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SEC-2 ECONOMIC OPPORTUNITY

Technical Clarification

Installation equipment cost in 'Local Content'

Credit Interpretation Request Number
SEC2 -E-SEC-1467

SEC2 -T-SEC-1467

Ruling
2016-06-09

Part-2, Option B – Local Content

Errata for pg. 30 third bullet point

Delete the words:

Equipment for installation (i.e. tools and plant such as drills and scaffolding which are used on multiple projects)

Such that the third bullet point will read as:

The value of local content excludes shipping costs into South Africa, as well as contingencies.

Technical Clarification

The GBCSA confirm that a proportion of the installation equipment cost (purchased or rented) can contribute towards meeting ‘Local Content’; this is only applicable for that equipment (or parts thereof) that has been produced or generated within the borders of South Africa.

Please note, the full cost (i.e. if purchased new from a retailer) of an installation equipment will not contribute towards meeting ‘local content’. Only the rented Rand Value incurred by/for the project will contribute towards meeting ‘Local Content’ (as this is what directly contributes to the Contract Value), and if purchased new, the pro rata cost of the item as relevant/incurred by the project will be assigned to meeting the credit criteria.

 

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Technical Clarification

Targeted enterprises with the CIDB

Credit Interpretation Request Number
SEC2 -T-SEC-01395

Ruling
2016-04-26

Registration of targeted enterprises with the CIDB in terms of the definition of targeted enterprise on page 3 of the “CIDB : Standard for Indirect Targeting of Enterprise Development (ED) through Construction Works Contracts” – SEC-2 Part-1 Option-B - Compliance with CIDB standard for enterprise development

The GBCSA confirm that

  • The requirement is for the “sub-contractor” or “JV Partner” be registered with the CIDB during the course of their employment on the construction works (i.e. they need not necessarily be registered at the commencement of their works).
  • The Enterprise Development expenditure against the “targeted enterprise” is to be taken from commencement of their works up to completion (and not only from when they become CIDB registered during their employment on-site).

 

Technical Clarification

Enterprise development support

Credit Interpretation Request Number
SEC2-T-SEC-1032

Ruling
2015-08-17

Any contracts specific to the project where enterprise development support is provided (in exact accordance with the SEC Technical Manual) may participate towards the Contract Participation Goal (CPG), regardless of whether this is a direct appointment under the main contractor, or an appointment under a sub-contractor.

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