|BROAD-BASED BLACK ECONOMIC EMPOWERMENT (“B-BBEE”) OBLIGATIONS – PREFERENTIAL PROCUREMENT
In placing this order WBHO (“the Buyer’) is relying on the documentation provided by the Supplier in respect of the Supplier’s B-BBEE status to meet the targets of the Buyer’s Preferential Procurement obligations, The onus is on the Supplier to provide updated verification of this assessment, by a SANAS accredited verification Agency, on an annual basis. Should there be any change to:
- the Supplier’s B-BBEE certificate (“B-BBEE Certificate”), submitted to WBHO on the date of placement of this order, reflecting a deterioration in any aspect of the B-BBEE Certificate for any reason; or
- the B-BBEE compliance requirements in South Africa,
at any stage during the Project Period, then the Buyer and the Supplier shall meet, in good faith, to discuss and resolve the best way to address the effect of such changes on the Project. Should the Buyer and the Supplier fail to resolve the effect on the Buyer of these changes, then the Buyer shall be entitled , but not obliged, in its sole discretion to terminate this order.
The Buyer shall not be liable to the Supplier for any costs or charges whatsoever upon such termination of this order, save in respect of any outstanding payments to the value of goods delivered onto site and received in good order as at the date of termination of this order.
In accepting this order the Supplier hereby:
represents and warrants the accuracy, truthfulness and correctness of its B-BBEE Certificate; and having regard to the severity of the penalties that may be suffered by the Buyer including third parties in relying on the accuracy, truthfulness and correctness of the Supplier’s B-BBEE Certificate, including, but not limited to, penalties associated with “fronting practices” as defined in the B-BBEE Act, No. 53 of 2003, as amended, indemnifies and holds the Buyer harmless against any and all loss or damage of whatsoever nature which third parties may suffer or sustain arising from or relating from any misrepresentation of the accuracy, truthfulness and correctness of the Buyer’s B-BBEE Certificate.
In its tender adjudication process, WBHO will prefer subcontractors and suppliers with a level 2 or higher B-BBEE Status level, subject to variation of this requirement in the sole discretion of WBHO.
A current B-BBEE certificate issued by an accredited B-BBEE verification professional is to be provided at the outset of any supplier or subcontractor’s engagement by WBHO.
- ALL subcontractors and suppliers who fall under the B-BBEE Generic Codes and can present affidavits as proof of B-BBEE status will in addition need to submit a WBHO supplier affidavit.
- ALL JV partners will need to submit a WBHO supplier affidavit in addition to providing their B-BBEE scorecard under the Amended Construction Sector Codes.
Failure by a supplier or subcontractor to submit a valid B-BBEE certificate or WBHO supplier affidavit will result in WBHO showing such supplier or subcontractor as uncaptured on our procurement reports.
The B-BBEE scorecard should be valid for the duration of the engagement of the supplier or subcontractor by WBHO; should the B-BBEE scorecard change or expire the onus shall be on the subcontractor or supplier to advise WBHO of such change and/or expiration and provide WBHO with a new valid B-BBEE scorecard.
WBHO Construction are contractually bound to maintain their B-BBEE status on several projects, and as such cannot engage with Service providers, BEP Professionals, Suppliers of Plant or Materials, or Sub-contractors that are not B-BBEE compliant. In this regard, the following requirements apply:
1.1 The applicable legislation for all B-BBEE requirements on this Project/ Contract are the Amended Construction Sector Codes of 1 December 2017 for all Material Suppliers, Service providers, Plant Hire Companies and Sub-Contractors, as defined in these Codes. (The certification requirements in terms of SANAS scorecards or Affidavits, are clearly defined in the Amended Construction Sector Codes).
1.2 Prior to any formal engagement on this Project, it is incumbent on all Companies to furnish a valid B-BEE rating certificate, on the Amended Construction Sector Codes, issued by an authorised SANAS Verification Agency.
1.3 Once the B-BBEE Level rating is confirmed as per 1.2 above, this B-BBEE rating Level must be maintained during the course of this Contract or supply agreement.
1.4 In the case of Companies who are rated under different Sector or DTi codes, the WBHO Form of Affidavit must accompany their legal B-BBEE documentation submission.
1.5 The responsibility to submit legal B-BBEE documentation prior to expiry dates, rests with the Sub-Contractors/ Material or Plant Suppliers contracted to WBHO.
1.6 No Invoice or Certificate payment can be made unless the requirements of 1.1 to 1.5 above are met.
Please see adjacent link to the Amended Construction Sector Codes of 1 December 2017.