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.

Pages

Title Closing Date Tender No.
Plumbing services 2019-02-14 10:00 MPGXC005431
Specification for security services at Maletswai One Stop Centre in the Joe Gqabi District for a period of 3 years 2019-02-04 11:00 SCMU4-18/19-0040
Appointment of service provider to provide security services at Chris Hani District – Melton Gardens Child and Youth Care Centre for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0041
Specification for security services at Umtata One Stop Centre in the OR Tambo District for a period of 3 years 2019-02-04 11:00 SCMU4-18/19-0039
Appointment of service provider to provide security services at Protea Child and Youth Care Centre for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0029
Appointment of service provider to provide security services at or Tambo District – Qumbu Child and Youth Care Centre for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0038
Appointment of service provider to provide security services at Buffalo City Metropolitan Municipality – Silver Crown Old Age Home for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0037
Provision of Short Term Insurance for the Period From 01 July 2019 to 30 June 2022 2019-01-18 12:00 FIN 01/2019/20
Consulting engineering services for the routine road maintenance of national route N2 section 8 km 80.08 to section 10 km 73.50 and national route R62 section 6 km 36.76 to section 8 km 2019-02-04 14:00 X.003-030-2019/1F
Consulting engineering services for the routine road maintenance of national route N2 section 12 km 0 to section 13 km 103.56 and national route R67 section 2 km 0 to km 36.19 2019-02-04 14:00 X.003-032-2019/1F
Appointment of service provider to provide security services at Buffalo City Metropolitan Municipality – Enoch Sontonga Rehabilitation Center for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0036
Leasing of Premises for Customer Care Centres For uMgungundlovu District Municipality 2019-02-04 12:00 39/2018
Upgrading of the Kleinbrak 66/11kv substation 2019-02-08 12:00 TENDER 51-18/19
Spesialisdienste van Afrikaanse Taalkundige word verlang vir projek om Historiese gemarginaliseerde Afrikaanse varieteite te onsluit (Oranjerivier Afrikaans) 2019-02-12 11:00 ATM 017/2018-2019
Supply and delivery of gloves to PetroSA, GTL refinery (call of contract) 2019-02-15 11:00 CTT20907
Redesign, fabrication and installation of lifting platform main beams at Syncrolift dry dock in the Port of Cape Town 2019-02-19 10:00 TNPA 783/CIDB
Period Tender for Manufacturing and Installation of Transformer Fire Protection 2019-01-31 10:00 194Q/2018/19
Information on Water Treatment System 2019-03-01 10:00 CORP 4647
Consulting engineering services for the routine road maintenance of national route N2 section 10 km 73.40 to section 11 km 71.74 and national route R75 section 1 km 0 to section 2 km 25.93 and national route R335 section 1 km 0 to km 30.12 2019-02-04 10:00 X.003-031-2019/1F
Panel of professional services (civil, building, mechanical, electrical and environmental) for a period of three (03) years 2019-02-08 12:00 T32/2018

Pages

Two types of Joint Ventures and Joint Venture agreements 

By W van Rooyen

www.howtotender.co.za

The structure of the joint venture should set out the nature of your partnership. There are two main types of agreements:

  1. If the joint venture is a business in its own right, it will be an incorporated joint venture. This type is not... Read More
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.