Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)NoticesStandard for Developing Skills through Infrastructure Contracts, July 20203. Requirements |
| 3.1 | CONTRACT SKILLS DEVELOPMENT GOAL (CSDG) |
| 3.1.1 | The contractor shall attain or exceed the contract skills development goal in the performance of the contract or the execution of an order. |
| 3.1.2 | The contract skills development goal shall be expressed as in 3.1.2.1 for engineering and construction works, design and build and services contracts, and as in 3.1.2.2 for professional services contracts. |
| 3.1.2.1 | In the case of engineering and construction works contracts, design and build contracts and services contracts the contract skills participation goals, expressed in Rand, shall be no less than the contract amount multiplied by a percentage (%) factor given in Table 2 for the applicable class of construction works used in the application of the Construction Industry Development Regulations issued in terms of the Construction Industry Development Board Act of 2000. |
Table 2: Contract skills development goals for different classes of engineering and construction works contracts
Class of construction works as identified in terms of Regulation 25(3) of the Construction Industry Regulations 2004 |
Construction skills development goal (CSDG) (%) |
|
Designation |
Description |
|
CE |
Civil engineering |
0.25 |
CE and GB |
Civil engineering and General Building |
0.375 |
EE |
Electrical Engineering works (buildings) |
0.25 |
EP |
Electrical Engineering works (Infrastructure) |
0.25 |
GB |
General Building |
0.25 |
ME |
Mechanical Engineering works |
0.25 |
SB |
Specialist |
0.25 |
| Example 1: | The contract amount for an engineering and construction works contract in the GB class of construction works is R65,7m. The contract skills development goal in Rands is R65,7m x 0.5% = R328 500. |
| 3.1.2.2 | In the case of professional services contracts the contract skills development goals, expressed in hours, shall be not less than the professional fees in millions of Rand multiplied by 150. |
| Example 2: | The contract amount for a professional services contract is R5.6 m. The contract skills development goal in hours is R5.6m x 150 = 840 hours. |
| 3.1.2.3 | The number of hours for the contract skills development goal shall be revised as the need arises and be published in a Gazette notice. |
| 3.1.2.4 | Where required in terms of the contract or order, a specified proportion of the learners and candidates shall be selected from persons in the employ of the state who meet the relevant eligibility criteria for the relevant programme. |
| 3.1.2.5 | Where required in terms of the contract or order, the employer shall advise the contractor of the types of training to be undertaken by the learners and candidates. |
| 3.2 | ACHIEVING THE CONTRACT SKILLS DEVELOPMENT GOAL (CSDG) |
| 3.2.1 | The contractor shall achieve the measurable contract skills development goal by providing opportunities to learners requiring structured workplace learning using one or a combination of any of the following in relation to work directly related to the contract or order: |
Method 1: structured workplace learning opportunities for learners towards the attainment of a part or a full occupational qualification;
Method 2: structured workplace learning opportunities for apprentices or other artisan learners towards the attainment of a trade qualification leading to a listed trade (GG No. 35625, 31 August 2012) subject to at least 60% of the artisan learners being holders of public TVET college qualifications;
Method 3: work integrated learning opportunities for University of Technology or Comprehensive University students completing their national diplomas;
Method 4: structured workplace learning opportunities for candidates towards registration in a professional category by a statutory council listed in Table 1 above.
| 3.2.2 | Employed learners may not account for more than 33 percent of the contract skills development goal. |
| 3.2.3 | Not more than one method may be applied to any individual concurrently in the calculation of the contract skills development goal. |
NOTE: The principle is that an individual can only be counted once towards the CSDG.
