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.
Caledon : SAPS FCS UNIT : New office accommodation : 229.55m2 & 7 parking bays : Category B & D : 5 year period 2019-04-05 11:00 CPTL54 / 19
National Dept Of Public Works: Cape Town : Supply and deliver of Plumbing material and equipment (24 months term contract) 2019-04-05 11:00 CPTSC27/ 18
The rendering of a service in respect of the supply, delivery, placement and removal of seating, tables, linen and related requirements for the Department of Public Works at the Loftus Versfeld Stadium and Bryantirion Estate for the Presidential Inauguration May 2019. 2019-04-09 11:00 HP18/ 019GS
The Construction of a Triple Celled 1.8MX1.8M Box Culvert at KM0+124, Earthworks, Layerworks, Surfacing and Ancillary Works on District Road 1252 (D1252) Between KM0+000 to KM3+920 in the Ladysmith Region 2019-04-26 11:00 ZNT3442/ 18T
Office partitioning to newly refurbished Building on 1st floor; Supply and installation of dry wall petition, Supply and install steel frames and wood doors with all accessories as specified on the tender document 2019-04-05 11:00 NEMISA/ 2019/ Office refurbishment
Presidential Inauguration 2019: The rendering of a service in respect of the supply, erection, maintanance and removal of horticultural decoration and related requirements for the Department of Public Works. 2019-04-09 11:00 HP18/ 020GS
Kuruman Statistics SA: Alternative office accommodation: 461.36m² and 15 parking bays for a period of 5 years 2019-04-05 11:00 LS02/ 2019
Kuruman Public Protector SA: Alternative office accommodation: 215.91m² and 6 parking bays for a period of 5 years 2019-04-05 11:00 LS01/ 2019
Supply, Delivery and Installation of Security Fencing and Gates at South African Air Force Headquarters. 2019-04-18 11:00 CPSC- B- G- 262- 2018
Supply, Delivery and Installation of Security Cameras, Turnstile, Swinging Gates, Biometrics System and Development of Smart Phone Application Software for Meal Bookings at the Mess and Stock Management. 2019-04-17 11:00 CPSC- B- G- 261- 2018
Supply, Delivery and Installation of Transmission Dyno Machine for Regional Workshop Gauteng. 2019-04-17 11:00 CPSC- B- G- 267- 2018
Supply, Delivery and Installation of Truck Spray Booth for Regional Workshop Gauteng. 2019-04-16 11:00 CPSC- B- G- 112- 2018
Procurement of Three (03) x Three Ton Rough Terrain Forklifts for Defence Works Formation. 2019-04-16 11:00 CPSC- B- G- 020- 2018
Procurement of One (01) x Front End Loader for Defence Works Formation. 2019-04-17 11:00 CPSC- B- G- 022- 2018
Provision for Warehouse Storage Facilities in Western Cape Province 2019-04-08 11:00 IEC/ LG- 02/ 2019
Middleburg Prison: Boiler Operators for Twelve (12) Months 2019-04-08 11:00 NST19/ 002
Procurement of a Welding-free Palisade Fencing for the SAFI Warehouse. 2019-04-18 11:00 CPSC- B- G- 170- 2018
Witbank Prison: Boiler Operators for Twelve (12) Months 2019-04-08 11:00 NST19/ 004
Appointment of a service provider for procurement of Forcepoint software renewal or equivalent mail security gateway solution for a period of five years. 2019-04-04 11:00 4.4.12.4/ 3518
Nelspruit Prison: Boiler Operators for Twelve (12) Months 2019-04-08 11:00 NST19/ 005

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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