Issue Date: 
Tuesday, July 31, 2018

3 Sub-contracting rules to be aware of when responding to tenders

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting, due in large part to The Preferential Procurement Regulations, 2017 that has been implemented on the 1st of April 2017. Many entrepreneurs ask us whether they should sub-contract or not, in responding to a tender and how and where do they get onto the sub-contracting lists.

There are 3 sub-contracting rules in the Preferential Procurement Regulations 2017 that Organs of State can/must apply when issuing tenders to the general public.

The first Regulation is Regulation 4 which state inter alia: if an Organ of State decides to apply pre-qualification criteria to advance certain designated groups that Organ of State must ADVERTISE the tender with a specific tendering condition that certain bidders can or may respond.

The second Regulation is Regulation 9 which state inter alia: if it is feasible to sub-contract for a contract above R30 million, an Organ of State must apply sub-contracting to advance designated groups.

The designate groups mentioned in both Regulation 4 and 9 are Black Owned Enterprises with 51% or more black ownership and any of female Black owned, youth black owned, black people with disabilities owned or black military veterans owned enterprises.

The third sub-contracting rule has to do with sub-contracting after the award of the tender. Regulation 12 states inter alia: (3) a person awarded a contract may not subcontract more than 25% of the value of the contract to any other enterprise that does not have an equal or higher B-BBEE status level of contributor than the person concerned, unless the contract is subcontracted to an EME that has the capability and ability to execute the subcontract.

The tender document will dictate how you should or should not sub-contract. Read the tender document carefully; follow the instructions precisely and to the point. Organs of State are applying these Regulations rigorously and failing to comply will lead to your tender response being disqualified.

Tender trends and Regulations are changing frequently. To keep up to date with these changes we recommend attending one of our How-to-Tender workshops that are presented across South Africa. Tender Workshop dates are published on our website at or for more information on the How-to-Tender workshops please email us at

This article was written by Werner van Rooyen, Director of HowToTender which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Request for Internal Audit and Risk Management Services at the National Department of Health (Ndoh) Inclunding It’s Trading Entity (Compensation Commissioner for Occupational Diseases (Ccod)/ Medical Bureau for Occupational Diseases (Mbod) with Suitable Auditing and Accounting Service Provider 2019-05-27 11:00 NDOH 02/ 2019- 2020
Tenders are hereby invited for the supply & delivery pipe fitter hand tools. 2019-06-03 11:00 WCC- PIPE FIT HAND TOOLS- 2019
ZNTD 03944W: WIMS 063518: Kwazulu-Natal: Department of Education: Tongaat: Qhubakahle Primary School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03944W
ZNTD 03884W: WIMS 063945: Kwazulu-Natal: Department of Education: Kwamashu: Sakhisizwe High School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03884W
ZNTD 03871W: WIMS 063903: Kwazulu-Natal: Department of Education: Ndwedwe: Sukhumuzi Primary School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03871W
ZNTD 03858W: WIMS 063917: Kwazulu-Natal: Department of Education: Stanger: Nsongansonga Primary School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03858W
ZNTD 03894W: WIMS 063663: Kwazulu-Natal: Department of Education: Ndwedwe: Ntathakusa Primary School: Water and Sanitation: Phase 3 2019-06-21 11:00 ZNTD 03894W
Appointment of a Service Provide to Provide Additional Licenses for Addm Discovery Application, Maintenance and Support with Professional Services for a Period of Three (3) years 2019-06-07 11:00 RFB 1944/ 2019
Supply of hardware support and license renewals for the F5 Load Balancers used at the Government Pensions Administration Agency for a period of thirty-six (36) months 2019-06-07 11:00 RFB 1927/ 2019
Renewal of OpenText Content Server (EDMS) software, Contract Management, Electronic Signature, OpenText Everywhere, Tempo Social and Tempo Box licenses including maintenance and support for a period of three (3) years 2019-06-07 11:00 RFB 1932/ 2019
Appointment of a service provider for the Supply, Installation and Configuration of an Enterprise AV (anti-virus) Solution for the Gauteng Department of Education (GDE) schools with maintenance and support for a period of three (3) years” 2019-06-07 11:00 RFB 1931/ 2019
SANParks invite prospective bidders to submit offers for Black Rhino 2019-06-06 11:00 BRS- 001- 2019
Procurement of an Asset Management Company from date of appointment until 31 March 2020. 2019-06-07 11:00 RFP/ SASSETA/ 201819134/ 1
Appointment of experienced Service Providers with a verifiable track record and accredited for the delivery of a range of skills programmes, across the Northern Cape province in various localities 2019-06-06 11:00 NCEDA19/ 01
ZNTD 03940W: WIMS 063515: Kwazulu-Natal: Department of Education: Tongaat: Nondabula Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03940W
Appointment of a Bidder to Provide Hygiene Care Services in Order to Maintain Hygiene in all of the Restroom Facilities, Watercoolers, and Satellite Kitchens In The Building For Five Years 2019-06-07 11:00 NRF/ RISA B&M/ 001/ 2019- 20
ZNTD 03842W: WIMS 063613: Kwazulu-Natal: Department of Education: Umlazi: Intinyane Primary School: Water and Sanitation: Phase 3 2019-06-21 11:00 ZNTD 03842W
Request for Proposal: Appointment of Suitable Service Provider to Implement The Women Empowerment Programme for a period of two (02) years 2019-06-07 11:00 NHBRC 01/ 2019
ZNTD 04074W: WIMS 065113: Kwazulu-Natal: Department of Education: Stanger: Mvumase Primary School: Water and Sanitation: Phase 3 2019-06-21 11:00 ZNTD 04074W
ZNTD 04019W: WIMS 064695: Kwazulu-Natal: Department of Education: Phoenix: Skylark Primary School: Eradication of woodborer and lice 2019-06-24 11:00 ZNTD 04019W


Tender Site Visits

By Werner van Rooyen

31 January 2019

If you are so fortunate to have reached the stage where Organs of State or Private Sector Companies want to do a site visit, you must know that you are in the final stage in winning that tender that you have responded to.

But what must you do to prepare for a site visit?

The first thing is to ensure that your place of business is in excellent order. Be sure everything is clean and neat. A clean workshop or office is a pre-... Read More

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