Issue Date: 
Tuesday, July 31, 2018

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 are 3 sub-contracting rules in the Preferential Procurement Regulations 2017 that Organs of State can/must apply when issuing tenders to the general public.

The first Regulation is Regulation 4 which state inter alia: if an Organ of State decides to apply pre-qualification criteria to advance certain designated groups that Organ of State must ADVERTISE the tender with a specific tendering condition that certain bidders can or may respond.

The second Regulation is Regulation 9 which state inter alia: if it is feasible to sub-contract for a contract above R30 million, an Organ of State must apply sub-contracting to advance designated groups.

The designate groups mentioned in both Regulation 4 and 9 are Black Owned Enterprises with 51% or more black ownership and any of female Black owned, youth black owned, black people with disabilities owned or black military veterans owned enterprises.

The third sub-contracting rule has to do with sub-contracting after the award of the tender. Regulation 12 states inter alia: (3) a person awarded a contract may not subcontract more than 25% of the value of the contract to any other enterprise that does not have an equal or higher B-BBEE status level of contributor than the person concerned, unless the contract is subcontracted to an EME that has the capability and ability to execute the subcontract.

The tender document will dictate how you should or should not sub-contract. Read the tender document carefully; follow the instructions precisely and to the point. Organs of State are applying these Regulations rigorously and failing to comply will lead to your tender response being disqualified.

Tender trends and Regulations are changing frequently. To keep up to date with these changes we recommend attending one of our How-to-Tender workshops that are presented across South Africa. Tender Workshop dates are published on our website at www.how2tender.com or for more information on the How-to-Tender workshops please email us at werner@how2tender.com

This article was written by Werner van Rooyen, Director of HowToTender which specializes in tender consulting and tender training.

Title Closing Date Tender No.
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R40 from Maruleng Border to R71, R71 from Greater Tzaneen Border to Phalaborwa Kruger Park Gate and R526 from Maruleng Border to Gravelotte 2019-03-19 14:00 NRA X.002- 121- 2019/ 1F
Replace and install new alluminium silver windows for “A” ward 2019-03-05 11:00 ZNQ 945/ 18
Urgent remove sewer cast iron pipes and replace with pvc sewer pipes at G.J. Crookes Hospital under base labour ward and a ward 2019-03-05 11:00 ZNQ 940/ 18
Paint interior and exterior of all building at Dududu Clinic 2019-03-05 11:00 ZNQ 941/ 18
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R36 from Greater Tubatse Border to Greater Tzaneen Border, R40 from Mpumalanga Border to Ba-Phalaborwa Border, R526 from Mica to Ba-Phalaborwa Border and R531 from R40 to Orpen Kruger Gate 2019-03-19 14:00 NRA X.002- 120- 2019/ 1F
Bid No -RE/02/2019. Minimum CIDB 4GB. Closing on March 2019 @ 12h00 2019-03-18 12:00 RE/ 02/ 2019
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R101 from Mogalakwena Municipal Border to Polokwane, R37 from Polokwane to Lepelle-Nkumpi Municipal Border, R71 from Polokwane to Greater Tzaneen Municipal Border, R81 from Polokwane to Molemole Municipal Border and N1 from Mogalakwena Municipal Border to Molemole Municipal Border 2019-03-19 14:00 NRA X.002- 087- 2019/ 1F (NONTOLL),
Procurement of Licence Renewal of Mimecast for KZN Department of Treasury 2019-03-15 11:00 RFB 1874/ 2018
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R510 from Lephalale to Monte Christo, R572 from Monte Christo to Tom Burke, R518 from Lephalale to Mogalakwena Municipal Boundary and N11 From Blouberg Municipal Boundary to Groblersbrug Border Post 2019-03-19 14:00 NRA X.002- 085- 2019/ 1F
Port Elizabeth & surrounding areas: Term contract for maintenance, repairs & servicing of airconditioning equipment. 2019-03-19 11:00 PET03/ 2019
Appointment of a service provider for the evaluation, due diligence and monitoring of Discretionary Grants until 31st March 2019 2019-03-08 11:00 RFP/ SASSETA/ 201819127/ 2
Port Elizabeth & surrounding areas: Term contract for maintenance, repairs & servicing of refrigeration equipment. 2019-03-19 11:00 PET02/ 2019
Appointment of a Service Provider to undertake Business Process Analysis, Development and Improvement for SASSETA 2019-03-08 11:45 RFP/ SASSETA/ 201819126/ 1
East London & surrounding areas: follow- on contract for maintenance of mechanical equipment for state owned buildings. (mechanical engineering services) 2019-03-19 11:00 PET05/ 2019
Supply, Delivery, Installation, Configuration maintenance of PABX and Call Centre Management Solution for a period of 12 months with an option to renew 2019-03-15 11:00 RFP/ SASSETA/ 201819129/ 1
Appointment of a service provider for the provision of provident fund for PSETA 2019-03-25 11:00 PROVIDENT/ PSETA/ 2019- 02
Port Elizabeth Regional Office: Follow-on contract for maintenance of passenger and goods lifts. (electrical engineering services & machanical engineering services) 2019-03-19 11:00 PET04/ 2019
Kakamas: Construction of New School at Cillie Primary School. CIDB GRADING: 8GB or Higher. 2019-03-25 11:00 DRPW 019/ 2018
Pretoria: Procurement of Office Accommodation of 2275 square meters and 85 parking bays usage by the Department of Trade and Industry for a period of 5 years in Centurion CBD or the outskirts of the CBD 2019-03-19 11:00 Pt18/ 082
Pretoria: Leasing of Office Accommodation of 4295.45 square meters and 216 parking bays for period of 9 years and 11 months in Arcadia, Brooklyn and Hatfield 2019-03-19 11:00 PT18/ 080

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5 ways to find available tenders

By W van Rooyen

www.howtotender.co.za

31 January 2019

We often get asked by business owners where can they find tenders that are currently available. Although we are not in the business of finding available tenders, our Tender Manual does have a chapter that deals with finding available tenders.

Due to the high demand for this I have decided to advise you on five different ways to find available tenders.

1. News Papers

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