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 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.

Finding Sub-contractors

These categories are:

  • Black female owned EME's or QSE's;
  • Black youth owned EME's or QSE's;
  • Black owned EME's or QSE's.

After the Preferential Procurement Regulations were gazetted there is a need for businesses to find sub-contractors.

But where are businesses, which respond to tenders, going to find sub-contractors? We have thought about this and one answer is at Briefing Sessions.

Sub-contractors versus Consortiums and Joint Ventures

The Preferential Procurement Regulations, 2017 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.

Tenders and Subcontracting

Tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so commonly placed that in South Africa there are specific rules regulating subcontracting in executing tenders. This is especially true for South African Government tenders.

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Title Closing Date Tender No.
The supply and delivery various sizes of Ferrules. 2018-09-21 10:00 PTB1360
Provision for power transformer testing services at various sites for a period of 36 months as and when required basis. 2018-09-21 10:00 ERI/2018/TSS/01
Provision for power transformer testing services at various sites for a period of 36 months as and when required basis. 2018-09-21 10:00 ERI/2018/TSS/01
Maintenance to service roads, fencing and surfaces on an as & when required basis within a period of 24 months. 2018-10-02 10:00 KBY/54318
Supply and delivery of 2 (Two) 2.5 Litre Double Cab Ldvs With Canopy From an accredited Motor Vehicle Dealer 2018-09-04 12:00 BS22/07/2018
The University of South Africa invites tenders from suitably qualified service providers to provide the University with international courier services for a period of three years. 2018-09-03 12:00 PT2018/12
Re-design the existing human capital function in support of the DBSA Growth & Transformation agenda. 2018-09-10 11:00 RFP124/2018
Supply and delivery of 1(one) x TLB with Minimum Engine Gross Power (SAE) Of 29.1 Kw from an accredited Motor Dealer 2018-09-04 12:00 BS19/07/2018
Evaluation of the Global Fund Community Systems Strengthening Programme. 2018-09-10 08:30 None provided
Reconstruction of Stage Floor at Eric Jiyane Community Hall, Mhluzi 2018-09-05 12:00 BS23/07/2018
Request for proposals for total replacement of 22 lifts in the University. 2018-09-14 10:00 RFPSMU/008/2018
Request for proposals for upgrading of electrical substation and electrical cabling. 2018-09-14 10:00 RFP SMU/006/2018
Appointment of a Suitable Service Provider to Conduct Research on Tracking and Tracing of Learners who Completed TETA- supported Workplace-based Learning - WBL Programmes (Learner ships, Internships and apprenticeships) in the financial year 2016/2017. 2018-09-07 11:00 TETA18/RESEARCH/0005/WBL
Construction of Storage for Hazardous Material at Electrical Department Store, Service Centre (Magasyn), Middelburg 2018-09-05 12:00 BS24/07/2018
Request for Proposals for the Appointment of a Suitable Service Provider to Conduct a Tracer Study on ‘Teta-funded Pilots within Aviation for the Period of NSDS III (2011-2017) 2018-09-07 10:00 TETA18/RESEARCH/0004/TRACER
BBBEE Verification Agency 2018-08-28 12:00 030/2019
Supply Calcium hypochlorite 2018-08-23 16:00 GC11900071
Supply: Medical supplies 2018-08-28 15:00 GF11900120
Hiring of Water Tanker for Regravelling of Gravel Roads at Bethal and Emzinoni for 30 days 2018-08-27 12:00 RFQ NO: 8/3/2- 62/2018
Hire of a 20 Ton Excavator for Bellville South Landfill. 2018-08-28 09:00 WJ11900109

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10 steps in the bid process

Each year, Organs of State invite the Private Sector to submit competitive bids for the supply of goods and services. Organs of State bid requests attract SMME's and large businesses across a wide range of sectors - from office supplies to major construction projects.

Here is an overview of 10 steps you should take to prepare a competitive bid.

1.    Register your interest

Follow the instructions in the bid document to register your interest with the purchasing agency. This important step will help keep you up to... Read More

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