According to the Preferential Procurement Regulations, 30% of all Government Contracts above R30 million, must be sub-contracted to specific categories of SMME’s, if it is feasible. 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. Briefing Sessions or Information Sessions are usually compulsory for all bidders that want to respond to a specific tender. For this reason, anyone trying to win a specific tender will attend the Briefing / Information Sessions.
You will find all sorts of businesses at Briefing Sessions – from large Johannesburg Stock Exchange listed companies to the small one-man operations or sole proprietors. Many times, smaller businesses will not necessarily be able to comply with all the requirements of a tender, and therefore their tender responses will be unsuccessful whereas larger businesses will comply with all the requirements of a tender and their tender responses are successful.
By implementing the 30% sub-contracting rule Government is trying to spread the wealth that comes with winning a tender. This will be good for growing SMME’s in the future. We foresee that Briefing Sessions are going to be the place where potential sub-contracting deals are going to be made.
Keep in mind, for a business to become a sub-contractor it will have to be a running concern. Large businesses will only use dependable sub-contractors with a proven track record.
To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops and webinars. You can book online at https://howtotender.co.za/workshops/. Contact us at firstname.lastname@example.org should you require more information.
Remember: We have various manuals and guides to assist you in the process of completing your tender documents.