AGR

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AGRÉMENT SOUTH AFRICA

• Briefing to the Parliamentary Portfolio Committee
• Business Plan 2008/2009
• 14th May 2008
• CEO Joe Odhiambo

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Presentation Contents

• Operating environment Purpose
• Vision mission
• Impact achievements
• Outputs of innovative systems certificated
• Challenges opportunities
• Relevance value added
• Audited financial statements budget
• Financial approval process fraud control
  mechanisms
• Human resources governance
• Future plans staffing composition

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Operating Environment Purpose

• Operates under a ministerial delegation of
  authority from the Minister of Public Works
• Provides assurance by carrying out testing,
  evaluation, confirmation and certification of
  fitness for purpose of non-standard construction
  products and systems.
• Quality products and services
• Improve speed of service delivery

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Typical Product Development Cycle
BUILT ENV. PROFESSIONALS
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PERFORMANCE BASED APPROACH
International approach
GOAL /OBJECTIVE
Level 1
FUNCTIONAL REQUIREMENTS
Level 2
PERFORMANCE REQUIREMENTS
Level 3
World Federation of Technical Assessment
Organisations
EVALUATION
Level 4
By application of design and construction rules
By testing and / or assessment
By application of well established engineering
principles
By expert opinion and judgment
RW RVM
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Organizational Structure
INNOVATORS
PROFESSIONALS
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Vision Mission

• Vision
• To-be world class technical Assessment Agency
• Mission
• to promote the governments objectives of
  economic development, good governance and raising
  living standards and prosperity by undertaking
  technical assessment and certification of
  non-standard construction products in South
  Africa

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Impact Achievements1

• 449 certificates have been issued
• 148 certificates are currently valid
• Widespread use of several Agrément certificated
  products e.g.
• Hollow concrete blocks
• Metal roof tiles
• Lightweight internal partitions
• Hard drawn copper tubing
• Variety of waterproofing and wall coating
  materials
• Plastic bath tub

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Impact Achievements2

• Human resource development within the technical
  agency
• 93 of Agrèment's staff were involved in short
  course training last year (99.7 training days)
• Recommend industry average is 3 days p.a.
• CSIR recommendation is 6 days p.a.
• Agrèment average is 7.1 days p.a.
• 63 of staff members involved in formal tertiary
  higher degrees Bachelor's to PhDs in
  Engineering Science.

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Impact Achievements3

• Increased awareness and visibility
• Transformation of the technical agency
• International standing and recognition
• 50 increase in technical outputs
• Increased acceptance of innovative building
  systems

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Outputs of Innovative Systems Certificated 2007/8

• Automablock Expanded Polystyrene Building Block
  System (Phase 1)
• Fibrecote Fibre Reinforced Plaster
• 2001/289 Imison Building System (Amendment)
• Murulelo Roofing Undertile Membrane
• Micro-Concrete Cladding Building System
• Nam-Tex White Roofing Undertile Membrane
  (Amendment)
• Novachip-Thin bituminous surfacing system
• Portable Container Branch Outlet
• Available on www.agrement.co.za

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Outputs of Innovative Systems Certificated 2007/8

• Robust Building System (Amendment)
• Imison 3 Building System
• Roofproof 400 Undertile Roof Membrane
• Spunsalation 5 Roofing Radiant Barrier
• Styroframe Building System
• Techfin System (Amendment)
• Gundle Gunplas UT Undertile Membrane
• Available on www.agrement.co.za

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World Federation of Technical Assessment
Organizations
NBI
VTT
TZUS
ETA
BBA
FCC
CCMC
ITB
INCERC
CSTB
EMI RT
HOWTEC BCJ CLB
ICITE
ICC
LNEC
NBRI
IETcc
IPT
CSIRO
ASA
ABCB
BRANZ
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WFTAO 2008/2009 Annual meeting21st - 30th
September
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Challenges Opportunities1

• Technical agency Technical assessment project
  management skill
• Technical committee Expert knowledge and
  recognized as experts by their peers in their
  field.
• Interpret results of tests conducted to access
  whether products meet Agrément performance
  criteria or not.
• Technical Infrastructure Accredited laboratories
  to carry out the actual tests on products and
  building systems and produce test reports on
  performance

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Challenges Opportunities2

• Legislative framework
• Delegated to the Chairperson of the Board of
  Agrément South Africa, when acting in conjunction
  with the wishes of the Board
• Backward integration
• Research and product development
• Forward integration
• Awareness and visibility
• Close working relationships with stakeholders by
  forming strategic alliances
• Enforcement
• Capacity

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National Relevance Value Added

