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.

Pages

Title Closing Date Tender No.
Supply and Delivery of Submersible Slurry Dewatering Pumps at Misverstand Pump Station 2019-09-23 12:00 6/5/2/227
Supply and Loading of Clayish Material in the Klawer Area 2019-09-25 12:00 6/5/2/165
Renting of Kiosk at Ganzekraal Resort for the Period 01 November 2019 To 30 June 2021 2019-09-25 12:00 6/5/2/182
Training Course: First Aid Level One at Moorreesburg 2019-09-24 12:00 6/5/2/111
Supply and Delivery of Protective Clothing at Withoogte 2019-09-27 12:00 6/5/2/41
Compilation and Maintenance of the General Valuation Roll 2020 and the Supplementary Valuation Rolls for the Period 01 July 2021 to 30 June 2025 2019-10-17 10:00 Inc2/ 2019
Request for Expressions of Interest: Targeted review individual national consultant on “Mineral resources contribution to the economy of Zambia’’ 2019-09-24 17:00 EOI 7/2018
Request for Expressions of Interest: Targeted review individual national consultant on “The contribution of tourism to the economy of Zambia’’ 2019-09-24 17:00 EOI 7/2018
Leasing of kiosk at various municipal resorts and swimming pools. 2019-09-26 10:00 WEB 32: 2019/2020
Refurbishment and seal of Hawston swimming pool 2019-10-04 12:00 SC2023/2019
Appointment of a service provider for the provision of services in relation to validation, evaluation and reporting on commitments 2019-10-16 11:00 Proc T571
Supply and Delivery of Office Furniture for the Directorate Of Human Settlements 2019-09-25 12:00 RFQ/HS/2019-20/121
Report Writing Training Programme NQF Level 4 2019-09-25 12:00 RFQ/DHR/2019-20/120
Road and Maintenance Training Programme 2019-09-25 12:00 RFQ/DHR/2019-20/119
Occupational Health and Safety Training Programme 2019-09-25 12:00 RFQ/DHR/2019-20/118
Supply and Deliver 10 Steel Rubbish Removal Bins (Rocker Bins) at Buffalo City Fresh Produce Market 2019-09-25 12:00 RFQ/FPM/2019-20/117
The Appointment of a Panel of Specialist Service Providers To Supply, Install And Commission Air Quality Monitoring Station Equipment for a period of three years. 2019-10-08 12:00 CE: 366
The Appointment of Service Providers to Service, Repair And Calibrate Air Quality Monitoring Instruments And Noise Monitoring Instruments for a period of three years. 2019-10-08 12:00 CE: 367
Provision of security services for the NEF 2019-10-14 14:00 RFP: NEF 06/2019/20
Provision of audio visual equipment to the North West Provincial Legislature for a period of three years. 2019-10-23 11:00 NWPL 03/2019/20

Pages

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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