er c
ontra
ctor
hasshow
nsig
nificant
prog
ress
to p
rovid
e ad
ditio
nal s
uppo
rtw
ithin
the
prog
ram
me?
Cont
ract
or e
xits
cont
ract
or d
evelo
pmen
tun
succ
essf
ully
Asse
ss w
heth
er c
ontra
ctor
co
mpl
ies w
ith th
e gr
adua
tion
crite
ria a
t the
end
of c
ontra
ctor
de
velo
pmen
t ter
m
Cont
ract
or e
xits
cont
ract
or d
evelo
pmen
tpr
ogra
mm
e su
cces
sful
Yes
Yes
Yes
No
No
No
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
32
MO
NITO
RING
AND
EVA
LUAT
ION
PRO
CEDU
RE
Deve
lop
Mon
itorin
g an
d Ev
aluat
ion
Plan
with
specific
goals
Dete
rmin
e th
e in
dica
tors
to
be
mea
sure
dM
easu
re th
e va
rious
in
dica
tors
Obt
ain re
sults
for
each
mea
sure
men
tCo
mpa
re re
sults
to
identifiedgoalsfro
mthe
mea
sure
men
t con
duct
ed
Weretheidentifiedgoals
achi
eved
?
The
Cont
ract
or D
evelo
pmen
tPr
ogra
mm
e (C
DP) w
as s
ucce
ssfu
l
YesNo
Deve
lop
a Co
ntra
ctor
Deve
lopm
ent
Impr
ovem
ent P
lan
Mon
itorin
g an
dEv
aluat
ion
Plan
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
33
Notes:
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
34
Notes:
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
35
Notes:
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
36
Notes:
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
37
Notes:
cidb | NCDP GUIDELINES FOR IMPLEMENTING CONTRACTOR DEVELOPMENT PROGRAMMES | SEPTEMBER 2011
38
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