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.
Appointment of travel management company to provide travel management services to the Municipal Infrastructure Support Agent for the period of 36 months 2019-04-05 11:00 MISA/ CS/ TMC/ 057/ 2018
Appointment of a service provider for technical requirements and a capital cost estimate for the refinery of the New Horizon project in South Sudan 2019-04-15 12:00 SFF/ 2019/ 045
Appointment of a service provider to conduct an independent market study in South Sudan and surrounding regions for the New Horizon project 2019-04-15 12:00 SFF/ 2019/ 046
The entity is hereby inviting suitably and qualified audit firms (preferable registered in terms of the Public Accountant and Auditors Act- whose members belong to a recognised professional body) to submit their bids for the provision of Internal Audit services, for a three year period 2019-04-05 15:00 03/ 2019 INTERNAL AUDIT
Appointment of a service provider to provide comprehensive facilities management services at DPP South Gauteng Local Division, Johannesburg for a period of three (3) years 2019-04-15 11:00 NPA 21- 18/ 19
Appointment of a Service Provider for the renewal of the Microsoft OVS licenses for 36 months 2019-03-22 11:00 SANAS/ OVS LICENCES/ 2018/ 05
Appointment of a Security Service Provider to Provide Guarding Services at Beacon Valley, Mitchells Plain and Khayelitsha Village 1, Cape Town for a period of Two (02) Years With an Option to Renew 2019-04-08 11:00 35/ FIN/ 2019
Security Services for Robben Island Museum; in Cape Town at Quay 501, Jetty 1 and Nelson Mandela Gateway (NMG) Building and on Robben Island (RI) 2019-04-12 11:00 RIM EST 06- 2018 / 2019
Harrismith Magistrate Office: Rendering of Cleaning Services for Period of 24 Months 2019-04-09 11:00 BL18/ 097
Bethlehem Magistrate Office: Rendering of Cleaning Services for Period of 24 Months 2019-04-09 11:00 BL18/ 096
Provision of Security Services at Johannesburg, Mafikeng and Rustenburg Offices 2019-04-09 11:00 GPAA 03/ 2019
Provision of Security Services at Polokwane, Nelspruit and Thohoyandou Offices 2019-04-08 11:00 GPAA 05/ 2019
Provision of Security Services at Durban and Pietermaritzburg Offices 2019-04-10 11:00 GPAA 06/ 2019
Provision of Security Services at GPAA Head-Office and Trevenna Offices 2019-04-09 11:00 GPAA 04/ 2019
Justice: Somtseu: 36 Months Gardening, Cleaning and Hygiene Services 2019-04-10 11:00 DBN19/ 03/ 01
Rendering of Security Services for NDPW Old Mutual and Sanlam Buildings for a period of 24 months on month to month basis 2019-04-09 11:00 PLK19/ 02
Rehabilitation of Asbestos Mine Penge Village Limpopo Province 2019-04-16 12:00 MTK04/ 2018
Rehabilitation of Asbestos Mine Lagerdraai Limpopo Province 2019-04-16 12:00 MTK03/ 2018
Regravelling of L395 from 0+000 to km 10+421 in the Vulindlela Area office - Grade 4CE Tenderers must be registered with the CIDB in a Civil Engineering class of construction works and also registered with the National Treasury’s Central Supplier Database (CSD ) 2019-04-17 11:00 ZNT 0030/ 18T
The construction of Klein Boesmans (Mathamo) River Bridge no. 3528 at km 0.251 on District Road 69 (D69) in the Ladysmith Region. 2019-04-17 11:00 ZNT2253/ 18T

Pages

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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