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.
Ercp Guidewire 0.035mm Diameter And 450cm Length, Nitinol With Teflon Coating 2018-10-23 11:00 ZNQ NO.3101/ 09/ 18
Triple Lumen Short Exchange Needleknife With Short Exchange Sysytem, Accepts 0.035mm Guidewire 2018-10-23 11:00 ZNQ NO.3102/ 09/ 18
Ercp Short System Stent Delivery System 10 French Diameter 2018-10-23 11:00 ZNQ NO. 3103/ 09/ 18
Male General Orderly Shirts and Trousers Khakhi, List Of Male General Orderly Names And Sizes Will Be Attached On Document 2018-10-23 11:00 ZNQ NO.3125/ 09/ 18
Ercp Cannula Long System Exchange, Must Accept 0.035mm Guidewire, 450cm Long Cannula, Allows For Contrast And Wire Insertion 2018-10-23 11:00 ZNQ NO.3331/ 09/ 18
Spinal Needle 18g X 40mm 2018-10-23 11:00 ZNQ NO.4650/ 01/ 18
Medium Ice Brick, Dimensions 320x260x150mm, Must Be Constructed From A Durable Rigid Plastic Material 2018-10-23 11:00 ZNQ NO.2407/ 08/ 18
Non-Slip Washable Surgical Clogs, Must Be Fully Autoclavable At 134 Degrees Celcius, Must Be Thermoplastic, Sizes 4-14 (1 Per Size) Please Provide Sample With Quote 2018-10-23 11:00 ZNQ NO.941/ 05/ 18
Repairs to Faulty Access Control System at Medical Admitting ward (Maw) 2018-10-23 11:00 ZNQ NO.2817/ 08/ 18
Spring Loaded Silo Size 3, Size 4.5, and Size 6 2018-10-23 11:00 ZNQ NO.1626/ 06/ 18
Size 11 Scalpel Blade On Handle (Disposable) 2018-10-23 11:00 ZNQ NO.1899/ 07/ 18
Leather Finish, Black Executive High Back, Height Adjustable Chair On Wheels, Removable Arm Rests -Provide Picture Of Item With Quote 2018-10-23 11:00 ZNQ NO.2339/ 08/ 18
V-Loc Sutures 90 Undyed 4/0 26mm 1/2 Circle 2018-10-23 11:00 ZNQ NO.2369/ 08/ 18
Identification Tape For Instruments. Must Be Non -Sterile And Be 5mm Wide X 10metres Long 2018-10-23 11:00 ZNQ NO.2406/ 08/ 18
Thermometer, Must Be Easily Readable, Must be able to be Submerged In Boiling Water Without Sustaining Damage, Must Be able to Read from 0 Degrees Celcius -100 Degrees Celcius 2018-10-23 11:00 ZNQ NO.2411/ 08/ 18
Pasteurization Glass Jar Bottles, Must Have a 48mm Single - Thread Closure & Have a Volume of 125mls 2018-10-23 11:00 ZNQ NO.2414/ 08/ 18
Pasteurization Glass Jar Closure Lid, Must Have a 48mm Single Thread Closure, Must Be Made of Metal With Plastisol and Be able to Be Gas Sterilized at 55 Degree Celcius 2018-10-23 11:00 ZNQ NO.2415/ 08/ 18
Supply Master Class Deluxe Fridge Thermostat: Type Stainless Steel Analogue Ranges From +30deg To -30deg, Please Provide Sample With Quote. 2018-10-23 11:00 ZNQ NO.2488/ 08/ 18
Stomach Tube, Non Toxic, Non Pyrogenic Sterile, Length 4.9 Inch, Ch/Fr 28 Single Use 2018-10-23 11:00 ZNQ NO.2467/ 08/ 18
Straight Hand Piece With External Irrigation For Dental Surgery - Bien Air (Swiss Made) Pm 1:1 Without Light, Direct Ration, Interchangable Sleeves With/Without Irrigation Tubes, Locking Ring. 2018-10-23 11:00 ZNQ NO.2478/ 08/ 18

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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