Objectives of the Amended Construction Sector Codes

On the 01st of December 2017, the amended Construction Sector Codes were published via Government Gazette No 41287.

The gazette may be downloaded here:

For this article, we will focus on the objectives of the amended codes.

The Amended Construction Sector Code in general supports all the objectives of the Construction Sector Transformation Charter and in particular aims to:

  • Achieve a substantial, meaningful and accelerated change in the racial and gender composition of ownership, control and management in the sector;
  • Promote the effective advancement of employment equity in the sector and adherence to principles of non-racialism and non-sexism and also addresses the under-representation of certain race groups relative to the Economically Active Population targets with a specific focus on all levels of management;
  • Address Skills Development in a manner that accelerates the advancement of Black People, black women, and Designated Groups with particular emphasis on Learnerships, technical and management training;
  • Increase the procurement of goods and services by the private sector and public sector from entities that are at least 51% Black Owned, 35% Black Women-Owned or at least 51% Black Designated Group owned and standardize industry-wide preferential procurement methodologies;
  • Enhance Supplier and Contractor Development in the core value chain of the construction industry that leads to sustainable empowerment for Qualifying Supplier Development Beneficiaries;
  • Enhancing transformation by ensuring that the Construction Sector creates productive assets in the hands (actual control and ownership) of Black People;
  • Contribute to the creation of substantial black-owned entities and black industrialists in the Construction Sector through industry-wide Supplier and Contractor Development initiatives;
  • Increasing Preferential Procurement spend on local companies thereby increasing local job creation as aligned to the objectives of the National Development Plan;
  • Provide the Construction Sector on-going qualitative and quantitative methods for monitoring and evaluating the progress of enterprises toward B-BBEE, and thereby contribute to ending the malpractice of fronting; and
  • Introduce compulsory reporting and engagement with the BEE Commissioner to monitor the progress of enterprises toward B-BBEE.

This article is provided for information only and does not constitute the provision of professional advice of any kind.

Leave a Reply