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.
Supply and management of traffic offences system with the provision of back up office and lease of camera law enforcement equipment for 36 months. 2019-07-08 12:00 LTLM2019/20 C0MMSER01
Appointment of a service provider for the supply, delivery and offloading of a full build suction truck. 2019-07-08 12:00 LTLM2019/20 C0MMSER02
Appointment of a contractor for retrofitting 203 (160W) high pressure sodium (HPS) street lights & 297 (400W) HPS mast luminaires with 70W (Streetlights) and 279W (High Mast Luminaries) Light Emitting Diode (LED) lights. 2019-07-08 12:00 LTLM2019/20 TECH01
Appointment of Contractor for Construction of Maboloka Sports Facilities 2019-07-09 10:00 SCM07/CONST/06/2019
Acquisition for Maintenance of Electrical and Sewer Infrastructure for a period of 3 (Three) Years 2019-07-18 10:00 RFT15/05/2018/19
Appointment of Service Provider for Procurement of Split Electrical (Energy) Meters 2019-07-18 10:00 RFT14/05/2018/19
Panel of Auctioneers - Re-Advert 2019-07-11 10:30 LIM74/1/49
Supply and Delivery of Personal Protective Equipment For A Period Of Three Years - Re-Advert 2019-07-12 10:30 LIM74/1/46
Panel of Grant Funders - Re-Advert 2019-07-12 11:30 LIM74/1/48
Provision of Cellphones - Re-Advert 2019-07-12 09:30 LIM74/1/47
Panel of Legal Services - Re-Advert 2019-07-11 11:30 LIM74/1/55
Cash – in - Transit - Re-Advert 2019-07-11 09:30 LIM74/1/54
Request for information to provide Comprehensive Primary Health and Wellness Services for Military Veterans. 2019-07-05 12:00 RFI/DMV/02/2019
Request for information to provide Medical Aid Cover for Military Veterans in the Department of Military Veterans 2019-07-05 12:00 RFI/DMV/01/2019
Appointment of a service provider for condom sampling services. 2019-07-08 11:00 RFP/19/38
Appointment of a reputable Electrical Contractor for the assessment, repair and issuing of the electrical Certificate of Compliance (COC) (SANS 10142). 2019-07-08 11:00 RFP/19/120
Supply and delivering of personal protective equipment (3 Year Period) 2019-07-08 12:00 TD02/06/19
Recruitment of a Junior Statistician Consultant on Data Base and Analysis Management 2019-07-03 15:00 AUC/EAD/C/008
Consultancy services to support setting up an AUDA-NEPAD positive organization culture 2019-07-03 14:30 80/NPCA/OCEO/QCBS/2019
Cape Town : leasing of 25 Parking Bays for the Department of Justice : Category B & D 2019-07-05 11:00 CPTL67/ 19


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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