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.
External audit services 2019-09-25 12:00 BID GEPF 11/2019
Appointment of a service provider to be the convener of the second HYSA five-year review 2019-09-23 11:00 DSI10/2019-20
The KwaZulu Natal Freeway Management Systems (FMS) - Design, Build, Operate and Maintain 2019-09-23 14:00 NRA X.005-066-2019/1
Provision of electrical maintenance services 2019-09-26 10:00 MPGXC005753
Water and Sanitation programme phase 3A at Dunduluzi Primary School, Nongoma 2019-10-01 11:00 ZNTU 03970 W
Water and Sanitation programme phase 3A at Tholathemba P School, Vryheid. 2019-09-27 11:00 ZNTU 02314 W
Water and Sanitation programme phase 3A at Siyathuthuka Junior P School, Mtubatuba 2019-09-27 11:00 ZNTU 03965 W
Water and Sanitation programme phase 3A at Matshamhlophe P School, Ngwavuma 2019-09-27 11:00 ZNTU 02458 W
Water and Sanitation programme phase 3A at Ngungunyane P School, Ngwavuma 2019-09-27 11:00 ZNTU 02365 W
Water and Sanitation programme phase 3A at Zamani P School, Nongoma 2019-09-27 11:00 ZNTU 02402 W
30 Department of Health clinics in North Coast Region: Design and construct approach- Replace existing deteriorated septic tank with new 15 m3 septic tank, new soakway and new reticulation. 2019-10-03 11:00 ZNTU 03979 W
Water and Sanitation programme phase 3A at Nqamana JJS, Eshowe towards Nkandla. 2019-09-27 11:00 ZNTU 02300 W
Department of Education : School Sanitation Programme : Mbambuya Primary School, Magamule Secondary School, Mthwalume Primary School and Sibuyile Secondary School : Cluster UGU 05: CIDB Grade 6 GB Only and to be registered on the Eyesizwe Database 2019-10-03 11:00 ZNT M00908W
Department of Education : School Sanitation Programme : Albert Secondary School : Ikhwazilamachi Primary School and Phumza Primary School : Cluster UGU 04: CIDB Grade 7 GB 2019-10-03 11:00 ZNT M00909W
Request for proposal: Appointment of a professional service provider to conduct an environmental impact assessment for the gas to power plants and associated infrastructure within the COEGA Special Economic Zone and Port of Ngqura 2019-09-27 12:00 CDC/ 430/ 19
Request for proposal: Provision of a technology based security service for COEGA Development Corporation. 2019-09-30 12:00 CDC/ 368/ 19
Department of Education : School Sanitation Programme : Duduzile Primary School, Nombuso Secondary School and Sister Joan J Secondary School : Cluster UGU 07 : CIDB Grade of 6 GB only and to be registered on the Eyesizwe Database 2019-10-03 11:00 ZNT M00905W
Department of Education: Schools Sanitation Programme: Cluster UGU 03: Mdulashi Junior Secondary School: CIDB Grading 3 GB or higher within the Eyesizwe Database 2019-10-03 11:00 ZNTM00931W
Dept of Justice: Durban High Court: Repairs and Renovations including upgrades of Toilets and Additional Accommodation 2019-10-30 11:00 DBN4622019
Refurbishment of Lethabong Secondary School 2019-10-01 11:00 DID18/ 08/ 2019

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2 items that determine tender pricing

Article by Werner van Rooyen

www.howtotender.co.za

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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