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: 

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.
Invitation of bids for the appointment of a service provider to render Security Services in Polokwane Regional Office for a period of 24 months 2018-01-05 11:00 DMR/ 017/ 2017/ 18
Appointment a service provider to supply and deliver animal fodder: baled lucerne, grass and straw, as and when required over a period of one (1) year to the National Zoological Gardens of South Africa, Pretoria. 2017-12-15 11:00 NRFNZG- 026- 2017/ 18
Supply: 400 liter x fuel;two stroke mixture;5l 2017-11-28 16:00 GC11800361
Window curtains for cubicles L 70 W 119 specification is attached 2017-12-01 11:00 ZNQ 124 / 2017/ 2018
Supply airfreshner;Liquid;5L 2017-11-28 16:00 GC11800363
Diagnostic Audiometer x 1 Unit 2017-12-08 11:00 17/ 11/ 17
Lung Function Machine -Portable x 1 Unit 2017-12-08 11:00 18/ 11/ 17
Portable Medical Vein Finder -illumination system x 1 Unit 2017-12-08 11:00 19/ 11/ 17
Supply: tyre polish - type: liquid silicone 2017-11-28 16:00 GC11800364
05 Units, Non-Particulate homogenous hydrogel urethral bulking agent 2017-12-04 11:00 ZNQ: 954/ 17/ 18
Each, Tubing silicone size 194 (1.5mm x2.00mm x15m) 2017-12-04 11:00 ZNQ: 935/ 17/ 18
Each, Tubing silicone size 194(1.47mm x1.96mm x15m) 2017-12-04 11:00 ZNQ: 933/ 17/ 18
Appointment of a service provider for the roll out and management of biometric learner attendance monitoring system. 2018-01-31 11:00 013- 2017/ 2018
Each, Tube Ryles, Gastro Duod. PVC size 16F.105cm 2017-12-04 11:00 ZNQ: 918/ 17/ 18
Rendering of physical security at Potchefstroom Labour Centre for a period of 24 months 2018-01-05 12:00 POTCH- LNW- 11/ 2017
Each, Tube Ryles, Gastro Duod. PVC size 14F.105cm 2017-12-04 11:00 ZNQ: 917/ 17/ 18
Each, Tube Ryles, Gastro Duod. PVC size 8F.105cm 2017-12-04 11:00 ZNQ: 914/ 17/ 18
Rendering of Physical Security Services at Klerksdorp Labour Centre for a period of 24 month 2018-01-05 12:00 KLD- NW- 11/ 2017
Each, Tube Ryles, Gastro Duod. PVC size 10F.105cm 2017-12-04 11:00 ZNQ: 915/ 17/ 18
Repairs to kitchen equipment. Specifications will be available with tender documents. 2017-12-05 11:00 ZNQ 483/ 17 - 18 GAZ


Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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