This document provides an overview of how to maximize points under the amended Construction B-BBEE sector codes. It discusses the purpose of the amended codes, understanding the different B-BBEE levels, scoring points from preferential procurement, establishing supplier development programs, skills development, and Bayanda's services to help companies achieve their B-BBEE goals. The presentation outlines the key elements companies need to focus on, such as ownership, management control, skills development, and supplier development. It provides examples and guidelines for implementing effective programs in each area.

1. How to use the Amended Construction B-BBEE
sector codes to your advantage
MAPULE MAHLULO
INFO@BAYANDA.ORG.ZA

2. Presentation layout
1. Who will benefit from this presentation
2. The purpose of the Amended Construction Codes
3. Understanding the B-BBEE levels
4. How to maximise Preferential Procurement
5. How to establish a Supplier Development
Programme/Mentorship Program

3. Presentation Layout
6. How to score points from Skills Development
7. Business Growth Matrix of Bayanda
8. Where to begin with Management Control
9. How Bayanda can assist you score maximum points of B-
BBEE score card
10. Conclusion

4. Who will benefit from this Presentation
 Large construction companies or BEP (Built Environment
Professionals) that need to
 implement Enterprise Supplier Development Programme
 establish a Mentorship Programme
 initiate Skills Development
 Companies that need to know how to score maximum points
under the amended B-BBEE score card
 People that need to understand what B-BBBEE is

5. Stephen Covey
Seek first to
understand
and not to
be
understood

6. What does the code seek to achieve?
Increase the CAPACITY of black professionals, contractors, workers,
community leading to increased PRODUCTIVITY.
More blacks and women owning, managing and controlling
construction sector
Blacks, women, youth and people with disabilities being trained under
learnerships, technical and management training
Ensure that government and private sectors buys from black, women
and youth owned businesses
Ensure that construction companies buys locally manufactured goods
leading to more jobs

7. Understanding B-BBEE
levels

8. B-BBEE level School report equivalent
(Grade 12/Matric)
Number of
points
required
B-BBEE
recognition
level
1 A+++ More than 100 135%
2 A++ 95-100 120%
3 A+ 90-94 110%
4 A 80-89 100%
5 B+ 75-79 80%
6 B 70-74 60%
7 D 55-69 50%
8 E 40-54 10%
No level Fail Below 40 0%

10. Compulsory 3 elements
1. Ownership- has to be 40%
2. Skill development- score 40%
3. Preferential procurement and supplier development-40%
Large Enterprise
Must comply with all 3
QSE (Qualifying Small Enterprise)
Must comply with 1 and 2 or 1 and 3.
Otherwise: Downgraded/Discounted
1
COMPULSORY ELEMENTS

11. Preferential Procurement and Supplier Development
34 points + 4 bonus-
“Passing mark”- 13,6 points

12. Terminology-Fancy terms
Large Enterprise- A company with a turnover of more than R50 mil
Qualifying Small Enterprise (QSE)
A company with a turnover of R10mil-R50 mil
Exempted-Micro-Enterprise (EME)
Any company with a turnover of less than R10 mil per annum
Black Designated Group
Youth, people with Disabilities, people living in rural areas

13. Empowering Supplier
A “BBBEE compliant entity” (level 1-8)
Complying with all “regulatory requirements”;
and
A large enterprise (>R50 mil turnover) meeting
at least three of the following criteria or one if it
is QSE(R10 mil to R50 mil turnover
◦ At least 25% cost of sales (excl labour cost) must be procured from
local producers or suppliers in SA
◦ 50% of jobs created are for black people
◦ At least 25% transformation of raw material
◦ Skills transfer-at least 12 days per annum of productivity deployed in
assisting Black EME and QSEs beneficiaries

15. Preferential procurement-6
80% of your procurement budget must be on
empowering suppliers according to their B-
BBEE recognition level-
a. Before your spend your money, ask the
supplier for their B-BBEE certificate.
b. Encourage small companies (black owned
or white owned) to get an affidavit stating
that their annual turnover is less than R10
mil. Template is on my website-
c. If the EME is white owned then the B-BBEE
level is 4 which is 100% if they are black
owned then they are level 1 which is 135%

