Amended Codes of Good Practice (2017): Construction Sector Code > Amended Code Series CSC400: Measurement of the Preferential Procurement and Supplier Development Element of Broad-Based Black Economic Empowerment in the Construction Sector > Statement CSC400: The General Principles for Measuring Preferential Procurement and Supplier Development

Annexe CSC400B - Supplier Development Benefit Factor Matrix

Qualifying Contribution type	Contribution Amount	Benefit Factor
Grant and Related Contributions
Grant Contribution	Full Grant Amount	100%
Direct Cost incurred in supporting Supplier Development	Verifiable Cost (including both monetary and non-monetary)	100%
Discounts in addition to normal business practices supporting Supplier Development	Discount Amount (in addition to normal business discount)	100%
Overhead Costs incurred in supporting Supplier Development (including people appointed Supplier Development)	Verifiable Costs (including both monetary and non-monetary)	80%
Loans and Related Contributions
Interest-Free Loan with no security requirements supporting Supplier Development	Outstanding Loan Amount	80%
Standard Loan to Supplier Development Beneficiaries	Outstanding Loan Amount	60%
Guarantees provided on behalf of a beneficiary entity	Guarantee Amount	3%
Lower Interest Rate	Outstanding loan amount	Prime Rate—Actual Rate
Equity Investments and Related Contributions
Minority Investment Supplier Development Beneficiaries	Investment Amount	100%
Supplier Development with lower dividend to financier	Investment Amount	Dividend Rate of Ordinary Shareholders - Actual Dividend Rate of Contributor
Contributions made in the form of human resource capacity
Professional services rendered at no cost and supporting Supplier Development	Commercial hourly rate of professional as defined by Department of Public Works (DPW)	80%
Professional services rendered at a discount and supporting Supplier Development	Value of discount based on commercial hourly rate of professional as defined by Department of Public Works (DPW)	80%
Time of employees of Measured Entity productively deployed in assisting beneficiaries	Monthly salary divided by 160	80%
Other Contributions
Shorter payment periods for 2.3 of this statement (Supplier Development)	Percentage of invoiced amount multiplied by 15% (being an approximation of the cost of short term funding)	Percentage being 15 days less the number of days from invoice to payment. The Maximum points that can be scored is 75% of 10 points

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

Amended Codes of Good Practice (2017)

Amended Code Series CSC400: Measurement of the Preferential Procurement and Supplier Development Element of Broad-Based Black Economic Empowerment in the Construction Sector

Statement CSC400: The General Principles for Measuring Preferential Procurement and Supplier Development

Annexe CSC400 (B)