The Construction Sector By Deborah Samayiyi

The construction sector code is broken down into 2 sub elements namely  Contractors  Built environment professionals(BEP) Examples of contractors are Plumbers, Electricians, Building contractors Road contractors. Examples of BEP’s are: Civil engineers, Quantity Surveyors Architects.

There are different turnover thresholds that apply to the different sub sectors  Contractors  Exempt micro enterprises(EME) – START UP TO R5MILLION  QUALIFYING SMALL ENTERPRISE (QSE) – R5MILLION TO R35MILLION  GENERIC – R35MILLION AND ABOVE

BUILT ENVIRONMENTPROFESSIONALS(BEP)  EXEMPT MICRO ENTER – START UP TO R1.5MILLION  QSE – R1.5 MIL TO R11.5 MIL  GENERIC – R11.5MIL TO ABOVE

NO BONUS POINTS ARE ALLOCATED FOR CONSTRUCTION SECTOR CODE- bonus points are additional points that available on the scorecard g:Ownership = 28 points

 Most of the elements remain the same except for the challenging element which is enterprise development  The requirements are not just monetary they are also non monetary and have a different criteria to meet in order to score points According to the ED ratio matrix which can be found on page 22 of the codes,if your turnover is less than R35mil you will need to have 1 black beneficiary if your turnover is greater than R35mil,which will mean that you are generic,you will need to have 2 black beneficiaries

 Some of these requirements are: 1. You would be required to develop a needs analysis of the developing org 2. Generated a development programme with milestones in atleast 3 areas of development 3. Atleast 3 areas of development must be identified per recipient/beneficiary There are 11 requirements,but we will discuss 3 basics 1.Management and labour skills transfer 2.Establishment of administrative systems 3.planning,tendering and programming skills transfer

Did you know?????? That if your company is generic/QSE for example, and you made a loss,in your financial year you are still liable for your 1% contribution towards SED and 2% in the case of qualifying small enterprises for ED and 3% in the case of Generic companies for ED. A verification agency will apply and indicative profit amount to calculate what your SED and ED contribution should be. The indicative profit uses a quarter of your industry norm in case on construction it will be 4.32% WHICH IS THE industry norm which will be applied to your turnover.

THE END ! Question and answers Thank you