Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)

Notices

Best Practice Project Assessment Scheme: Standard for Contract Participation Goals for Targeting Enterprises and Labour through Construction Works Contracts

3. Terms and Definitions

Purchase

For the purposes of this document, the following definitions apply:

allowance:

amount provided for in the contract by the employer relating to one or more of the following:

(a)	the performance by the principal contractor of work or services that are foreseen but cannot be accurately specified at the time that the contract was entered into;

(b)	work or services to be performed, or goods provided, by a subcontractor nominated or selected by the employer;

(c)	provision for price adjustment for inflation; or

(d)	other provision of a budgetary provisions, e.g. contingencies.

credit:

progress achievements towards the attainment of a contract participation goal (see Section 8)

community:

South African citizens (defined in terms of the South African Citizenship Act, 1995 (Act 88 of 1995)) who permanently reside within the target area.

Note: Adapted from SANS 10845-8:2015

Community Liaison Officer (CLO):

the CLO assists in the identification and selection of local enterprises and local labour, and is guided by the employer’s approved CLO policy on construction works (see Section 6).

Community Project Committee (CPC):

the CPC represents the affected communities, and includes the affected Ward Councillor(s) and relevant community leaders (see Section 5.1).

Construction Industry Development Board (cidb):

the Board established in terms of the Construction Industry Development Board Act of 2000 (Act 38 of 2000).

construction works:

the provision of a combination of goods and services arranged for the development, extension, installation, repair, maintenance, renewal, removal, renovation, alteration, dismantling or demolition of a fixed asset including building and engineering infrastructure.

contract amount:

the financial value of the contract at the time of the award of the contract, exclusive of all allowances and any value added tax or sales tax which the law requires the employer to pay to the principal contractor.

contract data:

document that identifies the applicable conditions of a contract and states the associated contract-specific data.

Note: Adapted from SANS 10845-2:2015, definition 2.9

contract participation goal (CPG):

(a)

in the case of targeted enterprises, including manufacturers and suppliers, the amount equal to the value of goods, services and works for which the principal contractor contracts to engage targeted enterprises in the performance of the contract, expressed as a percentage of the tender value excluding escalation, contingency and value added tax associated with the targeting strategy that is identified in the targeting data; or

(b)	in the case of targeted labour:

• the sum of the wages and allowances, for which the principal contractor, sub-contractor or targeted enterprises contract to engage targeted labour in the performance of the contract, expressed as a percentage of the contract amount associated with the targeting strategy that is identified in the targeting data; or

• the amount equal to the person days worked for which the principal contractor, subcontractors or targeted enterprises contract to engage targeted labour expressed as a percentage of the total person days worked associated with the targeting strategy that is identified in the targeting data.

Note: Adapted from SANS 10845-5:2015 and SANS 10845-8:2015

employer:

person or organization entering into the contract with the principal contractor for the provision of goods, services, or engineering and construction works.

employer's representative:

person authorized to represent the employer and named as such in the contract data or targeting data.

designated groups:

the groups that are designated in terms of this Standard (see Section 3.4).

designated sector:

sector, sub-sector or industry that has been designated by the Department of Trade and Industry.

joint venture:

grouping of two or more contractors acting as one legal entity, where each is liable for the actions of the other.

mediation:

process where a neutral third party assists disputing parties in resolving conflict.

principal contractor:

contractor who contracts with the employer for the provision of construction works, and who may subcontract part of this contract.

skills:

knowledge, ability, or training to perform a certain activity or task well (see Table 2).

supplier:

sole trader, partnership or legal entity that owns, operates or maintains a store, warehouse or other establishment in which goods are bought, kept in stock and regularly sold to wholesalers, retailers or the public (or all three) in the usual course of business.

Note: Adapted from SANS 10845-5, definition 2.14

target area:

geographic area defined in the targeting data (see Section 3.1).

targeting data:

data, provisions and variations applicable to a particular contract.

Note: Adapted from SANS 10845-5:2015, definition 2.18

targeted enterprise:

sole trader, partnership or legal entity which is

(a)	a business within the target area;

(b)	engaged in the performance of the contract; and

(c)	defined as the target group in the targeting data.

Note: Adapted from SANS 10845-5:2015, definition 2.15

targeted labour:

individuals who

(a)	are employed by the principal contractor, sub-contractor or targeted enterprises in the performance of the contract;

(b)	are defined as the target group in the targeting data; and

(c)	permanently reside in the target area or who are recognized as being residents of the target area on the basis of identification and association with and recognition by the residents of the target area.

Note: Adapted from SANS 10845-7:2015, definition 2.12

targeted manufacturer:

targeted enterprise that operates or maintains a factory or establishment that produces on its premises materials or goods required by the principal contractor for the performance of the contract.

Note: Adapted from SANS 10845-7:2015, definition 2.13

targeted supplier:

targeted enterprise that

(a)	owns, operates or maintains a store, warehouse or other establishment in which goods are bought, kept in stock and regularly sold to wholesalers, retailers or the public in the usual course of business; and

(b)	engages, as its principal business and in its own name, in the purchase and sale of goods.

Note: Adapted from SANS 10845-7:2015, definition 2.14

targeting strategy:

an approach which is pursued to make a contract participation goal an obligation of contract.

Note: Adapted from SANS 10845-5:2015, definition 2.19

tender data:

document that establishes the tenderer's obligations in submitting a tender and the employer's undertakings in administering the tender process and evaluating tender offers.

Note: Adapted from SANS 10845-2:2015, definition 2.30

tender value:

offer provided by the tender to undertake a construction works contract.