Tuesday, 04 November 2014 18:30

Construction sector begins BBBEE alignment process

The broad-based black economic-empowerment (BBBEE) alignment process in the construction sector has begun, during which process the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come into effect in May 2015.

The revised CoGP introduces new BBBEE measurement requirements with which the construction sector must structurally and meaningfully align itself in relation to the targets, weighting points and the minimum thresholds set out in the priority elements of the CoGP.

The CSCC is in the second phase of the alignment process, which includes written approvals, combined deliberations and publishing of the draft-aligned sector code, public consultation and inputs, as well as technical assessment and feedback.

The first phase of the process took place last month and entailed the CSCC constituencies individually negotiating, discussing and finalising proposals on the targets and elements of the newly aligned draft scorecard for public comment and consultation.

The second phase is expected to conclude on October 24 2014 and the final stage of the process – the finalisation of the final revised construction sector code – is expected to be completed in February 2015.

The new BBBEE measurement requirements include the increased threshold from a turnover of R5-million to R10-million for BBBEE-exempted microenterprises (EMEs), five measurement elements on the BBBEE scorecard instead of seven and priority elements that include ownership, enterprise and supplier development, as well as skills development elements, which will result in BBBEE-level discounting if they are not complied with.