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.
Supply and delivery of beef forequarter to Ncome Management area 2019-02-18 11:00 KZN 10/ 2018
Supply and delivery of Poultry and beef forequarter to Pietermaritzburg Management area 2019-02-18 11:00 KZN 12/ 2018
Supply and delivery of pork, chicken, beef forequater to Port Shepstone Correctional Centre 2019-02-18 11:00 KZN 14/ 2018
Supply, delivery, demonstration and commissioning of various manikins for use in hospitals, clinics and all Western Cape College of Nursing campuses in the Western Cape Health Department for a three year period. 2019-02-15 11:00 WCGHCC046/ 2018
The supply, delivery, installation, commissioning and maintenance of medical linear accelerators for Charlotte Maxeke and Steve Biko Academic Hospital for a period of two years. 2019-02-15 11:00 GT/ GDH/ 001/ 2019
Supply and delivery of medical equipment for King Edward VIII hHospital S-Block: Once off. Which includes: see description for details 2019-02-11 11:00 ZNB 9648/ 2018- H
Supply, delivery, end user training, demonstration, commission and installation of a dor theatre integration solution to manage and control various video and audio signal inputs and outputs between theatre and a conferencing facility for King Edward VIII Hospital: once off 2019-02-11 11:00 ZNB 9650/ 2018- H
X- Ray Baggage Scanner 2019-01-25 11:00 CRL007/ 2018
Procurement of Two (2) 300KVA Standby Generators with Service and Maintenance Plan for a Period of Three (3) Years in Golden Gate Highlands National Park, Clarens, Free State 2019-02-08 11:00 GNP- 055- 18
The SAAO is looking to procure a dual spindle workstation for its mechanical workshop based in Observatory Cape Town. 2019-02-08 11:00 NRF/ SAAO/ 2018/ 020
The SAAO is looking to appoint a service provider for the design, engineering, procurement, installation, commissioning, training of staff and maintenance for the first 2 years for the installation of a 40 kWp PV plant (subject to technology proposed), on site at the SAAO Site, Sutherland. 2019-02-08 11:00 NRF/ SAAO/ 2018/ 004
Supply, delivery, installation and commissioning of one 200kva diesel generator at the Hartrao Site in Krugersdorp 2019-02-12 11:00 NRF/ SARAO HART 03/ 2018- 19
Supply, delivery, installation and training of Multi-mode Reader 2019-02-19 11:00 ARC/ 27/ 12/ 18
SANSA invites bidders to tender for supply and delivery of (x2) RF fiber converters chassis for 70MHz & (x2) chassis for 9GHz 2019-02-19 11:00 SO/ 042/ 01/ 2019
Appointment of a service provider to supply a digital zoom microscope to the South African National Biodiversity Institute (SANBI). 2019-02-15 11:00 SANBI G319/ 2019
The South African Social Security Agency hereby invites independent medical Doctors to submit an expression of interest to be included on SASSA’s database of suppliers to conduct quality assurance and be accredited for a period of 24 months. 2019-02-15 11:00 SASSA: 21/ 18/ GA/ EC
Delivery of one dining/kitchen unit and eight(8) sleeper units of new park-homes at the Hartrao Site in Krugersdorp over a one year contract 2019-02-14 11:00 NRF/ SARAO HART 02/ 2018- 19
Procurement of a service provider for the South African Platinum Group Metals Industry Roadmap (SAPGMIR) 2019-02-15 12:00 MTK 18/ 2018
Supply and delivery of Amenities [As and when required] to various EKZNW resorts for a period of 3 years. 2019-02-15 11:00 EKZNW 03/ 2019
Supply and delivery of Cutlery [As and when required] to various EKZNW resorts for a period of 3 years. 2019-02-15 11:00 EKZNW 02/ 2019

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10 Features of a good Joint Venture Agreement

By W van Rooyen

www.howtotender.co.za

A Joint Ventures is a good business idea to compete for tenders if one does not have all the necessary expertise that are required from a specific tender. The thing to remember though is that you must have a solid Joint Venture Agreement in place for your Joint Venture. A good, rock solid Joint Venture Agreement will protect the participants to the Joint Venture.

 Here are 10 features that any good Joint Venture Agreement... Read More

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