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 www.how2tender.com or for more information on the How-to-Tender workshops please email us at werner@how2tender.com

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

Title Closing Date Tender No.
To Appoint a Law Firm to Provide Legal Services in Labour Relations Law And Related Litigation for Emfuleni Local Municipality 2019-03-08 11:00 COGTA 4/ 2/ 2- 2018/ RFP/ 03
Appointment of a Service Provider to be subcontracted by DAFF to conduct the analysis of following drug residue in aquaculture finfish for the period of 12 Month 2019-02-22 11:00 RFQ 000317
Box Files 2019-03-08 11:00 10398710
Document Storage Boxes 2019-03-08 11:00 10398742
Appointment of a Service Provider to be subcontracted by DAFF to provide maintenance plan for Liquid Chlomatography - Mass Spectrometry (LCMS) Matchine that is used for biotoxin testing on shellfish 2019-02-22 11:00 RFQ 000316
SCMU 17 – 2018/19: Supply & delivery of beef breeding animals for Joe Gqabi District Municipality for Livestock Commercialisation Project. 2019-03-08 11:00 SCMU 17 – 2018/19
SCMU 16 – 2018/19: Supply & delivery of beef breeding animals for Chris Hani District Municipality for Livestock Commercialisation Project. 2019-03-08 11:00 SCMU 16 – 2018/19
Appointment of a Preffered List of Suppliers to Conduct Airborne Magnetic Gradiometer and Radiometric Surveys for the Council for Geoscience for a period of three years 2019-03-15 11:00 CGS- 2018- 049A
SCMU 15 – 2018/19: Supply & delivery of beef breeding animals for Sarah Baartman Municipality for Livestock Commercialisation Project. 2019-03-08 11:00 SCMU 15 – 2018/19
Appointment of a Panel of Attorneys 2019-03-11 11:00 CGE18/ 2018/ 19
SCMU 14 – 2018/19: Supply & delivery of beef breeding animals for Amathole District Municipality for Livestock Commercialisation Project. 2019-03-08 11:00 SCMU 14 – 2018/19
Appointment of a Security Service Provider to Provide Gaurding Services at Mitchells Plain Cape Town for a Period of Two (02) years with an Option To Renew 2019-03-11 11:00 33/ FIN/ 2019
Bid Specification: Maintenance of Security & OHS Systems for Cape Town Regional Office for a Five (5) Years Period. 2019-03-20 11:00 RAF/ 2019/ 00004
Procurement of Water stops for the Raising of Clanwilliam Dam. 2019-03-20 11:00 DWS02- 0219WTE
Cleaning and clearing of vacant properties Framework Agreement for a period of three (3) years 2019-03-19 11:00 S115/ 18
Western Cape: Framework Contract for General Cleaning of Office Space over a period of thirty six (36) months 2019-03-20 11:00 S116/ 18
NDPW: Randfontein Magistrate Court, c/o Pollock & Sutherland street: Rendering of cleaning services for a period of 24 months (EPWP) 2019-03-12 11:00 JHB.18/ 54
The Procurement and hire, supply and delivery of Formwork to Clanwilliam for 52 months. 2019-03-20 11:00 DWS01- 0219WTE
Specialist Electrical and Mechanical Contractor to Provide Electrical and Mechanical Infrastructure Support, Critical Repairs and Material for a Period of 36 Months to SITA Pretoria Sites 2019-03-07 11:00 RFB 1886- 2018
SANParks invite prospective bidders to submit offers for the Upgrade of Seer Reticulation at the Veterinary Wild Services in Kimberley, Northern Cape Province Contractors who have a contractor grading designation equal to or higher than 3CE class of construction work and Joint Ventures are eligible to submit tenders. 2019-03-12 11:00 CI- KY- 0005/ 1

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Tender Site Visits

By Werner van Rooyen

www.howtotender.co.za

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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