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 South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of consulting engineering services for the new ring road on National Route N2 Section 17 around Butterworth 2019-11-08 14:00 SANRAL N.002- 170- 2020/ 1F
Invitation for bids to evaluate the implementation of the finance linked individual subsidy programme ( FLISP ) 2019-11-15 11:00 HS 01/ 2019/ 2020
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Reseal Of N2 Section 16 From Mooiplaas (Km 49.9) To Komga T-Junction (Km 70.2). 2019-11-01 14:00 SANRAL N.002- 160- 2018/ 1F
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Upgrade on National Route R75 Section 2 from Uitenhage (km 5.0) to Kirkwood (km 31.0) 2019-11-01 14:00 SANRAL R.075- 020- 2017/ 1F
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Upgrade On National Route R410 Section 1 (Km 0,0 to Km 37,74) to Section 2 (Km 0,0 to Km 3,0) From The R392/R410 T-Junction To Lady Frere. 2019-11-01 14:00 SANRAL R.410- 012- 2018/ 9F
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of consulting engineering services for the new ring road on National Route N2 Section 17 and 18 around Dutywa 2019-11-08 14:00 SANRAL N.002- 178- 2020/ 1F
Provision of specialised psychiatric security services at Fort England Hospital, Grahamstown in the Eastern Cape for period of thirty six months (36) 2019-11-15 11:00 SCMU3- 19/ 20- 0267- FEH
iSimangaliso Wetland Park Authority, a schedule 3A public entity invites suitably qualified service providers to bid for the construction and rehabilitation of roads situated in the Bhanganek section of the iSimangaliso Wetland Park, Kwa-Zulu Natal 2019-11-11 16:00 RFP NUMBER: 13/ 2019
iSimangaliso Wetland Park Authority, a schedule 3A public entity invites suitably qualified construction service providers to bid for the construction and refurbishment services of iSimangaliso Dredger Harbour Offices, in the St Lucia section of the Park 2019-11-11 16:00 RFP NUMBER: 10/ 2019
iSimangaliso Wetland Park Authority, a schedule 3A public entity invites suitably qualified service providers to bid for the construction and rehabilitation of roads and Parking area in the Sodwana Bay section of the iSimangaliso Wetland Park, Kwa-Zulu Natal. 2019-11-11 16:00 RFP NUMBER: 17/ 2019
iSimangaliso Wetland Park Authority, a schedule 3A public entity invites suitably qualified service providers to bid for the construction and rehabilitation of roads situated in the Mabibi section of the iSimangaliso Wetland Park, Kwa-Zulu Natal 2019-11-11 16:00 RFP NUMBER: 11/ 2019
Supply and deliver physical science kits for 60 MST schools to address the grades 10-12 curriculum & assessment policy statement 2019-11-08 11:00 BWCED 2543/ 19
iSimangaliso Wetland Park Authority, a schedule 3A public entity invites suitably qualified service providers to bid for the construction and rehabilitation of roads situated in the Kosi Bay section of the iSimangaliso Wetland Park, Kwa-Zulu Natal. 2019-11-11 16:00 RFP NUMBER: 12/ 2019
iSimangaliso Wetland Park Authority, a schedule 3A public entity invites suitably qualified service providers to bid for construction and rehabilitation of roads situated in the Maphelane section of the iSimangaliso Wetland Park, Kwa-Zulu Natal. 2019-11-11 16:00 RFP NUMBER: 15/ 2019
The Province of KwaZulu-Natal, Department of Transport, invites tenders from Established Contractors, experienced in bridge construction, for The Completion of Nkunzi Bridge No. 175 on D2404 in the Ladysmith Area. 2019-11-07 11:00 ZNT 0008/ 19T
Renovation at East London National Health Laboratory Service (NHLS) Labs 2019-10-28 11:00 RFB087/ 19/ 20
Supply, pack and deliver 32 natural science and technology (NST) kits (1 kit of 127 items) and 25 NST kits (1 kit of 6 items) addressing grades 4 to 7 across the eight (8) WCED districts. 2019-11-08 11:00 B/ WCED 2537/ 19
iSimangaliso Wetland Park Authority, a Schedule 3A Public Entity invites suitably qualified construction service providers to bid for the Structural Refurbishment and Development of a resort at Charters Creeks, in the iSimangaliso Wetland Park, Kwa-Zulu Natal. 2019-11-11 16:00 RFP NUMBER: 18/ 2019
iSimangaliso Wetland Park Authority, a Schedule 3A Public Entity invites suitably qualified construction service providers to bid for the construction and refurbishment services of iSimangaliso Dredger Harbour Offices, in the St Lucia section of the Park. 2019-11-11 16:00 RFP NUMBER: 10/ 2019
FS194 - Maluti a Phofung Local Office Accommodation 2019-11-01 11:00 IEC/ FS- 02/ 2019

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8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures.

There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or... Read More

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