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.
Supply and delivery of beef forequarter to Ncome Management area 2019-02-18 11:00 KZN 10/ 2018
Supply and delivery of Poultry and beef forequarter to Pietermaritzburg Management area 2019-02-18 11:00 KZN 12/ 2018
Supply and delivery of pork, chicken, beef forequater to Port Shepstone Correctional Centre 2019-02-18 11:00 KZN 14/ 2018
Supply, delivery, demonstration and commissioning of various manikins for use in hospitals, clinics and all Western Cape College of Nursing campuses in the Western Cape Health Department for a three year period. 2019-02-15 11:00 WCGHCC046/ 2018
The supply, delivery, installation, commissioning and maintenance of medical linear accelerators for Charlotte Maxeke and Steve Biko Academic Hospital for a period of two years. 2019-02-15 11:00 GT/ GDH/ 001/ 2019
Supply and delivery of medical equipment for King Edward VIII hHospital S-Block: Once off. Which includes: see description for details 2019-02-11 11:00 ZNB 9648/ 2018- H
Supply, delivery, end user training, demonstration, commission and installation of a dor theatre integration solution to manage and control various video and audio signal inputs and outputs between theatre and a conferencing facility for King Edward VIII Hospital: once off 2019-02-11 11:00 ZNB 9650/ 2018- H
X- Ray Baggage Scanner 2019-01-25 11:00 CRL007/ 2018
Procurement of Two (2) 300KVA Standby Generators with Service and Maintenance Plan for a Period of Three (3) Years in Golden Gate Highlands National Park, Clarens, Free State 2019-02-08 11:00 GNP- 055- 18
The SAAO is looking to procure a dual spindle workstation for its mechanical workshop based in Observatory Cape Town. 2019-02-08 11:00 NRF/ SAAO/ 2018/ 020
The SAAO is looking to appoint a service provider for the design, engineering, procurement, installation, commissioning, training of staff and maintenance for the first 2 years for the installation of a 40 kWp PV plant (subject to technology proposed), on site at the SAAO Site, Sutherland. 2019-02-08 11:00 NRF/ SAAO/ 2018/ 004
Supply, delivery, installation and commissioning of one 200kva diesel generator at the Hartrao Site in Krugersdorp 2019-02-12 11:00 NRF/ SARAO HART 03/ 2018- 19
Supply, delivery, installation and training of Multi-mode Reader 2019-02-19 11:00 ARC/ 27/ 12/ 18
SANSA invites bidders to tender for supply and delivery of (x2) RF fiber converters chassis for 70MHz & (x2) chassis for 9GHz 2019-02-19 11:00 SO/ 042/ 01/ 2019
Appointment of a service provider to supply a digital zoom microscope to the South African National Biodiversity Institute (SANBI). 2019-02-15 11:00 SANBI G319/ 2019
The South African Social Security Agency hereby invites independent medical Doctors to submit an expression of interest to be included on SASSA’s database of suppliers to conduct quality assurance and be accredited for a period of 24 months. 2019-02-15 11:00 SASSA: 21/ 18/ GA/ EC
Delivery of one dining/kitchen unit and eight(8) sleeper units of new park-homes at the Hartrao Site in Krugersdorp over a one year contract 2019-02-14 11:00 NRF/ SARAO HART 02/ 2018- 19
Procurement of a service provider for the South African Platinum Group Metals Industry Roadmap (SAPGMIR) 2019-02-15 12:00 MTK 18/ 2018
Supply and delivery of Amenities [As and when required] to various EKZNW resorts for a period of 3 years. 2019-02-15 11:00 EKZNW 03/ 2019
Supply and delivery of Cutlery [As and when required] to various EKZNW resorts for a period of 3 years. 2019-02-15 11:00 EKZNW 02/ 2019

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10 Features of a good Joint Venture Agreement

By W van Rooyen

www.howtotender.co.za

A Joint Ventures is a good business idea to compete for tenders if one does not have all the necessary expertise that are required from a specific tender. The thing to remember though is that you must have a solid Joint Venture Agreement in place for your Joint Venture. A good, rock solid Joint Venture Agreement will protect the participants to the Joint Venture.

 Here are 10 features that any good Joint Venture Agreement... Read More

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