Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000)RegulationsPreferential Procurement Regulations, 201712. Subcontracting after award of tender |
| (1) | A person awarded a contract may only enter into a subcontracting arrangement with the approval of the organ of state. |
| (2) | A person awarded a contract in relation to a designated sector, may not subcontract in such a manner that the local production and content of the overall value of the contract is reduced to below the stipulated minimum threshold. |
| (3) | A person awarded a contract may not subcontract more than 25% of the value of the contract to any other enterprise that does not have an equal or higher B-BBEE status level of contributor than the person concerned, unless the contract is subcontracted to an EME that has the capability and ability to execute the subcontract. |