AGR

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AGRÉMENT SOUTH AFRICA

• PRESENTATION TO THE PORTFOLIO COMMITTEE FOR THE
  DEPARTMENT OF PUBLIC WORKS
• 0N 20 MAY 2008, CAPE TOWN
• STRATEGIC PLAN AND BUDGETS FOR 2008/10-12
• CEO Mr. JOE ODHIAMBO

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Presentation Outline

• Business Plan
• New Initiatives
• Requirements for new initiatives
• Current Budget 2008/2009
• Proposed Ideal budget for 2009/2010-12
• Value added by new initiatives

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Mandate

• Agrément South Africa operates under the
  delegation of authority from the Minister of
  Public Works to
• Provide assurance by carrying out testing,
  evaluation, confirmation and certification of
  fitness for purpose of non-standard construction
  products and systems through
• Quality products and services
• Improve speed of service delivery

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Vision Mission

• Vision
• To improve its standing as a world-class
  Technical Assessment Agency and to contribute to
  creating a better life for all in South Africa
• Mission
• Promote the governments objectives of
  economic development, and raising living
  standards and prosperity for all the people of
  South Africa by encouraging and facilitating the
  use of innovative and non-standard construction
  products and systems through its certification
  scheme

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Governance

• A NEW BOARD WAS ESTABLISHED
• The Board was inducted by the Minister of Public
  Works early in the year and the following was
  articulated
• To raise standards in the construction industry
• Develop new objectives for quality and quantity
  of outputs
• Make a difference in the lives of South Africans
  by enhancing service delivery through testing and
  approving improved construction products and
  systems.

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Strengths

• Strong support from the Government
• Strong and well-functioning technical committee
• Good internal controls and reliable financial
  management
• Well-qualified senior staff
• Excellent and highly skilled professionals
  available in the CSIR for the roads
  infrastructure area
• Strong international links
• Participatory management
• Enthusiastic and competent Board
• Excellent technical assessment criteria
• Well-developed and tried and tested technical
  assessment methodology

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Compliance issues
Compliance Issues

• Compliance to King 2 guidelines in terms of the
  Board workings and structure
• Subject to an enabling legislation being
  promulgated
• The board is contemplating establishing the
  following committees
• Remuneration Committee (REMCO)
• Audit Committee
• Risk Management ( RM) Committee
• Research and Development (RD) Committee
• Occupational Health and Safety ( OSH) Committee
• The latter to be more operational compliance

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Progressive Initiatives1

• Enhance skills development through internships,
  learnerships and an external bursary programme
  focusing on the built environment professions
• Promote growth and development of innovative
  construction products assessment
• Reduce the vacancy rate in the staff complement
  of the Agency
• Advance Broad Based Black Economic Empowerment
  procurement objectives.

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Progressive Initiatives2

• Participating in several Imbizos around the
  country
• Providing information at cidbs construction
  contact centres
• Providing background information on innovative
  construction technologies at the Department of
  Public Works provincial strategic planning
  workshops
• Participating in national shows throughout the
  country
• Participating in science shows, for example
  Science Fest
• Conducting visits to selected universities and
  high schools

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Test Equipment for New Labs1

• The closure of several labs nationally have left
  the agency with no choice but to procure their
  own equipment
• Agrément relied on external laboratories which
  are not serving the agency adequately due to slow
  response inability to do certain tests
• Need for the following equipment
• Heat Flow Meter Instrument (ASTM C 518, ISO
  8301). The heat flow meter will enable the
  Agency to perform technical assessments in line
  with the requirements of SANS204, which is
  currently being drafted.
• Hydraulic Wall Test Rig System
• MKF 720 Material Test Chamber Series
  Environmental Simulation Chambers for complex
  temperature profiles

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Test Equipment for New Labs2

• Other equipment
• Instron 5 kN universal material tester
  (tensile/compression tester)
• Q-Sun Xenon arc tester plus accessories
  (accelerated weathering tester)
• Q-Fog cyclic corrosion chamber plus accessories
  (corrosion/salt spray chamber)
• High-precision industrial balance
• Toggle specimen cutting press
• High-performance stereo microscope with camera
• Xrite sphere spectrometer.

