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GROW DEVELOP PROSPER

THE SOUTH AFRICAN COUNCIL FOR THE PROJECT AND CONSTRUCTION

MANAGEMENT PROFESSIONS

To be a world-class regulatory body for the Built Environment

Management Professions

To create an enabling environment for the promotion, growth and transformation of Built Environment Management

Professions through advocacy, research and best practice

• Improve Operational Effectiveness and Efficiencies

• Increase and Retain Registration of Competent Persons

• Build Financial Sustainability• Assist and monitor the

completion of the IDoW• Implement mandated

programmes and align to government priorities

• Accountability • Integrity • Innovation• Transparency • Inclusiveness

TABLE OF

CONTENTSPART A: GENERAL INFORMATION

PUBLIC ENTITY’S GENERAL INFORMATION 4

LIST OF ABBREVIATIONS/ACRONYMS 4

FOREWORD BY THE PRESIDENT 6

REGISTRAR’S MESSAGE 8

HIGHLIGHTS 10

STRATEGIC OVERVIEW 12• Vision

• Mission • Values

• Goals

LEGISLATIVE AND OTHER MANDATES 13• Constitutional Mandate

• Legislative Revision• Legislative Mandate

PART B: PERFORMANCE INFORMATIONPERFORMANCE ENVIRONMENT 16

PERFORMANCE INFORMATION BY MANDATED PROGRAMME/ACTIVITY 17 • Safety, Health and Environment (SHE)

• Programme Accreditation• Continuing Professional Development

• Registration Statistics• Disciplinary and Code of Conduct

• Professional Guideline Fees• Recognition of Prior Learning

• New Categories • Identification of Work

• Recognition of Voluntary Associations• Communication and Stakeholder Relations

OPERATIONS AND ORGANISATIONAL ENVIRONMENT 44• Constitutional Mandate

• Legislative Revision• Legislative Mandate

PART C: GOVERNANCEGOVERNANCE 52

• Introduction• Appointment of Members of Council

• Decision Making Structure • Powers and Obligations

• Meeting Attendance

ANNUAL FINANCIAL STATEMENTS 58• General Information

• Report of the Independent Auditors • Councillors’ Responsibilities and Approval

• Statement of Financial Position • Statement of Comprehensive Income

• Statement of Changes in Equity • Statement of Cash Flow

• Accounting Policies

PART C: GOVERNANCE

BREAKDOWN OF STATISTICS 86

SACPCMP 2016 | 2017 ANNUAL REPORT 1

SACPCMP 2016 | 2017 ANNUAL REPORT2

GROW

PART A

GROW DEVELOP PROSPERSACPCMP 2016 | 2017 ANNUAL REPORT 3

GENERAL INFORMATION



PUBLIC ENTITY’S

GENERAL INFORMATION

COUNTRY OF South AfricaINCORPORATION & DOMICILE:

REGISTERED NAME: South African Council for the Project and Construction Management Professions

PHYSICAL ADDRESS: International Business Gateway, Cnr New and

6th Road, Midrand POSTAL ADDRESS: PO Box 6286 Halfway House, Midrand 1685

TELEPHONE NO: 011 318 3402

FAX NUMBER: 011 318 3405

EMAIL: [email protected]

WEBSITE: www.sacpcmp.org.za

EXTERNAL AUDITORS: A2A Kopano Incorporated Auditors, 147 Marais Street, Brooklyn, Pretoria, 0181

BANKERS: Nedbank Limited, Investec Bank

NATURE OF BUSINESS: Council for the Project and Construction Management

Professions

COUNCILLORS: Mr. T.E. Manchidi, Mr. I.M. Nkosi, Dr. C.H. Deacon, Mr. D. Michell, Mr. T.W. Makhetha, Mr. B.B. Simelane, Mr. I.H. Molosi, Mr. M. Phaladi, Mr. R.M. Crowie, Ms. N.E. Rakolote

REGISTRAR: Ms. N.E. Rakolote


LIST

ABBREVIATIONS/ACRONYMS

ACHASM Association of Construction Health and Safety ManagementACPM Association of Construction Project ManagersAPP Annual Performance PlanASAQS Association of South African Quantity SurveyorsBEPEC Built Environment Professions Export CouncilBE Built Environment CBE Council for the Built EnvironmentCBEP Council for the Built Environment ProfessionsCESA Consulting Engineers South AfricaCIDB Construction Industry Development BoardCIOB Chartered Institute of BuildingCHE Council on Higher EducationCHS Construction Health & SafetyCHSM Construction Health and Safety ManagerCHSO Construction Health and Safety OfficerC Mentor Construction MentorCPD Continuing Professional DevelopmentDPW Department of Public Works

PART A


PART A

ECSA Engineering Council of South AfricaEPWP Expanded Public Works ProgrammeEXCO Executive CommitteeHR Human ResourcesICT Information and Communication TechnologyIDoW Identification of WorkIoSM Institute of Safety ManagementISO International Standards OrganisationMBSA Master Builders South AfricaMoU Memorandum of UnderstandingMISA Municipal Infrastructure Support AgencyNHBRC National Home Builders Registration Council NQF National Qualifications Framework PFMA Public Finance Management ActPMSA Project Management South AfricaPMTE Property Management Trading EntityPR Public Relations Pr CHSA Professional Construction Health and Safety AgentPr. CM Professional Construction Manager Pr. C Mentor Professional Construction MentorPr. CPM Professional Construction Project ManagerRSA Republic of South AfricaREGCOM Education and Registration CommitteeRICS Royal Institution of Chartered SurveyorsRPL Recognition of Prior LearningSACAP South African Council for the Architectural ProfessionSACLAP South African Council for the Landscape Architectural ProfessionSACPCMP South African Council for the Project and Construction Management ProfessionsSACPVP South African Council for the Property Valuers ProfessionSACQSP South African Council for the Quantity Surveying ProfessionSAFCEC South African Federation of Civil Engineering ContractorsSAIOSH South African Institute for Occupational Safety and HealthSAIA South African Institute of ArchitectsSAICE South African Institute of Civil EngineersSAQA South African Qualifications AuthoritySGB Standards Generating BodySOCs State-Owned CompaniesVAs Voluntary Associations

LIST

ABBREVIATIONS/ACRONYMS CONT.



PRESIDENT’S

FOREWORD

Mr. TJIAMOGALE ERIC MANCHIDIPRESIDENT

PROFESSIONAL GROWTH AND TRANSFORMATIONAs this Council’s term of office gradually draws to a close, it is an opportune time to take stock and to measure the efficacy of Council leadership in guiding and advising the entity as it evolves. There is no doubt that the evolutionary process is marked by growth, development and innovation and this is especially evident in Council’s fresh brand, the vast strides in the quality of events, the integrity behind its publications and its general modus operandi.

The establishment of the Audit and Risk Committee in the previous financial year is bearing its fruit with ensuring that relevant measures are put in place internally and externally to safeguard the interests of both Council, Registered Persons and the public. In view of our eminent growth and considering the additional scope and functions, it is imperative that we focus on ensuring that our Information Technology systems are geared up to the demand resulting from


this growth. Furthermore, Council has acknowledged the importance of an integrated strategy for Information Technology to be aligned to the business direction. Thus, through this strategy, Council has taken great strides in developing an integrated environment for the optimisation of the overall business environment. Various enhancements have been made which integrate seamlessly with the online platform and this will benefit Council and Registered Persons in a very direct way as we continue to tailor our way of doing things to become more techno-savvy and ensure our Registered Persons feel valued and are served in the most efficient way possible. The highlight of the improved system has been evidence through the online management of the end of our first CPD Cycle (1 April 2012 – 31 March 2017). The system enhancements have been extended to manage all aspects of Continuing Professional Development (CPD) for all Registered Persons. This enabled Registered Persons to fully update their profiles with the ability to view/add/edit/email/print their CPD credits and manage their overall progress towards attaining continued registration status.

Following the launch of the Presidential Forum at the Fourth Annual Project and Construction Management Conference, as well as the establishment of the Transformation Committee, it is evident that the project and construction management professions will be characterised by transformation, which is a dire need at the moment, especially the dismal slow rising figures relating to women in the profession. The involvement of Voluntary Associations (VAs), a diverse Transformation Committee and Presidents of VAs is bound to have a major impact on transformation in the industry.

As transformation tends to involve a high financial investment, it is a cherished hope that these forums will explore partnerships, in order to reach the desired milestones and to have a positive impact. It is a view shared by most players that targeting the youth through various innovative interventions would be an ideal starting point for a transformation process to have the desired impact.

A key priority is to develop the youth of the country, which also is a national imperative. A strong partnership with the Local Government Seta (LGSeta), which


PART A

commenced in the previous financial year, and a fresh partnership with the Construction Seta (CETA) to provide grant funding for a structured candidacy programme targeted towards candidates in municipalities to upgrade to professional status, is indicative of how well sustainable partnership agreements can expand the horizons of the SACPCMP and, more importantly, how such partnerships can address national imperatives and key transformation partnerships.

Whilst Council has been engaging the youth of the country by participating in career days through the Student Chapter initiative, there is a need to use innovative platforms and media such as youth activations, multimedia content and a youth portal that will attract more youth to both the website as well as the Student Chapter cohort. The focus of this programme is to be at the forefront of the development and advancement of construction management education where the transfer of skills, sharing of ideas and knowledge inspires, guides and promotes excellence in teaching and research in project delivery. Attracting the youth to Council Programmes with the aim of eventually registering them as professionals, will go a long way in transforming the professional landscape of the sector.

The SACPCMP has engaged its Registered Persons by hosting the two annual flagship events: The Construction Management Summit and the Project and Construction Management Professions Conference. These strategic intervention programmes have grown in stature and have mirrored Council’s process of evolution. These events have also demonstrated that Council engages with increasing numbers of thought leaders in the sector, culminating in increasing dialogue on burning issues and adding to the burgeoning pool of knowledge relating to project and construction management. The former event aims at increasing the number of students registered in the Construction Management discipline as well as improving the quality of Departments of Construction Management programmes and offerings in the accredited tertiary education institutions. Our efforts have equally been intrigued by our continuing conference under the theme “Growth, development and transformation in the Project and Construction Management Professions” which has created a platform for stakeholder engagement. The conference has continued to attract

local and international thought leaders who succeed in expanding the knowledge base among delegates.

Council approved mentors and assessors are key to ensuring that the professionalism within the industry is maintained at all times. The Construction Health and Safety (CHS) assessor workshop is a clear indication that active assessor participation will ensure the integrity of the application process for CHS which is complemented by an electronic application process. The introduction of a direct route to Candidate CHS Officer registration will ensure another avenue of entry into the industry and contribute to the realisation of a career path in the CHS environment. The Mentorship workshops for the Project and Construction Management registration will address a much-needed gap in our industry: that of experienced mentors. Such an intervention will go a long way in addressing the quality of candidates who apply for registration.

The SACPCMP is living up to its brand promise which is epitomised in its strap line “Constructing new perspectives” and I am confident that the entity is growing exponentially, as it embraces the new challenges ahead with confidence.

I wish to thank the fourth term Council and the staff under the leadership of the Registrar, Ms Nomvula Rakolote, for undertaking its work with the utmost integrity and innovation. We look forward to greater strides going forward. The unstinting support of the Minister and Deputy Minister of Public Works cannot be ignored and we also wish to thank them for the words of encouragement and for their unwavering support.

We look forward to much fruitful discussion with our stakeholders and hopefully a continued heated debate on developing deeper insight into the professionalism of built environment management professions.

Mr Tjiamogale Eric Manchidi, Pr. CPMPRESIDENT


REGISTRAR’S

MESSAGE


Ms. NOMVULA ETHEL RAKOLOTEREGISTRAR

PROFESSIONAL GROWTH AND TRANSFORMATIONThe adage of eating an elephant by consuming bite-size chunks rings true for the SACPCMP. Council has made progress and an indelible mark in the industry by its innovative strides and its ability to evolve in sync with developments in the industry.

The SACPCMP has seen significant growth in numbers of registered persons across the majority of the professions in the current financial year, except for the Construction Mentorship discipline. While Construction Health and Safety (CHS) leads the pack both in terms of applications received and registrations, there has been a great increase in the registration of Professional Construction Managers (PrCMs), thanks to the sustained efforts to promote and advance the Construction Management discipline by the SACPCMP, an initiative that was started five (5) years ago. To corroborate the growth of the SACPCMP register, statistics reveal that it grew from four thousand three hundred and sixty four (4 364) at the end of March 2016

to six thousand four hundred and three (6 403) registered professionals and candidates at the end of March 2017. This represents an increase of 46.7%.

This upward growth trajectory of the SACPCMP register is set to continue as Council, with the support of the Local Government Sector Education and Training Authority (LGSETA), has placed seventy five (75) local government employees with the requisite education and experience on funded Structured Candidate Programmes that will ensure that they all become registered professionals after the prescribed candidature period. This initiative has grown to include two hundred (200) national and provincial government employees funded by the Services Sector Education and Training Authority (Services SETA) and Construction Education and Training Authority (CETA), who will commence their three (3) year Structured Candidate Programme in the 2017/2018 financial year. These initiatives will immensely contribute as one of the proactive and constructive ways to arrest Perpetual Candidacy, a conundrum that had become a perennial resolution of gatherings such as the Construction Management Summit and the Project and Construction Management Professions Conference, flagship programmes of the SACPCMP aimed at the growth, development and transformation of the professions.

On the other hand, Council has commenced to reap the fruits of its concerted endeavors to streamline and improve the CHS registration process, a call that has been made by all stakeholders since the commencement of the registration process five (5) years ago. Furthermore, Council has opened up a direct route for Candidate CHSO registration, an avenue of entry into the industry that will pave the way for creating a more transformed industry in the near future.

The programme accreditation policy has been reviewed and the new policy amendments continue to ensure that all new qualifications will be accredited in line with industry and student requirements. In its continuous plight to develop all institutions to meet the accreditation criterion of the SACPCMP, a special Programme Accreditation Intervention panel was established in 2017 to assist institutions that were not fully accredited. In the implementation of a developmental approach that has been adopted for accreditation of qualifications at Institutions of Higher Learning through a Peer Review Mechanism, additional panelist have been sourced from

PART A

all universities to build capacity and sharing of best practice models. Furthermore, Council has set up a Heads of Departments (HOD) Forum from the accredited Institutions of Higher Learning in order to strengthen the Council’s accreditation processes and implement an agreed upon intervention strategy to develop and promote the Project and Construction Management disciplines. This HOD Forum will also ensure that the qualifications offered respond to the industry needs and also allow for direct engagement and input from experts in the entire Built Environment.

The first CPD cycle has been a journey of trials and victories with our Registered Persons in ensuring that the implementation of the CPD Policy would accomplish what it was set to achieve by 31 March 2017. Council explored and established innovative CPD systems that saved Registered Persons time and money, through online solutions, in a plight to achieve their CPD requirements. As the end of the cycle drew to a close, provincial workshops were conducted from March to May 2016 to assist Registered Persons whose cycle was coming to an end with updating their profiles and identifying categories that still needed attention for them to comply with the prescribed requirements. This was complemented by a CPD compliance marketing campaign utilising various communications mediums such as bulk mailers, telephonic reminders, mobile phone USSD (Unstructured Supplementary Service Data) and webinar sessions. A new CPD policy framework will come into effect in the next financial year as the Council continues to strive to make CPD more user-friendly and easily achievable.

Council has embarked on an inclusive process to review the Code of Conduct for Registered Persons to encourage highest professional and ethical standards. A stakeholder engagement programme was implemented and a policy document was gazzetted for public comment on the 2nd September 2016. Council received excellent responses and comments from different players that were incorporated to the final document which was approved on the 27th March 2017 for implementation effective 1st April 2017.

In order for Council to consider complaints that are lodged by the public, it was deemed necessary to establish a pool of investigators comprising of experienced professionals in the field. An expression of interest was issued to determine those who will meet

the criteria. This resulted in the appointment of thirty five (35) experts across all registration disciplines. The aim of establishing the pool of investigators is to ensure that the Code of Conduct Committee carries out investigations to primarily determine whether there has been a breach or transgression of the Code of Conduct. As such, the experts will be assigned cases for investigation in their respective areas of expertise. The induction programme for these investigators will be hosted in the next financial year.

