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.
Barberton Prison: Boiler Operators for Twelve (12) Months 2019-04-08 11:00 NST19/ 001
NDPW: Repairs, service and replacement of kitchen equipment within the jurisdiction of JHB Regional Office for the period of 24 months 2019-04-09 11:00 JHB.18/ 58
Department of Health: Ngwelezane Hospital: Construction of New Orthotics and Prosthetics Centre With Parking Area 2019-04-15 11:00 WIMS 070638
The Western Cape Government Department of Human Settlements invites tenders for the construction of 600 emergency housing units for the Kosovo Community located close to Philippi, Cape Town. 2019-03-29 11:00 HSC 18/ 2018/ 2019
The Western Cape Government Department of Human Settlements invites tenders for the construction of 750 emergency housing units for the Silvertown Community located in Khayelitsha, Cape Town 2019-03-29 11:00 HSC 17/ 2018/ 2019
Specification for Supply, Delivery and Erection of Mobile Classrooms -National Contract 2019-04-05 12:00 PUR 5600/ 22
Preferred Service Providers for Technical Services (General Building) for COEGA Development Corporation (PTY) LTD 2019-04-08 12:00 CDC/ 112/ 19
Preferred Service Providers for Technical Services (General Building) for COEGA Development Corporation (PTY) LTD 2019-04-08 12:00 CDC/ 112/ 19
The request for development proposals for the leasing of Takkieskloof Holiday Resort situated in Truterstreet, Riversdale 2019-04-26 12:00 HESICORP 16/1819
Provision of fraud and corruption hotline services for Saldanha Bay Municipality for the period 01 July 2019 to 30 June 2022. 2019-04-26 12:00 SBM 09/18/19
Request for bid for the appointment of a professional team to undertake township establishment processes at Masilonyana Municipality in the Free State 2019-04-02 11:00 HS - B06/2018/2019
The completion of outstanding building work at Elandsdoorn CNC required within Mpumalanga Operating Unit 2019-04-11 10:00 PTATEN2444
Appointment of a service provider(s) for the provision of learning support materials for university students supported by the Mpumalanga Department of Education for a period of three (03) years 2019-04-12 12:00 EDU/139/19/MP
Appointment of a service provider for the supply of locums of all grades, EMS and specialities (exclusive of administrative personnel) to all hospitals/institutions under the control of the Department of Health in Mpumalanga for a period of three (3) years 2019-04-12 12:00 HEAL/109/19/MP
Hire of road construction equipment in Mpumalanga Province as and when required for a period of three years 2019-04-15 12:00 PWRT/1624/19/MP Re-Advertisement
Rigging services and load testing of beams and lifting equipment during normal maintenance and outages at Tutuka Power Station 2019-04-24 10:00 MPGXC004980R1
The provision of horticultural maintenance services to Kusile Power Station 2019-04-25 10:00 MPPPSC001085R1
Supply of Digital Aerial Photography 2019-03-29 12:00 T 61/2018/19
Supply of Stationery 2019-03-25 11:00 No reference number supplied
Small Contractor Mining 2019-03-25 11:00 No reference number supplied

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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