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.
Employee health wellness services 2019-03-08 11:00 RFB 011 2018 2019
Paper; ultra white; multi purpose; for use on all office equipment; 80 GSM; 297mm lg x 210 mm w; A4; 500 sheets per ream. 2019-03-12 11:00 SPSC- B- 068- 2018
Supply and delivery of Pota Squid.....1000kg/1Ton 2019-02-22 11:00 RFQ000315
Appointment of a service provider to supply and deliver a Hyperspectral scanner to the Council for Geoscience. 2019-03-19 11:00 CGS- 2018- 047K
The Regravelling of D1051 ( 0- 3km ) In IXopo Area Office - Grade 3CE 2019-03-18 11:00 ZNT373T/ 3/ 3/ 434/ 4862/ 2018
Regravelling of D1101 from ( 0 - 6.8 km ) in the IXopo Area Office - Grade 3CE 2019-03-18 11:00 ZNT373T/ 3/ 3/ 434/ 4863/ 2018
Regravelling of L1884 from km 0 to km 3.4 in the IXopo Area office -Grade 3CE 2019-03-18 11:00 ZNT373T/ 3/ 3/ 434/ 4861/ 2018
Procurement of miniature substation 2019-03-11 12:00 NOTICE 22/2019
Supply and delivery of new backhoe loaders for three years 2019-03-18 12:00 NOTICE 19/2019
Supply and delivery of personal protective clothing 2019-02-28 12:00 KLM2018/19/013
Soil testing Services for Taweni Access road 2019-03-07 12:00 IHLM/88/01/2018-19/TS
Provision of the following services: Behavioural change and communication in Mozambique to support our efforts towards malaria elimination 2019-03-15 12:00 TTM201902
Supply, delivery, installation, maintenance and financing of office automation equipment for 3 year period 2019-03-04 14:00 SCM 18/2019
Provision of consultancy services for the selection and implementation of an enterprise resource planning (ERP) system at the headquarters of the ECCAS secretariat (Libreville-Gabon) 2019-02-27 14:30 21/NPCA/OCEO/CDD/QCBS/2019
Call for Proposals: Project Evaluation: Adolescent Sexual and Reproductive Health and Rights (ASRHR) Project 2019-02-25 12:00 No reference number
Request for information: Insurance system 2019-03-01 10:00 T07/02/19
Construction of a New 2m High Vibracrete Fence at Sedgefield Municipal Depot 2019-02-26 12:00 329/2018/19
Proposal for catering services at Wildlife College located at Vaalkop Dam (Labohem) 2019-03-07 11:00 NWPB/RFP/PCWCVALL/009/2019
Insurance of Contractors and Labour Broking Services 2019-03-11 11:00 DLS150647
Term Tender for the Supply and Maintenance of road Traffic Signs 2019-03-19 10:00 255Q/2018/19

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8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures.

There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or... Read More

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