16. Preferential Procurement-13
• Spent 15% of your procurement
budget on EME- 3 points
• Spent 15% of your procurement
budget on QSE- 3 points
• Spent 20% of procurement
budget on≤ 51% black owned
business- 4 points
• Spend 12% of procurement
budget on ≤ black women owned
business-3

17. Examples
Stationery and office supplies, PPE, corporate gifts,
cleaning service, security service
Excludes
Utilities, Taxes

18. Supplier Development
15 points on the Score card

19. Supplier Development

20. Supplier/Contractor Development
Programme
A Structured targeted supported to a Qualifying Beneficiary company
defined as follows
A. 51% or more black owned
B. Their annual revenue should be less than 30% of the company
C. The company should not have more than 20% shareholding in that
company
D. They should have a valid Tax Clearance Certificate and a
E. B-BBEE certificate or Sworn Affidavit
F. They should have at least 3 permanent employees

21. Supplier/Contractor Development
Programme
Requirements
1. Written agreement between the Entity and the
Supplier/Contractor.
2. A needs analysis
3. Supplier Development Plan-
4. ESD Champion at Senior Management level

22. Examples of Supplier Development Plan
1. Skills transfer (tendering, business, technical, legal, etc)
2. Marketing and branding
3. Business Systems
4. Professional and consulting services
5. Loans, grants, credit, guarantees
6. Registration fees, licensing, levies,
7. Training and mentorship-(Different from Skills Development)

23. Skills Development
21 points.
Minimum is 8,4

24. Step 1: Calculate
your training
budget (4)
Determine your annual training budget.
Spend 2% of your 1% of the payroll training
black people- 4 points
e.g. SDL is R1 million per annum (1% of
payroll paid to SARS)
Training budget is 2% of R1 million-
R20,000.

25. Step 2:
Determine the
number of black
people to be trained
(3 points)
2,5% of total employees.
e.g. a company with 250 employees
must train 5 black people
The number of Black OFFICE BASED
employees will determine the number
of Black people with disabilities to be
trained (5%)
e.g. 20 black office based employees,
then 5% is 1 Black PWD should be

26. Step 3: Calculate
the number of
black employees
to register with
professional
bodies
Determine the total number of
staff members registered with
professional bodies in your
company
e.g. 7 employees registered with
professional bodies
Then 60%, 4 black people must be
candidates with professional
bodies

27. Step 4:
Mentorship
Programme
(3 Points)
A mentorship programme must be
designed and have a champion
driving it. The number of mentees
are dependent on the size of the
company.

28. Mentorship Programme
1. Mentorship Champion- Person dedicated towards the
mentorship programme
2. Mentorship Programme- with clear objectives, structure,
selection criteria, time-frame.
3. Portfolio of Evidence-progress review, minutes of
meeting, training, development plan, etc
4. The verification agent will interview a sample of the
mentees to check if it is effective.

29. Terms and Conditions
SKILLS DEVELOPMENT

30. T&C’s
1. The company must submit to CETA
◦ a Workplace Skills Plan
◦An Annual Training Report
◦Pivotal Report
2. Points scored under SD may not be claimed under
another B-BBEE element
3. You may not spend more than 50% on bursaries
for Grade 10-12 or equivalent trade school

31. T&Cs
4. The company may not reclaim the bursary costs
from the employee
5. Informal unaccredited training may not be more
than 35% of the budget.
6. Mandatory training e.g. safety, inductions, operator
re-certification etc. may not be claimed under SD

32. Good News
The black people being trained, or mentored
don’t necessarily need to be employees of the
company. And the company will even get bonus
points if it decides to absorb them at the end of
the training

33. Claimable training expenses.
1. Salaries, wages, stipends of people being
trained. It is advisable to set money aside for
trainees for transport to the training venue.
2. Scholarships and bursaries (even for Grade
10-12)

34. Skills Development for QSE

35. Your one stop solution to mentorship and
skills development

36. Premise of Business Growth Matrix ®
• Doctors train at Medical School
• Lawyers train at Law School
• Plumbers train, Teachers train, Electricians train, Nurses train, Bricklayers train, Technician
train
What about Training for Entrepreneurs??

