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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 info@howtotender.co.za should you require more information. 

Remember:  We have various manuals and guides to assist you in the process of completing your tender documents.

  • The Tender Manual is a comprehensive, step by step guide how to respond to a South African Tender. It includes examples of completed SBD forms.
  • The Local Content Instruction Manual – completing Standard Bidding Document (SBD) 6.2 and Annexures C, D & E
  • The SBD Manual: Examples of completed Standard Bidding Documents.
  • Joint Venture (JV) agreement template
  • Tender 101: A beginner’s guide to tenders.
  • Tender Example: Cleaning Services.
  • Tender example: Once-off supply (with NO Functionality requirements)
  • Tender example: Once-off supply (WITH Functionality requirements)
  • Tender Example: NEC3 term contract

….. More info