Council has significantly grown over the years' both in terms of implementation of mandated programmes and strategic intervention programmes. As a result of this exponential growth, Council had to increase the human resource capacity which has seen the Management Committee of Council increasing from four (4) people to six (6). As part of the ongoing national effort to give graduates an opportunity to gain experience in the workplace, Council has heeded the call by providing six (6) interns out of whom three (3) were absorbed on fixed term contracts as Assistant Administrators.

I wish to thank all our valued partners and stakeholders who have given their time and resources to Council over this period of reporting. Without the commitment, unwavering support as well as the measurable contributions of the Department of Public Works, Council of the Built Environment, Council Committees, Voluntary Associations, Institutions of Higher Learning and all other strategic partners, we would not have realised the full implementation of our financial year goals. I wish to thank them for all their sterling efforts that have taken us to these highly improved levels, which will undoubtedly launch Council to swiftly continue delivering on its legislative mandate.

I also want to thank our committed and dedicated staff members for doing their work diligently, as well as going that proverbial extra mile in implementing their various tasks.

Ms. Nomvula Ethel RakoloteREGISTRAR



HIGHLIGHTS


TRANSFORMATION – CREATING A GREENHOUSE FOR SKILLS DEVELOPMENT Transformation in the industry has always been a buzzword and Council took the bold step to move away from deliberations to setting up a forum to accelerate a process that has been sorely lacking.

A Transformation Committee has been set up to address transformation issues in the built environment. The Committee is a hub of diverse skills including representatives from the HRDC, Thuthuka, CBE and Master Builders, to name but a few. This powerful think tank has devised a strategy and an implementation plan to drive a process that is needed in the sector.

Initiatives will be mainly channelled through the SACPCMP’s Student Chapter after the Committee has finalised a strategy and implementation plan. Schools outreach, youth development and career promotion will be accelerated and a dedicated youth portal will form a part of the planned Council web design.

Council will also use innovative platforms, such as social media, to communicate with youth and to engage them at events such as career exhibitions, school and university visits and at other youth indabas. The use of informal theatre and audio-visual material will also be explored.

DEVELOPING TECHNICAL COMPETENCE: CONSTRUCTION MENTORSHIP Construction Mentorship plays a pivotal role in developing young entrepreneurs and their small enterprises which addresses the core of transformation and unemployment. The SACPCMP has not stopped pursuing every entity that can procure the services of or encourage the use of the services of Construction Mentors and it therefore actively hosted Construction Mentorship provincial workshops for a second round to promote registration to this category to the professionals.

REGISTRATIONS ON THE RISESACPCMP managed to maintain growth in registration numbers during the 2016/17 financial year across all registration streams, except for the Construction

Mentor category. The growth in registration numbers could be attributed to continuous targeted awareness campaigns to diverse stakeholders, which also increases the footprint of Council countrywide. The database of Registered Persons increased from 4 364 as at 31 March 2016 to 6 403 as at 31 March 2017, which represents an increase of 46.7%. The increase augurs well in ensuring that the country has competent persons to deliver the expected quality service for various infrastructure delivery initiatives. The notable increase in the number of registered candidates from 1 571 as at 31 March 2016 to 2 467 as at 31 March 2017, represents an increase of approximately 57%.

THOUGHT LEADERS THINK TANK AND LAUNCH OF PRESIDENTIAL FORUMThe Council successfully hosted the 4th Project and Construction Management Professions Conference from the 26 to 28 October 2016 at Sandton Convention Centre. The conference was well attended by two hundred and eight six (286) delegates and approximately two hundred and fifty (250) delegates attended the Master Classes on the first day.

PART A

The conference saw the SACPCMP launching the Presidential Forum in collaboration with the Ministry of Public Works; a platform for Presidents of the Voluntary Associations to collaborate on joint ventures for growth, development and transformation of the Built Environment Professions. The partnership is aimed at generating synergy among the VAs to ensure greater co-ordination of efforts in transforming the project and construction management professions through various programmes and activities.

Nine (9) VAs out of seventeen (17) signed the declaration during the gala dinner. They were: • Association of Construction Health and Safety

Management (ACHASM)• Master Builders KwaZulu Natal (MBSA - KZN)• Master Builders South Africa (MBSA)• Master Builders (MBA FS)• Royal Institution of Chartered Surveyors (RICS)• South African Institute of Civil Engineers (SAICE)• Charted Institute of Building (CIOB)• The Institute of Safety Management (IoSM)• Consulting Engineers South Africa (CESA)

REACHING NEW PEAKS - THE 5TH CONSTRUCTION MANAGEMENT SUMMITThe 5th Construction Management Summit of the South African Council for the Project and Construction Management Professions (SACPCMP) was held from 28 to 29 June 2016, at the University of Johannesburg’s Sophia Town Residence, Bunting Road Campus. The summit was hosted in partnership with the University

of Johannesburg as part of forming partnerships to ensure that there are joint efforts in the development of Construction Management. They played a pivotal role in the planning and the organisation of the Summit. A total of two hundred and eighty two (282) participants were in attendance and comprised construction management professionals and candidates, students, academics, civil society and government officials. The theme for the Summit was Driving Sustainable Development. All presentations around this theme were done by subject matter experts. Apart from the keynote presentations, breakaway sessions were conducted. More importantly, the summit aimed at focusing the attention of policy-makers and captains of industry on the importance of the Construction Management Profession in driving sustainability within the built environment.

PUTTING HEADS TOGETHERThe SACPCMP has a vested interest in the schools/departments of the Built Environment at institutions of higher learning. A Forum for Heads of Department has been established and consists of HODs from all thirteen (13) accredited institutions of higher learning. The aim is to form strategic and sustainable partnerships in the development of Project and Construction Management. An induction workshop was conducted on 26 May 2016 and the Forum will meet twice a year. The HOD’s Forum will from time to time also include the NRF, CBE and CHE to deal with matters within their mandates with the aim of improving areas identified within the accreditation requirements.



STRATEGIC OVERVIEW


VALUE PROPOSITION

HEADLINE STATEMENT:The SACPCMP is a statutory body that regulates the built environment management professions and is committed to skills development and transforming the landscape of the sector.

DevelopDevelop the built environment management professions

GrowFacilitate a seamless registration process so that Registered Persons have a designation and a “home” to enable them to grow

ProsperTransform the professions through professionalisation of the disciplines within the built environment management professions, so that marginalised people, such as women and historically disadvantaged individuals, have access to opportunities in the built environment sector.

STRAP LINE:Constructing New Perspectives

To be a world-class regulatory body for the built environment management professions

To create an enabling environment for the promotion, growth and transformation of built environment management professions through advocacy, research and best practice

• Accountability • Integrity • Innovation• Transparency • Inclusiveness

• Improve operational effectiveness and efficiencies • Increase and retain registration of competent persons• Build financial sustainability• Assist and monitor the completion of the IDoW• Implement mandated programmes and align to government priorities

VISION

MISSION

VALUES

GOALS

PART A

LEGISLATIVE AND OTHER MANDATES


CONSTITUTIONAL MANDATESSection 22 of the Constitution of the Republic of South Africa (Act No. 108 of 1996), provides that “every citizen has a right to choose their trade, occupation and profession freely.” This section gives the basis for the existence of the South African Council for the Project and Construction Management Professions (SACPCMP) through Act No. 48 of 2000.

LEGISLATIVE MANDATEThe South African Council for the Project and Construction Management Professions (SACPCMP) is a juristic person established by Section 2 of the Project and Construction Management Professions Act (Act No.48 of 2000).

The SACPCMP fulfils the statutory mandate by:• Registering professionals and maintaining a

national register of professionals;• Identifying the type and scope of work for the Project

and Construction Management Professions;• Determining registration criteria for professionals;• Conducting examinations for the purpose

of registration of Project and Construction Management Professions;

• Developing a Code of Conduct for registered professionals;

• Consulting with the South African Qualifications Authority (SAQA) or any other body established by it and the VAs to determine competency standards for the purpose of registration;

• Conducting accreditation programmes for Construction Management and Construction Project Management offered at tertiary educational institutions in consultation with SAQA and the Council on Higher Education (CHE);

• Giving advice or rendering assistance to any educational institution, VA or examining body with regard to education facilities for the training and education of Registered Persons and prospective Registered Persons;

• Entering into an agreement with any person or body of persons within or outside the Republic of South Africa (RSA) with regard to recognition of any examination or qualification for Project and Construction Management Professionals;

• Determining, after consultation with the VAs and Registered Persons, conditions relating to the nature and extent of Continuing Professional Development (CPD);

• Establishing a Standards Generating Body (SGB) and;

• Recognising VAs.

DEVELOP


PART B


PERFORMANCE INFORMATION


PERFORMANCE ENVIRONMENT


The Minister of Public Works is the executive authority of the SACPCMP and communicates with the Council through the Council for the Built Environment (CBE), the over-arching body that co-ordinates the activities of all the Built Environment Councils. The Built Environment refers to the functional area within which Registered Persons practice.

The Built Environment includes all structures that are planned and/or erected above or underground, as well as the land utilised for the purpose and supporting infrastructure.

The SACPCMP operates in the Built Environment alongside five other Councils. The other Councils are:

• SACAP: The South African Council for the Architectural Profession

• ECSA: The Engineering Council of South Africa

• SACLAP: The South African Council for the Landscape Architectural Profession

• SACQSP: The South African Council for the Quantity Surveying Profession

• SACPVP: The South African Council for the Property Valuing Profession

RECOGNISED VOLUNTARY ASSOCIATIONS (VAs)

Accredited VAs• Association of South African Quantity Surveyors

(ASAQS)• Association of Construction Project Managers

(ACPM)• South African Federation of Civil Engineering

Contractors (SAFCEC)• Consulting Engineers South Africa (CESA)• Masters Builders South Africa (MBSA)• Master Builders Association: Free State (MBAFS)• Master Builders Association: North (MBA North)

• The Chartered Institute for Building (CIOB)• South African Roads Federation (SARF)• Master Builders Association: Kwa-Zulu Natal (MBA

KZN)• South African Institute of Civil Engineering (SAICE) • The South African Institute for Occupational Health

and Safety (SAIOSH)

Non - Accredited VAs• The Association of Construction Health and Safety

Management (ACHASM)• Royal Institution of Chartered Surveyors (RICS)• The Institute of Safety Management (IoSM)


PART B

PERFORMANCE BY MANDATED PROGRAMME/ACTIVITY


• Build Environment Professions Export Council (BEPEC)

• South African Institute of Architects (SAIA)

This Annual Report focuses on the legislative imperatives in the following areas. • Safety, Health and Environment;• Programme Accreditation;• Continuing Professional Development;• Registrations Statistics;• Disciplinary and Code of Conduct;• Professional Guideline Fees;• Recognition of Prior Learning;• Identification of Work (IDoW) in line with Competition

Act;• Recognition of Voluntary Associations; and• Communication and Stakeholder Relations.

SAFETY, HEALTH AND ENVIRONMENT (SHE)

Highlights/Achievements/Important Milestones in Policy ImplementationSince the promulgation of the Construction Regulations 2014, there was an exponential increase in the number of applications in the Construction Health and Safety discipline compared to the period that preceded this milestone. However, the number of applications for CHS registration across all categories has remained constant at an average of three hundred (300) applications per month during the review period. Council received a total of eleven thousand five hundred (11 500) applications in the year under review compared to eight thousand and thirty eight (8 038) at the end of the 2015/16 financial year. This influx in applications is expected to reduce and stabilise below the three hundred (300) mark going forward.

In order to improve turn-around times of assessment of applications, Council deemed it fit to increase the number of assessors as per guideline of appointing assessors. The number of assessors that were found to be competent were appointed. This was followed by assessor workshops held during the period under review resulting in an increase in the pool of assessors from thirty seven (37) to eighty (80). Accordingly, forty percent (40%) active participation of the assessor’s pool is expected, which will have a positive influence on the number of applicants awaiting assessment.

The introduction of a direct route to Candidate CHSO registration has been opened up for registration for the year under review. This will ensure another avenue of entry into the industry and contribute to the realisation of a career path in the CHS environment by allowing those eligible applicants with the recognised CHS qualification to be mentored by Registered Persons once approved for candidature.

In improving efficiencies the examination process has been improved for the CHSO and CHSM who are required to write examinations as part of the registration process. The examinations structure consists of one paper for CHSO and two papers for CHSM. A learner management system has been customised for the writing of online Paper 1 examinations for both the CHSO and CHSM and there is still a need to fully roll this out to all provinces, funds permitting. Furthermore, a need has been identified to call for proposals for individuals and/or institutions of higher learning to develop examination questions and memorandum for CHSO and CHSM papers. The process was undertaken for the appointment which resulted in two institutions of higher learning being approved to assist Council. The process is envisaged to be completed in the 2017/18 financial year. All questions and memorandums will be vetted by the Examination Committee before implementation.

An online booking system designed last year for those eligible to write examinations has been fully implemented for the year under review resulting in an increased number of applicants who wrote the examinations. This also contributed to a 62% increase in CHSM and 34% increase in CHSO registrations compared to the 2015/16 reporting period. The number of examinations written and throughputs for both CHSO and CHSM are indicated below.

Examinations

Number ofpeople who

wrote exams

336

Number passed

276

Number failed

60



Although the number of applications culminating in registration remains relatively low, 23% of applications are non-compliant due to incomplete documentation or lack of payment of application fees and another 37% awaiting applicant responses after assessment outcomes.

The Professional Construction Health and Safety Agent (PrCHSA) registration proved to be a challenge as the practical reality still indicates the inclusion of health and safety from conception to completion of the project remains a matter of concern. The registration of PrCHSAs remains a challenge with approximately eighty five (85%) not passing the assessment phase. The number of PrCHSA registrations has however increased substantially from 9 during 2015/16 to 27 during the review period resulting in a total of 54 registrations at the end of March 2017.

The Council has in collaboration with two institutions of higher learning considered the development of skills modules for construction project stages 1 – 6 to ensure upskilling in the areas that have been found lacking during the assessment process of applicants. These will, however, also be beneficial to any registered persons in the Construction Health and Safety discipline. Initial planning has been concluded with a service provider and the skills modules’ recommended roll-out and program delivery is expected to be finalised in the next financial year. The introduction of the PrCHSA skills modules and increased control over the mentoring process is expected to improve competency in the longer term.

Uncertainty in the industry regarding the interpretation and application of Construction Regulations (CR) 2014 remains a matter of concern. This specifically applies to the validity of applications’ "confirmation/verification" letters, the appointment of clients’ CHS agents and registration requirements applicable to the applications for the "permit to work" to the Department of Labour (DoL). A draft of the guidelines to the CR 2014 has been developed and distributed by the DoL, but it has not been finalised and has also not been introduced nationally. It is envisaged that this will be completed in the next financial year. This has an indirect implication on the application and registration of CHS professionals especially regarding the registration categories and the scope of services applicable to each category,

particularly on CHSM level. A task team has been appointed to review the scope of services with a possible extension of services envisaged on CHSM level.

PROGRAMME ACCREDITATION

Highlights/Achievements/Important Milestones in Policy Implementation The current Programme Accreditation Policy has been reviewed and new policy amendments have been proposed for approval by Council during the second quarter of the 2016/2017 financial year.

Inputs and comments were received for the draft Amended Programme Accreditation Policy at the 2nd Programme Accreditation Workshop held from 23 to 24 March 2017 with panel members and Heads of Department (HoD) of accredited institutions.

During the year under review only two institutions have been visited and a special intervention panel was set up to engage the institutions on their accreditation improvement plans.

The two institutions that were visited respectively on 12 and 18 October 2016 were Mangosuthu University of Technology (MUT) and Walter Sisulu University (WSU).

A forum for Heads of Department has been established for all accredited institutions with the aim of enhancing the relationship between Council and Heads of Department.

The HOD Forum also includes the NRF, CBE and CHE to add greater value to the accreditation work of the SACPCMP. An Induction Workshop, attended by the past and current panel members, was conducted on 26 May 2016.

