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.
Mimecast Licenses 2019-01-21 12:00 T22-2018/19
Supply and delivery of oil 2019-01-25 12:00 TENDER 47-18/19
Provision of Managed Printing Services 2019-01-25 14:00 RFP/ICT/MFP/2018/05
WESGRO Stakeholder Relationships Project. Quotations are awaited for suppliers to participate in providing insights, perceptions and expectations from key stakeholders to assist in Wesgro’s strategic business planning process and funding model. 2019-01-31 12:00 2019-001
Appointment of a service provider for the electrification of households in Uitval Ward 35 2019-01-25 11:00 EES 08/2018
Panel of service providers for the provision of waste collection and street cleansing within the Alfred Duma Local Municipality municipality areas to the Ladysmith landfill site for a period of three (3) years on an as and when required basis 2019-01-30 11:00 PS 18/2018
Hiring of plant and equipment as and when required for period of three years 2019-01-31 11:00 ES 23/2018
Impoundment of stray animals for a period of three years 2019-02-01 11:00 PS 19/2018
Kyocera Printers Supply and Maintanance 2019-01-22 11:00 1920
Services of an audit / finance firm to support supply chain management unit with provision of governance and compliance review support function for a period of 12 months with an option to extend for another 12 months subject to satisfactory performance 2019-01-28 11:00 RFP344/2018
Appointment of a panel of service providers for the supply and delivery of personal protective equipment on an as and when required basis for 36 months 2019-02-07 11:00 SHE-OP-009-2018/2019
Appointment of a panel of service providers for the supply and delivery of Corporate Clothing on an as and when required basis for 36 months 2019-02-08 11:00 MKT-OP-010-2018/2019
Appointment of a service provider to provide support of Microsoft active directory and exchange environment for a period of 36 months 2019-02-13 11:00 IT-OP-020-2017/2018 -Readvert
Appointment of a Panel of Service Providers for the Provision of Mechanical Repairs Through a Fitment Centre for a Period of Three (3) Years 2019-01-31 12:00 CSS(FLEET) 13/12/1819
Review of 2017 – 2022 Ratlou Local Economic Development Strategy 2019-02-15 11:00 NW381/PAD01/2018/2019
Development of Ratlou Local Municipality’s Integrated Waste Management Plan 2019-02-15 11:00 NW381/COMMSERV01/2018/2019
Appointment of a service provider for repair and maintenance of municipal yellow fleet as and when required for a period of 24 months 2019-02-15 11:00 NW381/TECH07/2018/2019
Rental of high volume photocopier machines for a period of 24 months 2019-02-15 11:00 NW381/CORPS03/2018/2019
Provision of VAT recovery services for a period of 24 months 2019-02-15 11:00 NW381/BTO01/2018/2019
Manufacture, supply and delivery of pole mounting power transformers for a period of twelve (12) months 2019-01-28 11:00 CD27/2018

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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