In many ways, the newly revised BEE sector code is an evolution of the 2009 construction sector code.

Towards the end of last year, a new draft construction sector code for black economic empowerment (BEE) was released. The Master Builders Association (MBA) North is working closely with its members to ensure compliance with the code.

In many ways, the newly revised sector code is an evolution of the 2009 construction sector code that was repealed by the DTI in February this year. Higher and stricter targets for BEE in terms of ownership, management and procurement among others are set out in the new draft. Many loopholes that were being used for fronting or misrepresenting actual BEE compliance are also closed with the new code.

Mohau Mphomela, MBA North executive director, says that complying with the charter code will help members stand a better chance of winning contracts. It also contributes to the common good of the country and transformation of the construction industry.

“It is critical that our members (including their supply chain) make themselves familiar with requirements and potential ramifications of the new code. We are also encouraging them to obtain a copy of the code from the CSCC and to engage with us if they are uncertain about anything within the code,” says Mohau.

Thabo Masombuka, CEO of the CSCC, says the aim of the new code is to move the industry towards adopting a more inclusive environment and assisting emerging suppliers and contractors to enter the market.

“While it is entirely voluntary and not enforceable, only companies that undergo verification according to the new sector-specific code will be able to claim BBBEE compliance levels. Fronting and wrongful claims of BEE will be regarded as fraud and wrongdoers will be prosecuted under existing fraud legislation,” comments Thabo.

For more information, contact the Master Builders South Africa on +27 (11) 205 9000 or via www.masterbuilders.org.za.