Construction procurement in the public sector is governed by cidb prescripts whilst the National Treasury Regulations apply to all other procuring environments, including goods and services.
National Treasury Regulation 16A binds all public sector clients to apply the cidb regulations and prescripts when procuring for infrastructure. This distinction recognises the complex nature of construction procurement. The cidb prescripts apply to departments at all levels of government, SOEs and state agencies that procure infrastructure.
The prescripts form a critical part of governance and public sector clients are subject to a performance audit by the Auditor General in terms of the Public Finance Management Regulations and the Municipal Finance Management Act.
The cidb has the power to fine public sector clients up to R100 000 for failure to comply with prescripts. The transgression and the fine may also be reported to the Auditor General.
The cidb Practice Guide A2: Applying the Procurement Prescripts of the cidb, provides guidelines to public sector clients on the application of the 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.
Rules and Regulations for SA Construction Procurement
Applying Functionality in Construction Procurement
The cidb Compliance Monitor tracks compliance of individual public sector clients to cidb procurement prescripts, focusing on the Register of Projects and i.tender.
Through bilateral engagements with individual clients the cidb provides support, including training and capacitation. Where clients show unwillingness to comply however, the cidb can issue a charge and institute a regulatory disciplinary hearing.
Alignment to Legislative Framework
Training on cidb Prescripts
We provide training at no cost to clients, on the application of procurement prescripts. The training program is segmented according to the following learning outcomes:
- Legislative requirements
- SCM powers and functions
- Procurement documents for construction and engineering projects
- Solicitation of tender offers
- Evaluation of tender offers
- Implementation and management of infrastructure projects
Construction Procurement Officers' (CPO) Forums:
CPO Forums provide procurement practitioners with opportunities to exchange knowledge and information on prescript compliance and to share experiences, expertise, as well as solutions to common procurement challenges. The cidb hosts Construction Procurement Officers (CPO) forums quarterly in all nine provinces. To participate in the CPOs contact the cidb Provincial Office near you.