Comparison Between CIDB and CBE in the South African Construction Industry: Authority and Influence

Prepared by Myirha Consulting P3MO Knowledge Hub

Date: 9 August 2024

1. Introduction

The South African construction industry is governed and regulated by various bodies, each with distinct roles, mandates, and areas of influence. The Construction Industry Development Board (CIDB) and the Council for the Built Environment (CBE) stand out as two pivotal institutions. This article seeks to compare these two entities, focusing on their respective roles and influence in the construction industry, particularly in determining who holds the primary authority in this sector.

2. Overview and Mandate

2.1 Construction Industry Development Board (CIDB)

The CIDB is a statutory body established by the Construction Industry Development Board Act 38 of 2000. Its primary mission is to promote the sustainable growth and transformation of the construction industry in South Africa, thereby enhancing its capacity and performance (CIDB, 2020). The CIDB achieves this by registering contractors, maintaining a contractor grading system, and developing and promoting industry standards and best practices. This grading system categorizes contractors according to their financial and technical capability, which is critical for their eligibility to tender for public sector projects (Bowen, Edwards, and Cattell, 2012).

2.2 Council for the Built Environment (CBE)

The CBE, established under the Council for the Built Environment Act 43 of 2000, serves as an overarching body for the built environment professions in South Africa. The CBE coordinates and oversees six professional councils, which include architecture, engineering, landscape architecture, project and construction management, property valuation, and quantity surveying (CBE, 2021). The CBE’s mandate is to regulate these professions, ensuring consistent professional standards across the board. Additionally, it provides advisory services to the government on policy matters related to the built environment (Wyk, 2003).

3. Authority in the Construction Industry

3.1 CIDB as an Authority

The CIDB holds significant authority over the operational aspects of the construction industry, particularly in regulating contractors and companies engaged in construction activities. One of the CIDB’s key responsibilities is the registration and grading of contractors, which is mandatory for those wishing to participate in public sector projects (CIDB, 2020). This grading system ensures that contractors are classified based on their ability to execute projects of varying scales and complexities. The CIDB also plays a vital role in developing and maintaining procurement policies, which are essential for ensuring fairness, transparency, and efficiency in public sector construction projects (Laryea, 2011).

3.2 CBE as an Authority

While the CIDB focuses on the operational side of the construction industry, the CBE's authority lies in the professional domain. The CBE regulates the professional conduct, standards, and qualifications of individuals and companies within the built environment professions (CBE, 2021). By overseeing the six professional councils, the CBE ensures that professionals in the industry adhere to high standards of practice, which is crucial for maintaining the integrity and quality of construction projects. Although the CBE’s authority is more indirect compared to the CIDB, it plays a strategic role in shaping the professional landscape of the construction industry (Wessels and Bredell, 2020).

4. Focus and Impact

4.1 CIDB: Operational Focus

The CIDB's focus is primarily on enhancing the operational capacity and performance of the construction industry. By implementing a rigorous contractor grading system, the CIDB directly impacts the market dynamics within the construction sector. Contractors are required to meet specific criteria to be eligible for public sector projects, which in turn influences their ability to compete in the industry (CIDB, 2020). Furthermore, the CIDB’s role in developing and promoting industry standards and best practices ensures that the construction industry operates within a framework that prioritizes quality, efficiency, and sustainability (Mawenya, 2018).

4.2 CBE: Professional Standards Focus

In contrast, the CBE’s focus is on regulating the professional standards within the built environment professions. By overseeing the professional councils, the CBE ensures that individuals and companies in these professions maintain high standards of ethics and practice (CBE, 2021). This regulatory function is critical for ensuring that construction projects are executed by competent and qualified professionals, which in turn impacts the overall quality and safety of the built environment. Although the CBE’s influence on the operational aspects of construction is indirect, its role in upholding professional standards is essential for the long-term sustainability and credibility of the industry (Ssegawa, 2014).

5. Key Differences in Role and Influence

5.1 CIDB: Direct Operational Influence

The CIDB’s role as an authority is characterized by its direct influence over the operational aspects of the construction industry. Through its contractor registration and grading system, the CIDB determines which contractors are eligible to tender for public sector projects, thereby directly affecting the competitive landscape of the industry (CIDB, 2020). Moreover, the CIDB’s involvement in developing procurement policies ensures that the construction industry operates within a framework that promotes fairness and transparency (Manzini and Marx, 2014).

5.2 CBE: Indirect Professional Influence

On the other hand, the CBE’s influence is more strategic and indirect, focusing on the regulation of professional standards within the built environment. By ensuring that professionals adhere to high standards of practice and ethics, the CBE indirectly impacts the quality of construction projects (CBE, 2021). This regulatory role is vital for maintaining the credibility and integrity of the construction industry, particularly in ensuring that projects are executed by competent and qualified professionals (Khan, 2017).

6. Conclusion

In the South African construction industry, both the CIDB and CBE play crucial roles, but they do so in different capacities. The CIDB holds primary authority over the operational aspects of the construction industry, particularly in regulating contractors and procurement policies. Its direct influence on the industry's day-to-day operations makes it a key player in the construction sector. Conversely, the CBE’s authority lies in regulating the professional standards of the built environment professions. While its influence is more indirect, the CBE’s role in ensuring that professionals adhere to high standards of practice is essential for maintaining the long-term sustainability and credibility of the construction industry. Ultimately, the CIDB can be seen as the more immediate authority in the operational realm, while the CBE holds strategic authority over the professional standards that underpin the industry.

References

Bowen, P.A., Edwards, P.J., and Cattell, K., 2012. Corruption in the South African construction industry: A thematic analysis of verbatim comments from survey participants. Construction Management and Economics, 30(10), pp.885-901.

CBE (Council for the Built Environment). 2021. Council for the Built Environment Act 43 of 2000. Pretoria: Government Printer.

CIDB (Construction Industry Development Board). 2020. Construction Industry Development Board Act 38 of 2000. Pretoria: Government Printer.

Khan, Z., 2017. Professionalism in the built environment: The influence of the Council for the Built Environment (CBE). Journal of Construction Project Management and Innovation, 7(1), pp.1870-1885.

Laryea, S., 2011. Quality of tender documents: case studies from the UK. Construction Management and Economics, 29(3), pp.275-286.

Manzini, S.T. and Marx, H.J., 2014. Contractor development models for promoting sustainable building: The case of the South African construction industry. Acta Structilia, 21(2), pp.1-25.

Mawenya, A.S., 2018. The role of CIDB in promoting contractor development in South Africa. International Journal of Construction Management, 18(2), pp.94-104.

Ssegawa, J.K., 2014. The effectiveness of the Council for the Built Environment in South Africa in advancing professional standards. Journal of Civil Engineering and Architecture, 8(2), pp.187-195.

Wessels, B.C., and Bredell, L.G., 2020. The impact of professional councils on the construction industry in South Africa. Journal of the South African Institution of Civil Engineering, 62(4), pp.45-51.

Wyk, B. Van, 2003. Professionalisation in the built environment: The role of the Council for the Built Environment. Journal of Construction, 56(2), pp.12-18.

Author’s Bio

Myirha Consulting P3MO Knowledge Hub is a division of Myirha Consulting, specializing in project management, portfolio management, and knowledge dissemination within the construction industry. With a team of experienced professionals, the Knowledge Hub provides in-depth research, analysis, and strategic insights to help organizations navigate the complexities of the South African construction sector. The Knowledge Hub is dedicated to advancing industry standards and practices through its work, ensuring that both public and private sector projects meet the highest levels of quality and efficiency.