The workshop was intended to explain the Programme Accreditation Policy Framework, procedures, self-evaluation criteria and procedures for conducting accreditation visits and evaluation of annual reports.

The first Inaugural meeting of the Heads of Department Forum took place on 27 June 2016 at Milpark, Johannesburg.

The approved panelists are listed on the next page:

PERFORMANCE BY MANDATED PROGRAMME/ACTIVITY CONT.


PART B

NO. PANEL MEMBER ORGANISATION REPRESENTEDCATEGORY OF REGISTRATION

Re-Appointed Members

1. Prof Raymond Nkado Chairperson: Programme Accreditation Committee Pr. CPM

2. Prof Alfred Talukhaba Tshwane University of Technology Pr. CPM

3. Prof Johannes Verster Registered Professional and Committee Member Pr. CPM

4. Dr Bridgette Gasa Industry Representative Not Registered

5. Ms Toni Stringer Cape Peninsula University of Technology Not Registered

6. Dr Franco Geminiani Nelson Mandela Metropolitan University (BHSD) Pr. CPM

7. Mr Felix le Roux University of Pretoria Not Registered

8. Prof David Root Witwatersrand University Pr. CPM

9. Ms Nomvula Rakolote SACPCMP: Registrar Not Registered

Committee Members Appointed

10. Mr Eric Manchidi SACPCMP: President Pr. CPM

11. Ms Claire Deacon Council Member Pr. CHSA

12. Mr Duane Fischer Registered Professional Pr. CHSA

13. Mr Mziwakhe Nhlapo Organised Labour: National Union of Mineworkers CHSM

14. Mr Ishmail Cassiem Registered Professional CHSM

New Appointments

15. Mr Charles Mothobiso Mangosuthu University of Technology CCPM

16. Mr Archie Madumane Walter Sisulu University Not Registered

17. Prof Theo Haupt University of KwaZulu-Natal Pr. CM

18 Mr Mark Massyn University of Cape Town Not Registered

19 Prof Kahilu Kajimo -Shakantu

University of Free State Not Registered

20 Ms Elke Hefer Durban University of Technology Not Registered

21 Mr Wayne Draai Nelson Mandela Metropolitan University Not Registered

22 Mr Nazeem Ansary University of Johannesburg Not Registered

Heads 0f Department (HOD) ForumOn 16 September 2016, a strategy document for Heads of Department (HOD) was adopted in an attempt to develop strategic interventions in order to enhance the professionalisation of the CM and the compliance level of accredited institutions by addressing common obstacles affecting the respective departments of Construction Management that are accredited by Council.

The resolutions as per the adopted strategy will seeks to address, amongst others, the following:

1. Support the professionalisation of the CM professions in the public sector through development of a pool of professionally registered mentors aimed at increasing the pool of Candidate CM, CPM and CHS professionals attaining professional registration with the SACPCMP.

2. Support the reduction in the number of combined CM departments and qualifications and support the development of seamless well-articulated Honours and Master’s degree qualifications, leading towards doctoral studies in the CM professions.



3. Raise funds for additional bursary funding for the creation of an increased pipeline of new CM professionals in the public and private sectors.

4. Implement a joint structured initiative aimed at locating available workplaces, stipends and supervision for experiential learning and candidacy by university students in the private and public sectors.

5. Support the recruitment and development of suitably qualified CM lecturing and professorial staff to ensure that CM departments are constituted/headed by CM lecturers and professors of CM, who are professionally registered with the SACPCMP, as a primary profession.

6. Ensure the provision of standard naming conventions for CM departments and CM qualifications for programme accreditation purposes.

7. Implement and monitor support programmes to ensure the development of more Black South Africans as researchers and lecturers in the CM, CPM and CHS professions in line with the National Development Plan (NDP).

8. Implement and monitor staff development plans to ensure an increase in the number of National Research Foundation (NRF)-rated researchers.

9. Encourage Heads of Department to nominate or volunteer as Assessors with regard to the professional registration processes via the academic route.

10. Ensure that more institutions of higher learning offer accredited full qualification programmes/ short courses from undergraduate level to postgraduate levels to respond to the CPD requirements for Registered Persons.

Strategic Issues and Challenges Programme Accreditation Policy FrameworkThe current Programme Accreditation Policy Framework has been reviewed and new policy amendments with inputs from all relevant stakeholders have been presented to Council and approved by Council in March 2017.

Structured Requirements for New Programmes The Institutions of Higher Learning have started a process of introducing new qualifications and, where applicable, have sought letters of endorsement for the new qualifications from Council.

This is of importance for Council as it offers the opportunity to request institutions to develop qualifications that will support the development and registration of the professional disciplines under the Council’s ambit.

It was in this vein that a process was initiated through the HOD Forum to consider introducing policy guidelines for the qualifications naming convention in order to guide Institutions of Higher Learning in the naming of new qualifications and linking this with curriculum content.

CONTINUING PROFESSIONAL DEVELOPMENT (CPD)The first CPD cycle of the SACPCMP commenced on 1 April 2012 and ended on 31 March 2017. In preparation for the first CPD cycle of Council, there has been an increase of professionals logging CPD activities onto their online profiles. Council has also been receiving annual CPD reports through email, post and physical deliveries from Registered Persons.

In order to address the systems data quality and address the CPD course approval transactions backlog on the “Your Membership” (YM) system, a data clean-up process was engaged in from August to November 2016 entailing the conversion of all systems data entries to CPD hours as opposed to CPD points.



PART B

Registered Persons were updated and assisted in updating their CPD profiles during the provincial CPD workshops that were held from March to May 2016.

These workshops gave Registered Persons an opportunity to review and update their profiles. This resulted in Council being able to provide comprehensive CPD reports for data quality purposes whilst the system was modified for compliance with the CPD Framework. Parallel sessions were also held with service providers.

A total of four hundred and sixty seven (467) registered professionals attended the workshops as indicated in the table on the right:

A concerted CPD compliance campaign aimed at reminding Registered Persons registered with Council prior to comply with their CPD requirements, was initiated in early January 2017.

The CPD compliance campaign was initiated utilising bulk email, telephonic reminders, cellphone USSD and webinar sessions.

CPD Compliance Campaign Activities1. Mass marketing of online CPD bundles 2. Full-time training sessions at SACPCMP offices3. Utilisation of cellphone USSD and bulk SMS

to contact and remind Registered Persons of compliance

4. Automated CPD statements to be issued by the my-cpd online system to all Registered Persons

5. National contact CPD workshops and webinars6. Bulk email reminders via email, the SACPCMP

website and Facebook pages

The following is the current status of CPD compliance by Registered Persons:

After a concerted campaign of reminders to Registered Persons falling within the 1st CPD cycle, a total CPD compliance rating of 39% has been registered to date.

The awareness and compliance campaign did not yield the desired results as seven hundred and sixty five (765) Registered Persons out of one thousand nine hundred and fifty seven (1 957) updated their profiles.

DATECPD WORKSHOP

VENUE TOTAL

DELEGATES

2016/03/09 Pretoria 38

2016/03/14 Johannesburg 75

2016/04/06 KwaZulu-Natal 86

2016/04/11 Port Elizabeth 26

2016/04/13 East London 31

2016/04/18 Cape Town 106

2016/04/21 Bloemfontein 41

2016/04/22 Kimberley 14

2016/05/05 Witbank 34

2016/05/10 Mafikeng 10

2016/05/13 Polokwane 24

1957

404

361

765

Total Registered Persons (professionals)

Total Registered Persons complied

Total Registered Persons who did not fully comply

Total number of updated profiles

CPD compliance statistics to date:

Registered Persons cycle ending 31/03/2017 The CPD statements for the 1st CPD cycle have been issued to Registered Persons targeting those falling within the 1st CPD cycle (1 April 2012 to 31 March 2017) and all other Registered Persons whose CPD cycles are not yet due.

Registered Persons falling within the current CPD cycle ending 31 March 2017 who have not made any CPD filings were issued with non-compliance notices/



reminders via email and mobile text (USSD) and several applications for CPD exemptions have been received from Registered Persons due to retirement.

Review of the CPD Policy FrameworkThe CPD Committee made amendments to the CPD policy. The new CPD policy provides for a new conversion formula for the conversion of CPD hours into CPD points, as well as strengthens the CPD evidence requirements for Category A (Core and Non-Core Knowledge Areas), B (Mentorship and Development) and C (Practical Work). After consultation with the relevant stakeholders the amended policy was gazette for inputs and will be gazette for commencement in the next financial year.

In order to renew professional registration before the date of expiry as stipulated on the registered professional’s registration certificate, a registered professional must have achieved the minimum CPD points required over a five (5) year cycle. Any professional who does not comply within the five (5) years, will be required to follow a remedial programme for twelve (12) months in the sixth (6th) year. Any registered person who fails to comply with the remedial programme will be suspended in the seventh (7th) year, pending deregistration by the Council. The current focus is on ensuring that registered professionals who registered in 2012 during the initial registration cycle, have complied fully.

Strategic Challenges Although the CPD cycle is over a period of five (5) years, the current focus is on Registered Persons who were registered during the first registration cycle in 2012 as the deadline for compliance with CPD requirements was 31 March 2017.

Implications of CPD Non-ComplianceIn line with Council’s CPD policy, any registered professionals who do not comply with their CPD obligations within the five (5) years of professional registration will be required to follow a remedial programme for twelve (12) months in the sixth (6th) year of professional registration, failing which de-registration will take place in the 7th year of professional registration.

The following measures are planned for implementation:

1. Renewal certificates to be issued to CPD compliant persons

2. Remediation letters to be issued to non-compliant persons

3. CPD exemption letters to be issued to retired persons as per policy

REGISTRATION

Highlights, Achievements and Important Milestones in Policy ImplementationThe SACPCMP managed to maintain growth in registration numbers during the 2016/17 financial year across all registration streams, except for that of Construction Mentor. The growth in registration numbers can be attributed to continuous targeted awareness campaigns to diverse stakeholders which also increases the footprint of Council countrywide. The database of Registered Persons increased from 4 364 at 31 March 2016 to 6 403 as at 31 March 2017, which represents an increase of 46.7% for this reporting period. The increase in registration numbers augurs well in ensuring that the country has competent persons to deliver the expected quality service for various infrastructure delivery initiatives.

The most notable increase is the year-to-year increase in the number of registered candidates from 1 571 as at 31 March 2016 to 2 467 as at 31 March 2017 which represents an increase of 57%. Notwithstanding this, the throughput of those upgrading to professional status is relatively small and this happens to be a source of concern, as it will, amongst others, impact on transformation within the construction sector. It is on this realisation that Council has embarked on numerous initiatives including applying for discretionary grants to allow it to embark on a structured candidacy programme.

Council currently has approved grant funding for three years from the LGSETA for 75 Candidate Construction Project Managers working in the municipalities countrywide. The grant funding allows, amongst others, for the provision of mentors, development of relevant training material, development and management of work-place based learning programmes, attendance of relevant courses/seminars/conferences and general administration. This has the potential to ensure that the candidates upgrade to professional status within their stipulated candidature period.


PART B

Comparative Registration Numbers per Calendar Year:

31 MARCH OF EACH YEAR SEP-08 OCT-09 NOV-10 DEC-11 2012/13 2013/14 2014/15 2015/16 2016/17

Professional Construction Manager

809 750 750 735 673 689 679 725 835

Candidate Construction Manager

241 179 181 185 172 186 233 256 394

Professional Construction Project Manager

1699 1593 1584 1543 1505 1505 1531 1585 1694

Candidate Construction Project Manager

669 538 610 679 847 969 1197 1219 1608

Professional Construction Mentor

N/A 6 11 12 12 14 20 21 22

Construction Mentor N/A N/A N/A N/A 2 1 2 2 2

Professional Construction Health and Safety Agent

N/A N/A N/A N/A N/A 13 17 27 54

Candidate Construction Health and Safety Agent

N/A N/A N/A N/A N/A 0 8 25 53

Construction Health and Safety Manager

N/A N/A N/A N/A N/A 10 30 113 328

Candidate Construction Health and Safety Manager

N/A N/A N/A N/A N/A 0 1 5 25

Construction Health and Safety Officer

N/A N/A N/A N/A N/A 0 18 320 1001

Candidate Construction Health and Safety Officer

N/A N/A N/A N/A N/A 0 2 66 387

Total 3 418 3 066 3 136 3 154 3 211 3 387 3 738 4 364 6 403





Statistics per provinceGauteng province has the largest number of registered professionals and candidates in each of the registered categories. The combined total is two thousand four hundred and fifty (2 450), translating to 38,2% of the total SACPCMP registrations.

Professionals and candidates per province

Overseas: 22Total: 6 403

354

459

2 450

137

92

781

793

250

1 065


PART B

Statistics per race The breakdown per race is 19% Black, 3% Coloured, 6% Indian and 72% White.

Statistics by ageApproximately 59% of Registered Persons fall within the 30-50 years old category.

Statistics per genderIn terms of gender, the sector is still lagging far behind with 83% of Registered Persons being male and 17% being female.

Statistics by categoryStatistics show that Professional Construction Project Managers constitute 66% of registered professionals in the current financial year, which is the highest recorded so far. There is still a need to increase the number of registrations for CHS disciplines, Professional Construction Mentors and Construction Mentors. Of the Registered Persons, about twenty five (25%) or one thousand five hundred and seventy one (1 571) are candidates.

What is being done to improve registration?Project and Construction Management (PCM)Due to the increasing number of persons applying for registration, a call for expressing an interest to be in the pool of assessors in the Project and Construction Management stream was issued to registered professional persons and the responses are currently under evaluation. This is with the aim of supplementing the existing pool to improve the turnaround time for the assessment of applications; more so that such persons are doing so on a voluntary basis. Those who will be approved would only assume the task of assessment after undergoing a formal induction into the assessment process. In addition, to keep the knowledge base of the existing assessors current, refresher workshops are conducted for them from time to time.

For the Project and Construction Management stream, there is a sizeable number of applicants who have since been approved to proceed to a professional interview. To reduce those whose interviews must be carried over

Black

2 828 (19%)

Indian

310 (6%)

Coloured

338 (3%)

White

2 927 (72%)

Pr CPM 1 694

Pr CM 835

Pr CMentor 22

Pr CHSA 54

CHSM 328

CHSO 1 001

C Mentor 2

C CPM 1 608

C CM 394

C CHSA 53

C CHSM 25

C CHSO 387

Total 6 403

15-19 1

20-24 59

25-29 738

30-34 1 149

35-39 1 009

40-44 882

45-49 760

50-54 562

55-59 468

60-64 456

65+ 319

Total 6 403

Male

5 322 (83%)Female

1 081 (17%)



to 2017, there were three interview panels that were constituted during the months of October and November with the last interviews being stretched to the 10th of December 2016. Despite this, one hundred and forty four (144) interviews had to be carried over to 2017 and the aim is to prioritise their interviews. Furthermore, to reduce the number of outstanding paper-based assessments, some of the assessors out of their own volition undertook assessments of applications during the year-end recess.

Construction Health and Safety (CHS)A total of eleven thousand five hundred (11 500) applications have to-date been received for registration to various Construction Health and Safety categories. An average of about three hundred (300) applications are received per month. To expedite the processing of applications, it necessitated conversion from a manual to an electronic system. The conversion of old hard copy applications is still on-going, as to-date only 80% of these have been concluded. The electronic examination booking system has also contributed to a more controlled flow and a sixty 60% has been achieved for those individuals awaiting examinations. Further to this, approved examination centres have been identified countrywide.

The assessor pool in CHS has been drastically expanded to eighty (80). Assessor participation from January 2017 has shown an increase after a considerable slow-down towards the end of the 3rd quarter. A forty (40%) active participation of the assessor pool is expected, which will have a positive influence on the number of applicants awaiting assessment. The flow of applications through the assessment phase however, remains a matter of concern.

Although registrations have not met expectations, a total of one thousand two hundred and sixty one (1 261) registrations had been concluded by April 2016, in comparison to one thousand five hundred and sixty six (1 566) by the end of March 2016. Sixty nine percent (69%) of all registrations had been concluded during the 2016/2017 1 twelve (12) month period, compared to thirty one (31%) during the period from inception of registration in 2013.

