8.4.12. Unincorporated Joint Ventures

8.4.12.1. Unincorporated joint ventures may be verified and obtain a consolidated B-BBEE certificate as if they were a single entity. Alternatively, the measurement of Unincorporated Joint Ventures, where the separate partners already have valid verification certificates or affidavits in the case of EMEs and 51% Black Owned or 100% Black Owned enterprises,

8.4.12.2. The measurement of Unincorporated Joint Ventures may be done as follows:

8.4.12.3. Unincorporated Joint Ventures are required to compile a consolidated verification certificate. A consolidated verification certificate will consolidate the verified compliance data of joint venture partners as if those Measured Entities were a single Measured Entity

8.4.12.4. The consolidation of compliance data shall be based on a weighting in accordance with the joint venture agreement relevant to the specific joint venture. Therefore, should two entities enter into an Unincorporated Joint Venture their respective scores will be weighted according to their proportionate share in the joint venture and added together for a combined score out of 100

8.4.12.5. 51% Black Owned or 100% Black Owned EME’s and QSE’s will qualify for a score of 95 and 100% respectively, whilst other EME’s will qualify for a score of 85.

8.4.12.6. Where all the partners in the joint venture are Empowering Suppliers the Unincorporated Joint Venture will also qualify as an Empowering Supplier. If not, the compliance of the Unincorporated Joint Venture with the Empowering Supplier requirements must be measured as though it is a single Measured Entity with each partner contributing, to the categories of measurement for Empowering Supplier status, in proportion to its share in the joint venture.

8.4.12.7. The expiry date of the Unincorporated Joint Venture certificate will be 12 months from the issue date thereof notwithstanding the expiry date of any of the certificates of the joint venture partners utilized in the compilation thereof.

Considerations Specific to Qualifying Small Enterprises The B-BBEE Verification Professional should comply with all the requirements as per the applicable Scorecard

Amended Construction Sector Codes

2.8 The measurement of Joint Ventures will be done as follows:

2.8.1 Unincorporated Joint Ventures are required to compile a consolidated verification certificate. A consolidated verification certificate will consolidate the scorecard points scored by each of the joint venture partners in accordance with paragraph 2.8.2 below as if those Measured Entities were a single Measured Entity.

2.8.2 The consolidation of scorecard points shall be based on a weighting in accordance with the joint venture agreement relevant to the specific joint venture. Therefore, should two companies enter into an Unincorporated Joint Venture their respective scores will be weighted according to their proportionate Economic Interest rights in the joint venture and added together for a combined score.

2.8.3 QSE’s that are less than 51% Black Owned must be measured in terms of the QSE Scorecard. Such an Entity must use its score in terms of the QSE Scorecard to calculate the consolidated score.

2.8.4 QSE’s that are at least 51% Black Owned or 100% Black Owned and all EME’s are awarded automatic B-BBEE Status Levels without having achieved a specific score. Therefore in order to appropriately weight such an entity’s contribution to the B-BBEE Status of a JV the following scores are imputed to them based on their respective automatic B-BBEE Status level as enhanced or discounted:

2.8.4.1 a Level 1 Contributor qualify for a score of 105 points;

2.8.4.2 a Level 2 Contributor qualify for a score of 97.5 points;

2.8.4.3 a Level 3 Contributor qualify for a score of 92.5 points;

2.8.4.4 a Level 4 Contributor qualify for a score of 85 points;

2.8.4.5 a Level 5 Contributor qualify for a score of 77.5 points;

2.8.4.6 a Level 6 Contributor qualify for a score of 72.5 points.

2.8.5 Where all the partners in the joint venture are Empowering Suppliers the Unincorporated Joint Venture will also qualify as an Empowering Supplier. If not, the compliance of the Unincorporated Joint Venture with the Empowering Supplier requirements must be measured as though it is a single Measured Entity with each partner contributing, to the categories of measurement for Empowering Supplier status, in proportion to its share in the joint venture.

2.8.6 If an incorporated joint venture is required to be formed after the commencement of a contract, the unincorporated joint venture scorecard will be applicable for the first year of the contract where after a scorecard will be required for the incorporated entity.

2.8.7 In respect of public sector procurement an entity may not sub-contract more than 25% of the value of a contract to another entity that does not have an equal or better status level than the entity awarded the contract unless the work is sub-contracted to an EME that has the capability to execute the work and the work is below the EME threshold. In such cases in respect of public sector procurement where more than 25% of the project costs flow to the other entity that does not have an equal or better B-BBEE status level, joint ventures or consortia should be formed with a combined scorecard for all entities in the joint venture or consortium, in line with applicable regulation

Enter the lead partner of the CIDB Joint Venture here. The lead partner must be registered in a CIDB contractor grading designation not lower than one level below the required grading designation in the CIDB class of construction works under consideration. E.g. if the advertised CIDB grade is 7GB then the lead partner must be registered in CIDB Grade 6GB or higher.
The CIDB joint venture (JV) calculator sums the capacity of all the CIDB joint venture (JV) partners and calculates a CIDB grading designation for the CIDB joint venture (JV). Notwithstanding the calculated result, the following table summarises the combinations of CIDB designations held by Joint Venture (JV) partners which will as a result be deemed to satisfy the requirements for the relevant CIDB designation: