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.
Appointment of a contractor for the construction of the Rosemoor Tartan Track and associated works 2019-06-25 12:00 COM 015 OF 2019
Tender for the appointment of transactional advisory services for Lejwe Le Putswa Development Agency for 3 years 2019-06-28 11:00 2019/05/001
Professional Services for the Preparation of a Social Development Master Plan for the LHWP Phase II 2019-09-02 14:00 6032
SAP System Support Services for Motor Vehicle Accident Fund (MVA Fund) 2019-06-28 15:00 MVAFUND-RFP-02-2019: SAP Support Services for MVA Fund
RFI - Request for information from industry on the upgrading, repair and commissioning of automotive fuel storage and dispensing facilities for the South African Navy as per Specification: RFI/NES/FUEL/001 dated April 19. 2019-07-17 11:00 RFI- SPSC- 1- 19
Request for quotation for renting of vehicles till the end of June 2019 2019-06-28 12:00 RFQ: 03/03/19
Appointment of a contractor for the replacement of all steel windows with aluminium, as per specification. Replacement of all brick balustrades with steel balustrades as per design. Painting of exterior of building. 2019-07-08 11:00 KH/BWP/19
Radio High Sites Infrastucture (Facilities) Maintenance and Support for Gauteng, Eastern Cape (Port Elizabeth) And Western Cape (Cape Town) for a Period of Three (3) Years in Accordance With Specification 3264/2017: Division: Technology Management Services 2019-06-27 11:00 Bid no. 19/ 1/ 9/ 1/ 81TR (18)
Appointment of a service provider to render Banking services for Emfuleni Local Municipality for a period of (60) sixty months. 2019-07-31 10:00 11/2019/36 N36/2019
Port Elizabeth:Gelvandale SAPS Complex: Repairs & Maintenance of Electrical, Civil, Mechanical & Structural Elements to Compex 2019-07-02 11:00 PE02/ 2019
BID NO: 19/1/9/1/81 TR (18): Radio high sites infrastructure (facilities) maintenance and support for Gauteng, Eastern Cape (Port Elizabeth) and Western Cape (Cape Town) for a period of three (3) years in accordance with specification 3264/2017: division: technology management services 2019-06-27 11:00 Bid no. 19/ 1/ 9/ 1/ 81TR (18)
Servicing, Diagnostic Testing, Fault Finding and Repairing of the City of Cape Town Vehicles 2019-07-18 10:00 343S/2018/19
The department of Public Works offers an opportunity to interested Investors to submit applications (Business Proposal) on rental of state owned surperflous properties within the borders of South Africa. 2019-06-30 11:00 H18/ 057


2 items that determine tender pricing

Article by Werner van Rooyen


31 January 2019

Many bidders that respond to tenders struggle when it comes to calculating a price for a specific tender. One of the reasons for this is that a large number of Small Business Owners are usually new to the tender process and therefore they lack the necessary experience to price their bids correctly.

Without getting into the fundamentals of accounting there are two basic items that determine your... Read More

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