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on enterprise and rural development. I would advise engaging a BEE
specialist to help you understand the opportunities on offer and how to
position your business to make best use of the opportunities that could BEE
flow to businesses in this sector.
Small construction companies and the
amended Construction Charter

April 2017

“I own a small building contractor business. BEE is becoming
increasingly important for my business. I understand that the
Revised Construction Sector BEE Codes provide an opportunity
for a small construction business to be exempted from BEE. Is
this correct? If so, what must I do to qualify for the exemption?”

You are correct. The Revised Construction Sector BEE Codes (“Revised
Codes”) do make provision for small construction companies to
qualify for exempt BEE status, but subject to certain rules which must
be understood in order to qualify for the exemption. It should be noted
that the Revised Codes are still in draft form, but it is expected that they
will soon be finally published.

The Revised Codes contains several important provisions related to
small construction companies and it is important that these be carefully
studied by any entity operating in this environment to understand the
specific rules applicable to them. I now highlight some of the more
important rules that should be taken note of.
The Revised Codes provides for three types of small companies, namely
(1) Start-ups, (2) Small exempt micro enterprise (Small EME), and
exempt micro enterprises (EME). The Revised Codes also distinguish
between contractors and built environment professionals (BEP) such
as architects, engineers and town planners. Understanding under
which classification of small construction company you fall is the first
step for any business.
• A Start-up company receives recognition as such for the first
12 months from its registration date regardless of its turnover
during those first 12 months.
• A Small EME refers to a BEP company equal to or below R1,8
million turnover, or, a contractor company equal to or below
R6 million turnover.
• An EME refers to a BEP above R1,8 million turnover but below
R6 million turnover, or, a contractor company above R3 million
turnover but below R10 million turnover.

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