| 3.3 | CONTRACT SKILLS DEVELOPMENT GOAL CREDITS |
| 3.3.1 | Contract skills development credits will not be awarded for learners enrolled as beneficiaries of other funded or subsidised programmes. |
| 3.3.2 | In the case of engineering and construction works, design and build and services contracts: |
| (a) | The contract skills development goals shall be granted by multiplying the number of people employed by the contractors and placed for continuous training opportunities in a three-month period by the notional values contained in Table 3, or as revised in a Gazette notice. |
| (b) | The contractor may source beneficiaries of the contract skills development goal from the cidb Skills Development Agency (SDA). |
| (c) | All beneficiaries of the Standard must be registered with the cidb SDA. |
NOTE: The role and function of a cidb SDA is outlined in Annex B
Table 3: The notional cost of providing training opportunities per quarter
Type of Training Opportunity |
Provision for stipends (Unemployed learners only) |
Provisions for mentorship |
Provisions for additional costs* |
Total costs |
|
Unemployed learners |
Employed learners |
||||
Method 1 |
|||||
Occupational qualification |
R7 000 |
R0 |
R9 000 |
R16 000 |
R9 000 |
Method 2 |
|||||
TVET College graduates |
R14 000 |
R0 |
R9 000 |
R23 000 |
N/A |
Apprenticeship |
R14 000 |
R0 |
R12 000 |
R26 000 |
R12 000 |
Method 3 |
|||||
P1 and P2 learners, or a 240 credits qualification |
R24 000 |
R20 000 |
R4 500 |
R48 500 |
N/A |
Method 4 |
|||||
Candidates with a 360 credits qualification |
R37 000 |
R20 000 |
R4 500 |
R61 500 |
R20 000 |
Candidates with 480 or more credits qualification |
R47 000 |
R20 000 |
R4 500 |
R71 500 |
R20 000 |
*Additional provisions include provisions for personal protective equipment, insurance, medical assessments, course fees and trade tools (where applicable) assessment, moderation and monitoring of learners.
NOTE:
| (i) | Where an unemployed learner is employed directly by the contractor, the contractor shall pay the stipend directly to the learner |
| (ii) | Where an unemployed learner is sourced through an SDA, training provider or skills development facilitator the contractor must pay the stipend to the SDA, training provider or skills development facilitator who in turn will pay the learner |
| (iii) | The notional cost of providing training opportunities will be increase by CPI on an annual basis. The new, revised costs will be published on the cidb website on the 1st April in each year. |
| Example 3: | Training Target Calculation for a R65,7m GB contract |
Contract amount |
R65 700 000 |
Contract duration |
12 Months |
CSDG |
0,50% |
Minimum CSDG target |
0,5% x R65 700 000 |
R328 500 |
Skill Types |
Number of learners |
Notional Cost/ Learner/Quarter |
Notional cost/learner year |
Total Notional Cost over 12 months Contract |
Method 2: Workplace learning opportunities, with unemployed TVET graduates |
1 |
R23 000 |
R92 000 |
R92 000 |
Method 3: Candidacy for an unemployed learner with a 3-year qualification |
1 |
R61 500 |
R246 00 |
R246 00 |
Total
|
2 |
|
|
R338 000 |
| 3.3.3 | Credits towards the contract skills development goal for professional services contracts shall be granted by summating the hours of structured workplace learning opportunities provided to P1 and P2 learners as well as professional candidates in accordance with this standard. |
| 3.3.4 | No more than 45 hours may be claimed per week for any individual. |
| 3.3.5 | Contract skills development goal credits shall be reduced to the extent that they fail to comply with the requirements of this standard. |
| 3.4 | DENIAL OF CREDITS |
Credits towards the contract skills development goal shall be denied should:
| (a) | the opportunities not be provided on site or the opportunities cannot be directly linked to the contract or order; |
| (b) | Failure to register all beneficiaries of the Standard be with the cidb SDA; |
| (c) | Failure to submit a copy of the final contract compliance training report within 15 days of practical completion; |
| (d) | the following not be provided: |
| (1) | the required contract compliance baseline plan, an interim contract compliance report or a final contract compliance report; |
| (2) | the required mentorship plan for a candidate not be provided; |
| (3) | the required training plan for learners not be provided; |
| (4) | the training reports covering a period not be provided; |
| (5) | the required records, specified documents and signatures not be provided; |
| (6) | the structured mentorship is found not to be in accordance with the requirements of the applicable professional body, statutory council or qualifying authority; |
| (7) | the structured workplace learning is found not to be in accordance with the curriculum requirements of the part qualification or occupational qualification or prescription for professional registration for which the learner is registered; |
| (e) | conditions of employment and rates of allowances for learners not be in accordance with legislative provisions; and |
| (f) | the contractor does not maintain the required training records, or an audit reveals that there is insufficient information to substantiate claims for credits. |
| (g) | the contractor claims credits for learners enrolled as beneficiaries on programmes that are funded or subsidised from another source. |
| (h) | the contractor fails to provide sufficient evidence of disciplinary actions taken against a learner who fails to present their interim reports or credentials for assessment when they have had sufficient structured work experience or structured mentorship to do so. |