Construction Charter Breakfast July 2014: CSCC Presentation

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TRANSFORMATION
TRENDS IN
THE CONSTRUCTION
SECTOR
30 July 2014
Thabo Masombuka
Chief Executive
Officer (CE0)
CSCC
BBBEE AS AN INSTRUMENT
FOR ECONOMIC EMPOWERMENT
BBBEE DEFINED
“An integrated and coherent socio-economic process….which aims to
redress past imbalances by transferring and conferring ownership,
management and control of South Africa’s financial and economic
resources to the majority of its citizens and ensure broader participation
of black people in the economy in order to achieve sustainable
development and prosperity” – BBBEE Strategy document
THE GAZETTING OF THE
CONSTRUCTION SECTOR CODE (CSC)
The BBBEE STRATEGY promotes PARTNERSHIP & INDUSTRY ACTIVISM to
foster economic transformation objectives.
Hence the Construction Sector Code was gazetted in June 2009 to achieve the
following strategic objectives :
•
The inclusion of BLACK PEOPLE in general and BLACK WOMEN in the
OWNERSHIP and MANAGEMENT of construction companies and
businesses.
•
The acceleration of TECHNICAL SKILLS and CAPACITY OF BLACK YOUTH
and PEOPLE WITH DISABILITY.
•
To provide JOBS and EMPLOYMENT OPPORTUNITIES.
•
Building the ENTREPENEURIAL CAPACITY and SUSTAINABILITY of
BLACK enterprises in the construction sector.
THE ROLE OF THE CSCC
•
The CSCC is the EXECUTIVE AUTHORITY :
•
Entrusted with OVERSEEING and MONITORING the IMPLEMENTATION of
the Construction Sector Codes (CSC) of Good Practice by the Industry.
•
Through industry programmes, responsible for the FACILITATION of the
achievements of sector empowerment TARGETS.
•
ALIGNMENT of Construction Charter with existing legislation
•
Provide necessary GUIDANCE & BEST PRACTICE NOTES on the
interpretation of the principles of the Construction Sector Code.
•
LIAISON with and reporting to the regulatory stakeholders on the annual
measurement of the construction sector code - BBBEE Advisory, DPW and
the DTI .
•
Creation of RELIABLE and ACCURATE industry specific empowerment data
BASELINE METHODOLOGY



The CSCC actively pursued the submission of industry BBBEE verified
scorecards within the construction sector, including Contractors and
BEPs.
Over 1770 (about 14% of the sample) of the 13500 commercially
active companies were scoped.
This actively included the interpretation of 3530 BBBEE certificates
Commissioned the services of independent service providers to :
OVERVIEW: INDUSTRY TRANSFORMATION:
ALL SECTORS
Number of Scorecards that achieve relevant Level Contributor Status
500
438
409
450
Number of Scorecards
400
350
300
256
239
250
169
146
150
124
95
100
50
182
179
200
71
29
68
64
43
38
18
51 59
43
15
51
29
11
6
17 23 11
5
16
15
5
8 6 17
0
Level 1
Level 2
Level 3
Level 4
2009
Level 5
2010
2011
2012
Level 6
Level 7
Level 8
Non-compliant
2013
Upward Trend: 64% in 2009 to 85% in 2013 Level 4 and
above
OVERVIEW: INDUSTRY TRANSFORMATION:
EMES
Detail Summary of level status: EME Entities-Total
Number of Scorecards
350
319
300
234
250
200
150
100
50
112
95
75
43
30
23
53
74
0
Level 3
Level 4
2009
2010
2011
2012
2013
High Contributor to overall Industry Transformation
above Level 4: 55% contribution in 2009 and 45%
in 2013
OVERVIEW: INDUSTRY TRANSFORMATION:
LARGE ENTERPRISES
Detail Summary of level status: Large Enterprises-Total
100
91
Number of Scorecards
90
80
71
70
54
60
58
53
56
51
46
50
40
34
40
30
23
20
10
2
6
34
23
19
38
23
12
9
8
35
16
33
21
21
7
2 4
6
4
10 8
5
12
12
2 3 4 3
0
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6
Level 7
Level 8
Non-compliant
2009 2010 2011 2012 2013

Upward Trend: 38% in 2009 to 65% in 2013 Level 4
and above (60% in 2012)
TRANSFORMATION TRENDS:
LARGE CONTRACTORS
Average performance per Element: Contractor Large Enterprises
90%
Average Element score
80%
70%
60%
50%
40%
30%
20%
10%
0%
Average
Average
Average SocioAverage Ownership
Average
Average Skills
Average Enterprise
Employment Equity
Preferential
economic
Score
Management Score
Development score
Development score
score
Procurement score
Development score
2009
50%
42%
44%
46%
70%
71%
75%
2010
45%
52%
53%
48%
75%
60%
77%
2011
56%
50%
57%
48%
82%
64%
83%
2012
58%
53%
55%
46%
81%
65%
82%
2013
55%
60%
59%
50%
82%
70%
85%
WHERE TO FIND US
The CSCC is based at :
164 Katherine Drive
Pinmill Farm Office Park
Ground Floor – G Block
Sandton, Johannesburg
TEL : (011) 262 4644/5/6
www.cscc.org.za
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