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.

Pages

Title Closing Date Tender No.
Request for purchase of 2019 diaries. 2019-01-17 12:00 03947
Request to procure proof of residence books. 2019-01-18 10:00 04860
Request for purchasing of school bags, pencil cases and dictionaries 2019-01-18 10:00 04773
Cutting and raking of grass in ward 7 for a period of 3 months (February, March, April 2019) Sidewalk edging/weeding in ward 7 (once off cleaning) 2019-01-17 12:00 243/2018/19
Pothole patching in the Greater Knysna Area 2019-01-17 12:00 244/2018/19
Supply and delivery of anionic stable mix SS60 2019-01-17 12:00 245/2018/19
Geotechnical site investigations at proposed municipal offices 2019-01-17 12:00 246/2018/19
Cutting and raking of grass in ward 8 for a period of 3 months (February, March, April 2019) Sidewalk edging/weeding in ward 8 (once off cleaning) 2019-01-17 12:00 247/2018/19
Cutting and raking of grass in ward 9 for a period of 3 months (February, March, April 2019) Sidewalk edging/weeding in ward 9 (once off cleaning) 2019-01-17 12:00 248/2018/19
Cutting and raking of grass in ward 10 for a period of 3 months (February, March, April 2019) Sidewalk edging/weeding in ward 10 (once off cleaning) 2019-01-17 12:00 249/2018/19
Cutting and raking of grass in ward 11 for a period of 3 months (February, March, April 2019) Sidewalk edging/weeding in ward 11 (once off cleaning) 2019-01-17 12:00 250/2018/19
Cutting and raking of grass in Rheenedal for a period of 3 months (February, March, April 2019) Sidewalk edging/weeding in Rheenendal (once off cleaning) 2019-01-17 12:00 251/2018/19
Cutting and raking of grass in ward 1 for a period of 3 months (February, March, April 2019) Sidewalk edging/weeding in ward 1 (once off cleaning) 2019-01-17 12:00 252/2018/19
Cutting and raking of grass in ward 3 for a period of 3 months (February, March, April 2019) Sidewalk edging/weeding in ward 3 (once off cleaning) 2019-01-17 12:00 253/2018/19
Cutting and raking of grass in ward 6 for a period of 3 months (February, March, April 2019) Sidewalk edging/weeding in ward 3 (once off cleaning) 2019-01-17 12:00 254/2018/19
Appointment of list of Service Providers/Contractors for Tree cutting in Greater Knysna Area 2019-01-17 12:00 255/2018/19
Appointment of list of Service Providers/Contractors for Grass cutting in Greater Knysna Area 2019-01-17 12:00 256/2018/19
Appointment of list of Service Providers/Contractors for Repairs and Maintenance on all Boardwalks and Stairs in Greater Knysna 2019-01-17 12:00 257/2018/19
Appointment of a Service Provider for Performance Management System for a period of 12 months 2019-01-21 12:00 EPMLM/8/3/320
Appointment of a Service Provider for Debt Collection Services and Data Cleansing for a period of 12 Months 2019-01-21 12:00 EPMLM/8/3/331

Pages

Two types of Joint Ventures and Joint Venture agreements 

By W van Rooyen

www.howtotender.co.za

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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