According to the Preferential Procurement Regulations, 30% of all Government Contracts above R30 million, must be sub-contracted to specific categories of SMME’s, if it is feasible. 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. Briefing Sessions or Information Sessions are usually compulsory for all bidders that want to respond to a specific tender.  For this reason, anyone trying to win a specific tender will attend the Briefing / Information Sessions.

You will find all sorts of businesses at Briefing Sessions – from large Johannesburg Stock Exchange listed companies to the small one-man operations or sole proprietors.  Many times, smaller businesses will not necessarily be able to comply with all the requirements of a tender, and therefore their tender responses will be unsuccessful whereas larger businesses will comply with all the requirements of a tender and their tender responses are successful.

By implementing the 30% sub-contracting rule Government is trying to spread the wealth that comes with winning a tender.  This will be good for growing SMME’s in the future.  We foresee that Briefing Sessions are going to be the place where potential sub-contracting deals are going to be made.

Keep in mind, for a business to become a sub-contractor it will have to be a running concern.  Large businesses will only use dependable sub-contractors with a proven track record.