Revised codes might affect construction sector

Although the National Assembly has passed the Codes, the Bill is yet to be gazetted in Parliament. Some of the proposed key areas of refinement include:

• Thresholds for exempted micro enterprises (EMEs) and qualifying small enterprises (QSEs) have been adjusted.
  
• The revised codes in their current format propose that ownership, skills development and enterprise and supplier development (ESD) be treated as priority elements, which carries a 40% minimum threshold.
  
• The generic scorecard being reduced to five elements, with employment equity and management control consolidated and preferential and enterprise development merged to form enterprise supplier development element.
  
• The points for ownership have been broadened to include designated groups in the main points.
  
• All companies, except EMEs will be required to comply with the five elements of the B-BBEE scorecard.

Once officially announced by Parliament, the Construction Sector Codes will be allowed a 12 month period for the alignment of the revised Generic Codes.

Workshops for affiliates

The constitution of the CSCC states that any or all changes to the Gazette Codes must have complete consensus from the council, and it is therefore imperative that the dti proposals be analysed and reviewed prior to any recommendations to the council. It is against these conditions that CSCC will host alignment workshops for their affiliates.

The South African Federation of Civil Engineering Contractors (SAFCEC), as an affiliate to the CSCC encourages all its members to submit the names of two representatives with technical and competent knowledge of B-BBEE and the Codes to represent them in their alignment workshops. Although the dti has allocated 12 months for alignment the period, it is important that the construction industry commence with the alignment process as early as possible.