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Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)

Notices

Best Practice Project Assessment Scheme: Standard for Contract Participation Goals for Targeting Enterprises and Labour through Construction Works Contracts

10. Granting of Credits

 

10.1 Targeted Enterprises

 

Credits towards the contract participation goal shall be granted by converting the value of the following (exclusive of any value added tax or sales tax required by law) to a percentage of the contract amount, as relevant:

(a) the total monetary value of the contributions made by targeted enterprises, other than targeted enterprises who are suppliers, in fulfilling contractual obligations, subject to such targeted enterprises not subcontracting more than 15% of the value of their contribution to non-targeted enterprises;
(b) 50% of the expenditure on goods required for the contract, which are obtained from suppliers who are targeted enterprises, subject to such enterprises not subcontracting more than 15% of the value of their contribution to non-targeted enterprises;
(c) the total monetary value of expenditures made to manufacturers who are targeted enterprises;
(d) the total monetary value with respect to fees or commissions charged by targeted enterprises, which in the opinion of the employer are reasonable, justifiable, and not excessive when compared with fees or commissions normally allowed for similar services, with respect to:
(i) the provision of professional, technical or managerial services, including those required for the acquisition of essential personnel, facilities, equipment and goods necessary for the performance of the contract;
(ii) the delivery of goods required in the performance of the contract (but not the cost of the goods themselves) when the transporter or delivery service is not also the manufacturer or supplier (or both); and
(iii) the provision of any bonds or insurance policies specifically required for the performance of the contract;
(e) the total monetary value of the contributions made by joint ventures with targeted partners multiplied by the associated participation parameter with respect to each targeted partner, and the total monetary value of such contributions being halved where such joint venture is a supplier who is not a main contractor; and
(f) in the case of a contractor who is a targeted enterprise, the monetary value of the work performed using his own employees and resources and 10% of the value of the subcontracts to non-targeted enterprises.

 

Note 1 The credits calculated in terms of (a) to (e) apply also with respect to non-targeted enterprises engaged by the contractor in the performance of the contract, should such enterprises comply with the relevant requirements.

Note 2 Where targeted enterprises subcontract more than 15% of the value of the contribution to non-targeted enterprises, the credits are limited to the actual value of the contributions made by targeted enterprises.

 

Note: Adapted from SANS 10845-8:2015, Part 3.3.1, with permission from the South African Bureau of Standards

 

10.2 Targeted Labour

 

Credits towards the contract participation goal shall be granted by:

(a) converting the total monetary value of wages and allowances paid to targeted labour, exclusive of any value added tax or sales tax required by law, to a percentage of the applicable contract amount and multiplying such values by the appropriate weightings for the different target groups, if any, specified in the targeting data; or
(b) converting the amount equal to the person days worked for which the principal contractor, sub-contractors or targeted enterprises contract to engage targeted labour expressed as a percentage of the total person days worked associated with the targeting strategy that is identified in the targeting data.

 

Note: Part (a) adapted from SANS 10845-8:2015, Part 3.3, with permission from the South African Bureau of Standards