Tender Compliance
30% Subcontracting Compliance
Tests whether mandatory 30% subcontracting to designated groups was actually flowed down.
Why the 30% subcontracting condition must actually flow down
Where the Preferential Procurement Regulations require mandatory subcontracting of at least 30% to designated groups, that condition is a binding term of the contract, not an aspiration, and failing to enforce it defeats the empowerment objective the AGSA tests. Tenders are routinely awarded on a subcontracting commitment that is never honoured in delivery. AuditPro Core tests whether the 30% was actually flowed down so SCM can hold suppliers to the condition they accepted.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Eligible Contracts
63
above R30m
Subcontract Shortfall
21
33% non-compliant
Committed vs Paid Gap
R 71.4m
▲ R 19m
Verified Compliant
42
Committed vs Actual Subcontract Spend (R'm)
Largest Subcontracting Shortfalls
| Contract | Prime Contractor | Committed % | Actual % |
|---|---|---|---|
| C-8801 | Prime A | 30 | 8 |
| C-8820 | Prime D | 30 | 11 |
| C-8834 | Prime B | 35 | 14 |
| C-8856 | Prime C | 30 | 17 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
When subcontracting is mandatory
For qualifying contracts above the prescribed value, the regulations may require at least 30% to be subcontracted to designated groups such as black-owned or women-owned enterprises. Bidders accept this as a condition of award.
Commitment versus delivery
The risk is the gap between the subcontracting promised at tender and what is actually paid to designated subcontractors during delivery. A commitment that is never executed is a breach, not a technicality.
Verifying the flow-down
Real compliance requires evidence that designated subcontractors were appointed and paid the required share. Self-declaration alone does not establish that the 30% reached its intended recipients.
How AuditPro Core Bridges the Gap
- Commitment tracking: records the subcontracting undertaken at award and the designated-group target.
- Delivery reconciliation: matches actual payments to designated subcontractors against the 30% requirement.
- Exception workflow: flags contracts where executed subcontracting falls short of the committed share.
- Audit-ready export: evidences the commitment, the subcontractor payments and the compliance gap.
Key Takeaways
- The 30% subcontracting condition is a binding contract term, not an aspiration.
- Test delivery, not just the tender commitment.
- Self-declaration is not evidence that designated subcontractors were paid.
- An unmet subcontracting condition is a breach the institution must enforce.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.