Notice to Amended Construction Sector Codes (Gazette 41287) EME & Black-Owned QSE Clients

Automatic B-BBEE Status Level:

All EMEs and QSEs that are 100% Black Owned achieve an automatic Level One Contributor status. All EMEs and QSEs that are at least 51% Black Owned achieve an automatic Level Two status. EMEs that are between 30% and 51% Black Owned achieve an automatic Level Four status
EMEs that are less than 30% Black Owned achieve an automatic Level Five status.

Discounting Principle and Priority Elements:

As of 1 December 2017, all Exempted-Micro Enterprises with turnover between R1.8m and R6m (BEPs: Built Environment Professionals) or between R3m and R10m (Contractors) will need to meet the subminimum requirement for Skills Development by achieving at least 40% of the QSE Skills Development Target of paragraph 1.1 under Statement CSC603 in order to avoid being discounted by one status level, despite achieving an automatic status level, as per paragraph 3.6.2.4 of CSC000.
Similarly, all QSEs qualifying for automatic status levels as a result of Black Ownership, are also required to achieve at least 40% of the QSE Skills Development Target of paragraph 1.1 under Statement CSC603 in order to avoid being discounted by one status level.

Enhancement of Status Levels for EMEs:

EMEs that are less than 100% Black Owned may elect to be verified against the QSE Skills Development scorecard (CSC603) and/or the QSE Supplier Development scorecard (CSC604, paragraph 2.1 only). Should the full points be achieved (excluding the bonus points) for either (or both) of these elements, then the BEE Status Level can be enhanced by one level for each element (up to a total of two additional levels).
An EME electing to be measured against the full QSE scorecard will not be eligible for the above-mentioned enhancements.

Enhancement of Status Levels for Black Owned QSEs:

QSEs that are between 51% and 100% Black Owned may elect to be verified against the QSE Skills Development scorecard (CSC603), or the Preferential Procurement & Supplier Development scorecard (CSC604, paragraphs 1.1, 1.2, 1.3 and 2.1). Should the QSE achieve full points for either of these elements (excluding the bonus points) then the status level will be enhanced by one level.
All other QSEs which do not have Black Ownership must be measured against the full QSE Scorecard. These QSEs will not be eligible for the above-mentioned enhancements.

Evidence Requirements:

Ownership:

The Black Ownership of the EME or QSE will either be verified by AQRate, or the Measured Entity should provide a sworn affidavit.

Skills Development:

Phase 1

EMP201's for the Measurement Period submitted to SARS (Skills-SDL tab) Schedule of Skills Development spend by training initiative (see Skills tabs)

Phase 2:

Samples will be selected and requested from the Measured Entity

Please do not hesitate to contact us should you require any further information or assistance.

The AQRate team

Contact Details

Tel: 0861 277 283
Email: enquiries@aqrate.co.za 

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