Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)

Board Notices

Standard for Uniformity in Construction Procurement Published in terms of the Construction Industry Development Board Act, 2000

Annexures

Annex A : Best practice guidelines
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(informative)

 

 

A.1The Standard for Uniformity in Construction Procurement establishes requirements for construction procurement which are designed to bring about standardization and uniformity in procurement documentation, practices and procedures.

 

A.2The guideline documents listed in Table A1 are recognized by the Board as being Construction Procurement Best Practices and provide comprehensive guidance on implementing the requirements of this standard. These documents are referenced in notes below requirements in this standard to facilitate implementation.

 

Table A1 : Procurement best practices guidelines

 

Title

Edition

Synopsis

Best practice guidelines published by the Construction Industry Development Board

ClDB Best Practice Guideline A1: The Procurement Cycle

Third edition (December 2007)

This practice guide identifies six main procurement activities that apply to all construction procurements irrespective of their categorization as supply, services -and engineering and construction works. It also identifies the generic steps (sub-activities) associated with such activities and the logical points in the process where controls should be introduced. The actions associated with these activities and sub-activities are documented as well as the inputs and outputs to each of the actions in a logical framework.

The practice guide also presents the recommended approach to performing the various activities and sub-activities.

ClDB Best Practice Guideline A2: Applying the procurement prescripts of the ClDB in the Public Sector (1002)

Fifth edition (December 2007)

This practice guide provides guidelines on the application of the CIDB’s Standard for Uniformity in Construction. It also establishes the relationship between this standard and National Treasury’s Regulatory Framework for Supply Chain Management. Guidance is also provided on the establishment of a procurement policy within an institution and the manner in which procurement may be managed and controlled.

ClDB Best Practice Guideline A3: Evaluating tender offers (1003)

Fifth edition (February 2008)

This practice guide provides guidance on the evaluation of tenders in accordance with the provisions of the ClDB Standard for Uniformity in Construction Procurement respect of the seven steps identified in Practice Guide A1 associated with this activity. It also contains proforma forms to evaluate tender offers and an example of a tender evaluation report.

CIDB Best Practice Guideline A4: Evaluating Quality in Tender Submissions (1004)

Fourth edition (December 2008)

This practice guide defines quality within the procurement context and reviews the requirements for evaluating quality in the accordance with regulatory requirements and the provisions of the ClDB Standard for Uniformity in Construction Procurement for the evaluation of quality. It furthermore provides practical guidelines on the awarding of preferences for quality, pre-qualification on the basis of quality and the scoring of tender submissions in terms of quality and price or quality, price and preference.

ClDB Best Practice Guideline A5: Managing Construction Procurement Risks (1005)

First edition (March 2004)

This practice guide outlines the main elements of the risk management process. It identifies the generic sources of construction related risks, presents a range of options for risk allocation between the employer and the contractor and discusses the question of insurances. It also provides guidelines for the management of risk.

CIDB Best Practice Guideline A6: Applying the Registers to Construction Procurement (1006)

Fourth edition (December 2008)

This practice guide outlines the processes associated with the implementation of the register of contractors and the register of projects in accordance with the provisions of the Construction Industry Development Regulations. It provides guidelines to employers and their agents to comply with the requirements of these regulations in their procurements and describes the manner in which requirements relating to contractor grading designations may be incorporated in procurement documents.

CIDB Best Practice Guideline A7: The procurement of professional services (1035)

Third edition (December 2008)

This practice guide provides an overview of government's policy regarding the appointment of consultants and the provisions made in the CIDB Standard for Uniformity for the procuring of professional services.

It outlines procedures in respect of each of the methods contained in this standard and guidance on the compilation of procurement documentation associated with professional service contracts. It also establishes the relationship between the methodology advocated by the standard and that promoted by National Treasury in their Supply Chain Management Practice Notes.

CIDB Best Practice Guideline A8: Procurement measures to develop registered contractors. (1036)

Third edition (December 2008)

This practice guide outlines the principles for sustainable growth and a number of strategies to promote the participation of smaller registered contractors in public contracts so that they can grow and develop. The strengths and weaknesses of each of these strategies are discussed.

ClDB Best Practice Guideline B1: Formulating and lmplementing Preferential Procurement Policies (1007)

First edition (March 2004)

This practice guide presents a range of policy options and implementation methodologies that may be pursued in the formulation of preferential procurement policies that are consistent with the provisions of the South African regulatory regime. The guide introduces the thinking behind preferential procurement policies, the manner in which such policies are implemented internationally and the constraints to implementation within South Africa. It interprets the Preferential Procurement Policy Framework Act and related regulations, identifies the methods by which preferences may be applied, provides guidelines as to how preferential procurement policies may be formulated to satisfy legislative requirements and contains examples of preferential procurement policies that are drafted in accordance with this practice guide.

CIDB Best Practice Guideline B2: Methods and Procedures for Implementing Preferential Procurement Policies (1008)

Edition First edition (March 2004)

This practice guide provides a range of uniform methods and procedures for implementing a wide range of policy themes in a consistent manner. The guide presupposes that a preferential procurement policy is in place and focuses on the capturing of preferencing requirements in procurement documents. It contains sample preferencing schedules, clauses required to activate preferencing in the Tender Data where use is made of the ClDB Standard for Uniformity in Construction Procurement, and data capture forms.

