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.
Production Equipment Maintenance & Supply 2019-03-25 11:00 No reference number supplied
Product Transport 2019-03-25 11:00 No reference number supplied
Plant Operations Cleaning Services 2019-03-25 11:00 No reference number supplied
Hydro Health Systems 2019-03-25 11:00 No reference number supplied
Fire Equipment Supply and Maintenance 2019-03-25 11:00 No reference number supplied
Supply and delivery of protective clothing 2019-03-22 12:00 MNQ/SCM/29/18-19
Provision of security risk assessment services to the City of Cape Town 2019-04-02 10:00 280S/2018/19
Civil works for the construction of a blower house complex and the demolition of various structures at Athlone Wastewater Treatment Works 2019-04-15 10:00 296Q/2018/19
Manufacture, Testing, Supply and Delivery and/or Installation of Battery Chargers and Battery Cells, and Disposal of Used Nickel-Cadmium 2019-04-15 10:00 269G/2018/19
Supply, installation, commissioning and maintanance of telephone system at Central Tzaneen Campus, Giyani Campus and Maake Campus 2019-04-05 11:00 LET 2019 – 008
Supply, installation and configuration including patch management of antivirus of 765 nodes for student computers 2019-04-05 11:00 LET 2019 - 007
Supply, delivery and installation of 62 desktop computers 2019-04-05 11:00 LET 2019 - 006
Appointment of a Panel of Attorneys to render Legal Services to Ithala Group for a period of 36 months 2019-04-04 14:00 RFP29/18
Appointment of a panel of three actuary firms 2019-03-25 11:00 OPFA/AS032019
VAT review for the West Coast District Municipality for the last five (5) tax years 2019-04-02 12:00 WDM 02/2019
Provision for external audit services 2019-04-04 11:00 RFP/FIN/EAS/2019/26
Medical brokerage services 2019-04-09 11:00 FSCA2018/19-P001
Governance, Risk Management and Compliance Application(s). 2019-04-02 12:00 2019/02
Provision of Banking Services 2019-05-10 12:00 SCM/2019/49/FIN
Provision of ear, nose and throat specialist service to Polokwane Medical Centre 2019-04-09 10:00 59CON1891

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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