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.
Cleaning service 2019-11-04 14:00 MAJV/ P14703/011
Appointment of a development partner to develop Garden Route District Municipality's 30 ha “Kleinkrantz” site (remainder of Erf 1297, Wilderness) 2019-11-21 11:00 GRDM/14/19-20
Supply, Installation and Maintenance of enterprise storage (SAN) appliance 2019-11-05 11:00 CPUT 54/19
Landscaping service 2019-11-04 14:00 MAJV/ P14703/013
The Appointment of an Electrical Contractor for the Electrification of Tshing Extension 9 2019-11-26 12:00 TENDER 59/2019
Appointment of a service provider to supply and deliver office furniture (executive desks with built-in lockable pedestals, credenzas with lockable drawers, executive chairs, meeting tables, meeting chairs, couches, chairs and tables to be used at the reception area) to the South African Nursing Council 2019-11-15 11:30 SCM 17/2019/SANC
Appointment of a professional service provider to provide city advisory support to the CSP II through exercising strategic oversight and coordinating of programme activities within the metropolitan municipalities and provide leadership in selected CSP projects. 2019-11-01 11:00 RFP 218/2019
Appointment of a suitable service provider for the provision of comprehensive pre-employment background screening and verification services including psychometric testing services for employment purposes for a period of three (3) years. 2019-10-22 11:00 RFP/2019-053
Consultancy services for the Enterprise Africa Network (EAN) - preliminary phase - preparation of logical framework 2019-10-25 15:00 AUC/TID/C/021
Western Cape Province: All Regions: All Facilities: Scheduled Maintenance General Building: Three Year Framework Agreement Designated 2019-11-20 11:00 S044/ 19
Repairs and renovations on blinds, air conditioning units, tiling and paint at DARD (Agriculture) King Cetshwayo District office, Umlalazi . 2019-11-12 11:00 KCD 19/ 2066
Repairs to roof, windows, doors, floors and painting in block of 5 classrooms at Threfall P School, Umhlabuyalingana 2019-11-11 11:00 ZNQ UM 256M/ 19- 20
Replacement of damaged and vandalised fence gate at DARD (Agriculture) Nsingweni Training Centre 2019-11-12 11:00 KCD 19/ 2067
GRIEKWASTAD: Rehabilitation of old SAPS canteen into offices for SASSA. 2019-11-01 11:00 KIM1175/ 2019
Department Of Social Development: Hire Of Office Accommodation for a period of 60 months at Ladysmith Ezakheni Township 2019-11-12 11:00 ZNTL008 W
Department Of Health: Hire Of Office Accommodation for a period of 60 months at Umzinyathi Distict Dundee 2019-11-12 11:00 ZNTL 6007 W
Department of Agriculture and Rural Development: Hire Of Office Accommodation for a Period of 60 Months at Utrecht 2019-11-12 11:00 ZNTL 6009 W
Appointment of The Local Installers to Conduct Direct - To - Home (Dth) Satellite, Digital Terrestrial Television (Dtt) Set - Top - Boxes Ad all The Related Accessory Installation to Qualifying Households inthe Free State Province 2019-10-31 11:00 USAF- POIFS/ 01/ 2019
THE LEASING OF LARGE FORMAT PLOTTER E-MULTIFUNCTION PRINTERS: The South African National Roads Agency SOC Limited (SANRAL) is soliciting tenders from an experienced service provider/s that will offer expertise in the leasing of large format plotter e-multifunction printers 2019-11-12 14:00 NRA 58000/ 1013/ 2019/ 04
Appointment of service providers for the Cleaning and Sanitation services at SASSA Eastern Cape for a period of Three (03) years. 2019-11-08 11:00 SASSA: 23/ 19/ CS/ EC

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8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures.

There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or... Read More

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