ClDB Best Practice Guideline C1: Preparing Procurement Documents (1009)

Third edition (December 2008)

This practice guide identifies the various types of procurement documents and provides a uniform format for the drafting and compilation of these documents. It also establishes a practical approach to uniformity and standardization of procurement documents within an organization and makes recommendations regarding the forms of contracts which should be used. It also contains a number of proforma component documents to facilitate a uniform approach.

ClDB Best Practice Guideline C2: Choosing an appropriate Form of Contract for Engineering and Construction Works (1010)

Third edition (December 2008)

This practice guide presents the fundamental considerations in the selection of a form of contract for engineering and construction works. It presents an overview of three different series of forms of contracts and provides practical guidance of the selection of appropriate forms of contract for an organization or for use in selected pricing and contracting strategies.

ClDB Best Practice Guideline C3: Adjudication (1011)

Third edition (December 2008)

This practice guide provides an overview of what adjudication is, presents the principles underpinning adjudication, reviews the provisions for adjudication in standard forms of contract (NEC, FlDlC and CIDB), outlines an approach for the selection and use of adjudicators, and provides sample clauses and proforma agreements to be included in procurement documents.

ClDB Best Practice Guideline Dl : Subcontracting Arrangements (1012)

Second edition (December 2008)

This practice guide establishes acceptable practices in respect conditions of subcontract. Features of forms of subcontract which are unacceptable to the Employer and the Contractor are identified and described. It also recommends forms of subcontract which have desirable features for use with the main contracts identified in Practice Guide C2 and reviews the legal considerations in the engagement of labour only subcontractors.

ClDB Best Practice Guideline D2: Joint Venture Arrangements (1013)

First edition (March 2004)

This practice guide identifies the reasons for forming joint ventures, reviews requirements for the formation of joint ventures in response to preferential procurement policies and presents an overview of the typical content of a joint venture agreement. It also identifies the standard joint venture agreements forms that are suitable for use or to serve as a basis for the development of an agreement.

 

Standards published by Standards South Africa

SANS 294, Construction procurement processes, methods and procedures,
a)This standard provides processes, methods and procedures for the establishment within an organization of a procurement system that is fair, equitable, transparent, competitive and cost effective. It:
b)describes generic procurement processes around which an organization may develop its procurement system;
c)establishes minimum requirements for the conduct of an organization's employees, agents, board members and office bearers when engaging in procurement;
d)stablishes the framework for the development of an organization's procurement policy including any preferential procurement policy;
e)establishes generic methods and procedures for procurements including those pertaining to disposals; and provides standard conditions of tender and conditions for the calling for expressions of interest.

SANS 10403, Formatting and Compilation of Construction Procurement Documents

This standard establishes at both prime and subcontract level:

a)a uniform format for the compilation of procurement documents for supplies, services and engineering and construction works contracts; and
b)the general principles for compiling procurement documents in respect of supplies, services and engineering and construction works.

SANS 10396, Implementing Preferential Procurement Policies Using Targeted Procurement Procedures

This standard:

a)sets out the issues and principles which should be considered when formulating preferential procurement policies and developing associated implementation mechanisms;
b)sets out the principles associated with the engagement of targeted enterprises and targeted labour;
c)establishes a range of techniques and mechanisms which may be used to provide a framework within which access to markets for targeted enterprises and / or targeted labour can be provided and goals relating to the engagement of such enterprises and / or labour can be set, monitored and evaluated at both project and programme level;
d)establishes targeting frameworks and strategies which can be used with a number of different procurement regimes;
e)describes techniques for the monitoring and evaluation of the outcomes of a preferential procurement policy;
f)provides guidance as to how targeted procurement procedures can be activated in procurement documents; and
g)provides guidance on the design and implementation of programmes associated with the implementation of a preferential procurement policy.

Practice Manuals published by the South African Institution of Civil Engineering

Practice Manual 1: The use of South African National Standards in Construction Procurement

This practice manual provides insights into and guidance in the use of the following construction procurement South African National Standards:

•SANS 294, Construction procurement processes, methods and systems.
•SANS 10403, Formatting and compiling of construction procurement documents.
•SANS 10396, lmplementing preferential procurement policies using targeted procurement procedures.
•SANS 1914 family of standards for targeted procurement;
•SANS 1921 family of standards for construction and management requirements for works contracts; and

SANS 2001 family of standards for construction works.

Practice Manual 2: Delivering construction projects using the design by employer contracting strategy

This practice manual, which was developed in association with the CIDB, presents an overview of the different types of contracting strategies associated with engineering and construction contracts and the delivery of projects using the design by employer contracting strategy. It thereafter describes the principal actions associated with activities within the project initiation, project implementation and project completion processes and identifies the input and output to these actions and their dependencies.

The manual also provides information on the administration of design by employer contracts in accordance with the provisions of GCC 2004, the JBCC 2000, FlDlC (1999) and NEC forms of contract and tools and techniques associated with project management.