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.
To provide the following Yellow Plant Equipment at or to Kendal Power Station: Tipper Trucks C10 or 12 cube; Dozer (D8); Front End Loader; Water Tanker, Grader, TLB, Excavator and Roller 2017-09-26 10:00 MPGXC004781
Plant operator training 2017-08-25 12:00 W051800052
Solid Waste Management – Bellville Wallpaper & Signage 2017-08-22 12:00 A091800058
Hire 30 Cub M Binlifter, 30Cub M Bins X6 With Roller Wheels for Two Months 2017-08-25 12:00 A091800059
Supply and delivery of Make-up resins Amberlite IRA405CL Anion Bed Vessel Resin (50 000 Litres) at Hendrina Power Station 2017-09-26 10:00 MPGXC004460R
Re-arrangement of desks/furniture as per the approved floor plan : 6TH Floor 2 Bayside , Tower Block, Civic Centre, Cape Town. 2017-08-22 12:00 R031800104
Supply: Medals and trophies 2017-08-22 12:00 R051800140
Supply: Hardware items 2017-08-21 12:00 R051800141
Supply: Hardware items 2017-08-21 12:00 R051800136
Supply: Spanner 32mm 2017-08-21 12:00 W041800150
Supply: Hardware items 2017-08-21 12:00 R051800137
Integrated Waste Management 2017-10-10 13:00 COR57/2017
Supply: Blade hacksaw 2017-08-21 15:00 W041800148
Supply and Delivery of Paraffin for Cluster 6 in Centane at Mnquma Local Municipality. 2017-08-25 12:00 SCM/MLM/15/17-18
Supply: Hardware items 2017-08-21 12:00 R051800138
Supply: Hardware items 2017-08-24 12:00 R051800139
Supply and Delivery of Paraffin for Cluster 5 in Nqamakwe at Mnquma Local Municipality. 2017-08-25 11:00 SCM/MLM/14/17-18
Supply: Portable car battery recharger 2017-08-21 12:00 W041800153
Supply: Hardware items 2017-08-24 12:00 R051800134
Supply: door closer 2017-08-24 12:00 R051800135

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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