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.
Procurement of Professional Service Providers from the Built Environment that specializes in Architecture, Quantity Surveyors, Civil & Structural Engineers, Electrical Engineers and OHS Agents For The Planning, Design, Supervision and Closure of the Programme 9 Schools for the Limpopo Department of Education 2019-01-28 09:00 LDOE/66PSP/2018/1
Jagerust Water Treatment Plant Refurbishment 2019-02-28 10:00 E/BS3691R
Supply of parts, spares and repairs of Teledyne make of ambient air quality monitoring gas analyser for lab and site network 2019-03-08 10:00 CORP 4655
Supply and delivery of electrical material and equipment for Nkomazi LM for a period of three (3) years 2019-01-31 12:00 NKO 90/2018
Provision of a functional and technical support service for Ellipse and associated bespoke systems implemented at eThekwini Electricity 2019-02-15 11:00 E.9646
Online coal quality measurement staithes incline conveyors 2019-02-12 10:00 MPGXC005157R
The maintenance and repair of portable earthing gear in Mpumalanga Operating Unit on an as and when required basis 2019-02-12 10:00 MPDX001033
To design, manufacture, supply, delivery, removal, installation and commissioning of 2 (two) spare LP heaters (1 x LPH 3 and 1 x LPH 4) for a period of 5 years 2019-02-13 10:00 MPGXC005426
Supply, delivery and installation of 2 x automated multi-deck weighbridges at Tutuka Power Station 2019-02-13 10:00 MPGXC005428
Supply and delivery of one (1) Landfill Compactor 2019-01-18 12:00 IHLM-78/12/2018-19/COMM
Provision of Short Term Insurance for the period from 01 July 2019 To 30 June 2022 2019-01-18 12:00 FIN 01/2019/20
Calibration of electrical instruments 2019-01-29 10:00 WRAC/KBC/28149
Appointment of a Service Provider to Supply and Deliver Nonflush Chemical Toilets to Various Areas in Theewaterskloof Municipal Area On an Ad-Hoc Basis for the Period From January 2019 To June 2020 2019-01-18 12:00 DEV 09/2018/19
The provision of rigging resources to Koeberg Operating Unit 2019-01-29 10:00 KBG1874
Implementation of energy saving measures and initiatives for George Municipality: Replacement of Aircons, Heatpumps, 7 building lighting lamps. 2019-02-01 12:00 ENG040/2018
Supply and delivery of water filtration sand to Petrosa GTLR in Mossel Bay (call off contract) 2019-02-12 11:00 CTT20925
Supply and delivery of mineral slag sand and grit to PetroSA GTLR in Mossel Bay (call off contract) 2019-02-12 11:00 CTT20926
Requests proposals to perform the tasks on behalf of the entity to perform a revaluation of electrical infrastructure assets and owner occupied land and buildings. The appointment will be valid for twenty four (24) months. 2019-01-21 11:00 RFP 26/2018
Resin replacement 2019-02-07 10:00 MPGXC005240 R1
Supply and delivery of care kits for community health workers for Free State Department of Health 2019-02-08 11:00 DOH (FS) 13/2018/2019

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.