Compliance Certificate
Also known as: CoC, Certificate of Compliance, Compliance Report.
What is Compliance Certificate?
A compliance certificate is a formal certificate issued by a regulator or accredited inspector confirming that a person, installation or activity meets the requirements of a specific statute. Common SA examples include electrical compliance certificates under the Electrical Installation Regulations, gas and plumbing certificates, and B-BBEE verification certificates.
Drafted and reviewed by
Attorney & Founder, My-Contracts.co.za · Legal Practice Council of South Africa (LPC F17333)
Definition and context
"Compliance certificate" is a generic label for a formal document, issued by a regulator or accredited inspector, confirming that a regulated condition is met. South African law uses the term in many settings, including the Electrical Installation Regulations 2009 (issued under the Occupational Health and Safety Act 85 of 1993), which require every seller of immovable property to hand over a valid electrical Certificate of Compliance (CoC) at transfer; the Pressure Equipment Regulations; the Gas Installation Regulations; SANS 10252 plumbing compliance requirements under municipal by-laws; and the B-BBEE Codes of Good Practice, which provide for B-BBEE verification certificates issued by SANAS-accredited verification agencies.
Each species of compliance certificate has its own enabling statute, issuance criteria, validity period and form. The electrical CoC is valid for two years and must be issued by a registered electrical contractor. A B-BBEE certificate is valid for twelve months and must be issued by a SANAS-accredited verification agency, save that Exempt Micro Enterprises and Qualifying Small Enterprises may self-declare using a sworn affidavit. The Construction Regulations 2014 require compliance certificates for scaffolding, lifting machinery and formwork prior to use. Failure to obtain a required compliance certificate triggers penalties ranging from administrative fines to criminal liability and exclusion from government procurement.
In contract drafting, compliance-certificate warranties protect the counterparty against pre-existing regulatory defects. A property sale agreement typically obliges the seller to procure and hand over electrical, gas, beetle, plumbing and (where applicable) water-meter compliance certificates at the seller\'s cost. A construction contract typically requires the contractor to procure and hand over all machinery and installation compliance certificates at handover. A supply agreement typically warrants regulatory compliance, with indemnities for breach. Absence of a required certificate at handover is a material breach entitling the innocent party to suspend performance, claim damages, or in serious cases cancel the agreement.
Where this term lives in law
Occupational Health and Safety Act 85 of 1993
Sections: 7, 43
Governs employer and employee duties for workplace health and safety in South Africa.
Broad-Based Black Economic Empowerment Act 53 of 2003
Sections: 9, 10
Promotes economic transformation through broad-based black economic empowerment measures.
Frequently asked questions
What compliance certificates are needed when selling a house?
Standard practice requires an electrical CoC (compulsory under the Electrical Installation Regulations), a gas CoC if there is LP gas, an electric-fence CoC if installed, a plumbing certificate (required by some municipalities, e.g. Cape Town), and an entomologist's beetle certificate (coastal KZN and Cape areas).
How long is an electrical CoC valid?
Two years from issue, provided no alterations have been made to the installation. A new CoC is required on every transfer of ownership, even within the two-year window.
Who may issue a compliance certificate?
Only persons or entities accredited for the relevant scheme. Electrical: registered electrical contractor on the Department of Employment and Labour database. Gas: LPGAS accredited installer. B-BBEE: SANAS-accredited verification agency.
Is a B-BBEE affidavit a compliance certificate?
For EMEs and QSEs with 100% black ownership (or qualifying thresholds), a sworn affidavit in the prescribed form is deemed equivalent to a verification certificate for one year. Larger entities require a SANAS-accredited verification certificate.
What happens if a certificate is false?
Issuing a false certificate is a criminal offence under the relevant regulations (e.g. section 13 of the Electrical Installation Regulations). Relying on one negligently can expose the relying party to regulatory exposure and insurance void-ance.
Contract templates using this term
2 templates reference Compliance Certificate.