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.
CapeNature seeks a contractor for the installation of a Water and Waste Water Treatment Solution at the Vrolijkheid Nature Reserve, CIDB and Local content conditions apply 2019-09-13 11:00 WCNCB 01/ 08/ 2019
Plant Pathogen Quarantine Facility Upgrade 2019-09-09 11:00 ARC/ 03/ 07/ 19
The Appointment of a Contractor for The Supply and Installation of Outdoor Gym Equipment, Playground Equipment as well as Outdoor Furniture and Landscape Material for the Rehabilitation of Four ILLegal Dump Sites Within Gauteng Province for a Period of 3-Months -3CE/3GB Or Higher 2019-09-06 11:00 GT/ GDARD/ 051/ 2019
Completion Of Coega Vulindlela Vilage Phase 1C 2019-09-09 12:00 CDC/ 107/ 19A
Supply, deliver, install and commissioning of generators : Illembe District 2019-09-25 11:00 ZNB 9709/ 2019- H
Supply, deliver, install and commissioning of generators : King Cetswayo District 2019-09-27 11:00 ZNB 9704/ 2019- H
Replacement, service and maintenance of lifts (16 units) 2019-09-19 11:00 ZNB 5702/ 2019- H
Supply, deliver, install and commissioning of generators : Zululand District 2019-09-30 11:00 ZNB 9685/ 2019- H
Supply, deliver, install and commissioning of generators : Amajuba District 2019-09-25 11:00 ZNB 9707/ 2019- H
Supply, deliver, install and commissioning of generators : Ethekwini District 2019-09-25 11:00 ZNB 9710/ 2019- H
Supply, deliver, install and commissioning of generators : Umgungundlovu District 2019-09-27 11:00 ZNB 9705/ 2019- H
Supply, deliver, install and commissioning of generators : Ugu District 2019-09-27 11:00 ZNB 9703/ 2019- H
Supply, deliver, install and commissioning of generators : Umkhanyakude District 2019-09-30 11:00 ZNB 9706/ 2019- H
Supply, deliver, install and commissioning of generators : Umzinyathi District 2019-09-30 11:00 ZNB 9708/ 2019- H
Supply, deliver, install and commissioning of generators : Harry Gwala District 2019-09-25 11:00 ZNB 9702/ 2019- H
Supply, deliver, install and commissioning of generators : Uthukela District 2019-09-30 11:00 ZNB 9711/ 2019- H
Term Contract For Turnkey Services for Ground Source Develop (Planning, Design, Geo-Hydriological Studies, Sitting, Drilling, Testing And Equipping) Preventative and Corrective Maintenance Of Bore Holes Together With Water Reticulation : to uMkhanyakude District Health Facilities : KZN Health 2019-09-13 11:00 ZNB 5753/ 2019- H
Supply and Installation of Clear VU Fence 2019-09-18 11:00 SCSC 001/ 2019
Appointment of a Panel of Service Providers To Provide Temporary Residential Accommodation During Disasters / Emergencies, to The KZN Department of Human Settlements’ for a Period not Exceeding 36 Months 2019-08-30 11:00 ZNB52/ 2019/ 20HSE
Tourism Kwazulu-Natal (TKZN) invites tenders for construction of access road, new gatehouse, storm water infrastructure and landscaping at Mandela capture site. The works comprise of a guardhouse, access road, pedestrian walkway, attenuation ponds, and fencing. The works to be executed in 6 months. 2019-09-13 12:00 TKZN NO: 08/ 2019

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Must my business be registered in order to tender?

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Once, a very anxious business owner phoned me and asked if I can supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly for what did he need a CK number for? He said that because of my Tender Manual that he bought, he thought that maybe I can help him with a CK number. Also, at the briefing session of the tender that he was responding to, the person in... Read More

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