The original construction sector codes were repealed in February 2016. Construction companies and Built Environment Professionals (BEPs) were then scored under the amended General Codes of Good Practice since that date. Shortly after, a new, Amended Construction Charter was introduced. This new Amended Construction Charter was published with an effective date of 1 December 2017.
Under the Skills Development Element, a great amount of relief was given to companies on their targets and how much they should spend on skills development. QSE companies under the new amended Construction Charter only have a target of 1.5% to be spent based on their leviable amount. This is, in most instances, half of the usual spending as with any other charter. Generic Companies were introduced to a target of 2%, which was also a great relief compared to other and previous charters.
What was indeed important to interpret under the Generic Skills Development Scorecard is that these targets will increase after a certain period since the inception of the charter. For example, within the first three years since inception, the target was 2%, and after three years, it went up to a 2.5% target. On 1 December 2022, the Amended Construction Charter will be in place for five years, and then the Skills target will reach this maximum according to the Skills Development Scorecard.
The new target will then be 3% of the leviable amount for a Generic Enterprise which falls under the scope of the Amended Construction Charter.
It is important to advise companies on these changes. Companies that do not have a designated BEE specialist need to seek proper advice to spend the correct amounts. These targets are coupled to the publication/inception date of the Charter and not the financial period of an enterprise.
Want to know more about Skills Development? Contact your nearest SEESA BEE Legal Advisor for expert advice. Alternatively, leave your contact details on our website, and a SEESA representative will contact you.
About The Author:
Dominique van Deventer has been with SEESA for seven years. He is a BEE and Labour Legal Advisor at the SEESA Bloemfontein branch. Dominique obtained his LLB degree from the University of the Free State.
Resources:
- Amended Construction Sector Code issued in terms of Section 9(1) of the Broad Based Black Economic Empowerment Amendment Act 46, of 2013.