The Harsh Facts of the Proposed Codes

1.  The revised points to levels table will lead to more non-compliant entities and result in lower compliance.

2.  The majority of the elements (3 out of 5) are priority elements.

3.  The three priority elements (Ownership of 25, Skills Development of 25, Enterprise and Supplier Development of 43) total 93 points including bonus points.

4.  The new level 8 is the old level 6/7.

5.  Compliance above 40 points is challenging.

6.  The potential loss of 2 levels where the minimum targets are not achieved on the priority elements will ensure that many companies that currently have earned 70 points – level 4, will become non-compliant if they have no Ownership, or fail to earn sufficient points on the other priority elements.

7.  Many existing level 8 companies will become non-compliant.

8.  Due to the harsher targets on Procurement, all companies will earn lower points, with even lower levels.

What are you doing in your business to realign your practices to maximise your future ratings?

Proactive planning will help you to achieve the best possible rating for your business and reduce the potential negative consequences contained in the proposals.

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