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.
Provision of conference stationery and apparel for GOVTECH 2019 2019-08-12 11:00 RFB 1972/ 2019
Xhariep District: 24 months preventative maintenance of freezer and cold room installation in state buildings 2019-08-13 11:00 BL19/ 017
Lejweleputswa District: 24 months preventative maintenance of freezer and cold room installation in state buildings 2019-08-13 11:00 BL19/ 018
Invitation to submit offers for vacant land in the Kayamandi, Stellenbosch Region 2019-08-13 11:00 S019/ 19
Supply and Delivery of Various Embossed Insignias (Qty 4436) for the SA Air Force 2019-08-12 11:00 SPU/ B/ DSS/ 007/ 19
Security services at West Rand Region for Gauteng Department of Social Development for a period of 18 months 2019-08-12 11:00 GT/ GDSD/ 043/ 2019
Supply and Delivery of Tag Key Stainless Steel Octagonal 50.0MM (Qty 1000 Pair) and Chain Bead Stainless Steel 0.635M Long (Qty 500 Pair) for the SA Air Force 2019-08-14 11:00 SPU/ B/ DSS/ 021/ 19
Appointment of a service provider to render standard cleaning services for the Department of Rural Development and Land Reform in the office of the Surveyor General for a period of twenty-four (24) months within Ehlanzeni District in Mpumalanga Province 2019-08-07 11:00 RDLR- MP0003 (2019/ 2020)
The appointment of a service provider to supply and deliver moulds for Mamre Concrete Project located in the City of Cape Town Local Municipality, Cape Metropolitan District in the Western Cape Province. 2019-08-12 11:00 SSC WC 05 (2019/ 2020) DRDLR
Supply and Delivery of Duffel Bags Blue Grey (Qty 1000) for the SA Air Force. 2019-08-12 11:00 SPU/ B/ DSS/ 017/ 19
The National Department of Public Works invites interested parties to submit their applications to hunt the listed animals below for a period not exceeding the hunting season in terms of the Nature and Environmental Conservation Ordinance 19 of 1974 Sections 39 and 40. 2019-08-13 11:00 DPE03/ 2019
Appointment of panel of contractors to render a service of maintenance of water supply and sewerage network for 24 months in Sekhukhune & Capricorn District. 2019-08-13 11:00 PLK 19/ 12
Appointment of panel of contractors to render a service of maintenance of water supply and sewerage network for 24 months in Waterberg District. 2019-08-13 11:00 PLK 19/ 11
Supply and Delivery of Gorget Patches (Qty 150), Hand Embroidered Cap Badges (Qty 105) and Gold Embroidered Onlays for Women Hats (Qty 40) for the SA Air Force. 2019-08-13 11:00 SPU/ B/ DSS/ 006/ 19
Appointment of panel of contractors to render a service of maintenance of water supply and sewerage network for 24 months in Vhembe District. 2019-08-13 11:00 PLK 19/ 10
Supply & Maintenance of electronic student assessment & placement tool to all Westcol campuses for a period of 24 months. 2019-08-12 11:00 WT 2019/ 0002
Appointment of an experienced service provider to render travel and related services to the institution for a period of 24 months 2019-08-12 11:00 WT 2019/ 0001
Website Development, Maintenance And Support Administration Services for a period of 36 months for Capenature 2019-08-16 11:00 WCNCB 02/ 07/ 2019
The Appointment of an Accredited Service Provider for The Supply, Installation, Integration, Operationalisation and Maintenance of a Vulnerability Assessment and Management Solution/Tool for a Period of Three (3) Years. Tenable Nessus Or Equivalent. 2019-08-12 12:00 UMALUSI(19- 20) T0006
Appointment of panel of contractors to render a service of maintenance of water supply and sewerage network for 24 months in Mopani District. 2019-08-13 11:00 PLK 19/ 09

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Tender Training

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

People often ask me how I know so much about tenders and the completing of tender documents. The answer is easy; training. I believe that we must always try to train as much as possible. The more training you will do the better you will get at responding to a tender. Gary Player, one of South Africa’s best golfers of all time, used to say: “The more I practice, the luckier I get.”

That is the whole point of training. The... Read More

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