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Thread: BEE Score for CC

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    Junior Member Marius1975's Avatar
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    BEE Score for CC

    Hi Guys,

    We are a new CC with 4 members, the cc is run only by members of which 2 are male with 65% and 2 female with 35% interest in the business. I know some / most companies take your BEE score into consideration and so was wondering what our score would be?

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    If your annual turnover is less than R5million then you are considered to be an exempted micro enterprise and will be able to automatically get a level 4 exemption which is basically 100% BBEEE recognition (although it is possible to get higher - go figure).

    You do still have to get a BBEEE verification agency to issue you that certificate after they have checked your turnover.

    If your turnover is higher, it starts getting complicated.

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    Junior Member Marius1975's Avatar
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    THX! That's perfect!!

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    Just remember that companies with BEE ownership qualify for a higher level of contribution under BBBEE, so you're still at a disadvantage! Also remember that while you can claim points for female ownership as an HDI (Historically Disadvantaged Individual) those points don't count towards BEE ownership.

    If you're planning to do business with government or parastatals, you should probably look into setting up a PDI company as a subsidiary, with someone you know, like and trust as your director, and use that company to tender. Remember that when you are tendering on government projects, you recieve a score, and that score is used to calculate a price change (you still get paid what you bid, but your tender is evaluated based on the adjusted rate) that means that even BEE companies who's price is higher, might get a contract that you bid on on price!

    I used to workin tendering, marketing and estimating in the construction field, so I have hands on knowledge of how this all works. Hope that helps!

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    Platinum Member sterne.law@gmail.com's Avatar
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    Quote Originally Posted by BusFact View Post
    You do still have to get a BBEEE verification agency to issue you that certificate after they have checked your turnover.

    If your turnover is higher, it starts getting complicated.
    You do not need a verification agency (at a cost of about R7500), where you use the turnover threshold. An affidavit or audited statements from accountant/accounting officer, or for a start up deposing to turnover predictions, will suffice. Submit to department with the neccessary paperwork and you will have the 100% rating for about R275 give or take.Of course if you do wish to get a higher rating then you need to do the scorecard and verification etc, ect
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Quote Originally Posted by sterne.law@gmail.com View Post
    You do not need a verification agency (at a cost of about R7500), where you use the turnover threshold. An affidavit or audited statements from accountant/accounting officer, or for a start up deposing to turnover predictions, will suffice. Submit to department with the neccessary paperwork and you will have the 100% rating for about R275 give or take.Of course if you do wish to get a higher rating then you need to do the scorecard and verification etc, ect
    You could well be right, but I thought that had changed a while back. I may be wrong though. In any event, if its an EME, the verification agency should do it for a lot less than R7500, closer to R1000. I have a QSE which is going to cost around R7500.

    The other factor is that the certificate makes your life a lot easier. Simply send it though each time its requested. If you send the accountants letter, you're going to often walk into walls of bureaucracy. "But I have been instructed to get a certificate", "Sorry but our policy requires a certificate", etc. You may be right with the letter, but if so, trying to educate the supplier each time can be a pain. I suppose it comes doen to a cost/time savings trade off.

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    Quote Originally Posted by Construction Media View Post
    Just remember that companies with BEE ownership qualify for a higher level of contribution under BBBEE, so you're still at a disadvantage! ....

    ....I used to workin tendering, marketing and estimating in the construction field, so I have hands on knowledge of how this all works. Hope that helps!
    I have less experience in this field, but if you are dealing with a QSE (turnover between R5mil and about R30mil), you can still get the highest rating with zero black ownership. You simply choose 4 of the 7 categories other than ownership and score full marks there. Have I got this wrong? Obviously the bigger companies need something there in ownership as the are evaluated on all 7 categories.

    Also, with a 100% rating for an EME (under R5mil), I can't believe that getting even higher scores is worth the effort, unless your whole business involves tendering to the government. This rating keeps your suppliers happy and normally thats good enough.

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    Quote Originally Posted by Construction Media View Post
    If you're planning to do business with government or parastatals, you should probably look into setting up a PDI company as a subsidiary, with someone you know, like and trust as your director, and use that company to tender. Remember that when you are tendering on government projects, you recieve a score, and that score is used to calculate a price change (you still get paid what you bid, but your tender is evaluated based on the adjusted rate) that means that even BEE companies who's price is higher, might get a contract that you bid on on price!
    Just be careful of "fronting" here. The verification agencies will be checking that this subsidary is not simply a sales office that tenders and passes all the actual business on to the parent company who does all the work and simply collects a commission. The PDI will have to be actively involved in its operation and not just a token placement.

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    Platinum Member sterne.law@gmail.com's Avatar
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    you still get the certificate from the department. the letter is the paperwork to the department, in lieu of the verification agency paperwork.

    But now that you mention it the cost is about R1000-R1500, which if I am correct is the mere certification, not calculating a true rating (taht is higher score)
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Quote Originally Posted by sterne.law@gmail.com View Post
    you still get the certificate from the department. the letter is the paperwork to the department, in lieu of the verification agency paperwork.
    Yah, you see, I should have read your post more carefully. I missed the bit about submitting to the department. Sorry. That does sound like a good option, if it works.

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