The time taken for processing of applications is between two to four months. Admittedly, this period is inordinately long but, in most instances, this is not of

Council’s own making. It is primarily occasioned by the requisite fees being unpaid along with some applications being incomplete at the time of their submission. An application becomes incomplete, when at the time of submission, the applicant did not provide all relevant supporting documentation with their application. In other instances, some applicants do not, at the time of effecting payment, use the reference number prescribed on the invoice issued to them, thus delaying the payment allocation process that precedes the processing of the application. These occurrences are major contributors to the delays in assessment of applications. Within the CHS stream payment of registration and annual fees, payment of examination fees and responses to assessment outcomes remain a concern as the number of unresponsive applicants has increased in excess of one thousand (1 000).

CANCELLATIONS AND DE-REGISTRATION TOTAL

Deceased 0

Non-Practising 0

Retired 17

Suspensions 2124

Resigned 3

Removed (due to default) 53

Cancellations and De-registration

The high number of suspensions continues to be a matter of concern. These are due to the failure by Registered Persons to pay their annual fees within the prescribed period which on a yearly basis is from 1 January up to 31 March. At the end of this period, Council has allowed a further grace period of one month (April) for payments to be made before levying the administration fee over and above the invoiced annual fee. If after this grace period, payment has still not been made, the registered person is put on suspension and will only be deregistered after a period of fifteen (15) months.

DISCIPLINARY ACTION AND APPEALS

Disciplinary Action and Appeals Highlights, achievements and important milestones in policy implementationComplaints of improper conduct lodged by members of the public or incidents related to project and construction



PART B

management related work activities that would indicate improper conduct by Registered Persons are subject to investigations. The investigations are overseen by the Disciplinary and Code of Conduct Committee, that is duly appointed by Council. The investigation of complaints and subsequent action against the registered person is focused on the enhancement of public safety, safeguarding the image, reputation as well as the standing of the profession and maintaining professional standards. The prevention of improper conduct and the subsequent enhancement of the profession happens to be a high priority of the SACPCMP.

Council embarked on a process of reviewing the Code of Conduct, which encourages the highest professional and ethical standards, which all Registered Persons have to adhere to in the discharge of their duties. This also aims at informing the public of the principles to which the Registered Persons are committed. A draft approved by Council was published in the gazette for public comments by 2 September 2016.

The comments received have since been considered resulting in Council approving the final document on 27 March 2017 for publication and implementation.

NUMBER OF COMPLAINTS RECEIVED AND THEIR NATURE COMPLETED

WHAT IS THE AVERAGE TIME FROM DATE OF LODGEMENT TO DATE OF FINALISATION?

IN-PROGRESS

• Complaint of being appointed as a Construction Project Manager even though not registered.

0 90 days 3

• Number of complaints withdrawn None

• Complaints finalised within stipulated time period 1

NUMBER OF APPEALS RECEIVED AND THEIR NATURE COMPLETED IN-PROGRESS

38 appeals have been received of which 37 have been completed and 1 is still in progress. The nature of appeals is outlined below:• 6 deferment to CCPM following professional interview, 1 non-

approval for consideration of registration as a Pr CPM following application assessment,

• 6 deferment to CCM following application assessment, 8 deferment to CCPM following application assessment,

• 1 non-approval for consideration of registration as a Pr CPM following application assessment,

• 1 non-approval for consideration of registration as a Pr CM following application assessment,

• 8 re-classification to CHSM examinations following application assessment,

• 2 re-classification to CHSM examinations following professional interview,

• 1 deferment to CCHSA following professional interview, • 1 deferment to CCHSA following application assessment and • 3 deferment to CCHSO examinations following application

assessment.

37 1

Appeals finalised within stipulated time period 37

Number of appeals withdrawn 0

Disciplinary and Appeals procedure This is in accordance with the Appeals Policy as enshrined in the Registration Policy and Procedures

Composition of the committee Appeals are considered by a Council appointed Registration Appeals Committee comprising six (6) members who make their recommendations to Council for a decision

Disciplinary and Appeals Action (Tribunals)



Strategic Issues and ChallengesOn account of the Disciplinary and Code of Conduct Committee not being serviced by an internal legal unit nor being in possession of the requisite skills, their investigations at times compels them to seek external legal advice. Ideally, Council would wish to have an internal legal unit, but this is currently not possible owing to inadequate financial resources.

The number of registration appeals increased to thirty-eight (38) in this reporting period, as compared to thirty three (33) in the 2015/16 financial year i.e. an increase of 15%. This increase is attributed to the high number of applications that are being received across all the registration streams. This is despite the efforts that are continuously being made to give succinct details of shortcomings and/or limitations that are detected either during the assessment of applications or at interviews.

In most of the cases, the appellants do not really pinpoint what was overlooked during the assessment or interviews, but rather provide in some instances new information without realising that they are assessed based on what they submit. Notwithstanding this, Council has an obligation to ensure that it only registers applicants who have demonstrated their competence as measured against the standards set by Council for its various registration categories. Council will nonetheless continue to explore initiatives aimed at further strengthening and reinforcing the integrity of the assessment process such as allowing for debriefing of aggrieved applicants.

PROFESSIONAL GUIDELINE FEES

Highlights, Achievements and Important Milestones in Policy ImplementationIn terms of section 34(1) of the SACPCMP Act, Council in consultation with Voluntary Associations is required to formulate and publish recommended professional guide fees. Section 34(2) of the same Act also requires Council to review the fees on an annual basis.

Council took the decision from the beginning of 2013 not to publish the fees, arising from advice tendered by the Competition Commission that the publication of the fees in their format was deemed by them as an anti-competitive behavior. It was on this basis that an

exemption application was made to the Competition Commission, which has since been declined. It is expected that this would now form the basis of an appeal by the CBE on behalf of all the Councils of the Built Environment Professions (CBEP).

Strategic Issues and ChallengesIt is Council’s intention to embark upon research on alternative modalities of guideline fees, but to date this has not been possible due to lack of funding. It is envisaged that the research will be an extensive and protracted exercise. This was the basis upon which an exemption application was made, primarily for the continued protection and promotion of the public interest.

RECOGNITION OF PRIOR LEARNING (RPL)

Highlights, Achievements and Important Milestones in Policy ImplementationThe SACPCMP has an RPL Policy in place that specifically applies to applicants who do not have the relevant formal qualifications that are recognised for registration, but have nonetheless substantial knowledge and experience spanning more than ten (10) years in either Construction Project Management or Construction Management. This makes such applicants eligible to be equally considered for registration based on their demonstration of having the requisite competencies. It therefore rightfully recognises their acquired experience, knowledge and competencies outside the formal qualification sphere to bolster the professional skills base.

Strategic Issues and ChallengesCouncil began implementing RPL on 1 May 2009 and since then a sizeable number of applicants have been recommended to pursue registration through this route. Council has identified challenges that inhibit those recommended from pursuing this route. Some of the challenges that they face include:• Apparent lack of support from current and previous

employers; and• Compilation of a Portfolio of Evidence to be an

onerous and highly demanding/involved process

At the end of this reporting period, about fifty six (56) applicants had paid the RPL fee, but had not submitted their Portfolios of Evidence yet. It is with this in mind that



PART B

Council approved hosting RPL workshops in the next financial year. The primary purpose of these workshops will be to guide the applicants in the compilation of the Portfolio of Evidence and how they need to prepare for

IDENTIFICATION OF WORK (IDoW) IN LINE WITH THE COMPETITION ACT

Highlights, Achievements and Important Milestones in Policy ImplementationSection 26(2) of the SACPCMP Act requires that Council, after consultation with Voluntary Associations and the public, should submit recommendations to the CBE on the type of project and construction management work to be performed by Registered Persons. The recommendations have been submitted and approved by the CBE. The IDoW overlaps with those of other CBEP Councils have also somewhat been agreed to, and this will delineate the boundaries around the entire family of the CBE professions through distinguishing one profession from the other. Further to this, an application for the IDoW exemption submitted to the Competition Commission has since been rejected.

Policy Outcomes The SACPCMP views the IDoW as being for the protection of the public health and safety. This is an enabling mechanism of section 18(2) that seeks to prevent unregistered and incompetent persons from practicing project and construction management. Strategic Issues and ChallengesThe rejection of the exemption application by the Competition Commission is viewed in a serious light, as it takes away the protection of the public in respect of the competence of the services to be provided by the professionals. What appears to be misunderstood is that competence is a minimum technical and ethical standard of service delivery which is intrinsically embodied in the

oral assessments that follow thereafter. It is envisaged that such workshops will be held from time to time on the realisation that RPL happens to be amongst one of the key drivers of transformation.

ability to deliver the work to be identified in terms of section 26(2) of the Act. It is on this basis that Council is fully supportive of lodging an appeal against the rejection jointly with other CBEP Councils through the CBE.

VOLUNTARY ASSOCIATIONS (VAs)

Highlights, Achievements and Important Milestones in Policy ImplementationThe SACPCMP is seeking to strengthen its working relations with its recognised Voluntary Associations (VAs).

During the 4th Project and Construction Management Conference held in October 2016, Presidents of the recognised VAs were invited to be part of the Presidential Forum, an intervention initiated by the President of the SACPCMP. The rationale of such an initiative is to generate synergy among the VAs, to ensure greater collaboration among these strategic partners for the rowth development and transformation of the Project and Construction Management Profession.

Nine (9) VAs signed the declaration during the gala dinner as indicated below:1) ACHASM2) MBA-KZN3) MBSA4) MBA- FS5) RICS6) SAICE7) CIOB8) IOSM9) CESA

RECOGNITION OF PRIOR LEARNING (ANNUAL STATISTICS) TOTAL

Number of professionals registered through RPL 0

Percentage of registered professionals through RPL 0

Number of people who paid to pursue registration through RPL 28

Number of RPL applications in process 10

Number of RPL applications that had been rejected 0



Currently twelve (12) recognised Voluntary Associations have met all requirements to be accredited as listed below:

Council is currently awaiting full compliance with the requirements for registration from the following five (5) non-accredited Voluntary Associations:

ORGANISATION REG NUMBER WEBSITE

1. Association of South African Quantity Surveyors (ASAQS) V/001/2004 www.asaqs.co.za

2. Master Builders Association North (MBA North) V/006/2004 www.mbanorth.co.za

3. South African Institute of Civil Engineering (SAICE) V/002/2004 www.saice.org.za

4. Association of Construction Project Managers (ACPM) V/007/2005 www.acpm.co.za

5. South African Federation of Civil Engineering Contractors (SAFCEC) V/003/2004 www.safcec.org.za

6. Consulting Engineers South African (CESA) V/009/2009 www.cesa.co.za

7. Master Builders South Africa (MBSA) V/010/2009 www.mbsa.org.za

8. Master Builders Association: Free State (MBAFS) V/005/2004 www.mbsa.org.za

9. The Chartered Institute for Building (CIOB) V/004/2004 www.ciob.org.za

10. South African Roads Federation(SARF) V/011/2015 www.sarf.org.za

11. The South African Institute for Occupational Health and Safety (SAIOSH)

V/012/2015 www.saiosh.co.za

12. Master Builders Association: Kwa-Zulu Natal (MBAKZN) V/013/2016 www.masterbuilders.co.za

ORGANISATION WEBSITE

1. The Association of Construction Health and Safety (ACHASM) www.achasm.co.za

2. Royal Institution of Chartered Surveyors (RICS) www.rics.org

3. The Institute of Safety Management (IOSM) www.iosm.co.za

4. Build Environment Professions Export Council (BEPEC) www.bepec.co.za

5. South African Institute of Architects (SAIA) www.saia.org.za


PART B


COMMUNICATION AND STAKEHOLDER RELATIONS

Engaging and Communicating with StakeholdersThe South African Council for the Project and Construction Management Professions (SACPCMP) is a juristic person established by Section 2 of the Project and Construction Management Professions Act (Act 48 of 2000) to regulate Project and Construction Management professionals in order to protect the public.

Council has embarked on a communication and stakeholder relations exercise. This campaign involves communicating critical information to the members of the general public, as well as showcasing best practice; latest trends and developments and profiles of Registered Persons.

An approved communication strategy is being implemented to ensure effective communication with key stakeholders is well managed. The objective is for Council

to be proactive in sharing information on all matters that affect all stakeholders and the public. It also aims to be the central point of communication for all engaging with Council. The following channels and media are harnessed optimally with a view to communicating far and wide with minimal spend:• Media (print, broadcast and online)• Publications• Website content development• Radio campaigns• Promotional material and marketing collateral• Audio visual material• Social media

Branding is also an essential component and works synergistically with communication interventions. A fresh and new brand has been developed and is being promoted at Council events and at on online platforms. A Corporate Identity (CI) Manual was developed and is being used so




that the brand is applied consistently.

Newly developed Policies and GuidelinesCommunication is guided by policies and guidelines to mitigate risk, protect its reputation and also for brand consistency. The following policies and guidelines were developed:• Media policy and guidelines;• Publication policy and guidelines;• Internal communication policy; and• Crisis communication policy and guidelines.

Internal CommunicationSACPCMP staff members are key stakeholders and also act as brand ambassadors for the SACPCMP. As part of information dissemination, the Communication department organises interactive information sessions for staff members. The following topics were addressed:• Property purchase, leasing and rental (ENS Africa);• Tax (SAICA);• Water wise gardening and water saving (Rand

Water); and• Healthy Eating (Lila Bruk and Associates).

Stakeholder RelationsIn order to engage, manage and monitor stakeholders, the Department developed a comprehensive stakeholder map. The objective of stakeholder engagement is to ensure that the SACPCMP makes a valuable and significant contribution to the Project and Construction Management Professions, industry and to the country, as a whole.

Collaboration and engagement with stakeholders, especially Registered Persons, is a key enabler for the SACPCMP to achieve its objectives. Wide stakeholder engagement is critical to the SACPCMP’s effectiveness and its ability to deliver value.

Stakeholder issues are identified through continuous feedback loops during which Council affirms its understanding of stakeholder needs and interests.

