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.


Title Closing Date Tender No.
Quality Assurance Training for Drone Operations. 2018-08-24 14:00 SL1190016A
Printing- Warrant notice books. 2018-08-23 12:00 SD11900120
Supply Jackets 2018-08-28 10:00 GA11900142
Supply: Cartridge; lexmark; 54g0h00; black 2018-08-20 11:00 GM11900093
Supply: Fire blankets 2018-08-22 10:00 GA11900144
Supply, Deliver & Offloading of Transformer Doors 2018-08-21 11:00 No Reference
Supply Hawkins Poer 10 battery charger (1) &Lemania battery booster le2422t (1). 2018-08-21 12:00 GD11900197
Provision of Establishment of Legal Services Approved List for a period of 3 Years. 2018-09-07 12:00 QLT CON 001/2018
Provision of Employment Relations Services of 2 Years. 2018-09-07 12:00 HCM CON 002/2018
Nissan 2700 Diesel – Overhaul Engine – CW59832 2018-08-23 11:00 287249
Toyota Hilux 2.4d – Overhaul Engine – CW16205 2018-08-23 11:00 287250
Delivery of Laundry Services for Nekkies Lake Chalets August 2018 - 2019 2018-08-23 11:00 286239
Transformer oil analysis for Steenbras power station. 2018-08-24 14:00 SG11900007
Supply A4 gift bag - 1 colour 2018-08-22 12:00 GL11900099
Supply & Delivery of Protective Clothing 2018-08-31 12:00 SCM/2019/69/FIN
Hosting a GETC: Ornamental Horticultural Level 1 Learnership. 2018-08-23 09:00 SP11900040
Bids are hereby invited from suitable and competent civil engineering contractors for the construction of the following works: Mount Fletcher Infrastructure Programme (Package Order No. 1), Construction of Road 2. 2018-09-07 12:00 ELM-6/016/2016-2017/2
Cherry Picker Forklift Operator Training (Novice). 2018-08-23 09:00 SP11900057
Installation of Street-Lighting & Flood-Lighting in Various Areas for a Contract Period Ending 30 June 2021 2018-08-31 12:00 SCM/2019/22/ENG
Truck Mounted Crane Operator Training. 2018-08-23 09:00 SP11900056


7 Disadvantages of Competitive Bidding

The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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