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.
Construction of Indwe Feedlot 2019-01-18 16:00 ELM/5/12/2018T
Short term insurance 2019-01-21 12:00 226/2018
Provision for Travel Agency and Events Management Services 2019-01-21 12:00 ELM/7/12/2018T
Appointment of a panel of service providers to co-ordinate and fund-raise for all functions hosted by the Alfred Duma Local Municipality 2019-02-04 11:00 MO 01/2018
Supply and delivery of signage on an as and when required basis to PetroSA GTL Refinery, Mossel Bay 2019-02-04 12:00 CTT20938
Request for information [RFI] for the supply of an active freight wagon tracking solution 2019-02-05 10:00 HOAC-HO-28846
Supply and delivery of adhesives on an as and when required basis to PetroSA GTLR in Mossel Bay (call of contract) 2019-02-07 12:00 CTT0000020950
Supply and delivery of cutting and grinding materials on an as and when required basis to PetroSA GTL Refinery, Mossel Bay (call-of contract) 2019-02-07 12:00 CTT0000020951
Invitation to prospective service providers to apply to be included in the supplier database of the NECSA Learning Academy 2019-02-15 11:00 RFI 0006
Construction of Water Infrastructure in Juno Village and Fairlie Village – Phase I 2019-01-25 10:00 PM107/2018
Construction of Water Infrastructure in Kordon Village – Phase I 2019-01-25 10:00 PM108/2018
Construction of Water Infrastructure in Mahoai Village and Ceres Village – Phase I 2019-01-25 10:00 PM111/2018
Appointment of a Service Provider to Supply and Deliver Game Fence 2019-01-28 10:00 PM101/2018
Appointment of Service Provider to Conduct Biological (Fauna) Asset Count for Period of Three (03) Years 2019-01-28 10:00 PM99/2018
Appointment of Service Provider to Perform Valuation Count and Value (For Kroondraai Forest) for a Period of Three (03) Years 2019-01-28 10:00 PM100/2018
Supply and Delivery of Multi – Purpose Branches (Re-Advert) 2019-01-30 10:00 PM61/2018
Appointment of Two Service Provider for the Supply and Delivery of LED Lights for the Period of Three (03) Years 2019-01-31 10:00 PM103/2018
Supply and Delivery of Water Pipe Clamps for a Period of Three (03) Years 2019-01-31 10:00 PM105/2018
Appointment of a Service provider for the Provision and Installation of Traffic Lights and Signs and Associated Road Works (Multi Year 2018/19-2019/20) 2019-02-01 10:00 PM67/2018
Moletjie Rural Sanitation (Makibelo Village) 2019-02-01 10:00 PM110/2018

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
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.