Issue Date: 
Tuesday, November 1, 2016

When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the contract to –
    • One or more of the categories:
      • EME’s (Exempt Micro Enterprises) or QSE’s (Qualifying Small Enterprises) owned by black people who are female;
      • EME’s or QSE’s owned by black people from the ages 14 to 35;
      • EME’s or QSE’s owned by black people;
      • EME’s or QSE’s owned by black people with disabilities)
    • One or more Exempt Micro Enterprises (EME’s) or Qualifying Small Enterprises (QSE’s); or
    • One or more small businesses, as defined in the National Small Business Act.
  2. If a successful tenderer sub-contracts to another person without disclosing it in its tender documents, the organ of state must penalise the tenderer 10% of the value of the contract, unless the tenderer submits a satisfactory reason for failing to make the disclosure.

The Regulations are very clear because its states “the tenderer MUST sub-contract…..”. Thus, once the Regulations are finally gazetted then all contracts with a value of R30 million and above will have to comply with this Regulation. Remember that currently (as of 31 Oct. 16) the Regulations are not finalized yet.

Until such time that the Regulations are finalized the answer is easy whether or not to sub-contract – look at the scope of the tender or the special conditions. Somewhere in the tender document it will stipulated whether or not the tenderer will have to sub-contract.  Follow those rules. If the tender document doesn’t contain any sub-contracting instructions (at this stage) then it is not necessary to do so.

The fact is that the tender document will dictate what you should or should not do. Read the tender document carefully and follow the instructions to the point.

To learn more about this and all the other new developments regarding tenders, attend one of the How-to-Tender workshops.

Learn to earn

www.how2tender.com

Title Closing Date Tender No.
Supply & install fire extinguishers 2017-10-25 12:00 SK11800149
Tenders are invited to provide Code 14 Drivers Training 2017-10-27 11:00 CSQ10171153
Supply: Valve 2017-10-25 14:00 GE11800590
Supply, deliver and install 42 INCH UV INK TUBE for HP5500 DESIGNJET(AO) PLOTTER 2017-10-27 11:00 CSQ10171147
Supply: Valve 2017-10-25 14:00 GE11800589
Provide monthly Media Monitoring Services for a period of 12 months 2017-10-27 11:00 CSQ10171152
Supply: 5 off 1730 x 1600 x 10mm bennox plates 2017-10-26 14:00 GE11800583
Supply and Delivery of Type 2 - PRE - CAST SUPPORT KERB 2017-10-27 11:00 GQ10171614
Supply and Delivery of Type 1 - PRE - CAST SUPPORT KERB 2017-10-27 11:00 GQ10171614
Supply and Delivery of PRE -CAST CANTILEVER BEAM 2017-10-27 11:00 GQ10171614
Mowing of Halls Recreation ans Parks, Area 3.5. 2017-10-27 14:00 SN11800372
Supply and Delivery of PRE -CAST FRAME BEAMS 2017-10-27 11:00 GQ10171614
Horticultural Maintenance Mowing at Manenberg Community Centre, Manenberg Bathhouse, The Downs Community Centre, Druiwevlei Comm & Sherwood Park Multi Purpose Centre. 2017-10-27 14:00 SN11800371
Request for proposals for sourcing of funding 2017-11-06 11:00 SCM 01/10/2017
Supply and deliver Electrical Cable - STRAL 25m2 x 3c + 54,6 N XLPE,insulated 600/1000v insulated NEUTRAL 2017-10-26 11:00 GQ10171613
Tenders are invited to service and maintain a Toc Analyser 2017-10-27 11:00 CSQ10171146
Horticultural Maintenance for Clarke Estate 2017-10-30 09:00 SN11800366
Tenders are invited to provide a five day Air Quality Management Training 2017-10-30 11:00 CSQ10171148
Erf clearing and removal of illegal dumping and nuisance on overgrown properties, within City of Cape Town - (Cape Town - AREA 1) 2017-10-30 12:00 SC11800023
Supply and Delivery of Panel Build Material 2017-10-30 11:00 GQ10171611

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
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.