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.


Title Closing Date Tender No.
Framework Agreement: Mowing, Cutting and Clearing of Vegetation From Road Reserves and Ancillary Sites 2019-08-20 11:00 S027/ 19
Supply, delivery and commission of two airborne radiation contamination monitors at iThemba Labs, Faure, Cape Town over a five (5) year period. 2019-08-16 11:00 NRF/ iThemba LABS/ 2018 - 19: 22
Rendering security services at Dr Fabian and Florence Ribeiro Treatment Centre for a period of thirty six (36) months 2019-08-12 11:00 GT/ GDSD/ 035/ 2019
Renewal of Mimecast licenses for the KZN Department of Human Settlements by the State Information Technology Agency (SITA) for a period of a year. 2019-08-12 11:00 RFB1956/ 2019
Grahamstown Master of the High Court: Provision of Cleaning Services for a period of twenty four (24) months. 2019-08-13 11:00 PEC05/ 2019
Re-advertisement - procurement of computers and laptops for the NLSA 2019-08-13 11:00 NLSA.COMPUTERS 04/ 2019
Invitation to Service Providers to Submit Proposals for Provision of Security Guarding Services for CIPC Johannesburg Customer Service Centre for a period of thirty six (36) months 2019-08-19 11:00 CIPC BID NUMBER: 02/ 2019/ 2020
Appointment of service providers to manage the implementation of data Collectors/Capturers project for the development of the National Tourism Information and Monitoring System (NTIMS) In Gauteng, North West, Limpopo, Kwazulu Natal, Mpumalanga and Western Cape Provinces (AS CLUSTERED) 2019-08-16 11:00 NDT0027/ 19
Supply, Delivery, Installation, Commissioning and Configuration of the SSD Tier on Both 3PARS 2019-08-08 11:00 RFB 157/ 18/ 19
Appointment of consultants to provide consultancy services to assist ICASA with determination of the fair economic value of the IMT700,IMT800, IMT2300, IMT2600, IMT3500 radio Frequency Spectrum and the drafting of the invitation to apply on an 80/20 PPPFA 2000, Preferential Procurement Regulation: 2017. 2019-08-20 11:00 ICASA 19/ 2019(b)
Calibration and on-Site testing Service for Radiation Monitoring Instruments and Systems at Ithemba Labs, Faure, Cape Town for a Period of fIve (5) years 2019-08-16 11:00 NRF/ iThemba LABS/ 2018 - 19: 21
Supply, delivery & offloading of Irrigation Material and Installation of Irrigation System for Zigudu Feedlot 2019-08-12 11:00 SCMU 03 – 2019/20:
Appointment of a service provider (SP) to supply old generation type Bailey bridge components, materials and equipment for construction of bridges on a three (3) year term contract. 2019-08-13 11:00 H19/ 001GS
Supply and Delivery of Daggers and Sheaths for the SA Air Force Officers, Ceremonial - Qty 60. 2019-08-14 11:00 SPU/ B/ DSS/ 015/ 19
Invitation to tender for Rental Office Space for Seda’s Gauteng Provincial Office in Johannesburg for a period of Three (3) or Five (5) years. 2019-08-19 12:00 RFP/ T 04- 2019/ 20
Hobhouse DOJ : Installation of facilities for people with disability 2019-08-13 11:00 BL19- 022
Decommission, Supplying & Installation of air-conditioning at Koedoespoort 2019-08-01 10:00 ERACNL 4845-30375
Atlantis Special Economic Zone (ASEZ): Skills development – teacher training and/or support programme 2019-07-26 12:00 RFQ 03-2020
Polygraph test for one person 2019-07-26 14:00 10302834
Advertising agent for a period of 36 months 2019-08-05 12:00 BID13/2019/20


Tender Knowledge

By Werner van Rooyen


31 January 2019

Sometimes I am surprised at how little business people in South Africa know about Tenders and the Tender Process. Simple things like terminology and general tender information are difficult for people to comprehend not to mention the Standard Bidding Documents and Tender Pricing.

Unbelievably there are still Entrepreneurs that thinks to respond to tenders are an actual business? You will find that these Entrepreneurs would... Read More

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