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.

Pages

Title Closing Date Tender No.
Paving of internal streets at Agincourt 1B 2019-08-21 12:00 MIG/MP1681/RST/18/19
Paving of internal streets at Kildare 2019-08-22 12:00 MIG/MP1681/RST/18/19
Upgrading of internal streets at Acornhoek 2019-08-22 12:00 MIG/MP/1686/RST/18/19
Provision of waste management services to Denel SOC Ltd for a period of three (3) years 2019-08-14 12:00 DEN412/05/02/2019
Construction of the Archive and Academic Building at University of Mpumalanga 2019-09-03 12:00 NIT0070
Experienced traffic management service providers are invited to submit proposals for the traffic management system for the period of 3 (three) years. 2019-08-30 12:00 LIM473/traffic-management/19/20/003
Waterberg District Municipality Building Repairs and Maintenance 2019-08-20 11:00 WDM/2019/20-01
Supply, delivery and installation of shacks for the period of three (03) years. 2019-08-30 12:00 LIM473/shelters/ 19/20/002
Landscaping Services 2019-08-12 14:00 MAJV/ P14398/028
Consultancy service to develop an accountability framework for the CARMMA campaign 2019-08-06 15:00 AUC/DSA/C/012
Supply, delivery, installation and commissioning outdoor soundproof emergency standby generators including electrical installation at Goldfields Tosa and Welkom Campus. 2019-08-16 10:00 GTVETC/06/2019
Reinsurance Broking Services 2019-08-05 12:00 2019/19
Provision of IT equipment 2019-07-24 13:00 EWSETA/RFQ/24/2019
Provision for supply and installation of network cable 2019-07-29 13:00 EWSETA/RFQ/25/2019
Bids are hereby invited for the provision of electronic works maintenance – CCTV 2019-08-20 14:00 382-QAS-05-TEN-907467
Leasing of office accommodation for the Northern Cape Regional office preferably Kimberley, in a Central Business District(CBD) or surrounding areas for a period of 5 years with an option to renew for a further 5 years 2019-08-16 11:00 ICASA 12/ 2019
Fort Beaufort Prison: Minor Repairs & Renovations 2019-08-13 11:00 PE10/ 2019
Polokwane Magistrate Offices: Reconstruction of Office, Replacement of Generator, Fire equipment, Air Conditioners Damaged by fire 2019-08-13 11:00 H19/ 005 AI
Appointment of a service provider for the replacement of damaged floor boards and vinyl covering inside IMCI parkhome unit at Nseleni Community Health Centre. 2019-08-23 11:00 92 / 2019 - 2020
Appointment of service provider for the installation of HDPE subsoil drainpipes under the IMCI park - home unit at Nseleni Community Health Centre 2019-08-23 11:00 93 / 2019 - 2020

Pages

Tender Training

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

People often ask me how I know so much about tenders and the completing of tender documents. The answer is easy; training. I believe that we must always try to train as much as possible. The more training you will do the better you will get at responding to a tender. Gary Player, one of South Africa’s best golfers of all time, used to say: “The more I practice, the luckier I get.”

That is the whole point of training. The... Read More

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