Issue Date: 
Tuesday, September 6, 2016

New Requirements for Construction Industry B-BBEE

The Revised Construction Sector B-BBEE Codes has been released. There are various interesting changes that will greatly impact companies’ B-BBEE strategies going forward.

There are very interesting changes and amendments with regards to Exempt Micro Enterprises. According to Section 4 of the Final Codes, any enterprise with a total annual Revenue of R10 million or less if it is a Contractor, or R6 million or less if it is a Build Environment Professionals (BEP’s), qualifies as an Exempted Micro Enterprise (EME). This is still more or less in line with the Generic B-BBEE Codes of Good Practice.

The substantial changes come in Section 4.2, under paragraph 4 of the new Codes, where an EME is deemed to have the following B-BBEE status Level, under paragraph 8.3 of the new Codes:

  • If less than 30% Black Owned then “Level Five Contributor” having a B-BBEE recognition level of 80%;
  • If 30% but less than 51% Black Owned then “Level Four Contributor” having a B-BBEE recognition level of 100%;
  • If 51% but less than 100% Black Owned then “Level Two Contributor” having a B-BBEE recognition level of 125%;
  • If 100% Black Owned then “Level One Contributor” having a B-BBEE recognition level of 135%;

The best part of the Amended Construction Sector Codes is the Enhanced B-BBEE Status Level for an EME, whereby despite paragraphs 4.2, an EME is allowed (should they so wish) to maximise their points and move to a higher B-BBEE recognition level, by one of the following three means:

  • Obtain measurement in terms of the QSE Scorecard as a whole, and apply the B-BBEE Status Level and B-BBEE Recognition Level so determined; or
  • Obtain measurement in terms of the Skills Development expenditure category of the QSE Scorecard (paragraph 1.1 of Statement CSC603); only if full points (excluding the bonus points) are achieved for this category will the B-BBEE Status Level and corresponding B-BBEE Recognition Level of the EME be enhanced by one level.
  • Obtain measurement in terms of the Supplier Development Expenditure category of the QSE Scorecard (paragraph 2.1 of Statement CSC604); only if full points are achieved for this category, can the B-BBEE Status Level and corresponding B-BBEE Recognition Level of the EME be enhanced by one level.

All of the above is great news for EMEs. They can now increase their B-BBEE status levels which was not the case in the previous Codes.

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
King Williams Town: Zwelitsha SAPS complex: Repairs & maintenance of electrical, civil, mechanical & structural elements to the complex. 2019-06-19 11:00 PE07/ 2019
Thabamoopo Magistrate Office: Repairs and renovations 2019-06-18 11:00 PLK19/ 04
Pretoria: Silverton SAPS: Yankee Base: Phase II: Replacement of 20 Containers and Construction of Roof and Stairs 2019-06-25 11:00 Pt19/ 004
Supply, deliver, install and commissioning of laundry equipment: Benedicitine Hospital 2019-06-24 11:00 ZNB 9654/ 2018- H
Preventative and corrective maintenance contract of steam tube bundles calorifiers: 3 year contract: various institutions 2019-06-25 11:00 ZNB 5118/ 2019- H
Refurbishment of Tennant Road Kenilworth. CIDB Grading GB Level 4. 2019-07-31 11:00 SPSC- B- 007- 2019
Refurbishment of Porterville Crescent, Monte Vista. CIDB Grading GB Level 3. 2019-07-30 11:00 SPSC- B- 006- 2019
Repair of the Burned Building at Northern Military Headquarters. 2019-06-27 11:00 CPSC- B- G- 266- 2018
NDPW: Repairs, Maintenance, Service and Replacement of Refrigeration to various areas within the Johannesburg Regional Office’s jurisdiction for 24 months period. 2019-06-18 11:00 JHB.19/ 15
RFP 0014/2019: Provision of integrated pest management program for all SARS offices, countrywide 2019-06-25 11:00 RFP0014/ 2019
Request for provision of exhibition management services for Govtech 2019 2019-06-13 11:00 RFB 1945/ 2019
Bloemfontein: South African Social Security Agency (SASSA): Mangaung Metro District Local Office: New office accommodation: and parking facilities: 1287.73m² and 40 parking bays 2019-06-18 11:00 BL19- 008
Bethlehem Department of Rural Development and Land Reform (DRD & LR): Thabo Mofutsanenyane District: Alternative office accommodation and parking facilities: 1994.17m² and 25 parking bays for 5 years 2019-06-18 11:00 BL19- 007
Welkom Department of Rural Development and Land Reform (DRD & LR): Thabo Mofutsanyane District: Alternative office accommodation and parking facilities: 2019-06-11 11:00 BL19/ 004
The iSimangaliso Wetland Park Authority invites suitable, qualified and competent Suppliers for the supply and delivery of Uniforms to iSimangaliso Wetland Park Authority 2019-06-07 16:00 RFP NUMBER: 02/ MAY/ 2019
Supply of Corporate Gifts, Clothing & Branding - This is an all inclusive National tender that will be urtilised by all our 64 members across South Africa on an as and when required. 2019-06-13 12:00 PUR 3600/ 2
Three year contract for the Disposal of Aluminium Lithographic Plates from Naval Publication Unit, Simon’s Town as per Statement of Work. 2019-06-26 11:00 SPSC- B- 004- 2019
Request For Proposals for the Appointment of a Professional Service Provider to Provide Facilities Management for the Playhouse Company for a preiod of 3 years 2019-06-24 11:00 PHC 59/ 2019
Appointment of a service provider to print barcoded Quarterly Labour Force Survey (QLFS) questionnaires for the third quarter, July-September 2019 and Survey of Activities of Young People (SAYP) questionnaires for the third quarter, July-September 2019 for Statistics South Africa 2019-06-07 11:00 Stats SA 001/ 19
Design and construction of world-class international exhibitions stands for South African Tourism 2019-06-14 12:00 SAT 142/ 19

Pages

Tender Knowledge

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Sometimes I am surprised at how little business people in South Africa know about Tenders and the Tender Process. Simple things like terminology and general tender information are difficult for people to comprehend not to mention the Standard Bidding Documents and Tender Pricing.

Unbelievably there are still Entrepreneurs that thinks to respond to tenders are an actual business? You will find that these Entrepreneurs would... Read More

Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.