The publication of the Amended Construction Sector Charter in December 2017 changed the status quo for the construction industry.
How do you know whether you will be subject to the provisions of the Amended Construction Sector Code? Ask yourself these 3 questions:
- Do you operate in the Construction Sector?
The Construction Sector includes all enterprises that derive more than 50% of their annual revenue from construction-related activities.
- Do you perform any construction-related activities and derive more than 50% of your annual revenue from them?
Construction related activities are the activities conducted by Contractors, Built Environment Professionals (BEPs) and Construction Material Suppliers.
- Are you a contractor, BEP or building material supplier as defined in the Amended Construction Sector Code?
Contractors are enterprises that conduct construction project activities that include civil engineering, electrical engineering, power transmission, general building and specialist construction works as per the Construction Industry Development Board (CIBD) grading tables below:
| CE | Construction work primarily concerned with materials such as steel, concrete, earth and rock (water, sewerage, roads, railways, bridges, dams, cooling towers, grand stands) |
| EB | Electrical engineering works, all electrical work forming an integral part of building including any wiring (installations in buildings, reticulations within a plot of land or building site) |
| EP | Electrical power generation, transmission, control and distribution equipment and system (power generation, street and area lighting, substations and protection system) |
| GB | Building and ancillary works other than civil engineering works, electrical engineering works, mechanical engineering works, specialist works (air-conditioning and mechanical, boiler installation and steam distribution, central heating) |
| SB | Asphalts or any other related business |
| SC | Building excavations, shaft sinking and lateral earth support |
| SG | Glazing, curtain walls and shop fronts |
| SH | Landscaping, irrigation and horticultural works |
| SI | Escalators, travellators and hoisting machinery |
| SJ | Specialized foundations for buildings and structures |
| SL | Structural steelwork and scaffolding |
| SN | The waterproofing of basements, roofs and walls using specialist systems |
Construction material suppliers are enterprises that conduct the following activities: Manufacturing, creation or supply of building material and equipment used in construction for example cement, concrete, bricks, electrical equipment and steel. It includes enterprises that provide plant hire for construction-related activities.
BEPs are enterprises that conduct the following activities:
Planning, design and costing of construction projects in the built environment. As well as, project management and design of a construction value chain including environment, energy, industrial, property, transport and infrastructure. Enterprises typically classified as BEPs include, but are not limited to, consulting engineering practices, architects, quantity surveyors and town planners.
If you answered yes to all 3 questions above, you fall within the scope of the Construction Sector Code. The Amended Construction Sector Code will therefore be used to determine you BEE status level.
ABOUT THE AUTHOR
Juané Mari Zeelie is an Admitted Attorney and obtained her LLB degree from the University of Stellenbosch. She is currently a legal advisor for SEESA BEE at our Cape Town office.