In terms of sections 5(2)b of the Construction Industry Development Board Act, 2000 (Act no. 38 of 2000) (the Act), the Construction Industry Development Board is empowered to establish best practice Standards. This Competence Standard for Contractors established the competencies of a contracting enterprise which need to reside with the owner and/or key nominated representatives of the contractor. These competencies are measured against minimum acceptable standards necessary for running a contracting enterprise and for supervising building and construction works.