The Construction Sector Code (GNC)

Transcription

1 The Construction Sector Code (GNC) As per the Construction Sector Code in terms of Section 9(5), Notice No on 28 October 2016, of the Broad-Based Black Economic Empowerment Amendment Act. 46 of 2013

2 Scorecard Summary Applicable to: All enterprises falling within the scope of the Construction Sector Code: - Contractors Construction Enterprise involved in the Construction Sector - Built Environment Professionals Built Environment Professionals related to enterprises which provide services related, but not limited, to consulting engineering, architecture, and quantity surveying Element Code Numbers Contractors BEP s Ownership* CSC Bonus Bonus Management Control CSC Bonus Bonus Skills * CSC Bonus Bonus Preferential Procurement and Supplier * CSC Bonus Bonus Socio-Economic CSC Bonus Point Bonus Point Total Bonus Bonus *Priority Element 40% of target must be achieved Scorecard Turnover Thresholds Turnover Ownership Category Startup, or <R10m (Contractor) Less than 30% Black Shareholding Level 5 Contributor Exempt Micro-Enterprise Startup, or <R6m (BEP) 30%-50% Black Shareholding Level 4 Contributor (EME) 51%-99% Black Shareholding Level 2 Contributor 100% Black Shareholding Level 1 Contributor Qualifying Small Enterprise (QSE) >R10m but <R50m (Contractor) R6m but <R25m (BEP) 100% Black Ownership 51% Black Ownership Level 1 Contributor Level 2 Contributor Large Enterprise (Generic) > R50m (Contractor) > R25m (BEP) Generic Enterprise B-BBEE Recognition Levels B-BBEE Status Qualification B-BBEE Recognition Level Level One Contributor >= % Level Two Contributor >=95 but < % Level Three Contributor >=90 but <95 1 Level Four Contributor >=80 but <90 100% Level Five Contributor >=75 but <80 80% Level Six Contributor >=70 but <75 60% Level Seven Contributor >=55 but <70 50% Level Eight Contributor >=40 but <55 Non-Compliant Contributor <40 0% 31/10/16 2

3 Ownership CSC100 Contractors BEP Indicator Measurement Category & Criteria Target Target Exercisable Voting Rights in the Entity in the hands of Black People % (35% year 4) % (35% year 4) Voting Rights Exercisable Voting Rights in the Entity in the hands of Black Women 2 (14% year 4) 2 (14% year 4) Measures Economic Interest in the Entity to which Black People are entitled % (35% year 4) % (35% year 4) effective ownership of companies by Black people Economic Interests Economic Interest in the Entity to which Black Women are entitled 2 (14% year 4) 2 (14% year 4) Economic Interest of any of the following Black natural people in the Measured Entity: -Black Designated Groups; 5% 3 3 -Black Participants in Employee Share Ownership Programmes; (12% year 4) (6% year 4) -Black People in Broad-Based Ownership Schemes; -Black Participants in Cooperatives Black New Entrants 5 5% 5 6% Realisation Net Value 6 Annex CSC100(E) 4 Annex CSC100(E) Bonus Exercisable Voting Rights in the entity in the hands of Black people above 50% 1 Yes 1 Yes Exercisable Voting Rights in the entity in the hands of Black people above 75% 2 Yes 2 Yes Exercisable Voting Rights in the entity in the hands of Black Women above 50% 1 Yes 1 Yes TOTAL: 31 31/10/16 3

4 Management Control CSC200 Indicator Measurement Category & Criteria Contractors Complianc e Target BEP Complianc e Target Exercisable Voting Rights of Black board members as a percentage of all board members 3 50% % Board Participation Exercisable Voting Rights of Black female board members as a percentage of all board members Black Executive Directors as a percentage of all executive directors* Black female Executive Directors as a percentage of all Executive Directors** 1 20% 1 20% 2 50% % 1 20% 1 20% Bonus Exceeding target for Black Executive Directors* 1 >50% 1 >50% Exceeding target for Black Executive Directors** 1 >20% 1 >20% Other Executive Management Black Other Executive Management as a percentage of all Other Executive Management Black female other Executive Management as a percentage of all Other Executive Management 2 60% 2 60% 1 30% 1 30% Measures effective control of companies by Black people Senior Management Middle Management Black Employees in Senior Management as a percentage of all Senior Management 2 60% 2 60% Black female Employees in Senior Management as a percentage of all Senior Management % 1 30% Black Employees in Middle Management as a percentage at all Middle Management 1 75% % Black female Employees in Middle Management as a percentage of all Middle Management % 1 30% Junior Management Black Employees in Junior Management as a percentage of all Junior Management 1 88% Black female Employees in Junior Management as a percentage of all Junior Management % Employees with disabilities Black Professionals Black Employees with Disabilities as a percentage of all office based Employees 0.5 2% 0.5 2% Black professionally registered Employees as a percentage of all professionally recognized Employees 2 50% 2 50% Bonus Black Employees that are youth as defined by the National Youth Commission Act of 1996, as a percentage of all Employees using Adjusted Recognition for Gender 2 30% 2 30% TOTAL: 22 31/10/16 4

