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.
Supply and Delivery of Various PPE to Vryheid and Empangeni 2019-01-17 10:00 ERAC-RCB-28465-TM011
Supply Dio Cards for HR97 Actom interlocking system at Bridge City 2019-01-18 10:00 PR 10293928
Supply Dio Cards for HR97 Siemens interlocking system at Kwa Mnyandu 2019-01-18 10:00 PR 10293927
Removal of old and the supply and fitting of new car port roof covering 2019-01-18 12:00 408/2018/19
Removal of old and the supply and fitting of a new sliding gate motor at the Electrical Engineering offices in George Rex Drive. 2019-01-18 12:00 409/2018/19
Supply and delivery of HTH chlorine granules and tablets 2019-01-18 12:00 258/2018/19
Provision of asset valuation services 2019-01-18 12:00 RFP KGFT 2019/001
Invitation to tender for sub contract for the repairs of the electrical and street lighting installation at Umgeni interchange on National Route 2, Section 25 2019-02-07 14:00 X004-034-2015/1
Provision of External Audit services 2019-01-18 11:00 RFP19219
Appointment of a service provider for provision of temporary staff for the FY 18/19 annual year end archives stock count as a once off project. 2019-01-18 12:00 RFQ/TV/2018/136
Organisation Review: Refinement and finalisation 2019-01-21 11:00 503
Anti corruption hotline service for a period of 3 years 2019-01-21 16:00 RFQ 42143
Repair of conveyor system 2019-01-23 11:00 RFQ B 1901 W
Repair of roller doors 2019-01-23 11:00 RFQ B 1902 W
Town and regional planning service provider for a period of 4 months 2019-01-23 16:00 RFQ 41934
Supply, delivery, installation and commissioning of pumps and accessories for waste water pump stations in Midvaal Local Municipality as and when required (2019- 2021) 2019-01-29 09:00 BID 8/2/2/206(5ME)(2019-2021)
Leadership Development for Executive Managers in Operations at Parktown on an “as and when required” basis for a period of one (01) year with an option to extend for one (01) year. 2019-01-29 10:00 RFQ: HOAC-HO-28520
Heidelberg: Installation of Relay room safe doors at Fortuna station, Sprucewell and Firham. 2019-01-29 10:00 RFQ SIM 18023 CIDB
Panel of Recruitment Agencies 2019-01-30 11:00 501
For creating and maintaining the transnet vendor, materials, services master data and structured text generator/structured text analyser within the Transnet Content Bureau on an as and when required basis for a period of three (3) years 2019-01-30 12:00 GSM 18/10/1695


Two types of Joint Ventures and Joint Venture agreements 

By W van Rooyen


The structure of the joint venture should set out the nature of your partnership. There are two main types of agreements:

  1. If the joint venture is a business in its own right, it will be an incorporated joint venture. This type is not... Read More
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