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 (C)

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Supplier Development Programmes (paragraph 2.2) are measurable on the following basis:

 

Step 1: To apply the formula first position the Measured Entity on Table 1 with respect to the highest applicable Revenue category:

 

Table 1

CONTRACTORS

BEP's

Total Annual Revenue of the Measured Entity for the Measurement Period

Requirements related to current Measurement Period

Total Annual Revenue of the Measured Entity for the Measurement Period

Requirements related to current Measurement Period

X

Y

X

Y

≥ R 1 billion

7

5%

≥ R 300 million

3

5%

≥ R 500 million

5

5%

≥ R 300 million

4

5%

≥ R 100 million

2

5%

≥ R 35 million

2

5%

< R 100 million

1

5%

< R 35 million

1

5%

 

Step 2: Apply the formula below:

Formula

Where

 

A is the score achieved for the Supplier Development Programme indicator (paragraph 2.2).

 

B is the number of Qualifying Beneficiary Entities that participated in Supplier Development Programmes during the Measurement Period, that were compliant with paragraph 9 of statement CSC400, divided by the appropriate target number in Column X of Table 1 above.

 

X is the appropriate target number in Column X of Table 1 above.

 

C is the aggregate of the total annual Revenues of the Qualifying Beneficiary Entities counted in B (based on their latest financial periods as at Measurement Date) divided by the total annual Revenue of the Measured Entity for the Measurement Period. The answer must then be multiplied by 100.

 

Y is the appropriate Revenue ratio requirement in Column Y of Table 1 above. The Construction Sector Charter Council may publish amendments to these ratios from time to time.

 

D is the Weighting points allocated to the Supplier Development Programmes indicator (paragraph 2.2).