STAKEHOLDER/GROUP

MESSAGE CHANNEL/MEDIUM OUTCOME

1. Registered Persons and Public

• Project Manager professionals

• Construction Manager professionals

• Health and Safety professionals

• General Public

• Mentors

• Candidates

• Clients of SACPCMP

• What is the SACPCMP

• Mandate of the SACPCMP;

• Registration processes and benefits of registration

• Health, safety and the public

• Ethics and disciplinary process

• Process of lodging complaints

• Process of confirming Registered Persons

• Media briefings

• Wall posters

• Banners

• Website

• Pamphlets and corporate brochures

• Roadshows

• Campaigns

• Social Media

• Mobile phone technology

• Bulk mailers

• Exhibitions

• Seminars/Conferences

• Knowledge about Council

• Understand the disciplinary and complaints process

• Increase in professional registrations

• Build relationships to assist with information dissemination

• Increased engagement of Registered Persons

The following map is used as a guide to manage and engage SACPCMP stakeholders:

PART B

STAKEHOLDER/GROUP


2. Voluntary Associations (VAs)

• Regulators

• Professional Associations

• Organised Labour

• Academics and Professionals

• Non-Governmental Organisations

• Introduce the SACPCMP to new bodies

• Role of the SACPCMP

• Possible Memoranda of Understanding

• Collaboration of activities

• Presidential and VA Forums

• Transforming the PCM industry

• Group or one-on-one meetings

• Memos/ Letters

• Reports

• Seminars/Workshops

• Conferences

• Partnerships and sponsorship

• Website

• PowerPoint presentations

• Campaigns

• Presidential and VA Forums

• Key to the enforcement of the SACPCMP mandate

• Established SACPCMP profile

• Increased understanding of the SACPCMP regulatory functions

• Climate of opinions will be created

• SACPCMP marketing increased

• Coordinated activities to avoid duplication and clashes




STAKEHOLDER/GROUP


3. Internal Stakeholders

• Council members

• Employees

• Registrar and Executives

• Committee members

• Updates on new Regulations affecting the built environment

• Review of SACPCMP policies in line with new legislation impacting the industry

• Activity reports and outcomes

• Client orientated research

• Informative matters regarding HR

• Council Resolutions updates for implementation

• performance management systems

• filtering of objectives

• Council activities and events

• Meetings

• Workshops

• Intranet

• Documents

• PowerPoint Presentations

• Memos/ Letters

• Social events

• HR Handbooks

• Staff Communications and Meetings

• Well informed and engaged teams

• Improved service delivery

• Professional services and reports

• Integrity

• Team of content specialists

• Motivated teams

• Learning, development and growth

• Responsible leadership


PART B

STAKEHOLDER/GROUP


4. Political • National Government, especially DPW

• Provincial Government

• Local Government/ Councillors

• Parliament

• Law makers

• Opinion makers (Influencers)

• Organised Labour

• Mandate of the SACPCMP

• Highlights of annual reports on activities Council has engaged in for the financial year

• Collaborations on transformation initiatives

• Sponsorships for activities of common initiatives

• Collaboration and support of joint initiatives

• NDP outcomes

• Website

• Media

• Meetings/Workshops

• Documents

• Briefings


• Adequate resources

• Political support and endorsement

• Open public debates

• Improved relations

• Local monitoring

• Leveraging funding

• Coordinated activities

5. CBE and sister Councils

• CBE

• SACQSP

• ECSA

• SACAP

• SACPVP

• SACLAP

• The promotion of health and safety within other professions

• Possible memoranda of understanding

• Collaboration on transformation initiatives

• Profession promoting outreach programmes

• Website

• Media

• Meetings/Workshops

• Documents

• Reports


• Annual Report

• Good relationship with sister councils

• Extensive engagement on matters of common interest

• Improved built environment with health and safety of the public taking priority





Transformation It is still a major concern that most Registered Persons (both professionals and candidates) are predominantly male. For this reporting period, the consolidated percentage of both registered candidates and professionals was 16.8% female. This tends to indicate that gender transformation remains a very critical challenge. Hence, this now forms part of Council’s transformation agenda. The same equally applies for professional registrations, which still show that the majority are still predominantly White. As for this reporting period the total registered professional cohort was made-up of 71.8% White, 19% African, 5.6% Indian/Asian and 3.6% Coloured. The figures within CHS are however more favourable with 28% of applications and 24% of Registered Persons being female and 32% of the total applications and 39% of Registered Persons being white.

Council has approved the establishment of a Transformation Committee, as part of activities needed to ensure that it aligns with the national agenda. The terms of reference for the Committee have been developed and approved by Council at a meeting held on 26 February 2017. The Committee’s first task will be the development of an implementation plan. The Executive: Stakeholder Relations and Communication has developed a draft Transformation Strategy for the Committee, which will be considered in due course.

Strategic Interventions developed to overcome these barriers The Transformation Strategy is associated with a budget which requires a substantial investment. Raising funds to achieve the transformation goals may prove to be a challenge. It is expected that the Presidential Forum will also generate synergy in order to address transformation in the industry.

One of the challenges facing transformation of the industry is the inability of candidates to upgrade to professional status in record time. Council has however continued to show significant increases in candidature registration across all its registration streams since implementation of various strategic initiatives. Notwithstanding this, the throughput of those upgrading to professional status is relatively small and this happens to be a source of concern as it will, amongst others, impact on transformation within the Construction Sector. It is on this realisation

that Council has embarked on numerous initiatives to apply for discretionary grants to allow it to embark on a structured candidacy programme. Currently Council has approved grant funding from the LGSETA for seventy five (75) Candidate Construction Project Managers working in municipalities countrywide.

The grant funding allows, amongst others, for the provision of mentors, development of relevant training material, development and management of workplace-based learning programme, attendance of relevant courses/seminars/conferences and general administration. This has the potential of ensuring that candidates upgrade to professional status within their stipulated candidature period. Council has also applied for discretionary grant funding from the Services Seta and CETA to enrol candidates on a structured candidacy programme.

Council Flagship Events5th Construction Management Summit The 5th Construction Management Summit of the South Africa Council for the Project and Construction Management Professions (SACPCMP) was held on 28 and 29 June 2016 at the University of Johannesburg’s Sophiatown Hall Residence, Bunting road Campus. In a change from previous editions, the summit was hosted in partnership with the University of Johannesburg, who played a key role in the planning and organisation of the Summit. A total of two hundred and eighty two (282) participants attended over the two days; up from two hundred and twenty nine (229) in 2015. Attendees were from various backgrounds such as construction management professionals and candidates, students, academics, civil society and government officials. The theme adopted for the 5th Summit was ‘Driving Sustainable Development’, and a number of relevant presentations by subject matter experts, keynote presentations and breakaway sessions were planned around this theme. In particular, the Summit aimed to focus the attention of government ministers, policy-makers and health leaders on the importance of the construction management profession in driving sustainability in the built environment

The summit followed the structure that has worked well at previous events, comprising a mix of keynote presentations, plenary presentations, breakaway sessions and panel discussions. The proceedings


PART B

and the key issues discussed and proposed recommendations are summarised below. The key issues discussed at the Summit were:• Getting employers as well as regulatory and support

bodies to realise the critical role and importance of the Construction Management profession.

• Increasing visibility with student groups at tertiary schools and Construction Management schools.

• Increase throughput in the candidacy process and retaining young professionals in the discipline

• Encouraging close collaboration and sharing of successful practices in academic institutions

• Offering increased support to tertiary institutions in order to encourage the uptake of Construction Management degrees.

• Driving Construction Management development as a priority area in the South African construction industry.

• Improving the image of the profession.• Encouraging registration amongst the Construction

Management professions.• Driving research, education and skills development

to take the profession to the next level.

The feedback received from delegates with regard to the 5th Construction Management Summit was welcomed and discussed by the Construction Management Development Committee (CMDC).

The feedback is valuable in refining the offerings at the summits and ensuring that they are aligned with the needs of the CM profession. The feedback on the presentations, venue and possible topics for the next summit is indicated below.

The main reasons for attending the Summit were personal growth, networking and to gain CPD points. Contributing to key industry issues and learning more about the topics were also cited as important reasons.




Approximately two-thirds to the attendees were happy that they had achieved their reasons for attending the summit

Generally, the presentations by those actively involved in construction scored highest, indicating that topics of practical application in everyday work seem to be slightly more popular.

A majority of respondents indicated that they would recommend the summit

PART B


The 4th Project and Construction Management ConferenceThe conference was held at Sandton Conference Centre on 26 and 28 October 2016. The theme of the conference remained the same as the previous years. It was “Growth, development and transformation in the Project and Construction Management Professions”. With each successive conference, thought leaders and technical specialists from both the private and public sectors converge to pool their ideas and share experiences. Media personality, Leanne Manas, displayed her prowess by steering conversations and discussions, resulting in yet another successful event. Two hundred and eighty-six (286) delegates attended the conference and Master Classes were attended by two hundred and fifty (250) delegates; a significant increase from the previous year.

The conference programme was preceded by Master Classes conducted in collaboration with Council’s strategic partners on cross-cutting industry matters to suit registered professionals in various disciplines and the industry partners at large, as indicated below:• Structured Mentoring in the Workplace• Procurement Strategies in infrastructure projects• Mediation, arbitration and conciliation

The last day of conference was dedicated to transformation aspects which started off with pursuing transformation from foundation phase with a thought provoking presentation on the Thuthuka Model to matters of young registered professionals wanting to pursue entrepreneurship. Partnerships continued to be the focus in this year’s

conference with a view of what other African countries are developing and the opportunities for our registered professionals. State Owned Enterprises were also invited to share their key projects and left our audience eager to find out more on how they can be part of them. The highlight of the prestigious gala dinner on 27 October 2016 was the launch of the SACPCMP Presidential Forum, an intervention initiated by the President of the SACPCMP. The rationale of such an initiative is to generate synergy among the VAs to ensure greater collaboration among strategic partners. Nine (9) VAs signed the declaration during the gala dinner.

The 2016 Project and Construction Conference resolutions are intended to address the following challenges:• Arresting Perpetual Candidacy by blacks and

females so that they could upgrade to professional status in a record time through the use of registered




professionals, who will mentor Candidates; • Providing entry into the Construction Health and

Safety disciplines for those that lack the required experience, but eager to undergo relevant training to qualify for professional registration;

• Realising contractor development through the use of registered Professional Construction Mentors and Construction Mentors by clients and contractors and to further assist contractors to deliver world class infrastructure on time, within budget and to an acceptable and agreed to quality level;

• Attracting the youth into the professions and• Promoting the use of the professions in the public

and private sector to ensure delivery of world class projects on time, within budget and to acceptable and agreed to levels in a safe environment.

The Conference also saw increased media activity, which commenced just before the conference began. Social media activity also featured prominently.

This is depicted graphically below:

There was an increase in growth towards the end of the month. This was due to the rigorous posts that had been done at the conference.


PART B




There was an increase in engagements on the 3-day conference. This was due to tagging people on posts, as well as posting pictures on the proceedings


PART B

Schools outreach - Youth on the radarAs part of the schools outreach programme, Council exhibits and presents at various platforms for optimal reach. During February 2017, the DPW held a Learners Careers Expo at the Emthulasizwe High School in Mtubatuba in KwaZulu-Natal. Neighbouring schools were also invited. The focus was on career promotion in the built environment. The CBE and the SACPCMP made a formidable team. A SACPCMP registered Professional Project Construction Manager, Mr Babatunde Ojo-Aromokudu, addressed the learners about his role and his career path and advised learners on possible career routes in the industry.

Capacitating SMMEs in Construction Mentorship

In its stride to promote the Construction Mentorship categories, the SACPCMP played an integral role at the Johannesburg Development Agency (JDA) Rotunda Precinct Development SMME Open Day in Johannesburg on 11 February 2017. Some of the registered Construction Mentors were invited to engage with up and coming SMMEs following a presentation on the benefits appointing a Construction Mentor on projects. This partnership is proof that the registration of Construction Mentors can ensure development and growth of SMMEs through solid mentorship and support.



INTRODUCTIONThis section narrates all operations in the following order: operations; office systems and procedures; controls, processes and accountability; and communication and marketing.

OPERATIONS AND ORGANISATIONAL MANAGEMENTThe Council believes that its employees have a key role to play in enabling it to achieve its mandate and strategic imperatives. In line with Section 8 (1) of the SACPCMP Act 48 of 2000, Council appoints the Registrar. The Registrar reports directly to Council and has a responsibility of driving its mandate through providing strategic leadership towards the achievement of the organisational vision, mission, strategic plan, annual performance plan and overall objectives. Moreover, the Registrar has the ultimate management responsibilities for staff and operations and may employ personnel in consultation with Council as deemed necessary for the carrying out of its functions.

The Council undertook an extensive process of reviewing its job descriptions. Since the first structuring exercise in 2012, the SACPCMP has grown significantly and as anticipated – both organically and also with regard to categories of registration. The structuring exercise therefore took all of these factors/needs into account, namely:• Growth in staff complement• Growth in registration of professional disciplines• Growth in requirements for other areas, such as

CPD, Accreditation and Structured Candidacy in Project & Construction Management

• Expansion in support processes, such as Stakeholder Relations & Communication, HR and Finance, etc.

• The implementation of an automated, on-line system

• Structural depth • Job Profiles based on the business process• Long term flexibility and growth in the structure (3

to 5-year time horizon)

OutcomesThe revised structure was designed to achieve the following objectives:

A holistic and integrated approach Comprehensive job profiles containing detailed role content based on the business process with

commensurate leadership role content, competencies and knowledge requirements, enables the Council to re-use the job profiles for multiple human capital processes, namely recruitment & selection, skills development, leadership development, career paths and performance management. Cost is driven down in the long term and eliminates silos in the human capital functions. It will provide a spring board for the SACPCMP to grow the Human Capital function into the full suite of talent management capabilities in the long term.

Fast organisational growth can result in structural inefficiencies, which ultimately can also impact on incumbent remuneration. In order to maintain legislative compliance and fair remuneration practices, the whole structure was re-graded and all current positions and incumbents compared to the market. The SACPCMP’s structure has therefore been reviewed and is compliant, with defensible reasons where disparities exist.

Recruitment & Selection effectiveness• The bar was raised in terms of entry requirements to

facilitate recruitment and selection of candidates, in order to meet the strategic objectives of the Council. A previous skills audit indicated a need for increased learning requirements and these were added into the new benchmarks.

• Competencies were added in order to enable a competency driven approach to selection.

• Detailed leadership role contents were added to enable leadership development, recruitment & selection and career paths in future

Performance Management based on the business processDesigning job profiles based on the business process, enables Council to build an effective performance management measurement framework. This will be finalised in the next financial year.

Human Resource ManagementThe aim of human resource management is to successfully manage employees of Council, in order to get the best out of them, through ensuring that:• Requisite, appropriate and sufficient skills sets are

harnessed to drive Council’s objectives;• Employees exude the right attitudes and

behaviours; and• Employees are fully capacitated.

OPERATIONS AND ORGANISATIONAL MANAGEMENT


PART B

APPOINTMENTS AS AT 31 MARCH 2017

POST LEVEL MALE FEMALE TOTAL

Executive 2 0 2

Coordinator 1 0 1

Administrator 0 2 2

Assistant Administrator 0 2 2

Temporary 0 1 1

Executive Assistant 0 1 1

Interns 0 3 3

TOTAL 3 9 12

EMPLOYEES ON SACPCMP PAYROLL AS AT 31 MARCH 2017

CATEGORY MALE FEMALE TOTAL

African 9 21 30

Coloured 0 0 0

Indian 1 1 2

White 2 4 6

TOTAL 12 26 38

The total staff complement on 31 March 2017 was thirty-eight (38) employees as depicted in the table below;

The following appointments were made during the reporting period:

Training and DevelopmentCouncil also empowers its employees through development programmes, which include long- and short-term courses, conferences, seminars and workshops. Employee training focuses mainly on areas that would facilitate the improvement of employee and Council performance. Council thus invests in training and development of its employees to improve the quality of services it renders to its clientele.

RecruitmentThe approved positions as per organisational structure were advertised and the turnaround times for some of the positions were affected by amongst others declining of positions, salary expectations, signing of offers by eligible candidates or not finding the right calibre of candidates. The recruitment costs covering both the advertisements and placement fees is a combined total of R161 036.

TRAINING PROGRAMME TOTAL

POPI Training 23Customer Care 27Power Point 9King IV Corporate Governance 1



ORGANOGRAM

Registrar

Executive Support

Coordinator: Support & Planning

PA PAExecutive: Professionals

Executive: CHS

Registration Administrator


SeniorAdministrator

AssistantAdministrator

ExamsCertification





Assistant Data Capturer

Administrator: Document Processing

Administrator: Document Processing

OPERATIONS AND ORGANISATIONAL MANAGEMENT CONT.


PART B

Executive Assistant

PAExecutive: Stakeholder Relations

Coordinator: CPD, Programme Accreditation, VAs & Student Chapter

Programme Accreditation Administrator

CPD Administrator

Financial Accountant

Quality and System Control

Corporate Services: Vacant

SeniorFinancial

Administrator

Financial Controller

Snr.Financial

Administrator

ICT Officer

Administrator: Reception

General Office

Assistant



OFFICE SYSTEMS AND PROCEDURES

Mobile invoice CommunicationTo ensure that members at all times are aware of outstanding invoices, a system was introduced enabling it to send a copy of the latest outstanding PDF invoice directly to a member’s mobile device.

New Mobile ApplicationA new mobile application was launched during the year under review, offering the following functionalities:1. New registration assistant

a. A guide to all registration criteria.b. Mobile-friendly templates for all required

documentation.c. Instructions on how to scan all required

documentation onto a mobile phone.2. The CHS application tracker displays the

following information:a. Application progress.b. Letters issued which can be viewed on a

mobile device.c. Latest invoice and the ability to make an

instant EFT payment from a mobile device.d. Documentation status indicating whether

uploaded or outstanding.e. All exam results.f. Personal and billing information and the

ability to edit and update this information.g. Vital contacts and procedures.

