Amended Construction Sector Codes

December 2017

The Minister of Trade and Industry issued Notice 931 of 2017 on the Amended Construction Sector Code (ACSC) in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act, determining that these Codes will come into effect on 01 December 2017.

What you need to know:

1. The ACSC does not introduce any substantial changes from the version that was published for public comment in October 2016.
2. There is NO TRANSITIONAL PERIOD provided for in the ACSC and will therefore be applicable immediately.
3. Changes in measurement, verification and monitoring principles have been introduced: –
   1. Verification Reports
   2. Equity Equivalent Programmes (EEPs) & Local Content
   3. Scope of Application
   4. Verification & Affidavits of Certain Categories of Exempted Micro Enterprises (EMEs)
   5. Effective Date and Transitional Arrangements
4. Consequent to the errors experienced in the contents of the PP & ESD scorecard, the CSCC & the DTI will, within a few weeks after the gazette, issue a clarification note to clarify and guide the verification and measurement of the weighting points and score in the Preferential Procurement elements as this is not reflected on the face of the B-BBEE certificate, but only on the scorecard in the entire element.