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.

Pages

Title Closing Date Tender No.
NDPW: Durban Workshops: 24 Months Term Contract - Supply of Material for Electrical. 2017-11-27 11:00 DBN17/ 10/ 05
Bloemfontein deeds office: Upgrading of sewer system CIDB grading 3CE or higher 2017-11-28 11:00 BL17/ 023
The Western Cape Government Department of Human Settlements invites tenders for the construction of civil services for various erven and the building of FLISP housing units. 2017-11-24 11:00 HSC 07 + 08/ 2017/ 2018
Replacement school: Kwafuku Primary School; Philippi 2017-12-05 11:00 S093/ 17
Construction of a replacement school: Disa Primary School; Strand 2017-12-07 11:00 S097/ 17
Replacement school: Crestway High School; Retreat 2017-12-05 11:00 S092/ 17
Replacement school: Turfhall Primary School; Athlone 2017-12-06 11:00 S094/ 17
Construction of a new school: Wallacedene Primary School; Kraaifontein. 2017-12-06 11:00 S095/ 17
Construction of a replacement school: Willows Primary School; Heideveld 2017-12-07 11:00 S096/ 17
Drilling and geotechnical services for the preliminary design of the Pietermaritzburg ring road on National route 3 2017-12-01 14:00 NRA N.003- 023- 2010/ 1D- SS1
Vrede SAPS: Police station and housing units: Condition based maintenance on structural, electrical and civil elements CIDB grading 4GB or higher and 3GB PE or higher 2017-11-28 11:00 BL17/ 024
Provision of Office Accommodation: Springbok Satellite Office for a period of 5 years. (Leases ranging from seven to ten years will also be considered). 2017-12-08 11:00 35/ 2017
Provision of Office Accommodation: Groblersdal Satellite Office for a period of 5 years. (Leases ranging from seven to ten years will also be considered). 2017-12-08 11:00 34/ 2017
Provision of Office Accommodation: Groblersdal Satellite Office for a period of 5 years. (Leases ranging from seven to ten years will also be considered). 2017-12-08 11:00 34/ 2017
Provision of Office Accommodation: Vryheid Justice Centre for a period of 5 years. (Leases ranging from seven to ten years will also be considered). 2017-12-08 11:00 32/ 2017
Provision of Office Accommodation: Modimolle Justice Centre for a period of 5 years 2017-12-08 11:00 33/ 2017
Provision of Office Accommodation: Tzaneen Justice Centre for a period of 5 years. 2017-12-08 11:00 37/ 2017
Supply of Hygiene Equipment and Maintenance Services to Gauteng Department of Education Offices for a specific term contract for period of 3 years 2017-11-24 11:00 GT/ GDE/ 158/ 2017
NW384 - Ditsobotla Local Office Accommodation 2017-11-24 11:00 IEC/ NW- 03/ 2017
NW393 - Mamusa Local Office Accommodation 2017-11-24 11:00 IEC/ NW- 04/ 2017

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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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