3. Continuing Professional Development (CPD)a. View a summary of all a member’s total CPD

hours for the different categories indicating compliance in the different categories

b. View all a member’s individual CPD filings for the different categories.

4. Eventsa. An events App which displays different types of useful information during live SACPCMP events.

CONTROLS, PROCESSES AND ACCOUNTABILITYThe ten (10) members of Council meet on a quarterly basis, i.e. four times during a financial year. There are two (2) core committees of Council, namely the Executive Committee (EXCO) and the Finance

Committee, both of which meet on a monthly basis to advise and monitor the Registrar in the implementation of Councils’ strategic objectives. This is achieved through the presentation of reports, recommendations and proposals by respective committees to EXCO and Council. As a measure of ensuring sound corporate governance, minutes of all committee meetings are recorded and signed off by the chairpersons of the respective committees.

Monthly management accounts are prepared internally and are monitored, reviewed and evaluated by the Finance Committee, to ensure compliance with SACPCMP’s financial policies. Furthermore, the Finance Committee effectively monitors monthly performance as measured and compared against the agreed budget and prior year, and further recommends corrective or remedial actions deemed appropriate to management and/or EXCO and/or Council. The Audit and Risk Committee also evaluates reports on Council’s financial performance; effectiveness of internal audit controls; adherence to accounting principles and other relevant issues. These reports are also subject to independent review by external auditors.

RECORDS MANAGEMENTAn achievement for the year under review has been the streamlining of the records management function, where different initiatives were undertaken by representatives of the various internal divisions to ensure that storing, classification and retrieval of documents and files was improved and made easy. This exercise was geared towards building an efficient records management service with Council. A task team was established to ensure representation from other units to ensure that it was inclusive to make implementation easier. The filing plan was developed and submitted to Document Warehouse for inputs and advice before it was submitted to the National Archives and engagements are at an advanced stage. The clean-up exercise did not only free up much-needed space but has contributed towards the development of an Electronic Document & Records Management System (EDRMS).

The archival exercise and processes that were followed ensured proper and correct classification

OPERATIONS AND ORGANISATIONAL MANAGEMENT CONT.

PART B


of information and therefore helps to protect documentation against undue access of information. The Information Security Classification Framework and Promotion of Access to Information (PAIA) manual will be developed in the next financial year in conjunction with all relevant Committees for approval by Council.There is a further need to develop policies and

procedures in order to ensure that the record keeping and records management practices comply with the requirements of the National Archives and Records Services of South Africa Act, 1996. This will ensure that Council manages the records throughout its life cycle in order to meet operational business needs and accountability requirements.

PROSPER


PART C


GOVERNANCE INFORMATION



MR. TJIAMOGALE ERIC MANCHIDIPRESIDENT

MR. DOUG MICHELL

DR. CLAIRE HELEN DEACON

MR. ITUMELENG HENRY MOLOSI

MR. TSELISO WINSTON MAKHETHA

MR. MAKGATI PHALADI

MR. ROWAN MARK CROWIE

MR. BAFIKILE BONKE SIMELANE

MR. ISAAC MZUMARA NKOSIVICE PRESIDENT

4TH TERM (APRIL 2014- MARCH 2018)

COUNCIL MEMBERS


PART C

INTRODUCTIONThis chapter highlights the structure of Council and how it is directed and controlled through a sustained, sound corporate governance culture. This governance structure is further broken down into the decision-making processes and committee structures. The chapter also shows meeting attendances by the various committees and the remuneration structures for the Council members.

APPOINTMENT OF MEMBERS OF COUNCILThe SACPCMP Council is constituted in terms of section 3 of the Project and Construction Management Professions Act, 48 of 2000. It consists of ten (10)

DECISION-MAKING STRUCTUREThe Council is under the leadership of a President, who is assisted by a Vice President, both of whom are elected to office during the first Council meeting. The term of office of all Councillors is four (4) years, but members continue in office until the succeeding Council is duly constituted. Council carries out its oversight responsibilities through different committees that are constituted to manage and oversee the business of Council for which they have the delegated authority as per their respective approved terms of reference. Essentially, these clarify the role, purpose and responsibilities that are given to the committees.

GOVERNANCE

members appointed by the Minister of Public Works, in his capacity as the executive authority taking into account, amongst others, the principle of representivity.

The fourth term council was appointed in April 2014, but was inaugurated on 23 June 2014 by the Honourable Minister of Public Works, Mr T.W Nxesi and commenced operations from July 2014. The legislative restriction of ten (10) Council members imposes substantial workload on individual members who are expected to serve on several Council committees.

There is a need to consider increasing the composition of councillors, given the extension of Council’s scope of work to include registration of other disciplines.

The Committees form an integral part of the Council’s corporate governance framework. They also play a pivotal role in achieving and maintaining expected standards in the Council’s governance and ethical standards. They ensure that the Council’s activities are subjected, at all times, to in-depth scrutiny to ensure that high standards of governance are maintained.

There is also a provision for co-opting Registered Persons to serve in the various committees. These need not necessarily be members of Council. The individual’s expertise and aptness for the task at hand are taken into account when making appointments to serve on committees.

APPOINTED FOURTH TERM COUNCIL (April 2014 - March 2018)

NO Statutory Category Appointed Member

1 Section3 (a): ProfessionalsSix (6) Registered Persons as per categories of the Act, excluding candidates, of whom at least four must actively practice in the professions and nominated by Voluntary Associations and any Registered Persons;

Mr T.E Manchidi

2 Mr I.M Nkosi

3 Dr C.H Deacon

4 Mr D Michell

5 Mr T.W Makhetha

6 Mr B.B Simelane

7 Section 3 (b): StateTwo (2) professionals in the service of the State, nominated by any sphere of government, of whom at least one must be nominated by the Department of Public Works

Mr. M Phaladi

8Mr I.H Molosi

9 Section 3 (c):PublicTwo (2) members of the public nominated through an open process of public participation.

Mr. R.M Crowie

10 Vacant. Appointment was not finalized during the year under review.



The Committees and Sub-Committees of Council are indicated below.

1. Executive Committee (EXCO)

2. Finance Committee

3. Audit and Risk Committee

4. Marketing and Voluntary Associations4.1 Content Sub-Committee

5. Registration and Education (REGCOM)5.1 Registrations Policy Review

6. Continuing Professional Development (CPD)

7. Disciplinary and Code of Conduct

8. Identification of Work (IDOW)/Tariff of fees

9. Construction Health and Safety Committee9.1 Examinations Sub Committee

10. Construction Management Development Committee

11. Programme Accreditation Committee 11.1 Accreditation Panel

12. Professional Construction Mentorship

13. Human Resources Committee

New Committees established in the year under review

14. Transformation Committee

Continuing Professional Development

Construction Management Development

Professional Construction Mentorship

Construction Health and Safety Committee

Programme Accreditation Committee

Human Resources Committee

Transformation Committee

Examination Sub- Committee

Accreditation Panel

Registration and Education (REGCOM)

Finance Committee

Identification of Work (IDOW)/Tariff of Fees

Marketing and Communication

Disciplinary and Code of Conduct

Voluntary Association Forum

Registration Policy Review

Content Sub-Committee

Audit and Risk Committee

Council

Exco

GOVERNANCE CONT.


PART C

LEGISLATIVE AND REGULATORY FRAMEWORKThe SACPCMP exists as a regulatory body for the Project and Construction Management professions, as well as those other specified categories it deems appropriate to introduce from time to time. It is also equally empowered to render advice to government and other relevant stakeholders on the necessary steps to be taken for the protection of the public interest, health and safety, continuous improvement on the standards of the professions it regulates, protection of the environment etc. With this in mind, the Act requires and mandates the SACPCMP to also perform the below-listed legislative and regulatory functions:Legislation covering the following aspects; • Accreditation of programmes offered by

educational institutions leading to the awarding of construction management and project management qualifications (section 13)

• General matters including public health and safety, research, protection of the public in their dealing with Registered Persons, protection of the environment and improving the standards of services rendered by Registered Persons (Section 14)

• Financial matters (Section 15)• Reporting to the Council for the Built Environment

(Section 16)• Appointment of committees (Section 17) • Enacting of rules through notices in the

government gazette (Section 36)• Registration of persons (Sections 11,18,19, 20,

21, 22, 23, 24 and 37)• Recognition of voluntary associations (Sections

14 (d) and 25)• Identification of work to be performed by

Registered Persons • Professional conduct and disciplinary hearings

(Sections 27, 28, 29, 30, 31, 32, 33, 35 and 41)• Recommendation of fees for professional services

(Section 34)

MEETING ATTENDANCE - 1 APRIL 2016 TO 31 MARCH 2017

Council MeetingsThe Council is constituted in terms of Section 3 of the SACPCMP Act 48 of 2000. The Council is responsible for governance by setting broad strategic targets,

monitoring progress, approving proposed actions and ensuring appropriate controls are in place and effective. The Council meets three (3) times on an annual basis. There may be special Council meetings convened from time to time should the need arise. Each of the individual Council members is required to disclose any matters that may pose as conflict before any sitting.

Council Members: Attendance of Council Meetings

Executive Committee (EXCO)The Executive committee is constituted in terms of section 17 of the SACPCMP Act 48 of 2000. The committee meets monthly and assists the Council in the execution of its legislative duties in all strategic and operational business matters. The decisions of EXCO, where applicable, are subject to ratification by Council in plenary meetings.

The decisions of EXCO are subject to ratification by Council in plenary meetings.

EXCO Members: Attendance of EXCO Meetings

ATTENDANCE OF COUNCIL MEETINGS

NameTotal Number of Meetings

Meetings Attended

T.E Manchidi (Chairperson)

4 4

I.M Nkosi 4 4

B.B Simelane 4 4

C.H Deacon 4 4

D. Michell 4 2

I.H Molosi 4 3

M Phaladi 4 3

T.W Makhetha 4 1

R. Crowie 4 1

ATTENDANCE OF EXCO MEETINGS


Meetings Attended

T.E Manchidi (Chairperson)

9 8

I.M Nkosi 9 6

C.H Deacon 9 8



Finance MeetingsThe Finance committee is constituted in terms of section 17 (1) (a) of the SACPCMP Act 48 of 2000. This committee assists the Council in the execution of its legislative duties in terms of Section 15 (1) of the SACPCMP Act, 48 of 2000 regarding financial and operational business matters.

Finance Members

Audit and Risk Committee (ARC) MeetingsCouncil has approved the establishment of an Audit and Risk Committee (ARC) as part of activities needed in preparation of its PFMA alignment and this is fully functional. The ARC is constituted with three independent members who are not members of Council. The Committee meets quarterly and provides oversight of Council’s risk management governance and control processes and advises Council accordingly. The Committee oversees the internal audit and external processes.

Audit and Risk Committee (ARC) Members

ATTENDANCE OF FINANCE COMMITTEE


Meetings Attended

I.M Nkosi (Chairperson)

9 9

X. Mnyani 9 5

I.H Molosi 9 5

G Ramphaka (appointed in October 2016)

9 3

ATTENDANCE OF AUDIT AND RISK COMMITEE


Meetings Attended

S Daniels (Chairperson)

4 4

C Jamela 4 3

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017

(Incorporated under the Project and Construction Management Professions Act No.48 of 2000)

Annual financial statements for the year ended 31 March 2017

The South African Council for the Project and Construction ManagementProfessionsAnnual Financial Statements for the year ended 31 March 2017

General Information

Country of incorporation and domicile South Africa

Nature of business and principal activities Council for the Project and Construction Management Professions

Councillors Mr. T.E. ManchidiMr. I.M. NkosiDr. C.H. DeaconMr. D. MichellMr. T.W. MakhethaMr. B.B. SimelaneMr. I.H. MolosiMr. M. PhaladiMr. R.M. Crowie

Registered office International Business Gateway1st Floor Gateway CreekCorner New Road and 6th RoadMidrand1685

Business address International Business Gateway1st Floor Gateway CreekCorner New Road and 6th RoadMidrand1685

Postal address B9 International Business GatewayCorner New Road and 6th Road1685

Bankers Nedbank LimitedInvestec Bank Limited

Auditors A2A Kopano IncorporatedChartered Accountants (SA)Registered Auditors

Secretary Council secretary is not required in terms of the Project andConstruction Management Professions Act No. 48 of 2000

Level of assurance These annual financial statements have been audited in compliancewith the applicable requirements of the Project and ConstructionManagement Professions Act No. 48 of 2000.

Preparer The annual financial statements were independently compiled by:A2A Kopano Inc.Chartered Accountants (SA)

1


Index

The reports and statements set out below comprise the annual financial statements presented by the council members:

Index Page

Council's Responsibilities and Approval 3

Independent Auditor's Report 4 - 5

Council's Report 6

Statement of Financial Position 7

Statement of Profit or Loss and Other Comprehensive Income 8

Statement of Changes in Equity 9

Statement of Cash Flows 10

Notes to the Annual Financial Statements 11 - 22

Detailed Income Statement 23 - 24

Published

17 August 2017

2


Council's Responsibilities and Approval

The council is required in terms of the Project and Construction Management Professions Act No. 48 of 2000 to maintainadequate accounting records and is responsible for the content and integrity of the annual financial statements and relatedfinancial information included in this report. It is their responsibility to ensure that the annual financial statements fairly presentthe state of affairs of the council as at the end of the financial year and the results of its operations and cash flows for theperiod then ended, in conformity with International Financial Reporting Standards. The external auditors are engaged toexpress an independent opinion on the annual financial statements.

The annual financial statements are prepared in accordance with International Financial Reporting Standards and are basedupon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements andestimates.

The council acknowledges that it is ultimately responsible for the system of internal financial control established by the counciland place considerable importance on maintaining a strong control environment. To enable the council to meet theseresponsibilities, the council sets standards for internal control aimed at reducing the risk of error or loss in a cost effectivemanner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accountingprocedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughoutthe council and all employees are required to maintain the highest ethical standards in ensuring the council’s business isconducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the council ison identifying, assessing, managing and monitoring all known forms of risk across the council. While operating risk cannot befully eliminated, the council endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethicalbehaviour are applied and managed within predetermined procedures and constraints.

The council is of the opinion, based on the information and explanations given by management, that the system of internalcontrol provides reasonable assurance that the financial records may be relied on for the preparation of the annual financialstatements. However, any system of internal financial control can provide only reasonable, and not absolute, assuranceagainst material misstatement or loss.

The council have reviewed the council’s budget for the year financial year 31 March 2018 and, in light of this review and thecurrent financial position, they are satisfied that the council has or had access to adequate resources to continue in operationalexistence for the foreseeable future.

The external auditors are responsible for independently auditing and reporting on the council's annual financial statements. Theannual financial statements have been examined by the council's external auditors and their report is presented on pages 4 - 5.

The annual financial statements set out on pages 7 - 24, which have been prepared on the going concern basis, wereapproved by the council and were signed on their behalf by:

Approval of annual financial statements

Mr. T.E. ManchidiPresident

Mr. I.M. NkosiVice-President

Ms. N.E. RakoloteRegistrar

3


Council's Responsibilities and Approval

The council is required in terms of the Project and Construction Management Professions Act No. 48 of 2000 to maintainadequate accounting records and is responsible for the content and integrity of the annual financial statements and relatedfinancial information included in this report. It is their responsibility to ensure that the annual financial statements fairly presentthe state of affairs of the council as at the end of the financial year and the results of its operations and cash flows for theperiod then ended, in conformity with International Financial Reporting Standards. The external auditors are engaged toexpress an independent opinion on the annual financial statements.

The annual financial statements are prepared in accordance with International Financial Reporting Standards and are basedupon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements andestimates.

The council acknowledges that it is ultimately responsible for the system of internal financial control established by the counciland place considerable importance on maintaining a strong control environment. To enable the council to meet theseresponsibilities, the council sets standards for internal control aimed at reducing the risk of error or loss in a cost effectivemanner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accountingprocedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughoutthe council and all employees are required to maintain the highest ethical standards in ensuring the council’s business isconducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the council ison identifying, assessing, managing and monitoring all known forms of risk across the council. While operating risk cannot befully eliminated, the council endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethicalbehaviour are applied and managed within predetermined procedures and constraints.

