Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Broad-Based Black Economic Empowerment

Property Sector Charter

12. Preferential Procurement
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(12.1)To date there has been limited implementation of preferential procurement practices in the sector. The parties to the charter therefore commit to achieve the following targets:
(12.1.1)70% of procurement spend from all suppliers based on the BEE procurement recognition levels as a percentage of the total measured procurement spend;
(12.1.2)15% of procurement spend from QSE's or EMEs based on the applicable BEE procurement recognition levels as a percentage of total measured procurement spend;
(12.1.3)20% of procurement spend from any of the following suppliers (regardless of their BEE procurement recognition level) as a percentage of total measured procurement spend:
(12.1.3.1)Suppliers that are more than 50% black owned (3 out of 5 points);
(12.1.3.2)Suppliers that are more than 30% black women owned (2 out of 5 points)
(12.1.4)40% of procurement spend property service Enterprises (level 1-4) as a percentage of total property Services spend.
(12.1.5)40% procurement spend in property services Enterprise element, applies to property owners. The Property services comply with code 500 of Codes of Good Practice.

 

CODE 500: PREFERENTIAL PROCUREMENT SCORECARD

 

CRITERIA

WEIGHTING POINTS

COMPLIANCE TARGET

BEE Procurement Spend from all Suppliers based on the BEE Procurement Recognition Levels as a percentage of total measured procurement spend

10

70%

BEE procurement spend from Qualifying Small Enterprises or Exempted Micro-Enterprises based on the applicable BEE procurement recognition levels as a percentage of total measured procurement spend

2

15%

BEE procurement spend from any of the following Suppliers (regardless of their BEE procurement recognition Level) as a percentage of total measured procurement spend:

1.Suppliers that are more than 50% black owned (3 out of 5 points); and,
2.Suppliers that are more than 30% black women owned (2 out of 5 points.

5

20%

(12%)

(8%)

% of procurement spend with Black owned enterprises (Level 1-4) as a percentage of total property services spend

3

40%