Pre-Qualification Criteria When Awarding Tenders

On June 14 2016, the Draft Procurement Regulations 2016 were released for public comment. One of the new Regulations that will certainly have an effect on the awarding of tenders is the “Pre-qualification criteria” that is stated in paragraph 10 which states the following criteria:

a.     The tenderer must have a stipulated minimum B-BBEE status level of contribution;

b.     The tenderer must sub-contract at a minimum of 30 per cent of the value of the contract to one or more:

Important Evaluations Before Responding to a Tender

Although bidding for a tender can be attractive, not all tenders will suit your criteria, experience and expertise. It is not wise to quickly jump into responding to any tender that you come across. An objective decision must be made as to whether or not to bid for a tender.

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... Read More
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