The council is of the opinion, based on the information and explanations given by management, that the system of internalcontrol provides reasonable assurance that the financial records may be relied on for the preparation of the annual financialstatements. However, any system of internal financial control can provide only reasonable, and not absolute, assuranceagainst material misstatement or loss.

The council have reviewed the council’s budget for the year financial year 31 March 2018 and, in light of this review and thecurrent financial position, they are satisfied that the council has or had access to adequate resources to continue in operationalexistence for the foreseeable future.

The external auditors are responsible for independently auditing and reporting on the council's annual financial statements. Theannual financial statements have been examined by the council's external auditors and their report is presented on pages 4 - 5.

The annual financial statements set out on pages 7 - 24, which have been prepared on the going concern basis, wereapproved by the council and were signed on their behalf by:

Approval of annual financial statements

Mr. T.E. ManchidiPresident

Mr. I.M. NkosiVice-President

Ms. N.E. RakoloteRegistrar

3

Independent Auditor's Report

To the Council of The South African Council for the Project and Construction Management Professions

Opinion

We have audited the annual financial statements of The South African Council for the Project and ConstructionManagement Professions set out on 7 - 24, which comprise the statement of financial position as at 31 March 2017, and thestatement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows forthe year then ended, and the notes to the annual financial statements, including a summary of significant accountingpolicies.

In our opinion, the annual financial statements present fairly, in all material respects, the financial position of The SouthAfrican Council for the Project and Construction Management Professions as at 31 March 2017, and its financialperformance and cash flows for the year then ended in accordance with International Financial Reporting Standards and therequirements of the Project and Construction Management Professions Act No. 48 of 2000.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standardsare further described in the Auditor’s Responsibilities for the audit of the annual financial statements section of our report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We areindependent of the council in accordance with the Independent Regulatory Board for Auditors Code of Professional Conductfor Registered Auditors (IRBA Code) and other independence requirements applicable to performing audits of annualfinancial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Codeand in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Code isconsistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (PartsA and B). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Other information

The council is responsible for the other information. The other information comprises of the Council's Report as required bythe Project and Construction Management Professions Act No. 48 of 2000 of South Africa, the Council's Responsibilities andApproval. Other information does not include the annual financial statements and our auditor's report thereon.

Our opinion on the annual financial statements does not cover the other information and we do not express an audit opinionor any form of assurance conclusion thereon.

As part of our audit of the annual financial statements for the year ended 31 March 2017, we have read the Council's Reportand, in doing so, considered whether there are material inconsistencies between the annual financial statements and thatreport. The Council's Report is the responsibility of the council. Based on reading that report, we have not identified materialinconsistencies between it and the audited financial statements.

4


Council's Report

The council has the pleasure in submitting its report on the annual financial statements of The South African Council for theProject and Construction Management Professions for the year ended 31 March 2017.

1. Review of financial results and activities

The annual financial statements have been prepared in accordance with International Financial Reporting Standards and therequirements of the Project and Construction Management Professions Act No. 48 of 2000. The accounting policies havebeen applied consistently compared to the prior year.

Full details of the financial position, results of operations and cash flows of the council are set out in these annual financialstatements.

2. Councillors

The councillors in office at the date of this report are as follows:

Councillors OfficeMr. T.E. Manchidi PresidentMr. I.M. Nkosi Vice-president &

Finance CommitteeChairperson

Dr. C.H. DeaconMr. D. MichellMr. T.W. MakhethaMr. B.B. SimelaneMr. I.H. MolosiMr. M. PhaladiMr. R.M. Crowie

3. Events after the reporting period

The council is not aware of any material event which occurred after the reporting date and up to the date of this report.

4. Going concern

The councillors believe that the council has adequate financial resources to continue in operation for the foreseeable futureand accordingly the annual financial statements have been prepared on a going concern basis. The councillors have satisfiedthemselves that the council is in a sound financial position and that it has access to sufficient borrowing facilities to meet itsforeseeable cash requirements. The councillors are not aware of any new material changes that may adversely impact thecouncil. The councillors are also not aware of any material non-compliance with statutory or regulatory requirements or of anypending changes to legislation which may affect the council.

5. Auditors

A2A Kopano Incorporated continued as external auditors for the council for 2017.

6


Statement of Financial Position as at 31 March 2017Figures in Rand Note(s) 2017 2016

Assets

Non-Current AssetsProperty, plant and equipment 3 621 431 416 346

Current AssetsTrade and other receivables 4 14 202 971 7 015 687Operating lease asset 5 75 342 -Cash and cash equivalents 6 3 961 644 4 468 042

18 239 957 11 483 729Total Assets 18 861 388 11 900 075

Equity and Liabilities

EquityRetained income 2 449 127 2 351 398

Liabilities

Current LiabilitiesTrade and other payables 7 16 412 261 9 507 552Operating lease liability 5 - 41 125

16 412 261 9 548 677Total Equity and Liabilities 18 861 388 11 900 075

7


Statement of Profit or Loss and Other Comprehensive IncomeFigures in Rand Note(s) 2017 2016

Revenue 8 26 931 496 20 460 935Other operating expenses (26 940 368) (18 685 338)Operating (deficit)/surplus (8 872) 1 775 597Investment income 9 91 028 102 422Finance costs 10 (55 377) -Surplus for the year 26 779 1 878 019Other comprehensive surplus - -Total comprehensive surplus for the year 26 779 1 878 019

8


Statement of Changes in Equity

Figures in RandRetainedincome

Total equity

Balance at 01 April 2015 473 379 473 379Surplus for the year 1 878 019 1 878 019Other comprehensive surplus - -Total changes 1 878 019 1 878 019

Balance at 01 April 2016 2 351 398 2 351 398Surplus for the year 26 779 26 779Other comprehensive surplus - -Total changes 26 779 26 779Re-assessment of useful lives 70 950 70 950

Balance at 31 March 2017 2 449 127 2 449 127

9


Statement of Cash FlowsFigures in Rand Note(s) 2017 2016

Cash flows from operating activities

Cash (utilised)/generated from operations 11 (178 605) 1 182 696Finance costs (55 377) -

Net cash (utilised)/generated from operating activities (233 982) 1 182 696

Cash flows from investing activities

Purchase of property, plant and equipment 3 (363 444) (325 670)Sale of property, plant and equipment 3 - 21 102Investment Income 91 028 102 422

Net cash utilised from investing activities (272 416) (202 146)

Total cash movement for the year (506 398) 980 550Cash at the beginning of the year 4 468 042 3 487 492

Total cash at end of the year 6 3 961 644 4 468 042

10


Notes to the Annual Financial Statements

1. Significant accounting policies

The principal accounting policies applied in the preparation of these annual financial statements are set out below.

1.1 Basis of preparation

The annual financial statements have been prepared on the going concern basis in accordance with, and in compliancewith, International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee(IFRIC) interpretations issued and effective at the time of preparing these annual financial statements and the Project andConstruction Management Professions Act No. 48 of 2000 of South Africa, as amended.

These annual financial statements comply with the requirements of the SAICA Financial Reporting Guides as issued by theFinancial Reporting Standards Council (FRSC).

The annual financial statements have been prepared on the historic cost convention, unless otherwise stated in theaccounting policies which follow and incorporate the principal accounting policies set out below. They are presented inRands, which is the council's functional currency.

These accounting policies are consistent with the previous period.

1.2 Significant judgements and sources of estimation uncertainty

The preparation of annual financial statements in conformity with IFRS requires management, from time to time, to makejudgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities,income and expenses. These estimates and associated assumptions are based on experience and various other factors thatare believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates andunderlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the periodin which the estimates are revised and in any future periods affected.

Critical judgements in applying accounting policies

Management did not make critical judgements in the application of accounting policies, apart from those involving estimations,which would significantly affect the financial statements.

Key sources of estimation uncertainty

Trade receivables

The council assesses its trade receivables for impairment at the end of each reporting period. In determining whether animpairment loss should be recorded in profit or loss, the council makes judgements as to whether there is observable dataindicating a measurable decrease in the estimated future cash flows from the financial asset.

The impairment (or loss allowance) for trade receivables is calculated on a portfolio basis, except for individually significanttrade receivables which are assessed separately. The impairment test on the portfolio is based on historical loss ratios,adjusted for national and industry-specific economic conditions and other indicators present at the reporting date thatcorrelate with defaults on the portfolio. These annual loss ratios are applied to loan balances in the portfolio and scaled tothe estimated loss emergence period.

Useful lives of property, plant and equipment

Management assess the appropriateness of the useful lives of property, plant and equipment at the end of each reportingperiod. The useful lives of furniture and fittings, office equipment and IT equipment are determined based on councilreplacement policies for the various assets. Individual assets within these classes, which have a significant carrying amountare assessed separately to consider whether replacement will be necessary outside of normal replacement parameters. Theuseful life of property, plant and equipment is assessed annually based on factors including wear and tear, technologicalobsolescence and usage requirements.

When the estimated useful life of an asset category differs from previous estimates, the change is applied prospectively inthe determination of the depreciation charge.

11



1.3 Property, plant and equipment

Property, plant and equipment are tangible assets which the council holds for its own use or for rental to others and whichare expected to be used for more than one year.

An item of property, plant and equipment is recognised as an asset when it is probable that future economic benefitsassociated with the item will flow to the council, and the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost. Cost includes all of the expenditure which is directly attributableto the acquisition or construction of the asset, including the capitalisation of borrowing costs on qualifying assets andadjustments in respect of hedge accounting, where appropriate.

Property, plant and equipment is subsequently stated at cost less accumulated depreciation and any accumulatedimpairment losses, except for land which is stated at cost less any accumulated impairment losses.

Depreciation of an asset commences when the asset is available for use as intended by management. Depreciation ischarged to write off the asset's carrying amount over its estimated useful life to its estimated residual value, using a methodthat best reflects the pattern in which the asset's economic benefits are consumed by the council. Depreciation is notcharged to an asset if its estimated residual value exceeds or is equal to its carrying amount. Depreciation of an assetceases at the earlier of the date that the asset is classified as held for sale or derecognised.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful lifeFurniture and fixtures Straight line 5 yearsOffice equipment Straight line 5 yearsIT equipment Straight line 3 years

The residual value, useful life and depreciation method of each category of assets are reviewed at the end of each reportingyear. If the expectations differ from previous estimates, the change is accounted for prospectively as a change in accountingestimate.

The depreciation charge for each year is recognised in profit or loss unless it is included in the carrying amount of anotherasset.

1.4 Financial instruments

Initial recognition and measurement

Financial instruments are recognised initially when the council becomes a party to the contractual provisions of theinstruments.

The council classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financialliability or an equity instrument in accordance with the substance of the contractual arrangement.

Financial instruments are measured initially at fair value, except for equity investments for which a fair value is notdeterminable, which are measured at cost and are classified as available-for-sale financial assets.

For financial instruments which are not at fair value through profit or loss, transaction costs are included in the initialmeasurement of the instrument.

Transaction costs on financial instruments at fair value through profit or loss are recognised in profit or loss.

12



1.4 Financial instruments (continued)

Subsequent measurement

Financial instruments at fair value through profit or loss are subsequently measured at fair value, with gains and lossesarising from changes in fair value being included in profit or loss for the period.

Loans and receivables are subsequently measured at amortised cost, using the effective interest method, less accumulatedimpairment losses.

Available-for-sale financial assets are subsequently measured at fair value. This excludes equity investments for which a fairvalue is not determinable, which are measured at cost less accumulated impairment losses.

Gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated inequity until the asset is disposed of or determined to be impaired. Interest on available-for-sale financial assets calculatedusing the effective interest method is recognised in profit or loss as part of other income. Dividends received on available-for-sale equity instruments are recognised in profit or loss as part of other income when the council's right to receivepayment is established.

Financial liabilities at amortised cost are subsequently measured at amortised cost, using the effective interest method.

Derecognition

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have beentransferred and the council has transferred substantially all risks and rewards of ownership.

Trade and other receivables

Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost usingthe effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit orloss when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability thatthe debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicatorsthat the trade receivable is impaired. The allowance recognised is measured as the difference between the asset’s carryingamount and the present value of estimated future cash flows discounted at the effective interest rate computed at initialrecognition.

The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss isrecognised in profit or loss within operating expenses. When a trade receivable is uncollectable, it is written off against theallowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited againstoperating expenses in profit or loss.

Trade and other payables

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effectiveinterest rate method.

Cash and cash equivalents

Cash and cash equivalents comprises of cash on hand and demand deposits, and other short-term highly liquid investmentsthat are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These areinitially and subsequently recorded at fair value.

Bank overdraft and borrowings

Bank overdrafts and borrowings are initially measured at fair value, and are subsequently measured at amortised cost, usingthe effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement orredemption of borrowings is recognised over the term of the borrowings in accordance with the council’s accounting policyfor borrowing costs.

13



1.5 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease isclassified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Operating leases – lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The differencebetween the amounts recognised as an expense and the contractual payments are recognised as an operating leaseasset/liability. This asset/liability is not discounted.

Any contingent rents are expensed in the period they in which are incurred.

1.6 Impairment of assets

The council assesses at the end of the reporting period whether there is any indication that an asset may be impaired. If anysuch indication exists, the council estimates the recoverable amount of the asset.

If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it isnot possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unitto which the asset belongs is determined.

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value inuse.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to itsrecoverable amount. That reduction is an impairment loss.

An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately inprofit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease.

1.7 Revenue

Revenue from the sale of goods is recognised when all the following conditions have been satisfied: The council has transferred to the buyer the significant risks and rewards of ownership of the goods; The council retains neither continuing managerial involvement to the degree usually associated with ownership

nor effective control over the goods sold; The amount of revenue can be measured reliably; It is probable that the economic benefits associated with the transaction will flow to the council; and The costs incurred or to be incurred in respect of the transaction can be measured reliably.

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated withthe transaction is recognised by reference to the stage of completion of the transaction at the end of the reporting period.The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

The amount of revenue can be measured reliably; It is probable that the economic benefits associated with the transaction will flow to the council; The stage of completion of the transaction at the end of the reporting period can be measured reliably; and The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue shall berecognised only to the extent of the expenses recognised that are recoverable.

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable forgoods and services provided in the normal course of business, net of trade discounts and volume rebates, and value addedtax.

Interest is recognised, in profit or loss, using the effective interest rate method.

Annual fees are recognised on a straight-line basis over the period of the membership.

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2. New Standards and Interpretations

2.1 Standards and interpretations not yet effective

The International Accounting Standards Board (IASB) and IFRIC issued the following standards, amendments andinterpretations, with an effective date after the date of these financial statements, which the council believes could impactthe organisation in future periods. The council has elected not to early adopt any of these standards.

IFRS 16 Leases

IFRS 16 Leases is a new standard which replaces IAS 17 Leases, and introduces a single lessee accounting model. Themain changes arising from the issue of IFRS 16 which are likely to impact the council are as follows:

Council as lessee: Lessees are required to recognise a right-of-use asset and a lease liability for all leases, except short term leases

or leases where the underlying asset has a low value, which are expensed on a straight line or other systematicbasis.

The cost of the right-of-use asset includes, where appropriate, the initial amount of the lease liability; leasepayments made prior to commencement of the lease less incentives received; initial direct costs of the lessee;and an estimate for any provision for dismantling, restoration and removal related to the underlying asset.

The lease liability takes into consideration, where appropriate, fixed and variable lease payments; residual valueguarantees to be made by the lessee; exercise price of purchase options; and payments of penalties forterminating the lease.

The right-of-use asset is subsequently measured on the cost model at cost less accumulated depreciation andimpairment and adjusted for any re-measurement of the lease liability. However, right-of-use assets aremeasured at fair value when they meet the definition of investment property and all other investment property isaccounted for on the fair value model. If a right-of-use asset relates to a class of property, plant and equipmentwhich is measured on the revaluation model, then that right-of-use asset may be measured on the revaluationmodel.

The lease liability is subsequently increased by interest, reduced by lease payments and re-measured forreassessments or modifications.

Re-measurements of lease liabilities are affected against right-of-use assets, unless the assets have beenreduced to nil, in which case further adjustments are recognised in profit or loss.

