Important Rating changes in the Amended Codes
Did you know that:
- You can already choose whether you would like to be rated under the “Old” Codes of Good Practice or the Amended Codes of Good Practice, provided you are not part of a Sector Charter Code?
- If your turnover is greater than R10m, your Procurement Recognition Level could be 0% even if you have achieved a Level 1 Contributor Level Status if you are not an Empowering Supplier?
- An affidavit from an entity that is more than 51% black-owned, and whose turnover is greater than R10m but less than R50m, is not sufficient proof of the entity’s Procurement Recognition Level unless it also attests to the Empowering Supplier status of the entity?
- If your turnover is greater than R10m and you are not more than 51% black-owned, you could be discounted by one Level if you do not achieve the 40% sub-minimum targets set on the priority elements?
- A minimum of 10% unencumbered and vested black ownership is required by all entities with turnover greater than R10m that are not more than 51% black-owned, to avoid being discounted by one Level?
- The Management Control and Skills Development indicators are adjusted by a demographic calculation based on the Economically Active Population (EAP) in terms of the Employment Equity Act?
- Skills training costs can be included in your rating for spend on all black people and not just on your employees?
- You may only recognise scorecards from Empowering Suppliers regardless of their Contributor Level Status?
- Imported goods and services may only be excluded from the Total Procurement Spend if you have a developed and implemented Enterprise Development and Supplier Development plan?
- Only your annual spend on Enterprise Development and Socio-Economic Development contributions will be included for rating and cannot be averaged and carried forward, even if you have spent more than the required targets?
We will be preparing a series of blog articles on all the important changes in the Amended Codes of Good Practice over the next few months to assist you to achieve the best possible rating under these Amended Codes.
With the correct planning and preparation, we can guide you through this complex business imperative as a good BEE Status will afford you a major advantage over your competitors!
We can provide you with a comprehensive strategy to maximise your points and help you implement those strategies effectively!