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.
Digital accreditation service solution 2019-10-17 12:00 DAS/2019/009
Internship programme 2019-10-17 12:00 INT/2019/009
Cleaning services 2019-10-17 12:00 CLN/2019/009
Implementation of an enterprise resource planning (ERP) solution 2019-10-17 12:00 ICT 2019/0012
Tenders are invited to Service and Repair Hydraulic Rescue equipment as per specification and returnable pricing schedule available at SCM Acquisition, Harrower Road, North End, PE 2019-09-23 11:00 CSQ09191760
Procurement of vehicles and Equipment on lease base for a period of 36 months 2019-10-15 10:30 LIM74/1/57
Tenders are invited for Occupational Hygiene Survey for Fleet Management at Deal Party ( Emphasis should be placed in Noise Monitoring of hearing conservation purposes) as per Specification available at SCM: Acquisitions, Harrower Road, Port Elizabeth 2019-09-25 11:00 CSQ09191769
Tenders are invited for Occupational Hygiene Services at Laboratory Services as per Specification available ata SCM: Acquisitions, Harrower Road, Port Elizabeth 2019-09-25 11:00 CSQ09191769
Tenders are invited for Occupational Health and Hygiene Services at Waste Water Conveyancing as per Specifications available at SCM: Acquisitions, Harrower Road, Port Elizabeth 2019-09-25 11:00 CSQ09191769
Padlock Wky Lt Sub Substation Engraved N.M.B.M. Elect.... With 8mm Hardened Steel Shackles No Key Required. - Union 50mm 2019-09-25 11:00 SQ09191475
Padlock Meter Room Engraved N.M.B.M. Elect.... S.E.F.H. With 8mm Hardened Stainless Steel Shackles Master Keyed Union 50mm (+-2 Master Keys To Be Supply Also) 2019-09-25 11:00 SQ09191475
Conductor Copper 70 Square Mm - 7 Strands Of 3.5mm Diameter -Total Diameter 10.65mm. To Be Supply In 20m Coils. 2019-09-25 11:00 SQ09191475
Metre 16mm X 3c + 54.6n (Aluminium Overhead Xlpe Insulated 600/1000v Insulated Neutral in Accordance With Sabs 1418 Part 1 And 2. 2019-09-25 11:00 SQ09191475
Re-advert: Supply and delivery of chemicals for water and waste water purification 2019-10-08 12:00 T06/2019
Appointment of a service provider for the pro vision and management of the electricity pre-paid vending system 2019-10-08 12:00 T23/2019
(Re-advert) Appointment of a panel of Engineering Consultants to provide Professional Services and Support by Emfuleni Local Municipality for a period of thirty six months on an as and when required basis 2019-10-21 10:00 11/2020/12 N12/2020
(Re-advert) Appointment of a Panel of Contractors for Road and Stormwater / Sanitation Projects / Water Projects / Building construction Projects by Emfuleni Local Municipality for a period of 36 Months as and when required. 2019-10-18 10:00 11/2020/11 N11/2020
Provision of high volume printers to the North West Provincial Legislature for a period of five years. 2019-10-23 11:00 NWPL 02/2019/20
Appointment of a consultant for the North West Provincial Legislature national key point security upgrade for a period of three years. 2019-10-22 11:00 NWPL 04/2019/20
Provision of 24/7 Private physical security services for the Department of Economic Development, Environment Conservation and Tourism and 3 Regional Offices for a period of three (3) years 2019-10-17 11:00 EED 01/2019

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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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