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.
Property Renovations at 10 Van Eck Street, Sasolburg, Free State 2019-08-02 12:00 FDC RFP NO. 006/ 2019
East London: Duncan Village: New office accommodation for SASSA: local office: for a period of five (5) years. 2019-08-06 11:00 LSPE06/ 2019
Appointment of a contractor for construction of the Pack house in Thulamahashe situated in Bushbuckridge Local Municipality at Ehlanzeni District Municipality in Mpumalanga Province. 2019-08-02 11:00 CONMP 00011 (2019- 2020)
UPINGTON AREA: Servicing & maintenance of cold and freezer rooms for 24 months. 2019-08-02 11:00 KIM- 0619- 108562
Water and sanitation programme phase 2 at Encutshe Primary School. Vryheid. 2019-08-13 11:00 ZNTU 01865 W
Water and sanitation programme phase 2 at kwaNsele Primary School. Nongoma. 2019-08-13 11:00 ZNTU 01900 W
Water and sanitation programme phase 2 at Vukanimazulu SS/ Sibiyangankomo P. School, Pongola. 2019-08-13 11:00 ZNTU 03961 W
Appointment of a suitable service provider to conduct gardening services at the Irene Weather Office, for a period of three (3) years 2019-08-02 11:00 SAWS- 205/ 19
Appointment of a suitable service provider to perform continuous general building maintenance at the SAWS Head Office – Eco Park Centurion and Irene Weather Office, for a period of three (3) years. 2019-08-02 11:00 SAWS- 206/ 19
Appointment of a service provider to operationalize SAWS Talent Management Framework including development of the career pathing architecture and implementation of succession planning 2019-08-02 11:00 SAWS- 204/ 19
Hire of office accommodation for the Department of Agriculture and Rural Development: Edumbe: A lettable area sufficient to accommodate 490 m2 of assignable space plus 15 undercover, 8 open bays and 6 lock up and 1 parking is for disabled. 2019-08-13 11:00 ZNT 7833 W
Water and sanitation programme phase 2 at Zungwini PS/ Mqwabe PS, Ndabambi Combined School. Vryheid. 2019-08-13 11:00 ZNTU 01990 W
Appointment a service provider to conduct employee climate and culture survey 2019-08-02 11:00 SAWS- 194/ 19
ZNT 02981W: KZN: Department of Health: iLembe District: Stanger: EMRS: Proposed Hire Of Office Accommodation (232m2), seventeen (17) Undercover Parking Bays,Thirteen (13) Open Parking Bays, One (01) Disabled Person Parking Bays and One (01) Wash Bay for (05) years. 2019-08-12 11:00 ZNT 02981W
Appointment of a Service Provider to Conduct Background Screening For Nominated Candidates Prior to Appointment for a period of three (3) Years 2019-08-02 11:00 SASSA: 11- 19- HCM
Maintenance and Support of SAQA Local Area Network (LAN) and Wide Area Network (WAN) Security services including new installations for a period of three (3) years 2019-08-01 11:00 SAQA 0005/ 19 IT
Maintenance and repair of Heating, Ventilation, Air- Conditioning (HVAC) infrastructure of the South African Qualifications Authority (SAQA) building, including new installations for a period of five (5) years 2019-08-01 11:00 SAQA 0004/ 19 DFA
Maintenance and support of SAGE 300 ERP (ACCPAC) including new installations, upgrade, training and development to the South African Qualifications Authority (SAQA) for a period of three (3) years 2019-08-01 11:00 SAQA 0003/ 19 DFA
The provision of media buying for power alert 2019-08-13 10:00 CORP 4842
Appointment of a grade 6GB CIDB registered contractor for the construction of a skills development centre in Paulpietersburg (Dumbe). 2019-08-06 11:00 BID REFERENCES: PROC T564

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Extension of validity period

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Those of you who are familiar with responding to tenders will know that it is common practice for procuring entities to extend the bid price validity period. We received the undermentioned queries regarding the extension of the validity period of the bid price.

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