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.
Service to fire equipment for the hospital as per specification 2018-06-06 11:00 ZNQ 36/ 18
Terms of Reference for Gauteng Township Stock Exchange Ownership & Governance. 2018-06-15 11:00 GT/ GDED/ 077/ 2018
Terms of Reference for the provision of cleaning services at the Gauteng Department of Economic Development and Gauteng Department of Agriculture & Rural Development including the Alex ICT Centre. 2018-06-15 11:00 GT/ GDED/ 081/ 2018
Supply and install new direction sign board for the following Clinic Under Appelsbosch Hospital. Gcumisa Clinic 2018-06-01 11:00 ZNQ 82/ 2018
Supply and install new direction sign board for the following Clinics Under Appelsbosch Hospital Emtulwa Clinic 2018-06-01 11:00 ZNQ 79/ 2018
Appointment of accredited training service providers to manage the implementation of the food safety programme in the nine (9) provinces for a period of twelve (12) months. 2018-06-15 11:00 NDT0005/ 18
Supply and install new direction sign board for the following Clinics Under Appelsbosch Hospital Emambendwini Clinic 2018-06-01 11:00 ZNQ 81/ 2018
Appointment of a service provider to render hygiene services for the Department of Rural Development and Land Reform Head office at Centre Walk Building for a period of thirty – six 36 months. 2018-06-14 11:00 5/ 2/ 2/ 1- RDLR 0008(2018/ 2019)
Supply and install new direction sign board for the following Clinics Under Appelsbosch Hospital 2018-06-01 11:00 ZNQ 80/ 2018
Appointment of a service provider to upgrade, provide support and maintenance services for telephone management as well as switchboard systems at the Department of Rural Development and Land Reform at the following Deeds Registries Offices: Vryburg, Kimberley, Pietermaritzburg and Pretoria Deeds Registry for a period of 24 months. 2018-06-18 11:00 DRDLR (CRD- 08) 2018/ 19
Supply and Delivery of Frozen Vegetables, to the three (3) Central Hospitals (Groote Schuur-, Tygerberg- and Red Cross War Memorial Children’s Hospitals) on a twelve (12) month contract period with an option to extend the contract for a further twelve months based on performance 2018-06-22 11:00 RCCH02/ 2018
The Appointment of a Service Provider for the purchasing, delivery and commisioning of the Protein/Nitrogen Analyser in the analytical services north laboratory in Pretoria for the Department of Agriculture, Forestry and Fisheries. 2018-06-08 11:00 4.4.12.2/ 7/ 18
Department of Defence: Lenz Military Base: DMRS: Replacement and upgrade of Civil Engineering Services: Procurement of Professional Services: Built Environment: Civil Engineering. 2018-06-19 11:00 JHB.18/ 01
Supply and Delivery of Fresh Fruits and Vegetables, to the three (3) Central Hospitals (Groote Schuur-, Tygerberg- and Red Cross War Memorial Children’s Hospitals) on a twelve (12) month contract period with an option to extend the contract for a further twelve months based on performance 2018-06-22 11:00 RCCH03/ 2018
Terms of Reference: For the appointment of human settlements Programme delivery facilitators for a period of thirty six (36) months. 2018-06-19 11:00 BID VA 49/ 605
Appointment of a Service Provider to Conduct the KZN Private Sector Procurement Analysis. 2018-06-27 11:00 ZNT 05 EDTEA 18/ 19
Hygiene service for Benedictine Hospital (2 year contract) 2018-06-08 11:00 ben02/ 2018- 2019
Appointment of a Service Provider to Conduct B-BBEE Verification for 14 Provincial Departments and 11 EDTEA Public Entities. 2018-06-27 11:00 ZNT 01 EDTEA 18/ 19
Adhesive support bandage 100mm x 4.5m stretched ( to bring sample ) 2018-05-25 11:00 ben04/ 2018- 2019
Appointment of a Service Provider for the Procurement of Protective Clothing. 2018-06-27 11:00 ZNT 18 EDTEA 17/ 18

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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