• National sustainability development strategy
• Green Buildings Initiative
• National development and service delivery
• Socio economic benefits
• Developing emerging entrepreneurs
• Superior energy efficiency performance
• Improved energy efficiency
• Sustainable development

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Initiatives Going Forward

• Importing knowledge and skills
• Relevance to all stakeholders especially the
  rural communities
• Impact on service delivery
• Education and awareness about available products
  for industrial and rural development
• Assistance to the SMME's
• Compliance to King 2 guidelines in terms of the
  Board workings and structure
• Clear plan going forward

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Financial Statement 2007/2008

• Manpower or Human capital costs 4 286 140 56
• Technical Assessments, Operational 2 021 982 27
• Quality monitoring
• Marketing
• Research into technical Criteria
• CSIR infrastructure costs
• Group executive Levy 540 000 7
• Support administration 779 977 10
• TOTAL 7 628 099

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Operational Expenses 2007/2008

• ST 78 052
• Printing 21 061
• Advertising 2 580
• Communications 11 926
• Depreciation 115 884
• Board TeCo costs 33 939
• Assessments 518 098
• Agency expenses 416 768
• Quality monitoring 323 734

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Budget 2008/2009

• Manpower or Human capital costs 3 980 000 45
• Technical assessments, operational 2 980 000 33
• Quality monitoring
• Marketing
• Research into technical Criteria
• CSIR infrastructure costs
• Rental 330 000 4
• Depreciation 430 000 5
• Finance, HR administration 1 200
  000 13
• TOTAL 8 920 000 100

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Budget 2009/2010

• Manpower or Human capital costs 11 080 000 43
• Technical assessments, operational 8 940 000
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• Quality monitoring
• Marketing
• Research into technical Criteria
• CSIR infrastructure costs
• Rental 990 000 4
• Depreciation 1 290 000 5
• Finance, HR administration 3 600
  000 14
• TOTAL 25 900 000 100

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Budget 2010/2011

• Manpower or Human capital costs 12 188 000 43
• Technical assessments, operational 9 834 000
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• Quality monitoring
• Marketing
• Research into technical Criteria
• CSIR infrastructure costs
• Rental 1 089 000 4
• Depreciation 1 419 000 5
• Finance, HR administration 3 960
  000 14
• TOTAL 28 490 000 100

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Budget 2011/2012

• Manpower or Human capital costs 13 407 000 43
• Technical assessments, operational 10 817 000
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• Quality monitoring
• Marketing
• Research into technical Criteria
• CSIR infrastructure costs
• Rental 1 198 000 4
• Depreciation 1 561 000 5
• Finance, HR administration 4 356
  000 14
• TOTAL 31 339 000 100

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Financial Approval Process Fraud Control
Mechanisms

• The technical Agency is managed and reports to
  the Director of CSIR, Built Environment Unit
• The Board of Agrément holds at least four
  meetings in a year
• Since Agrément South Africas finances are
  managed by the CSIR, the Agencies Financial
  statements are audited as part and parcel of the
  CSIRs finances
• The Agency has received a clean bill of health
  from the previous years Audit Report.

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Compliance with PFMA and Treasury Regulations

• Quarterly reports
• Regular interaction with the DPWNIF
• Regular interaction with DPW HODs Forum
• Member of the BE Management Team
• Annual Strategic planning session
• Shareholders compact
• Strict adherence to financial management
• Financial statements subjects to independent
  external audit as well as an autonomous internal
  audit

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Shared Services

• Financial Services
• Human Resources
• CSIR Information Services (Libraries)
• Communication
• Internal Audit Services
• Legal Services
• Management Services

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Management Services

• Information and Communication Services (ICT)
• International Convention Centre
• Facilities Management
• Risk Compliance Unit
• Security
• Strategic Procurement Unit
• Unit-based Management Services

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Value Added by Management Services

• Legal compliance with PFMA and other statutory
  requirements
• Provides security for staff and assets
• Maintains and improves facilities
• Provides cost-effective services.
• Agrèment occurs within a highly regulated
  environment
• Subject to oversight by
• Board, Executive, Management and shared services
• Regulated by
• South African Acts of Parliament, BCEA, LRA, EEA,
  etc
• Well documented policies and procedures are
  strictly enforced

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Key Initiatives (To improve technical
infrastructure and working environment of staff)

• Define minimum standards for laboratory
  facilities and develop an appropriate maintenance
  model (Project Upgrade laboratories)
• Improve access to all facilities for disabled
  staff and visitors
• Improve security of people, assets and
  information
• Use ICT to enhance staff mobility and
  productivity (Project Wireless networks, VOIP,
  etc.)
• Create a healthy and safe working environment
  (Project Enhance services through Medical
  Centre)

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Key Initiatives (To enhance cost-effectiveness
and to maintain good corporate governance)

• Implement energy-efficiency programme
• Improve efficiency in sourcing / tendering
  processes (value for money)
• Review major procurement contracts in ICT,
  research support, travelling, etc. (unlock value)
• Reduce insurance and other associated costs
  through appropriate risk-assurance practices.