37. Premises of Business Growth Matrix ®
Experiential training is critical for exposure and on-job
training that cannot be taught in the text book.
• Accountants do …………ARTICLES
• Artisans do………………… APPRENTICESHIP
• Teachers do class ………..PRACTICALS
• Doctors do …………………..INTERNSHIP
What about Practicals for Entrepreneurs?

38. Business Growth Matrix
A business needs only
Vision
Customers
Capital
Product/Service
Meet a need
Marketing Brand/
Visibility
Create a
demand
Pay Expense
Pay Staff
Raw Material
Equipment
HR, labour relations
Motivation, Team building
Suppliers/Creditors
Innovation
ConduciveEnvironment

39. Business Growth Matrix®
JumpStart
Skills Transfer
Deployment
Marketing
Starter Pack
Business
Leadership and
Management
Capitalisation
Coaching and
Mentorship

40. JumpStart
Skills training to test the viability of your business idea, develop a
business plan, learn critical skills

41. JumpStart• Skills Development Course: SETA Accredited Course= NQF Level 4, Matric
• Assess the entrepreneurship profile
• Test the viability of the business idea
• Taught to draw own business plan
• Get exposed to funders and grants
• Get marketing skills
)
`
Entrepreneurship Profile R2,500 (2 days)
From Idea to Concept: R3,500 (3 days)
Business Planning R5,000 (5 days)
Financing and funders R3,000 (2 days)
Costing and Pricing R3,000 (2 days)
Tendering R2,500 (1 day)
Marketing R3,000 (2 days)
Presentation skills R2,500 (1 day)

42. JUMPSTART: Assignments
• Report on entrepreneurship temperament and profile
• Business Innovation to develop other ideas or value add
• Test the viability of the business idea
• Find appropriate venue for business.
• Conduct Market Research to determine the desirability of the business
• Research possible suppliers
• Develop Costing and Pricing
• Develop a business Plan

43. Entrepreneurship Deployment
6 weeks deployment at large enterprises with CEO, Executive Directors for skills transfer

44. Marketing Starter Pack
The Apprentice Entrepreneur are supported with marketing
material such as business cards, Flyers, to enable them to
market their business to prospective customers

45. Marketing Starter Pack
Armed with marketing material, the apprentice needs to
market his/her product to secure customers
Apprentice can get forward sales agreement
Government departments can be approached for tenders
etc
Marketing is the life-line of any business
The presentation skills that the apprentice learned during
the JumpStart Phase will be valuable
There is still no money forwarded to the
apprentice at this stage.
The apprentice may also approach the
Entrepreneurs from companies they were
deployed at
Without proof of market or customers, the
apprentice will not be able to move to the
next phase

46. Ownership

47. Prelude!
It is “similar” to listing your company with the
JSE to raise capital. The only difference is that
this “listing” is targeting black empowerment.
It is NOT Free. Each share should be sold to it’s
maximum fair value.
It’s a great way to raise additional capital to
purchase new equipment

49. Ownership
Voting rights to black people should be 32,5% to 35% to gain 4,5 points
10% of which should be black women for 2 points
Economic interest (dividends)should be 32,5% to 35% for 4,5 points
10% of which should be black women for 2 points.
10%-12% of shares to youth/PWD/black employees/cooperative can gain 3 points
5% Black new entrants (have no shares with other companies then) 5 points

50. Management control

51. Management control
It’s a fronting litmus test.
Forces companies to have executive black managers with voting rights.
Makes it impossible to have a significant black shareholding not represented at management
level.

53. Bayanda’s Assistance with Management
Control
We have black graduates interns that we personally mentor for 12-18 months under SETA funding
who can be absorbed by the company after our mentorship.
These graduates have been spiritually and professionally groomed and have high work ethics.
They have learned skills that are not taught at university e.g. work ethics

54. Conclusion
Bayanda is a level 1, 100% Black Woman Owned Business.
We provide B-BBEE Consulting and Advise to QSE and Large Enterprise.
We develop the B-BBEE file for each B-BBEE Element in preparation for B-
BBEE verification
We have tools to establish a Mentorship Program and Supplier Development
Programme
Accredited with SETA for New Venture Creation
We develop Workplace Skills Plan in line with B-BBBEE targets
We design learnership and apprenticeship for you.