The Construction Sector Charter Council (CSCC) launched the revised draft construction sector code last month in Midrand, Gauteng, which aims to align the unique aspects of the sector with the black economic-empowerment and transformation targets set by the Department of Trade and Industry (DTI).
CSCC CEO Thabo Masombuka highlights that the key strategic objectives of the sector code are to accelerate black ownership in the sector, promote effective employment equity practices, accelerate skills development, increase transformation in procurement practices, foster supplier and contractor development, and contribute to the creation of black industrialists.
He emphasises the importance of skills development, noting that it has been a major stumbling block for the sector for a number of years and that it is important for businesses to assist with skills development targets.
The revised sector code will also be aligned to national policy imperatives and priorities, such as the National Development Plan, sustainable job creation, meaningful transformation in the construction sector and procurement practices.
The revised draft has 123 weighting points, five more than the DTI’s revised generic codes of good practices. Masombuka explains that construction companies could benefit from the additional points by committing to initiatives focused on designated construction-sector beneficiaries, namely black women and black-women-owned enterprises, South African youth, people with disabilities and construction workers.
Ownership targets are also more stringent in the revised draft codes: 32.5% for the first four years subsequent to gazetting and 35% thereafter until it is reviewed; the generic codes stand at 25%.
Emphasis on ownership will be placed on black women, youth and people with disabilities, black participants in employee share ownership schemes, black people in broad-based ownership schemes and black people in cooperative organisations.
Thirty-one weighted points in all have been allocated to ownership targets, with a four-point bonus being allocated for ensuring exercisable voting rights for black people.
Meanwhile, CSCC executive committee member Gregory Mofokeng explains that the codes have been developed over a 23month period, owing to a lack of consensus between the members of the CSCC.
This resulted in the construction sector code being submitted to the DTI after the November 2015 deadline and, subsequently, the repeal of the codes in February this year.
The sector reached consensus on the revised draft in May, which Masombuka says requires compromise between the requirements of established and emerging construction companies.