| (a) | Credits claimed towards the contract participation goal shall be denied where: |
| (i) | the principal contractor makes a direct payment to a manufacturer or supplier (including plant hire or lease company) on behalf of a targeted enterprise when such payment is recovered by making deductions from payments to the targeted enterprise in connection with the contract; or |
| (ii) | the principal contractor fails to enter into written contractual agreements with the relevant targeted enterprises. |
| (b) | Credits claimed towards the contract participation goal shall be denied where written contractual agreements contain any of the following: |
| (i) | a right to set off in favour of the employing contractor not provided for by law; |
| (ii) | authoritarian rights given to the employing contractor or his agent, with no recourse to independent adjudication in the event of a dispute arising; |
| (iii) | payment procedures based on a pay-when-paid system; |
| (iv) | a dispute resolution process which does not include inexpensive alternative dispute resolution procedures, such as mediation or adjudication, but which only makes use of formal proceedings such as arbitration or litigation; or |
| (v) | conditions which are more onerous than those which exist in the main contract. |
| (c) | Credits shall be denied where targeted enterprises do not adhere to statutory labour practices or fail to perform functions that are necessary in the performance of the contract data. |
Note: Adapted with from SANS 10845-5:2015, Part 3.3.2, with permission from the South African Bureau of Standards
Credits shall be denied when the principal contractor, sub-contractors or targeted enterprises fail to enter into written contracts with targeted labour. Credits claimed towards the contract participation goal shall not be allowed if such contracts contain clauses which are not in accordance with requirements established in the targeting data.
Note: Adapted from SANS 10845-8:2015, Part 3.4, with permission from the South African Bureau of Standards
