Issue Date: 
Monday, May 4, 2015

The Amended B-BBEE Codes of Good Practice

By Werner van Rooyen

4 May 2015

www.how2tender.com

On 1 May 2015 the new Amended B-BBEE Codes of Good Practice kicks in. There has been a lot of talk about how the new Amended B-BBEE Codes of Good Practice is going to change the B-BBEE Score Cards of all businesses that do not comply with the Amended Codes. Many businesses will drop considerably in their B-BBEE score should they not prepare well in advance to comply with the new Amended Codes.

But what has changed so much to worry us all? First of all the elements have been reduced from seven to five. This means there will be no employment Equity points to earn on the number of black employees you as business owner employs.

Secondly there are new expressions that have to be mastered - expressions such as Priority Elements and Empowering Supplier. These two new expressions will change the way you think about B-BBEE going forward. In the old days there was no sub-minimum score to achieve but with the Amended Codes you will find that under the Priority Elements you will need to score a sub-minimum to earn recognition for your efforts on these specific elements.

The new Amended Codes seems to favour the expressions black people in stead of black employees that we got use to during the last seven or eight years.

Fortunately it is not all doom and gloom. The turnover thresholds for Exempt Micro Enterprises as well as Qualifying Small Enterprises have increased considerably.

There are many more changes that are coming into effect on 1 May 2015. These Amended Codes will impact heavily on how you are going to do business in future and we suggest that you get as much knowledge as possible on the subject to make informed decisions for your business going forward.

How2Tender.com will be hosting seminars to help you to get a better understanding of the Amended Codes and what it means to you and your business. You can also gain all the knowledge when it comes to tender responses by attending one of our How-to-tender workshops. Please visit our website for more detail at www.how2tender.com.

Happy tendering

When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the... Read More
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