Acts Online
GT Shield

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

Codes of Good Practice on Broad-Based Black Economic Empowerment

Property Sector Charter

12. Preferential Procurement

 

 

(12.1) To date there has been limited implementation of preferential procurement practices in the sector. The parties to the charter therefore commit to achieve the following targets:
(12.1.1) 70% of procurement spend from all suppliers based on the BEE procurement recognition levels as a percentage of the total measured procurement spend;
(12.1.2) 15% of procurement spend from QSE's or EMEs based on the applicable BEE procurement recognition levels as a percentage of total measured procurement spend;
(12.1.3) 20% of procurement spend from any of the following suppliers (regardless of their BEE procurement recognition level) as a percentage of total measured procurement spend:
(12.1.3.1) Suppliers that are more than 50% black owned (3 out of 5 points);
(12.1.3.2) Suppliers that are more than 30% black women owned (2 out of 5 points)
(12.1.4) 40% of procurement spend property service Enterprises (level 1-4) as a percentage of total property Services spend.
(12.1.5) 40% procurement spend in property services Enterprise element, applies to property owners. The Property services comply with code 500 of Codes of Good Practice.

 

CODE 500: PREFERENTIAL PROCUREMENT SCORECARD

 

CRITERIA

WEIGHTING POINTS

COMPLIANCE TARGET

BEE Procurement Spend from all Suppliers based on the BEE Procurement Recognition Levels as a percentage of total measured procurement spend

10

70%

BEE procurement spend from Qualifying Small Enterprises or Exempted Micro-Enterprises based on the applicable BEE procurement recognition levels as a percentage of total measured procurement spend

2

15%

BEE procurement spend from any of the following Suppliers (regardless of their BEE procurement recognition Level) as a percentage of total measured procurement spend:

1. Suppliers that are more than 50% black owned (3 out of 5 points); and,
2. Suppliers that are more than 30% black women owned (2 out of 5 points.

5

20%

(12%)

(8%)

% of procurement spend with Black owned enterprises (Level 1-4) as a percentage of total property services spend

3

40%