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

According to the Draft Preferential Procurement Regulations, 30% of all Government Contracts above R30 million must be sub-contracted to specific categories of SMME’s. 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.

Once the new Regulations are gazetted there businesses will need to find sub-contractors to fill this requirement.

Sub-contractors versus Consortiums and Joint Ventures

Tenders and subcontracting

Did you know tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so common in South Africa that there are specific rules regulating subcontracting in executing tenders especially Government tenders.


Title Closing Date Tender No.
Appointment of a service provider for provision of Management Information System (MIS) services and related services to the Chemical Industries Education and Training Authority for a period of Twenty-Four (24) months on the 80/20 PPPFA, as amended 2018-06-15 11:00 CHIETA- MIS- 02- 2018/ 19
Cleaning of Gardens and Grounds at KwaZulu Central Provincial Laundry for (6) Six Months 2018-06-08 11:00 ZNQ 056/ 2018- 16K
Supply and deliver and install bulk vaccine fridge minus 40. Suppliers must be appointed as service, repairs, commissioning and sales agents to all minus 40 Refrigeration and equipment. Letter must attached. 2018-06-01 11:00 ZNQ 545/ 2017
Upington Statistics South Africa: Alternative office accommodation: 454.55m² and 15 parking bays for a period of 5 years 2018-06-27 11:00 LS02/ 2018
Canteen Services 2018-06-22 11:00 RFB 005 2018 2019
Kuruman Public Protector: Alternative office accommodation: 215.91m² and 6 parking bays for a period of 5 years 2018-06-27 11:00 LS03/ 2018
Major service to medical waste container. 2018-06-01 11:00 ZNQ 112/ 2018
Request for Proposal to Render Cleaning Services to The Northern Cape Provincial Treasury For the Period of 36 (thirty six) months 2018-06-15 11:00 BID NO: NCPT/ 02/ 2018
Appointment of a legal firm of conveyancer to do the transfer of immovable properties from Nkandla, Big Five Hlabisa and Endumeni Local Municipalities to KZN provincial government. 2018-06-22 11:00 ZNT16/ 17/ 18
Major service to air particle count theatre –companies must be registered on CIBD (2ME) 2018-06-01 11:00 ZNQ 116/ 2018
Request for Proposal to Render Cleaning Services to The Northern Cape Provincial Treasury For the Period of 36 (thirty six) months 2018-06-15 11:00 BID NO: NCPT/ 02/ 2018
Supply and Deliver two (02) x Spreader: Chips self propelled: 4x4 2018-06-28 11:00 R/ M 61/ 2018
Request for Proposal for The Provision of Security Services to the Northern Cape Provincial Treasury For the period of 36 (thirty six) months 2018-06-15 11:00 BID NO: NCPT/ 03/ 2018
20 rolls x casement cloth 50m x 158cm width. (see description for colours and quantities) 2018-06-06 11:00 ZNQ 105/ 18
Annual service of Theatre Lights. 2018-06-08 11:00 H94/ 18/ 19
150 units - straight fitting Connex - 54mm 2018-06-06 11:00 61/ 18
Servicing of Infrared testing on electrical installation in 6 Clinics 2018-06-08 11:00 C22/ 18/ 19
Annual service of Theatre UPS. 2018-06-08 11:00 H93/ 18/ 19
Dental laboratory service for Orthodontic 2018-06-04 11:00 ZNQ 195 of 18/ 19
Annual service of Earth monitoring equipment around the institution 2018-06-08 11:00 H103/ 18/ 19


Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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