Issue Date: 
Tuesday, September 6, 2016

New Requirements for Construction Industry B-BBEE

The final draft for gazetting of the Amended Construction Sector B-BBEE Codes has been released. There are various interesting changes that will impact heavily on company’s 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 draft 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 BEP qualifies as an Exempted Micro-Enterprise. This is still more or less in line with the Generic B-BBEE Codes of Code Practice.

The big changes come in Section 4.2 where an Exempt Micro Enterprise is deemed to have the following B-BBEE status Level:

  • If less than 30% Black Owned then “Level Five Contributor” having a B-BBEE recognition level of 80% under paragraph 8.3 of the new Codes;
  • If 30% Black Owned then “Level Four Contributor” having a B-BBEE recognition level of 100% under paragraph 8.3 of the new Codes;
  • If 51% Black Owned then “Level Two Contributor” having a B-BBEE recognition level of 125% under paragraph 8.3 of the new Codes;
  • If 100% Black Owned then “Level One Contributor” having a B-BBEE recognition level of 135% under paragraph 8.3 of the new Codes;

The best part of the Amended Construction Sector Codes is the Enhanced B-BBEE Status Level for an Exempted Micro-Enterprises whereby despite paragraphs 4.2, an Exempt Micro Enterprise 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 in paragraph 1.1 of Statement CSC603 of the QSE Scorecard, and only if full points are achieved for this category the B-BBEE Status Level and corresponding B-BBEE Recognition Level of the Exempt Micro Enterprise will 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, and only if full points are achieved for this category the B-BBEE Status Level and corresponding B-BBEE Recognition Level of the Exempt Micro Enterprise will be enhanced by one level.

All of the above is great news for Exempt Micro Enterprises. They can now increase there B-BBEE status levels which was not the case in the Old Codes.

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. Tender Workshop dates are published on our website at www.how2tender.com.

Learn to earn

Article by Werner van

www.how2tender.com

Title Closing Date Tender No.
Dressings 2018-06-06 11:00 ZNQ: 33/ 2018/ 19
Nappies 2018-06-06 11:00 ZNQ: 84/ 2018/ 19
Supply and delivery of sound equipment. 2018-05-30 11:00 GK11800720
Supply and deliver Instrument washer. 2018-06-04 11:00 H84/ 18/ 19
Supply of and delivery 100% hydrocolloid dressing carboxymethyl cellulose fibrous 2018-06-08 11:00 ZNQ 103 / 18 / 19
Design, supply, installation, commissioning, training and maintenance of the two stage desalination plant, consisting of pre-treatment and a reverse osmosis (RO) process at iThemba Labs, Cape Town. 2018-06-19 11:00 NRF/ iThemba LABS/ 2017 - 18: 08
Suitable Contractors to Provide Labour & Plant for the Intallation of Culverts in Ward 02. Material will be provided by the Municipality 2018-06-05 12:00 RFQ/411
Supply and install UPS unit KVA double conversion. 2018-06-08 11:00 H96/ 18/ 19
Annual servicing of Heat pumps. 2018-06-11 11:00 H100/ 18/ 19
Service Provider to Supply and Install 4x 71cm Tv’s With 2x Satelite (Supply and Install Decoder Dstv) 2018-06-04 12:00 RFQ/409
Supply with electrical material 2018-06-04 11:00 ben06/ 2018- 2019
Annual service of 2 Theatre tables. 2018-06-11 11:00 H95/ 18/ 19
Supply and Delivery of 2x 20m x 8” Suction Hoses and Accessories 2018-05-31 11:00 SCM103/17/18
For the supply of one (1) electro-spinal mobile operating table with accessories and cart for B3, theatres W & X at Tygerberg Hospital 2018-06-22 11:00 TBH 203/ 2018
Once off pressure testing of 5 Compressors. 2018-06-11 11:00 H99/ 18/ 19
Supply of electromagnetic (EM) simulation software 2018-06-18 11:00 NRF SARAO SDDS 002 2018
Appointment of service provider/s to supply furniture, chairs and soft goods to the SHRA 2018-06-15 11:00 SHRA/ RFB/ ADMIN/ 01/ 201819
Once-Off Supply, Delivery and Installation of Office Furniture for the Department of Rural Development and Land Reform: Mpumalanga Deeds Registry. 2018-06-18 11:00 DRDLR (CRD- 07) 2018/ 19
Kuruman Statistics South Africa: Alternative office accommodation: 461.36m² and 15 parking bays for a period of 5 years 2018-06-15 11:00 LS01/ 2018
Annual service of 2 Vacuum pumps and 1 receiver. 2018-06-11 11:00 H97/ 18/ 19

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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