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

According to the Draft Preferential Procurement Regulations, 30% of all Government Contracts above R30 million must be sub-contracted to specific categories of SMME’s. 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.

Once the new Regulations are gazetted there businesses will need to find sub-contractors to fill this requirement.

Sub-contractors versus Consortiums and Joint Ventures

Tenders and subcontracting

Did you know tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so common in South Africa that there are specific rules regulating subcontracting in executing tenders especially Government tenders.

Pages

Title Closing Date Tender No.
Supply: Plants 2018-03-01 16:00 GC11800522
Supply pre-packed stationery kits 2018-03-01 12:00 GG11800722
Invitation to bid: Internet upgrade for Maphumulo Municipality 2018-03-09 12:00 KZN294/C0086-4CORP/2017/18
Contractor Roleleathunya: Phase 1 Construction of 1,7KM paved access roads with related storm water. 2018-03-09 14:00 SCM/MOH/05/2018
Appointment of a Heritage Consultant to compile a detailed report to give effect to the record of decision (ROD) and incorporate the recommendations of the latest status quo report on Vlakkeland (Ikhwezi) erf 19519 (daljosafat), Paarl 2018-03-01 10:00 DIP0001798
Professional Engineers: Upgrading of the Rouxville Landfill Site. 2018-03-09 14:00 SCM/MOH/08/2018
Refurbish car shade ports 2018-03-01 09:00 SP11800110
Appointment of a design company to design signage for a heritage building owned by Drakensetin building: Arendsnes Buisiness Hive, Wellington. 2018-03-01 10:00 DIP0001797
Irrigation System Upgrade 2018-03-06 09:00 SP11800111
Replace floodlights at 3 masts at Paarl Waste Water Treatment Plant 2018-03-01 10:00 DIE0013266
Wet-Wall System Upgrade 2018-03-06 09:00 SP11800112
Supply and delivery of sound system 2018-02-27 11:00 GK1180421A
Supply: 3-in-1 combination fans 2018-02-27 12:00 GL11800592
Hired of Venter Trailer - 750kg 2018-02-26 09:00 WJ11800342
To appoint a consultant for recruitment and selection services 2018-03-01 10:00 DCG0010653
Supply wooden portable tool box 2018-02-26 12:00 GD11800762
Supply Pvc kanaflex and lay flat pipes 2018-02-27 12:00 GD11800763
Supply & delivery of stackable, black epoxy frame, with polypropylene seat back chairs for Simondium Community Hall 2018-03-01 10:00 DSC0018183
Supply Replacement tools for civil workshops 2018-02-26 12:00 GD11800764
Supply Banner wall Subcouncil 4 2018-02-28 12:00 GL11800590

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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