Issue Date: 
Monday, August 1, 2016

Sub-contractors versus Consortiums and Joint Ventures

As mentioned in our previous article, Pre-Qualification Criteria When Awarding Tenders , the Draft Preferential Procurement Regulations states that 30% of all Government Contracts above R30 million must be sub-contracted to specific categories of SMME's. These SMME's include, but are not limited to, black female owned and black youth owned businesses. As soon as the new Regulations are gazetted there is going to be a need by businesses to do sub-contracting on a large scale.

In order to help with the confusion that arises from whether or not one must form a Joint Venture, Consortium or sub-contractor/contractor relationship when responding to a tender it is always good to understand the definition of these types of business relationships:

  • A sub-contractor/contractor relationship is when a main contractor hires or employs additional businesses or persons outside of his own business to do work or to deliver services as part of a larger project. The important thing to remember is that the main contractor is in charge and must ensure that the project is executed and completed as stipulated in the contract.
  • A consortium is an association of two or more individuals, companies or organisations with the objective of participating in a common activity, such as responding to a tender, or pooling their resources to achieve a common goal. Within the consortium, each participant retains their separate legal status and the consortium's control over each participant is generally limited to activities involving the joint endeavour, particularly the division of profits. A consortium is formed by contract.
  • A Joint Venture can be described as a business enterprise where two or more participants come together to share their expertise in order to win a specific contract for a set period of time. A Joint Venture is a separate entity and is not part of the individual participant's own enterprise. Therefor a Joint Venture must have its own set of rules by which it is managed and this is called a Joint Venture Agreement.

In order to become a sub-contractor you will have to have a running business. Main contractors will only use dependable sub-contractors with a proven track record.

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. Details can be found here: www.how2tender.com.

Learn to earn

Title Closing Date Tender No.
Atraumatic Graspers - 5mm - Length 36cm - Reusable 2017-08-01 11:00 ZNQ 524/ 17 - 18 GAZ
Curved Cutter / Stapler - Size: 3.0mm Length X 3.5mm Height 2017-08-01 11:00 ZNQ 523/ 17 - 18 GAZ
Modified Bipolar Vessel Sealing Device, Single Use -Small Jaw. as per Specification 2017-08-01 11:00 ZNQ 522/ 17 - 18 GAZ
Tubing, Latex (205) as per specification 2017-08-01 11:00 ZNQ 398/ 17 - 18 GAZ
Ligasure Impact Tissue Fusion - Open Instrument - Size: 13.5mm. as per specification 2017-08-01 11:00 ZNQ 355/ 17 - 18 GAZ
Catheter - Argyle - 40cm - Size 22g, as per specification 2017-08-01 11:00 ZNQ 299/ 17 - 18 GAZ
Patient Plate With Cable - Single Use. as per specification 2017-08-01 11:00 ZNQ 208/ 17 - 18 GAZ
Auto Suture Gia Premium 50mm X 3.8mm Loading Unit as per specification 2017-08-01 11:00 ZNQ 95/ 17 - 18 GAZ
Auto Suture Gia Premium 90mm X 3.8mm Loading Unit. as per specification 2017-08-01 11:00 ZNQ 94/ 17 - 18 GAZ
Sabs Approved Female Safety Shoes 2017-08-02 11:00 ZNQ: 257/ 2017/ 18
Appointment of a service provide to supply,deliver and install steel shelves to storeroom /archives/registry to the new and existing office blocks at 191-prince Alfred street building in Pietermaritzburg head office 2017-08-21 11:00 ZNT NO: 10/ 16/ 17
Postmasburg Dept of Labour: Alternative office accommodation: 475.00m² and 8 parking bays for a period of 5 years 2017-08-11 11:00 LS04/ 17
Calvinia Dept of Labour: Alternative office accommodation: 475.00m² and 9 parking bays for a period of 5 years 2017-08-11 11:00 LS05/ 17
Kimberley Dept of Water and Sanitation: Alternative office accommodation: 2930.68m² and 54 parking bays – for a period of 3 years 2017-08-11 11:00 LS03/ 17
Supply and Deliver Crepe bandage 100mm x 4.5m 2017-08-01 11:00 ZNQ: 200- 17/ 18
Supply and Deliver Bandage crepe 75mm x 4.5m 2017-08-01 11:00 ZNQ199- 17/ 18
Supply and Deliver single seat stainless steel chairs 2017-08-01 11:00 ZNQ: 189- 17/ 18
Supply and Install Diagnostic set wall mounted 2017-08-01 11:00 ZNQ: 193- 17/ 18
Supply and Deliver Abdominal Swabs Sterile X-ray detectable with loop. size 450mm x 370mm x 4 PLY 2017-08-01 11:00 ZNQ: 163- 17/ 18
Supply and Deliver: Portable Dental light with a carry bag 2017-08-01 11:00 ZNQ: 192- 17/ 18

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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