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.
Appointment of a Panel of Service Providers for Events Management Services for the Period of 24 Months 2019-04-02 11:00 DOE/ 011/ 2018/ 19
Appointment of a service provider to render Security Services for ILembe District offices 2019-04-23 11:00 ZNT 16 EDTEA 18/ 19
Appointment of a service provider to render Security Services for Uthukela District offices 2019-04-23 11:00 ZNT 24 EDTEA 18/ 19
Appointment of a service provider to render Security Services for Ethekwini District offices 2019-04-23 11:00 ZNT 12 EDTEA 18/ 19
Appointment of a service provider to render Security Services for Amajuba District offices 2019-04-23 11:00 ZNT 14 EDTEA 18/ 19
Appointment of a service provider to render Security Services for Tourism and Bramhill offices 2019-04-23 11:00 ZNT 20 EDTEA 18/ 19
Supply, Delivery, Installation, Support and Maintenance of Microfilm Roll Digitizers on a Lease Basis to the Department of Rural Development and Land Reform: Deeds Registries Pretoria, Johannesburg, Cape Town, Pietermaritzburg, Bloemfontein, King Williams Town and Mpumalanga for a period 36 months 2019-04-05 11:00 DRDLR (CRD- 20) 2018/ 19
Cape Town: NDPW: 24 months term contract for supply & delivery of carpentry materials and equipment. 2019-04-05 11:00 CPTSC 26/ 18
Nyanga: SAPS : New office accommodation : 732.64m2 & 20 parking bays: Category B & D - 5 years lease period 2019-04-05 11:00 CPTL56 / 19
Cloetesville: SAPS: New office accommodation: 1775.48m2 & 35 parking bays: Category B & D - 5 years lease period 2019-04-05 11:00 CPTL55 / 19
Appointment of a service provider to render Security Services for uMzinyathi District offices 2019-04-23 11:00 ZNT 19 EDTEA 18/ 19
Appointment of a service provider to render Security Services for Cascades office 2019-04-23 11:00 ZNT 18 EDTEA 18/ 19
Appointment of a service provider to render Security Services for Harry Gwala District offices 2019-04-23 11:00 ZNT 17 EDTEA 18/ 19
Appointment of a service provider to render Security Services for King Cetshwayo District offices 2019-04-23 11:00 ZNT 15 EDTEA 18/ 19
Bids for Manufacturing, Branding, Supply and Delivery of groundBreaker Gear for New loveLife Trust 2019-04-04 12:00 LL2019/006
Appointment of a service provider to render Security Services for UGU District offices 2019-04-23 11:00 ZNT 13 EDTEA 18/ 19
Appointment of a service provider to render Security Services for Zululand District offices 2019-04-23 11:00 ZNT 22 EDTEA 18/ 19
Appointment of a service provider to render Security Services for UMtubatuba District offices 2019-04-23 11:00 ZNT 23 EDTEA 18/ 19
Appointment of a service provider to render Security Services for UMkhanyakude District - Mkuze office 2019-04-23 11:00 ZNT 21 EDTEA 18/ 19
Outsource for the Service Providers for a Forensic Audit Investigation on Irregular Expenditure on the Awarded Contract to PWC for Defence Inspectorate Division (DACAF). 2019-04-17 11:00 CPSC- B- G- 253- 2018

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Must my business be registered in order to tender?

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Once, a very anxious business owner phoned me and asked if I can supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly for what did he need a CK number for? He said that because of my Tender Manual that he bought, he thought that maybe I can help him with a CK number. Also, at the briefing session of the tender that he was responding to, the person in... Read More

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