ENTERPRISE AND SUPPLIER DEVELOPMENT (E AND SD): (44 POINTS) The current codes speak of two elements: Preferential Procurement and also Enterprise Development. The new element Enterprise and Supplier Development (E and SD) is a simple combination of both elements. The two previously were worth 35 points. This has now increased to 44 points. SOCIO-ECONOMIC DEVELOPMENT: (5 POINTS) The last of the five elements is unchanged at 5 points. TOTAL: 118 POINTS NEW POINTS TO LEVELS TABLE The minister has also changed the points to levels table as follows. LEVEL AMENDED CODES CURRENT CODES 1 ≥100 ≥100 2 ≥95 but <100 ≥85 but <100 3 ≥90 but <95 ≥75 but <85 4 ≥80 but <90 ≥65 but <75 5 ≥75 but <80 ≥55 but <65 6 ≥70 but <75 ≥45 but <55 7 ≥55 but <70 ≥40 but <45 8 ≥40 but <55 ≥30 but <40 Non-Compliant <40 <30 In addition, the minister has exempted all businesses outside of the sector codes with an annual turnover of less than R10 million (previously R5 million) from all forms of BEE. Any organisation, no matter its ownership, is automatically level 4. Furthermore, any business that is 100% black owned and has an annual turnover of less than R50 million is automatically level 1. If that business is more than 51% black owned and less than 100% it is level 2. A QSE (qualifying small enterprise) which is currently any organization/business with a turnover of between R5 million and R35 million and follows a far more lenient scorecard, has been adjusted to R10 million to R50 million. However, other than for black-owned businesses, it still has to follow the entire scorecard with very few allowances or easier aspects to its scorecard than the generic. PRIORITY ELEMENTS The minister has also defined three of the five elements as priority elements with additional targets. 1. 40% on Ownership’s net value 2. 40% of the Skills Development score 3. 40% of the Enterprise and Supplier Development score If a generic business does not achieve all three targets (two targets for QSEs), it drops one level. For more information, news on the Construction Sector Codes and strategies to maximize points, please feel free to e-mail Keith Levenstein at keith@econobee.co.za or visit www.econobee.co.za. O C TO B E R 2 0 1 4 CERAMIC FIBRE PRODUCTS • • • • • • • • • Ceraﬁbre & Cerablanket Superwool plus Bio-persistent Fibre Cerapaper & Ceraboard Ceramic Fibre Modules (folded & stacked) Vacuum Formed Products – Insulating Shapes & Boards Pyrolog Modules Textiles – Cloth, Rope, Braids & Tape Mixes, Cements & Coatings Imported Coatings OTHER PRODUCTS • • • • • • • • • • Silicon Carbide Bricks & Shapes Morgan Crucibles Continuous Casting Refractories Crucible Furnaces Silicon Carbide Heating Elements Fire Master (for Fire Protection) Insulating Bricks (TJM, JM &K Range) Refractory Castables Calcium Silicate Boards Millboards Please contact us directly Morgan Advanced Materials Thermal Ceramics PO Box 587, Springs, 1560 Cnr Edison & Marconi Streets, New Era, Springs Tel: +27 11 815 6820/25 Fax: +27 11 362 4673 Distributors of our products Elements Galore – Tel: 011 664 8114 Hayward Refractories – Tel: 041 486 2043 Email: southafrica.tc@morganplc.com www.morganthermalceramics.com Company Registration No: 1975/02765/07