5 Skills CSC300 Measures the extent to which employers develop the competenci es of Black employees Indicator Skills on any programme specified in the Learning Programme Matrix for Black people as a percentage of the Leviable (payroll) Amount The proportion of Skills Expenditure on Black People by the Measured entity using Adjusted Recognition for Gender Learnerships, Apprenticeshi ps, Internships and Professional Regulations Mentorship Bonus points Contractors BEP Measurement Category & Criteria Compliance Compliance Target Target Skills Expenditure on Learning Programmes 2% 2% specified in the Learning Programme Matrix for Black People (year 3) (year 3) as a percentage of Leviable Amount 3% (year 5) 3% (year 5) % % Contributio Contributio African People 2 n of African 2 n of African People to People to EAP EAP Black Management (Executive, Senior and Middle management categories) 2 15% 3 15% Black Management (Junior management category) 1 1 Bursaries or Scholarships for Black People 2 15% 4 15% Number of Black People participating in Category A,B,C or D learning programmes as per the learning programme matrix, 3 2.5% 4 2.5% as a percentage of the total number of employees Number of Black Employees registered as candidates with industry professional regulation bodies as a % of the total 3 60% 4 60% number of such Employees Number of Black People with Disabilities on Category A,B,C or D learning programmes as per the Learning Programme Matrix, as a percentage of Black office based learners on those learning programmes 1 5% 1 5% Implementation of an Approved and Verified Mentorship Programme (As per Annexe CSC300 (C)) 3 Yes 3 Yes Percentage of Black People Absorbed by the Measured Entity at the end of a Category A,B,C or D Learning Programme 1 100% 1 100% The number of Black Employees that a Mentorship Programme during the last 3 years (including the measurement period) that were promoted during the 2 15% Measurement Period expressed as a percentage of all such employees during those 3 years TOTAL: /10/16 5

6 Preferential Procurement and Supplier CSC400 Contractor BEP Indicator Measurement Category & Criteria Compliance Target Compliance Target B-BBEE Procurement Spend from all Empowering Supplier s based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 6 80% 6 80% B-BBEE Procurement Spend from all Empowering Supplier s that are Qualifying Small Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 3 15% 2 Preferential Procurement B-BBEE Procurement Spend from all Exempted Micro-Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 3 15% 3 20% Measures the extent to which companies carry out initiatives contributing to enterprise development B-BBEE Procurement Spend from Empowering Supplier s that are at least 51% Black Owned by Black Designated Groups based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend B-BBEE Procurement Spend from Empowering Supplier s that are at least 35% Black Women Owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 4 20% 4 20% 3 12% 3 12% B-BBEE Procurement Spend from Empowering Supplier s that are at least 51% owned by Black Designated Groups based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 3 20% 2 20% Bonus B-BBEE Procurement Spend from Empowering Supplier s that are at least 35% Black Women Owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 1 8% 1 8% Supplier Programmes Compliant Supplier and Contractor Programmes 5 Annexe CSC400 (C) 4 Annexe CSC400 (C Supplier Contributions Annual value of all Qualifying Enterprise Contributions made by the Measured Entity as a percentage of the Target Annual value of all Qualifying Supplier Contributions towards 51% Black Women entities made by the Measured Entity as percentage of Target 8 3% NPAT 4 0.2% of Leviable Amount 2 20% Value* 1 20% Value* TOTAL: /10/16 6

7 Socio-Economic CSC500 Indicator Measurement Category & Criteria Compliance Target Measures the extent to which companies support socioeconomic development Socioeconomic Bonus Annual value of all Qualifying Socio-Economic Contributions by the Measured Entity as a percentage of the Target* The portion of Qualifying Socio-economic Contributions* spent on disadvantaged communities Annual Value of contributions towards Structured SED Projects by the measured entity as a percentage of the Target % of NPAT 1 30% of Target* % of NPAT TOTAL: 6 31/10/16 7

8 Highlights: Basis for Measurement of BBBEE Initiatives: Ownership and Management Control At Measurement Date Skills, Enterprise and Supplier and Socio-Economic Over the Measurement Period Standard Valuation Method: Companies are encouraged to apply a consistent Standard Valuation Method in all calculations. Joint Ventures: Detail on the treatment of unincorporated Joint Ventures Verification: Affidavits for EME and QSE companies are not acceptable Verification fees for EME s will be subject to a limit Supplier Program Formula re-introduced Supplier and Socio-Economic Targets: Based on Average NPAT over a 3 year period. No requirement for Enterprise Additional definitions provided for: Acquisition debt BEP Construction Material Suppliers Construction Related Activities Construction Sector Contractors Exclusion Principle Measurement Period Suitable Evidence or Documentation Additional options for Empowering Supplier Compliance: Please note this is not required in the short term per the DTI Notice dated 28 October /10/16 8

9 Premier Verification (Pty) Ltd 5 Second Road, Fountain Grove Office Park, Block 1, 1st Floor For more information, please contact: info@p-v.co.za