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.

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Title Closing Date Tender No.
Pauper funerals in Drakenstein Area from August 2019 till 31 December 2019. 2019-08-01 10:00 WEB 3: 2019/2020 (Readvertise)
Appointment of a panel of a maximum 8 contractors for sanitation works for a period of 36 months, on as and when required basis 2019-08-22 11:00 No reference number
Supply & delivery of air conditioners in the Drakenstein Municipal Area for a period up to 30 June. 2019-08-01 10:00 WEB 12: 2019/2020
Supply & delivery of wooden bitumen poles for HT lines for a period up to 30 June 2020. 2019-08-01 10:00 WEB 11: 2019/2020
Appointment of a panel of a maximum 8 contractors for sanitation works for a period of 36 months, on as and when required basis 2019-08-20 11:00 No reference number
Appointment of a panel of a maximum of 8 contractors for general building works for a period of 36 months, on as and when required basis 2019-08-21 11:00 No reference number
Appointment of a panel of a maximum of 8 contractors for general building works for a period of 36 months, on as and when required basis 2019-08-20 11:00 No reference number
Tender for panel of three contractors dealing with repairs and maintenance of water treatment works, waste water treatment works and its substation around Dr JS Moroka Local Municipality as when required for three reviewable yearly depending on the performance with minimum grading of 4ME/PE, 2CE/PE and 3EP/PE 2019-08-19 11:00 No reference number
Tender for supply and delivery of spares, tools and equipments for maintenance of water and waste water plants and the network system for the period of 36 months (3 years). 2019-08-19 11:00 No reference number
Request for expressions of interest for consultancy services for global monitoring for environment and security and Africa (GMES & Africa) 2019-07-31 15:00 No reference number
Procurement of APRM 15th anniversary documentary and coffee table book services 2019-08-14 11:00 APRM/ADCT/003/2019
Request for Expressions of Interest: Individual consultancy services for a study on the drivers of corporate and economic governance performance in Africa 2019-07-26 11:00 EOI /IC/ 11/2019
Supply, installation, testing and commissioning of knowledge HUB (E-Platform) at APRM 2019-08-14 11:00 APRM/EP/002B/2019
Request for Proposal: For the establishment of a frame agreement for the provision of supply, delivery, installation and commissioning of solar street light in Tongogara Camp in Zimbabwe 2019-08-20 23:45 RFP/RSA/SU/07.01/2019
Appointment of service provider for conducting Job Profiling and Job Evaluation, Job Grading and Salary Benchmarking 2019-07-30 11:00 HR/ 2019/ 01
The Appointment of a Service Provider to Assist CSOS with the Development of a Curricula and Study Material, for Education and Training. 2019-07-30 12:00 CSOS010- 2019
Placement of automated DNA extraction system for NICD for a period of three years. 2019-07-26 11:00 RFB206/ 18/ 19
Outright purchase of Refrigerated Centrifuge for Gauteng region with service and maintenance for a period of five (5) years 2019-07-26 11:00 RFB133/ 18/ 19
Request for Proposals for the Appointment of a Suitable Service Provider to Manufacture and Supply of Corporate and Technical Uniforms for the Nhbrc for a Period of Three (03) Years 2019-08-02 11:00 NHBRC 06/ 2019
Western Cape: All Regions: Supply of Professional Protective Equipment and Clothing: Framework Agreement, 3 Years 2019-08-06 11:00 S025/ 19

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Tender Training

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

People often ask me how I know so much about tenders and the completing of tender documents. The answer is easy; training. I believe that we must always try to train as much as possible. The more training you will do the better you will get at responding to a tender. Gary Player, one of South Africa’s best golfers of all time, used to say: “The more I practice, the luckier I get.”

That is the whole point of training. The... Read More

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