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Key Initiatives (HR)1

• Transformation
• Targeting of disabled staff
• Increase in female and black staff
• Transformation committee present within BE
• Employee Wellbeing
• Implement comprehensive programme
• Implementation of guidelines and training of all
  levels
• Performance Management
• Optimizing and know how

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Key Initiatives (HR)2

• Optimal career development
• Optimizing mechanisms and usage
• Support of HCD initiatives
• Retention
• Compile guidelines for retention strategy,
• Reward and recognition
• Performance bonus scheme under development
• Pay salaries specifically and correctly

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Human Resources
Percentage of staff either black or female 73
Comprehensive structured mentorship programme
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Organogram
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Key Challenges (HR)

• General SET skill shortage nationally and
  worldwide - especially at senior levels for
  recruitment
• Scarcity of black and female SET candidates.
• Being competitive with regard to remuneration and
  benefits for scarce skills.
• Managing remuneration expectations of staff.
• Potential impact of the HIV/AIDS pandemic.
• Marketing / positioning the Agrément as an
  employer of choice given the competitive nature
  of skills attraction and retention.

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The Board1

• 11 Board members appointed in November 2008
• Appointed for a period of three years
• Chairperson Pepi Silinga
• Strategic planning session on 01.04.2008
• Raise standards in industry
• New objectives for quality and quantity of
  outputs
• Make a difference in the lives of South Africans
  by enhancing service delivery by testing and
  approving improved construction products and
  systems.

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The Board2

• Pepi Silinga CEO, Coega Chairman, Port
  Elizabeth
• Cannon Noyana MD, Nobuhle Consultants
  Johannesburg
• Dr Mohammed Tayob Medical Doctor, Witbank
• Edwin Kruger Bridge Manager SANRAL, Pretoria
• Ms. Khomotso Choma MD, Turnkey Projects,
  Witbank
• Montwedi Seane General manager, SABS, Pretoria
• Lethola Moshe MD, Botle Consultants,
  Bloemfontein
• Mike Marler Engineering Specialist, DBSA,
  Midrand
• Ms. Nozibusiso Shabalala Director, SA Asphalt,
  Durban
• Ms. Ntebo Ngcobo Civil Engineer, UJ,
  Johannesburg
• Solomon Malebye DDG Operations, DPW, Pretoria

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Technical Committee (TECO)

• Duties and Authority of TECO
• Review and ratify evaluation programmes
  proposals for the development or amendment of
  technical guidelines and indicators
• Review and where deemed appropriate, approval of
  draft certificates
• Proper procedures have been followed in all
  stages of the evaluation
• Technical experts on the committee satisfied
• Satisfied with the quality management system

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Typical Scope of Evaluation

• structural strength and stability
• performance in relation to fire
• resistance to water penetration and rising damp
• thermal and energy performance
• condensation
• acoustic performance
• accuracy in building
• durability
• quality management system
• compliance with the National Building Regulations

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Quality Management System

• During evaluation and technical assessment
• Covers factory production and site installation
• Approved installers scheme
• All certificates holders are visited at least
  once annually
• Three validity review
• In accordance with IS0 9001

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Close Relationship With Entities

• Agrément will partner with the IDT
• speed up the delivery of new schools using
  alternative technologies thus eradicate mud
  schools
• The Agency will use the cidbs
• construction contact centres
• Agrèment will play a key role in the activities
  of the CBE
• contacts with the professional associations to
  identify skilled experts to be used to carry out
  technical assessments of new products.

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Achieved Desired State

• Professional Skills shortage
• Culture change
• Service delivery
• Collaboration
• Getting the best out of our available resources
• Teamwork
• Centre of Excellence!

Collaboration
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Core Deliverables in Vision 2015

• Backward integration
• research and development
• best and most advanced construction technologies
  from overseas and introduce them in the South
  African market.
• Forward integration
• promotion of the Agency as a brand.
• awareness and visibility campaigns within the
  country.
• promotion of innovative construction as an
  improved method of construction.

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Vision 2015

• Innovative, modern and better construction
  technologies will be widely used in South Africa
• Agrément will be highly visible and relevant to
  the construction industry in South Africa
• Substandard innovative construction products will
  be prevented from getting to the market
• The risk involved in the use of untested
  innovative products will be ameliorated
• The agency will be highly transformed and will
  represent the demographic profile of the country
• The housing provision challenge will be mostly
  addressed using innovative construction systems

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Thank you