TUESDAY-PROPERTY INSIGHT (No.46)
PRIORITY ELEMENTS AND SUBMINIMUM PRINCIPLE
The new revised codes of Good Practice have introduced- Priority Elements to ensure more focus and more efforts in particular codes/elements. There are 3 priority elements: Ownership, Skill Development and Enterprise & Supplier Development.
Generic companies need to comply with all 3 priority elements and QSEs need to comply with only 2 of the 3 priority elements with ownership as a compulsory.
|Enterprise Supplier Development
For each of the Priority Elements: companies are expected to comply as follows:
- Acquire subminimum points of 40% Net Value in Ownership based on the Time Based Graduation
- The subminimum requirement for Skills Development is 40% of the total weighting points for Skills Development.
Enterprise and Supplier Development:
- The subminimum requirement for Enterprise and Development is 40% for each of the three categories, within the Enterprise and Supplier Development element, namely preferential procurement; Supplier development and Enterprise development.
None compliance in any, some or all of the above, brings to effect the Discounting Principle.
Discounting principle to be explained in detail in the next Property Insight.
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