This Code provides a framework for the sector to address BEE, enhance capacity and increase productivity of the Construction sector.
        The Code aims to:

• Achieve a substantial change in the racial and gender composition of ownership, control and management within the sector;
• Promote the effective advancement of employment equity in the sector;
• Provide the sector with the first quantitative method for monitoring and evaluating the progress of an enterprise towards BEE;
• Address skills development in a manner that accelerates the advancement of black people, black women and black designated groups with emphasis on learnerships, technical and management training;
• Increase the procurement from BEE compliant enterprises; and
• Enhance entrepreneurial development and promote the sustainable growth of micro, medium and small black owned enterprises.
  

Code 2000- 2800 identifies the basic principles, definitions and methodologies of the Construction Sector- but only as far as they differ with the Codes. The basic principles out the Codes that are not outlined here are still relevant.
Code 2000-2800 should be read in conjunction with the Codes of Good Practice but the Construction Code takes precedence over the Codes.

The Construction Sector Codes are applicable to:

• Any organisation which conducts construction related activities, must determine what percentage of turnover is derived from construction related activities;
• If the majority of the turnover is derived from Construction related activities the Construction Code applies.

This Code differentiates between Built Environment Professionals (BEPs) and Contractors.
The differences are differentiated as follows:

Built Environment Professionals include, but not limited to, the following:

• Architecture;
• Civil Engineering;
• Construction Project Management;
• Electrical Engineering;
• Landscape Architecture;
• Mechanical Engineering;
• Property Valuation;
• Quantity Surveying;
• Structural Engineering;
• Town and Regional Planning.

Contractors are defined as a construction enterprise involved in the Construction Sector.
Construction Activities include the design, planning, expansion, creation and / or maintenance of fixed assets related to residential or non-residential buildings, infrastructure, or any other form of construction works in SA.

An Exempt Micro Enterprise (EME) will qualify for recognition as follows:

• Automatic Level 4 status with 100% procurement recognition; and
• Level 3 if the organisation is black owned or black women owned (>50%).
  

A Qualifying Small Enterprise (QSE) must select any four of the seven elements of the B-BBEE scorecard.
A Generic Enterprise needs to comply with all seven elements of the B-BBEE scorecard.

The Management Control Scorecard

For notes on calculations for this scorecard, click on the "Notes on Scorecard Calculations" tab above.

The employment Equity Scorecard

For notes on calculations for this scorecard, click on the "Notes on Scorecard Calculations" tab above.

The Skills Development Scorecard

For notes on calculations for this scorecard and on the company's mentorship programme, click on the "Notes on Scorecard Calculations" tab above.

The Preferential Procurement Scorecard

Note:
The BEP’s will be permitted to exclude current facility rental contracts. (This relaxation will be for contracts signed before 1 November 2005 and will be for a maximum period of the current contract and will exclude any extended and or altered contract conditions).

The Enterprise Development Scorecard

Pre-requisites for Enterprise Development Relationship:

1. A relationship agreement of co-operation and assistance has to be placed between the established organisation (EO) and the developing organisation (DO).
2. The EO may not have an equity holding larger than 20% in the DO, either directly or through a flow through calculation.
3. The DO that can qualify for Enterprise Development must:

• Be a legal entity compliant with SARS requirements;
• Be an employer of at least three other permanently employed personnel and not merely a one person operation with temporary employees;
• Must be 50% or more black owned or 30% or more black women owned.

Requirements for ED Program:

The measured entity must have proof of compliance with the following 5 requirements before the relationship with a potential recipient of ED will be labeled as an official ED relationship attached to the Measured Entity (and points will be allowed for this indicator):
1. Developed a needs analysis for the developing organisation (DO);
2. Generated a development program with milestones. At least 3 areas of development must have been identified per recipient applicable to the measurement period. The following areas can be targeted for development but not limited to:
•    Management and labour skills transfer;
•    Establishment of admin systems;
•    Establishment of cost control systems;
•    Planning, tendering and programming skills transfer;
•    Business skills transfer with emphasis on entrepreneurial and negotiation skills;
•    Technical skills transfer with emphasis on innovation;
•    Legal compliance;
•    Procurement skills transfer;
•    Establish credit rating/ history;
•    Establish financial loan capacity / history;
•    Contractual knowledge transfer.
3. Developed a schedule of activities to address the identified development areas. At least 3 areas must have been addressed per recipient applicable to the measurement period.
4. Allocated resources for the development of the developing organisation involved in the ED relationship. These contributions will be captured in the indicator dealing with ED contribution and relates to the activities in the Benefit Factor Matrix of the Codes. If no contributions were made within the year of measurement this requirement has not been met. The cumulative count based on the previous years’ contributions does not qualify.
5. Appointed a champion for ED. It must be an accountable and responsible person from at least senior management level within the EO. This individual must be suitable, qualified and experienced to monitor progress and complete a portfolio of proof for the above activities for submission to a verification agent at the end of the measurement period.

For notes on calculations for this scorecard, click on the "Notes on Scorecard Calculations" tab above.

The Socio-Economic Development Scorecard

Due to the limited absorption capacity of disabled employees by the sector the following two items are added to the Benefit Factor Matrix of Code 2700:

• In kind expenditure related to existing building infrastructure facilities by Contractors to ensure accessibility to people with disabilities in line with universal design principles. The full cost of the modifications done on kind with a benefit factor of 115%.
• Consultation, in kind, with associations / NGO’s relevant to people with disabilities to ensure that the designs of all new as well as existing public infrastructure comply with universal design principles. The full amount of the time cost with a benefit factor of 115%.