Issue Date: 
Monday, August 31, 2015

Tenders explained

Each day hundreds of tenders are being advertised but we often only hear about those where things have gone wrong or where the concept has been abused. It gives ‘Tenders’ a stink it doesn’t deserve. In today’s blog, we look at what exactly a tender is.

A tender is an offer to perform work, supply goods, services or products at a fixed price. The tendering process is generally utilized for procurements or contracts involving substantial amounts of money. Generally speaking, it is government departments, offices, agencies, private sector companies and businesses that put requests out on tenders. By so doing, they basically ask the public for price offers to supply required products or services. Once the tenderer accepts a tender, it is binding to both the tenderer and the person or company who won the tender. Therefore, the person or company has to provide the goods or services in the manner agreed to and at the price offered. In turn, the tenderer must pay the agreed price on the agreed deadline.

What is tendering?

Tendering is the process of making an offer, bid or proposal. It can also be expressing interest in response to an invitation or request for tender. Organisations will seek other businesses to respond to a particular need, such as the supply of goods and services and will select an offer or tender that meets their needs and that provides the best value for money.

Where are tender requirements stated?

The requirements of a tender are stated in the Requests for Tender (RTF) or Requests for Proposal (RFP) documents. In these documents, the service or products the particular tendering organisation needs or requires are outlined. These documents also outline the criteria and provide instructions that are to be followed.

Tenders are usually widely advertised in both print and electronic publications. This is to allow as many people as possible to take note of the opportunity. It also stimulates competition and provides wide variety of choice. Interested suppliers will then prepare a tender response to the offer, including pricing, schedules as well as their eligibility for the project.

Once the tendering period has closed, the submitted tender responses are evaluated with regard to defined criteria. The process must be done fairly and honestly, free from bias or favoritism. The offer that best meets all of the requirements and provides value for money should win the contract.

While the concept of tendering may seem daunting at first, it can be easily tackled by having a plan of ‘action`. It is important to understand your business` suitability for the project and ability to manage the contract if you win the tender. By understanding these points and demonstrating that you are able to meet the criteria and offer a competitive bid, you will increase your chances of success.

How are tenders awarded?

After the closing date, all the tenders are checked for basic compliance to the tender regulations. Tenders can be disqualified during this process if they are found to be non-compliance. The compliance of the products or services offered and price is considered. All tenders which comply with the specifications are listed in order of price. Those in the lowest price tender list are in the lowest price group. Preference points given to those suppliers on the list of lowest price tenders are first verified. Preference points are only awarded after the most expensive tenders have been excluded, as this makes the process quicker and fairer. Those with verifiable information come out with the best preference points and are therefore awarded the contract.

The above formulate what tenders are and if you understand these, then you are in the best position to bid for a tender.

Title Closing Date Tender No.
Appointment of a Maximum of Three (03) Contractors for Upgrading of Various Municipal Buildings and Facilities at Service Centre (Magasyn), Middelburg 2018-10-16 12:00 BS40/08/2018
Panel of service providers to provide Silviculture for a period of three years. 2018-10-19 12:00 RFB105/2018
Supply and Deliver Toilet Ablution Container Nasaret Cemetery, Middelburg 2018-10-16 12:00 BS01/09/2016
Data cleansing and debtors collection. 2018-10-19 12:00 T2018/09/18/DCDC
Supply, Deliver and Install 26 Doors at the Community Halls in Middelburg 2018-10-16 12:00 BS 02/09/2018
Supply, delivery and installation of finger jointing mechanised planer for Timbadola Sawmill. 2018-10-19 12:00 RFB 104/2018
Supply and delivery of RG12 MK2 (Nyala) multi-purpose armoured personnel carriers for the City of Cape Town. 2018-10-22 10:00 85G/2018/19
Travel, accommodation and conference services. 2018-10-22 11:00 ARC/11/09/18
Supply: Hp 37a black original laserjet toner car 2018-09-27 11:00 GM11900254
Supply and deliver New Control Centre Workstations for Emergency Services. 2018-09-28 12:00 Q18.09.18
Supply: Gcb fusion laminator a3 max. 2018-09-27 11:00 GM11900255
Request for Proposals to Package 5- Minute Series or Stand alone Packages of Radio Features on Rise Fm,94.3 for a Period of 6 (Six) months 2018-09-28 12:00 Q15.09.18
Supply: Hardware items 2018-10-02 12:00 GG11900516
Request For Proposals to Package 5 Minute Series Or Stand Alone Packages of Radio Features on Greater Middelburg and Emalahleni Fm for a period of six (06) months 2018-09-28 12:00 Q16.09.18
Supply: Medical supplies 2018-10-01 15:00 GF11900250
Request for Proposals to Package 5-Minute Series or Stand Alone Packages of Radio Features on Radio Kragbron,93.1 Fm and Kosmos Sterio, 99.3 Fm for a period of Six (06) months 2018-09-28 12:00 Q17.09.18
Supply and delivery of projectors. 2018-10-02 11:00 GK11900122
Supply and Delivery of Guardrail 2018-09-28 12:00 Q14.09.18
Supply of Food for Standby Teams (as and when required) for Civil Engineering Services Employees 2018-09-28 12:00 Q19.09.18
Supply & delivery of LDV's to Kouga Municipality. 2018-10-22 12:00 169/2018

Pages

Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.