New regulations

THE new amended construction sector code (ACSC), effective from December 2017 has an impact on all contractors, built environment professionals and construction material suppliers.

Qualifying Small Enterprises (QSEs) – an entity with a turnover less than R50-million per annum and exempted micro-enterprises (EMEs) – turnover up to R10 million in the construction industry are hugely impacted upon by new levels of complexity and methodologies; including revised eligibility revenue thresholds, compulsory priority elements resulting in scorecard discounting, possible status enhancements, plus new affidavit and Joint Venture requirements. Some points include:

Revised eligibility

Contractors’ eligibility to qualify as an EME now need to have an annual revenue of R10-million or less, while the built environment profession needs to have R6 million or less for their annual revenue.

● An EME’s black ownership level is deemed B-BBEE status if less than 30% black-owned than level five contributor having a B-BBEE recognition level of 80%. Possible status enhancements

● If an EME is less than 100% black-owned it may maximise its points and move to a higher B-BBEE recognition level through one of three options:

Measuring in terms of QSE-scorecard as a whole and apply the B-BBEE Status level and B-BBEE recognition level so determined, or be measured in terms of a skills development expenditure element of the QSE-scorecard, or supplier development expenditure element of scorecard.

For more information visit the government gazette on the department of trade and industry website