When Must I Sub-Contract?

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.

The Draft Preferential Procurement Regulations stipulates the following: 

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.


Title Closing Date Tender No.
Appointment of a project manager for the procurement of land and or a building, design plans and construction and or renovations of CETA Head Office 2018-01-31 11:00 022- 2017/ 2018
DTPC wishes to appoint a contractor for the construction of a new cantilevered structural steel canopy, construction of security fencing, repairs to sheet metal roof, asphalting and drainage improvements at the Dube Tradeport Cargo Terminal 2018-01-17 11:00 DTP/ RFP/ 35/ IFR/ 10/ 2017
DTPC wishes to appoint a contractor for the construction of Govender access road – earthworks, surfacing and safety improvements (km 0.00 – km 0.632). 2018-01-16 11:00 DTP/ RFP/ 28/ IFR/ 10/ 2017
Appointment of a CIDB registered contractor for the construction of a technology laboratory building at the University of Venda 2018-01-31 11:00 019- 2017/ 2018
Professional service providers for the determination of water resource classes and resource quality objective in Usuthu to Mhlathuze Catchment 2018-01-11 11:00 WP11264
The NEF herewith invites potential service providers to submit proposals for Simulated Entrepreneurial Training. 2018-01-09 14:00 RFP: NEF 08/ 2017
Appointment of accredited training service providers to manage the Implementation of the Tourism Hospitality Youth Programme in six (6) Provinces for a period of Twelve (12) Months. 2018-01-11 11:00 NDT0016/ 17
Invitation of bids for the appointment of a service provider to develop Integrated Enterprise Architecture for the Department of Mineral Resources for a period of 6 months (Phase 1 of 3) 2017-12-15 11:00 DMR/ 016/ 2017/ 18
Appoint a credible service provider to assess the SBIDZ SMME database to identify Supplier Development Beneficiaries for the Oil and Gas Industry 2017-12-15 11:00 005- IDZ- 2017
Rendering of non centre based/ mobile early childhood development services, at Pixley Ka Seme District for children between age 0-4 years, for a period of 36 months. 2017-12-22 11:00 NC/ SOC/ 007/ 2017
Appointment of a service provider that will supply and implement an Electronic Document and Records Management system for a period of 36 months 2018-01-09 11:00 ICASA 16/ 2017
Service of nursing call system in all wards 2017-12-14 11:00 ZNQ00395/ 2017- 18
The feasibility study, complete design and construction monitoring for rehabilitation of Mkhuzane FSPU in Richmond Local Municipality within Umgungundlovu District in the province of Kwazulu-Natal. 2017-12-15 11:00 SS- KZN 7/ 1/ 6/ 3 (635) 000R
Supply & deliver forbo coral mats size 1800mmx1200mm x37 2017-12-14 11:00 ZNQ00423/ 2017- 18
The appointment of a professional service provider for the development of a business plan and implementation monitoring of The Tugela Ferry Tomato Paste Factory 2017-12-15 11:00 SS- KZN 7/ 1/ 6/ 3 (636) 000R
A Three Year Term Contract for Mechanical and other related Major Plant and Machinery Installation , Maintenance , Repair , Refurbishment and Upgrade for Northern , Central , Eastern And Southern Operations(Limpopo , Mpumalanga ,North West , Gauteng, Free State , Northern Cape , Kwa-Zulu Natal And Western Cape). 2018-01-18 11:00 DWS04- 1117WTE
Appointment of a transaction advisor to undertake a feasibility study for the establishment of a Refugee Processing Centre in Lebombo. 2017-12-15 11:00 DHA17- 2017
Procurement of a Service Provider to conduct four (4) capacity building interventions in terms of action learning in six (6) targeted municipalities 2017-12-15 11:00 COGTA 4/ 2/ 2- 2017/ 01
Request for expression of interest from qualified entities to be enlisted in the database of the Department of Environmental Affairs for the implementation, operational support, planning and training projects for Expanded Public Works Projects (EPWP) for the Natural Resource Management Programmes. 2018-01-19 11:00 E 1428
Paving of Parking area at Hartbeespoort Dam Wall 2018-01-15 11:00 DWS05- 1117WTE


Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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