Amended Construction Sector Code Published

Department of Trade and Industry

The Amended Construction Sector Code has been published in Government Gazette 41287.

The trade and industry department published the revised code in terms of the Broad-Based Black Economic Empowerment Act.

The priority elements are ownership, skills development and preferential procurement and supplier development.

Large enterprises must comply with all the priority elements while a qualifying small enterprise is required to comply with 2 priority elements.

Contractors with total annual revenue of R10 million or less and built environment professionals (BEP) with total annual revenue of R6 million or less will qualify as exempted micro-enterprises.

As regards qualifying small enterprises, contractors with total annual revenue of more than R10 million but less than R50 million per annum and BEPs with total annual revenue of more than R6 million but less than R25 million per annum will qualify.

For large enterprise contractors, 31 points has been allocated for ownership while skills development carries 26 points.

In terms of qualifying small enterprises, ownership has been allocated 30 points and skills development 26 points.

The sector code also speaks to accelerated levels of black management recognition across the sector for black women, increased contractor and supplier development of emerging small contractors by means of procurement and facilitation of an increased pipeline of professional expertise through heightened levels of skills development.

The code makes no provision for a transitional period and it clearly defines the scope of application and includes three segments of the value chain, namely, built environmental professionals, constructors and manufacturers and suppliers of building materials, plant hire and equipment.

The sector code came into effect on the date of publication.

Sabinet Cape Town Office