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.


Title Closing Date Tender No.
Sterkfontein Regional Water Treatment Works (Phase 2): Construction and Commissioning of Civil, Mechanical and Electrical Works. 2019-04-10 11:00 SW/SRWTW/201906
Alteration of the Natural Science Building 2019-04-02 12:00 IN/001/2019
Refurbishment of the Vuwani Science Resource Centre 2019-04-03 12:00 IN/008/2019
Refurbishment of the Riverside Student Residence 2019-04-03 12:00 IN/007/2019
Refurbishment of the Post Grad and Town Planning 2019-04-03 12:00 IN/006/2019
Refurbishment of the Art Gallery 2019-04-03 12:00 IN/005/2019
Upgrade of the D Block Air Conditioning System 2019-04-02 12:00 IN/004/2019
Upgrade of a Block Air Conditioning System 2019-04-02 12:00 IN/003/2019
Fume Cabinets Project on Health Science Laboratory 2019-04-02 12:00 IN/002/2019
Panel of Attorneys 2019-03-25 12:00 No reference number supplied
Learnership Programme Plumbing (NQF Level 4) 2019-03-29 11:00 WDM/2018/19-10
Learnership Progamme Fire and Rescue Operations (NQF Level 5) 2019-03-29 11:00 WDM/2018/19-09
Appointment of a Service Provider for the Provision of Medical Aid Scheme Service for the Special Investigating Unit (SIU) 2019-04-01 11:00 RFP: 043/03/2019
Appointment of an experienced resource mobilisation panel of experts 2019-04-02 11:00 BID: TEDA PPM: 03/03/19
Provision of Services of an Occupational Medical Practitioner (OMP) and Occupational Health Nurse Practitioner (OHNP) for Parliament of RSA 2019-03-29 12:00 B1/2019
Supply and delivery of fencing material at Pilanesberg National Park 2019-04-02 11:00 NWPB/RFT/FENCEMAT/010/2019
Request for expression of interest (EOI): Hotel technical, operation and management services 2019-03-22 16:00 EOI – Hole in the Wall
Construction of defected structure (Structural Defects) at Kempton Campus 2019-04-03 11:00 EWCBID 10/2019
Construction of defected structure (Structural Defects) at Tembisa Campus 2019-04-03 11:00 EWCBID 09/2019
Consulting Engineering professional service for a new classroom at Kathorus Campus 2019-04-03 11:00 EWCBID 08/2019


Must my business be registered in order to tender?

By Werner van Rooyen


31 January 2019

Once, a very anxious business owner phoned me and asked if I can supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly for what did he need a CK number for? He said that because of my Tender Manual that he bought, he thought that maybe I can help him with a CK number. Also, at the briefing session of the tender that he was responding to, the person in... Read More

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