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Test Equipment for New Labs3

• Benefit of new equipment will be
• Quick turn around time in carrying out the tests
• Improved efficiency in the operations of the
  agency
• The agency will gain competence in executing a
  new range of different tests such as thermal
  assessment testing which is aimed at national
  energy saving
• The agency staff members will enhance their skill
  by gaining competence in testing and thereby
  improving the national technical skill base.

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Test Equipment for New Labs4

• The cost required for the new equipment in the
  first year will be and additional amount of R
  5.72 million to the amount approved in MTEF
  budget
• The Agency will progressively add required
  equipment annually for the next few years until
  fully competent
• The selection of the equipment will be in line
  with the latest and most efficient recommended by
  the World Federation of Technical Assessments
  Organisation
• The PFMA requirements will be strictly followed
  in the procurement process
• All equipment will include delivery,
  commissioning and maintenance contracts to ensure
  they continue to add value to the Agency

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Organizational Structure
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Current Human Resources
1 CEO 1 Group Assistant 3 Technical Assessment
Group Leaders 2 Senior Technical Assessors
3 Technical Assessors 1 Draughtsperson
Percentage of staff either black or female 73
Comprehensive structured mentorship programme
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Current Organogram
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Shortcomings of Current Structure

• Non visibility and awareness due to no
  Stakeholder Relationship Manager
• Testing of new products take too long at times up
  to six months as the agency has to rely on
  external technical experts due to staffing
  constraints
• Current staff members are grossly overloaded with
  each assessor undertaking up to six projects
  concurrently

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Recruitments for Desired Structure

• Board secretary
• Chief operations officer
• RD technical assessor group leader
• Laboratories technical assessor group leader
• Communications/media/publications and stakeholder
  relationship manager
• Quality manager
• Three senior technical assessors
• Three interns
• Increased staff complement to 23 from 11 and
  additional financial outlay of R 6.784m for the
  2009/10 financial year.

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Proposed Solutions to Organogram

• Recruitment process to begin during 2008/2009
• New staff members to report beginning of
  2009/2010
• Cost of new staff remuneration included in
  proposed ideal budget
• Staff members to address critical shortcomings
  within the Agency and make it more visible as
  well as produce tangible products to improve
  construction ands service delivery in South Africa

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Desired Organogram
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Key Success Factors1

• Adequate manning of the Agency with
  professionals.
• On-going in-house training and skills development
• Bursary schemes and exposure of the industry
• Widening the pool of expertise utilised by the
  Agency
• Development of an in-house testing capability
• Increasing the efficiency and effectiveness of
  evaluations
• Widening the scope of products and systems being
  certificated.
• Increasing the need for certification by approval
  authorities making certification a requirement
  for non-standard products.

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Key Success Factors2

• Increasing visibility and awareness by
  stakeholder relationship manager
• Well planned and aggressive awareness and
  visibility campaigns.
• Building relationships with other national
  agencies
• Identifying innovative and non-standard products
  from overseas for use in South Africa which are
  labour intensive and suited to SMMEs

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Barriers to being the Best1

• Inability to attract and retain suitably
  qualified staff
• Shortage of skilled personnel within the Agency .
• Certification is not required by law
• Lack of enforcement and the challenge of
  monitoring capacity
• The limited funding structure critically hampers
  the impact of the organisation

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Budget 2008/2009-1012
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Additional Finances 2008/2009-2010
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Ideal Budget 2008/2009-1012
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Compliance with PFMA and Treasury Regulations

• Quarterly reports
• 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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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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Vision 2015

• The new RSA house that will be
• Affordable
• Easy to construct
• Energy Efficient
• Encompasses Sustainable construction principles
• Quick to construct
• Low maintenance
• A house that is suitable to the needs of the
  majority of the people of South Africa

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Thank you