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CONSTRUCTION SECTOR CHARTER COUNCIL

CONSTRUCTION SECTOR CHARTER COUNCIL. PRESENTED TO DPW PORTFOLIO COMMITTEE BY DDG: POLICY (MS L. BICI). 1 AUGUST 2012. BACKGROUND. Transformation Framework - 2003 DPW, NT, DTI, DOH, DWAF, DOT, & DPLG Negotiations 2004 Government, Industry, & Unions (CTCG/IMC).

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CONSTRUCTION SECTOR CHARTER COUNCIL

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  1. CONSTRUCTION SECTORCHARTER COUNCIL PRESENTED TO DPW PORTFOLIO COMMITTEE BY DDG: POLICY (MS L. BICI) 1 AUGUST 2012

  2. BACKGROUND • Transformation Framework - 2003 • DPW, • NT, • DTI, • DOH, • DWAF, • DOT, & • DPLG • Negotiations 2004 • Government, Industry, & Unions (CTCG/IMC)

  3. CHARTER PROCESS • 2007 – Gazetted in terms Section 12 of the BBBEE Act of 2003 • Not binding to Government • Industry specific • 2008 Gazetted in terms of section 9.5(b) • 60 days for comments. • Comment received and addressed. • Code reworked and final version submitted to Minister of Trade & Industry

  4. CHARTER PROCESS • May 2009 – Construction Sector Code approved and Gazetted by the Minister of Trade & Industry • 16 Signatories to the Charter • Constitution approved in 2010. • Charter Council established in 2010 by founding members – still to be officially launched.

  5. National Department of Public Works; African Builders Association; the Association of South African Quantity Surveyors; Electrical Contractors Association South Africa; Master Builders South Africa; National Association of Black Contractors and Allied Trades; National Federation for the Building Industry; South African Association of Consulting Engineers; South African Federation for Civil Engineering Contractors; South African Institute of Architects; Southern African Institute of Steel Construction; South African Women in Construction; Women for Housing; South African Black Technical and Allied Careers Organisation; National Union of Mineworkers; and Building Construction & Allied Workers Union. DRAFT CONSTITUTION FOUNDING MEMBERS

  6. DRAFT CONSTITUTION • The Charter Council shall:- • be a representative structure comprising of members from all constituent bodies and stakeholders in the Construction Sector; • act in an executive capacity and will be responsible for sharing of information (Verification Agencies; Govt, etc); • be responsible for compiling reports on the status of broad-based black economic empowerment within the Construction Sector.

  7. DRAFT CONSTITUTION • Mandate • oversee, evaluate, monitor and review the implementation of the Charter • share information with members of the Construction Sector • compile reports on the status of B-BBEE within the Construction Sector & measure extent of achievement of transformation objectives • development and distribute appropriate practice notes (Guide BEE) • ensure good corporate governance in the daily functioning of the Charter Council • report to the Minister and to the Advisory Council on progress made by the Construction Sector with regard to transformation • perform all such acts and do all such things which are incidental or conducive to the attainment of its objectives, initiatives and purpose as specified in this Constitution

  8. CHARTER CODES • Exemptions • Contractors • Micro ( < R5 Million) • Qualifying Small Enterprises (>R5 M =< R35 M) • BEP • Micro ( < R1,5 Million) • Qualifying Small Enterprises (>R1,5 M =< R11,5 M)

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  17. WAY FORWARD • The constitution of the CSCC provides for the Minister of Public Works to appoint a Chairperson of the Council either from a constituency participating in the Council or an external person; • This is done in order to give the Department and specifically the Minister an opportunity to provide strategic direction to the Council going forward; • The Minister is also required to launch the Construction Charter Council to publicize it to the public and private sector stakeholders.

  18. WAY FORWARD….cont • The CSCC is currently finalizing the registration of the Charter Council as a section 21 company; • This is to ensure that: • The Council can receive funds from the participating constituency or any other source; • The Council is able appoint the requisite staff to perform its functions; • The Council observes good corporate governance.

  19. WAY FORWARD….cont. • Currently the CSCC is managed and run by an Acting CEO who is not paid a salary but out of pocket expenses; • He has offered his time until the appointment of the new CEO; • An advert of the CEO will be going out soon; • The new candidate is expected to assume office by October 2012; • An administration officer will be appointed to assist the CEO in the running of the office.

  20. WAY FORWARD….cont. • Since the Charter is Gazetted as a sector code, it is compulsory to both the public and private sectors; • The Department has developed a training manual for the public sector and will embark on roadshows training Departments at all spheres of government to implement and monitor performance on transformation; • Training will begin from October 2012; • The first status quo report will be submitted to the DPW and DTI Ministers at the end of January 2013.

  21. Construction Charter on DPW website: www.publicworks.gov.za THANK YOU

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