The lease liability is re-measured by discounting revised payments at a revised rate when there is a change in thelease term or a change in the assessment of an option to purchase the underlying asset.

The lease liability is re-measured by discounting revised lease payments at the original discount rate when thereis a change in the amounts expected to be paid in a residual value guarantee or when there is a change in futurepayments because of a change in index or rate used to determine those payments.

Certain lease modifications are accounted for as separate leases. When lease modifications which decrease thescope of the lease are not required to be accounted for as separate leases, then the lessee re-measures thelease liability by decreasing the carrying amount of the right of lease asset to reflect the full or partial terminationof the lease. Any gain or loss relating to the full or partial termination of the lease is recognised in profit or loss.For all other lease modifications which are not required to be accounted for as separate leases, the lessee re-measures the lease liability by making a corresponding adjustment to the right-of-use asset.

Right-of-use assets and lease liabilities should be presented separately from other assets and liabilities. If not,then the line item in which they are included must be disclosed. This does not apply to right-of-use assetsmeeting the definition of investment property which must be presented within investment property. IFRS 16contains different disclosure requirements compared to IAS 17 leases.

The effective date of the standard is for years beginning on or after 01 January 2019.

The council expects to adopt the standard for the first time in the 2020 annual financial statements.

It is unlikely that the standard will have a material impact on the council's annual financial statements.

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IFRS 9 Financial Instruments

IFRS 9 issued in November 2009, introduced new requirements for the classification and measurements of financial assets.IFRS 9 was subsequently amended in October 2010 to include requirements for the classification and measurement offinancial liabilities and for derecognition, and in November 2013 to include the new requirements for general hedgeaccounting. Another revised version of IFRS 9 was issued in July 2014 mainly to include a) impairment requirements forfinancial assets and b) limited amendments to the classification and measurement requirements by introducing a "fair valuethrough other comprehensive income" (FVTOCI) measurement category for certain simple debt instruments.

Key requirements of IFRS 9: All recognised financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and

Measurement are required to be subsequently measured at amortised cost or fair value. Specifically, debtinvestments that are held within a business model whose objective is to collect the contractual cash flows, andthat have contractual cash flows that are solely payments of principal and interest on the outstanding principal aregenerally measured at amortised cost at the end of subsequent reporting periods. Debt instruments that are heldwithin a business model whose objective is achieved by both collecting contractual cash flows and sellingfinancial assets, and that have contractual terms of the financial asset give rise on specified dates to cash flowsthat are solely payments of principal and interest on outstanding principal, are measured at FVTOCI. All otherdebt and equity investments are measured at fair value at the end of subsequent reporting periods. In addition,under IFRS 9, entities may make an irrevocable election to present subsequent changes in the fair value of anequity investment (that is not held for trading) in other comprehensive income with only dividend income generallyrecognised in profit or loss.

With regard to the measurement of financial liabilities designated as at fair value through profit or loss, IFRS 9requires that the amount of change in the fair value of the financial liability that is attributable to changes in thecredit risk of the liability is presented in other comprehensive income, unless the recognition of the effect of thechanges of the liability's credit risk in other comprehensive income would create or enlarge an accountingmismatch in profit or loss. Under IAS 39, the entire amount of the change in fair value of a financial liabilitydesignated as at fair value through profit or loss is presented in profit or loss.

In relation to the impairment of financial assets, IFRS 9 requires an expected credit loss model, as opposed to anincurred credit loss model under IAS 39. The expected credit loss model requires an entity to account forexpected credit losses and changes in those expected credit losses at each reporting date to reflect changes incredit risk since initial recognition. It is therefore no longer necessary for a credit event to have occurred beforecredit losses are recognised.

The new general hedge accounting requirements retain the three types of hedge accounting mechanismscurrently available in IAS 39. Under IFRS 9, greater flexibility has been introduced to the types of transactionseligible for hedge accounting, specifically broadening the types of instruments that qualify for hedging instrumentsand the types of risk components of non-financial items that are eligible for hedge accounting. In addition, theeffectiveness test has been replaced with the principal of an "economic relationship". Retrospective assessmentof hedge effectiveness is also no longer required. Enhanced disclosure requirements about an entity's riskmanagement activities have also been introduced.




IFRS 15 Revenue from Contracts with Customers

IFRS 15 supersedes IAS 11 Construction contracts; IAS 18 Revenue; IFRIC 13 Customer Loyalty Programmes; IFRIC 15Agreements for the construction of Real Estate; IFRIC 18 Transfers of Assets from Customers and SIC 31 Revenue - BarterTransactions Involving Advertising Services.

The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services tocustomers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goodsor services. An entity recognises revenue in accordance with that core principle by applying the following steps:

Identify the contract(s) with a customer

Identify the performance obligations in the contract

Determine the transaction price

16



Allocate the transaction price to the performance obligations in the contract

Recognise revenue when (or as) the entity satisfies a performance obligation.

IFRS 15 also includes extensive new disclosure requirements.




17


Notes to the Annual Financial StatementsFigures in Rand 2017 2016

3. Property, plant and equipment

2017 2016Cost Accumulated

depreciationCarrying value Cost Accumulated

depreciationCarrying value

Furniture and fixtures 461 292 (250 915) 210 377 297 569 (229 525) 68 044Office equipment 305 014 (101 542) 203 472 210 172 (54 833) 155 339IT equipment 511 109 (303 527) 207 582 406 229 (213 266) 192 963Total 1 277 415 (655 984) 621 431 913 970 (497 624) 416 346

Reconciliation of property, plant and equipment - 2017

Openingbalance

Additions Re-assessment

of useful lives

Depreciation Total

Furniture and fixtures 68 044 163 722 34 353 (55 742) 210 377Office equipment 155 339 94 842 6 372 (53 081) 203 472IT equipment 192 963 104 880 30 225 (120 486) 207 582

416 346 363 444 70 950 (229 309) 621 431

Reconciliation of property, plant and equipment - 2016

Openingbalance

Additions Disposals Depreciation Total

Furniture and fixtures 111 886 - (6 810) (37 032) 68 044Office equipment 47 957 148 084 (13 370) (27 332) 155 339IT equipment 76 985 177 586 (922) (60 686) 192 963

236 828 325 670 (21 102) (125 050) 416 346

4. Trade and other receivables

Trade receivables 14 178 124 6 813 528Salary advances 24 847 19 495Prepayments - 182 664

14 202 971 7 015 687

Trade and other receivables impaired

As of 31 March 2017, trade and other receivables of R 14,202,971.48 were impaired and provided for.

The amount of the provision was R 1,868,422.69 as of 31 March 2017 .

5. Operating lease asset/(liability)

Current assets 75 342 -Current liabilities - (41 125)

75 342 (41 125)

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The differencebetween the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset/(liability).

18



6. Cash and cash equivalents

Cash and cash equivalents consist of:

Cash on hand 461 1 811Bank balances 3 961 183 4 466 231

3 961 644 4 468 042

7. Trade and other payables

Trade payables 250 029 326 967Deferred income 13 174 586 7 970 910VAT 1 528 636 732 645Other payables 1 139 936 -Accrued expenses 63 874 -Accrued audit fees - 4 510PAYE, SDL and UIF 255 200 149 073Prepayments received - 323 447

16 412 261 9 507 552

8. Revenue

Revenue from fees 20 853 588 16 683 107Continuing Professional Development (CPD) 1 196 662 211 865Accreditation visits - special projects 347 686 -Fines on late payments 260 974 -Summit and conference income 2 365 487 1 825 156Recognition of Prior Learning (RPL) Fees 554 099 343 018Grants received 1 353 000 1 397 789

26 931 496 20 460 935

9. Investment income

Interest incomeBank and other cash 91 028 102 422

10. Finance costs

Interest on late payments - SARS 55 377 -

11. Cash (utilised/generated from operations

Operating surplus 26 779 1 878 019Adjustments for:Depreciation and amortisation 229 309 125 050Interest income (91 028) (102 422)Finance costs 55 377 -Movements in operating lease assets and accruals (116 467) 28 571Movements in provisions - (156 381)Changes in working capital:Trade and other receivables (7 187 284) (2 453 477)Trade and other payables 6 904 709 1 863 336

(178 605) 1 182 696

19



12. Related parties`

RelationshipsCo-ordinating body of Council activities Council for Built EnvironmentMembers of key management Mr T.E Manchidi (President)

Mr I.M Nkosi (Vice President)Ms N.E Rakalote (Registrar)Ms C.H Deacon (Council Member)Mr D Michell (Council Member)Mr T.W Makhetha (Council Member)Mr R.M Crowie (Council Member)Mr B.B Simelane (Council Member)Mr I.M Molosi (Council Member)Mr M.J Phaladi (Council Member)

Related party balances

Amounts included in Trade Payable regarding related partiesCouncil for Built Environment (Levies) (75 423) (25 599)

Related party transactions

Honorarium paid to related partyMr. T.E Manchidi 47 520 47 520

Council Member Remuneration (Non-Executive)Mr. D Michell 7 750 5 675Mr. I Nkosi 33 700 19 525Mr. T Makhetha 1 700 2 425Mr. R.M. Crowie 1 450 3 850Dr. C.H. Deacon 29 900 17 250Mr. B.B. Simelane 10 600 6 400Mr. T.E. Manchidi 22 600 7 850

13. Commitments

Operating leases – as lessee (expense)

Minimum lease payments due - within one year 177 047 694 317 - in second to fifth year - 177 047

177 047 871 364

Operating lease payments represent rentals payable by the company for certain of its office properties. Leases arenegotiated for an average term of three years and rentals have an escalation of 8.5% per annum. No contingent rent ispayable.

20

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21



15. Risk management

Financial risk management

The council’s activities expose it to a variety of financial risks including market risk (including currency risk, fair value interestrate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

The council’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimisepotential adverse effects on the council’s financial performance. Risk management is carried out by the finance departmentunder policies approved by the council.

Liquidity risk

The council’s risk to liquidity is a result of the funds available to cover future commitments. The council manages liquidityrisk through an ongoing review of future commitments and credit facilities.

Cash flow forecasts are prepared and the adequacy of borrowing facilities are monitored.

Credit risk

Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. Thecouncil only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.Trade receivables comprise a widespread customer base. Management evaluates credit risk relating to customers on anongoing basis.

Financial assets exposed to credit risk at year end were as follows:`

Financial instrument 2017 2016Investec 2 436 147 3 218 343Nedbank Limited 1 525 036 1 247 888Trade Receivables 14 178 124 6 813 528Salary Advances 24 847 19 495

22


Detailed Income StatementFigures in Rand Note(s) 2017 2016

RevenueFees revenue 20 853 588 16 683 107Continuous Professional Development (CPD) 1 196 662 211 865Accreditation visits 347 686 -Grant received 1 353 000 1 397 789Fines and penalty income 260 974 -Summit and Conference Income 2 365 487 1 825 156Recognition of Prior Learning (RPL) Fees 554 099 343 018

8 26 931 496 20 460 935

Expenses (Refer to page 24) (26 940 368) (18 685 338)Operating (deficit)/surplus (8 872) 1 775 597Investment income 9 91 028 102 422Finance costs 10 (55 377) -Surplus for the year 26 779 1 878 019

23


Detailed Income StatementFigures in Rand Note(s) 2017 2016

Other operating expensesAccreditation Costs 150 000 68 200Advertising 94 182 56 294Allowances - Councillors and Committee Chairpersons 165 568 146 410Annual Report 106 970 (27 886)Appeals - Registration Professionals 171 324 32 738Assessment of applications - registrations 1 674 326 916 866Auditors remuneration - external auditors 84 981 -Bad debts 1 868 422 609 817Bank charges 131 080 92 229CHS expenditure 760 271 681CHS expenses 117 012 491 719CPD expenses 576 118 -Cleaning 3 236 12 150Conference fees 1 573 363 1 384 172Construction Summit 441 557 593 509Consulting and professional fees 800 343 674 823Consulting and professional fees - accounting 4 774 (1 200)Debt collection 900 104 078Depreciation 3 229 309 125 050Employee costs 11 579 104 8 099 737Entertainment 15 668 9 292Fines and penalties 340 055 -General expenses 112 422 95 208IT expenses 889 194 639 908Insurance 93 976 81 852Lease rentals on operating lease 237 254 148 020Legal expenses and DCC consultancy 65 600 46 800Marketing and communication 375 823 205 712Meetings and workshops 139 512 95 835Municipal expenses 1 332 288 1 006 928Office maintenance and refreshments 50 611 80 539Postage and Courier 87 504 165 687Printing and stationery 216 767 181 068Professional Interviews - Registrations (CHS & Professions) 576 081 413 482Recruitment fees 66 854 165 151Registry expenses 14 989 122 918Repairs and maintenance 47 248 54 542Security 206 709 165 944Staff year end function 59 856 53 692Subscriptions 225 158 41 095Telephone and fax 478 913 355 981Training 137 238 70 450Travel - local 1 397 319 834 847

26 940 368 18 685 338

24

2016/17


PART D


BREAKDOWN OF STATISTICS



TOTAL NUMBER OF REGISTERED PROFESSIONALS BY RACE AND GENDER

Black

60Black

468

Indian

6Indian

142

Coloured

5Coloured

91

White

33White

1800

Male

2 501

Female

104

Total

2605

TOTAL NUMBER OF REGISTERED CANDIDATES BY RACE & GENDER

Black

746Black

1 586

Indian

24Indian

141

Coloured

38Coloured

207

White

173White

883

Male

2 817

Female

981

Total

3 798


PART D


CANDIDATE CONSTRUCTION MANAGERS

Gender African White Indian Coloured Total

Male 135 160 23 29 347

Female 39 6 1 1 47

TOTAL 174 166 24 30 394

CANDIDATE CONSTRUCTION PROJECT MANAGERS


Male 842 173 56 39 1110

Female 461 24 10 3 498

TOTAL 1303 197 66 42 1608

CANDIDATE CONSTRUCTION HEALTH AND SAFETY AGENT


Male 16 16 4 0 36

Female 8 7 1 1 17

TOTAL 24 23 5 1 53

CANDIDATE CONSTRUCTION HEALTH AND SAFETY MANAGER


Male 4 13 0 1 18

Female 4 3 0 0 7

TOTAL 8 16 0 1 25

CANDIDATE CONSTRUCTION HEALTH AND SAFETY OFFICER


Male 160 62 5 28 255

Female 91 30 3 8 132

TOTAL 251 92 8 36 387

CONSTRUCTION MENTORS


Male 1 1 0 0 2

Female 0 0 0 0 0

TOTAL 1 1 0 0 2

CONSTRUCTION HEALTH AND SAFETY MANAGER


Male 43 190 20 22 275

Female 17 26 3 7 53

TOTAL 60 216 23 29 328

CONSTRUCTION HEALTH AND SAFETY OFFICER


Male 385 268 33 88 774

Female 126 77 6 18 227

TOTAL 511 345 39 106 1001

SUMMARY OF REGISTERED PERSONS PER CATEGORY OTHER THAN PROFESSIONALS



TOTAL NUMBER OF REGISTERED PROFESSIONALS BY RACE AND GENDER

PROFESSIONAL CONSTRUCTION MANAGER

African White Indian Coloured Total

Male 79 695 32 21 827

Female 6 2 0 0 8

TOTAL 85 697 32 21 835

PROFESSIONAL CONSTRUCTION PROJECT MANAGERS


Male 376 1063 106 61 1606

Female 50 28 5 5 33

TOTAL 426 1091 111 66 1694

PROFESSIONAL CONSTRUCTION MENTOR


Male 8 10 2 2 22

Female 0 0 0 0 0

TOTAL 8 10 2 2 22

PROFESSIONAL CONSTRUCTION HEALTH AND SAFETY AGENT


Male 5 32 2 7 46

Female 4 3 1 0 8

TOTAL 9 35 3 7 54


NOTES


South African Council for the Project and Construction Management Professions

International Business Gateway, Cnr New and 6th Road, Midrand 1685

T: 011 318 3402 | F: 011 318 3405

ISBN: 978-0-620-77446-8

SMS USSD