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

Amended Codes of Good Practice (2017)

Amended Code Series CSC000: Framework for Measuring Broad-Based Black Economic Empowerment in the Construction Sector

Statement CSC000: General Principles and the Large Enterprise Scorecard

5. Eligibility for Measurement as a Qualifying Small Enterprise (QSE)
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5.1 For the purposes of measurement in terms of the Amended Construction Sector Codes, an enterprise will qualify as a QSE under the following circumstances:
5.1.1 For Contractors - with a total annual Revenue of more than R10 million but less than R 50 million per annum.
5.1.2 For BEP’s – with a total annual revenue of more than R6 million but less than R25 million per annum.

 

5.2 A QSE must comply with all of the elements of the Construction Sector Qualifying Small Enterprise Scorecard (Code CSC 600) for the purposes of measurement.

 

5.3 Enhanced B-BBEE recognition level for QSE, the ownership calculation for enhanced B-BBEE recognition applying the flow through principle:
5.3.1 A QSE which is 100% Black Owned qualifies for Level One B-BBEE recognition.
5.3.2 A QSE which is at least 51% Black Owned qualifies for a Level Two B-BBEE recognition level.
5.3.3 A QSE that is at least 51% Black Owned or 100% Black Owned that does not comply with paragraph 3.6.2.3 above, will be discounted by one level from that level awarded in paragraphs 5.3.1 and 5.3.2 respectively.
5.3.4 Despite paragraphs 5.2, 5.3.1 and 5.3.2, an at least 51% Black Owned QSE’s B-BBEE Status Level and corresponding B-BBEE Recognition Level will be enhanced by one level if it achieves full points (excluding the bonus points) for the Skills Development element of the QSE Scorecard (paragraphs 1.1, 1.2 and 1.3 of Statement CSC603) or the Preferential Procurement and Supplier Development element of the QSE Scorecard (paragraphs 1.1, 1.2, 1.3 and 2.1 of CSC604).
5.3.5 For the avoidance of doubt, a Measured Entity that is measured in terms of the full QSE scorecard is not eligible for enhancement in terms of paragraph 5.3.4 above.