Issue Date: 
Tuesday, November 3, 2015

3 Challenges to Starting a Business to Tender

We, as tender consultants are confronted on a daily basis with all the different challenges that the average business owner faces in the tender process. There are several challenges that keep on repeating over and over again especially if you are a start-up business or you erected a company with the specific intention to respond to tenders. These challenges are:

1.    Experience
Tender responses are evaluated according to Functionality. One condition under Functionality is always the amount of experience you or your company have in a specific industry. The experience element usually counts a number of points and these points all add up to your total score that you need to achieve in order to move on to the next phase of evaluation. If you are going to lack experience you are going to struggle to earn points. To resolve this we suggest that you respond to tenders that you as person have relevant experience in. A good example is where an IT sector person responds to tenders in the IT sector - this way you can use your own experience on your CV to earn points on Functionality.

2.    Site visits
Currently the trend from Government Entities is to do site visits to ensure that the bidders are real companies. The problem with erecting a company with the sole intention to respond to tenders is that the company is not really in business and therefor there is no site that it operates from. Depending on the kind of tender that you are responding to the minimum that you need to do is to set up an office of some sort, even if it is at your house. You need to show them that you have capacity in order to earn points on Functionality and to move forward to the next phase.

3.    Compulsory Governing Body registration
In South Africa there are numerous Governing Bodies that businesses and its employees and/or owners have to belong to. Three examples of such Governing Bodies are:

  • National Home Builders Registration Council (NHBRC), 
  • The Financial Services Board (FSB) and 
  • The National Contract Cleaners Association. 

There are many more but we will stick to these three. Many Government tenders require registration certificates showing your affiliation to a Governing Body. Failure to produce such a certificate can lead to your tender response as being judged as non-compliant and this can lead to you being disqualified. 
There are two major challenges that the business owner face when registering with the appropriate Governing Body:

  • Firstly the rules and regulations that the business must adhere to in order to register and 
  • Secondly the cost involved.

The answer would be to try and register even if it is costly. Remember that you will have to comply in any case with the rules and regulations of the Governing Body should you be so lucky to win the tender. Find out what the rules and regulations are and start to comply now and register.

Starting a business is a very hard process - starting a business specifically for the purpose to respond to tenders is even more difficult. Rather start a small business, get it up and running, get some experience under the belt, earn a bit of income and then start responding to tenders. 

If you want to learn more about the tender process please visit our website for more details on our upcoming How-to-Tender workshops (www.how2tender.com) or email werner@how2tender.com should you need any assistance in this regard.

Title Closing Date Tender No.
Supply , Delivery and Off-loading of Perishable Provisions for Thohoyandou and Polokwane management areas ( Limpopo Province) 2018-11-06 11:00 LMN 06/ 2018 LIMPOPO
Appointment of service providers to implement The Animal and Veld Management Programme (AVMP) Soil Rehabilitation Projects in Spitskop and Zandmartinsdrift Land Reform Farms in the Edinburg area in Kopanong Local Municipality within Xhariep District Municipality as well as in De Hoop Land Reform Farm in the Bloemfontein area within Mangaung Metro Municipality in the Free State province. 2018-10-05 11:00 PSSC- RID- FS 0004 (2018/ 2019)
Supply, Delivery and Off-loading of Perishable Provisions at Klerksdorp, Rooigrond and Rustenburg Management Areas (North -West Province) 2018-11-06 11:00 LMN 04/ 2018 NORTH - WEST
Appointment of service providers to implement The Animal and Veld Management Programme (AVMP) Soil Rehabilitation Project in Rietfontein Land Reform Farm in the Soutpan area in Masilonyana Local Municipality within Lejweleputswa District Municipality in the Free State province. 2018-10-05 11:00 PSSC- RID- FS 0003 (2018/ 2019)
Supply , Delivery and Off-loading of Perishable Provisions at Barberton ,Bethal and Witbank management areas( Mpumalanga Province) 2018-11-06 11:00 LMN 05/ 2018 MPUMALANGA
Appointment of a service provider to render security guarding services at the Department of Public Service and Administration for a period of two (2) years. 2018-10-12 11:00 DPSA002/ 2018
Provision of Geographical Information Solution (GIS) including maintenance and support services. 2018-10-24 11:00 RFP 29/ 2018
6000 units of emollient bp cream with chlorocresol 500g, or equivalent 2018-10-08 11:00 ZnqLS443/ 18gaz
Butterworth Magistrate: Repairs & Servicing of Air-Conditioners. 2018-10-11 11:00 MTH 59/ 2018
36 units of Dextran 40, 10% in sodium chloride injection iv solution, 0.9% 500ml (Rheomacrodex), or equivalent 2018-10-08 11:00 ZnqLS442/ 18gaz
Drain cleaning and verge maintenance on Road P242, from 0.00KM TO 9.9KM. 2018-09-27 11:00 ZNT373T/ 2/ 4/ CDUR/ 601/ S/ 10/ 2018- 19
Drain cleaning and verge maintenance on main road P100 section 1&2 between chainage 0.00KM to chainage 14.5KM. 2018-09-27 11:00 ZNT373T/ 2/ 4/ CDUR/ 601/ S/ 05/ 2018- 19
Supply and Delivery of Dairy products and Maize Drink to the Gauteng Provincial Government (GPG) Departments and State Information Technology Agency (SITA) for a period of 36 months 2018-10-12 11:00 GT/ GPT/ 126/ 2018
Betterment and graveling on road D755 from KM 1.80 TO KM 2.80. 2018-09-27 11:00 CDUR/ 620/ S/ 03/ 2018
Supply and Delivery of Self-Adhesive Pharmaceutical Labels to all Hospitals/Institutions under the control of the Department of Health, Western Cape Government for a period of three (3) years 2018-10-19 11:00 WCGHSC0168/ 2018
Installation of Speed humps and Rumble strips on P129. 2018-10-23 11:00 ZNT373T/ C237/ 12000/ S/ 13
Request for Proposals to assist the ARC with the travel, accommodation and conference services for all the ARC offices nationally 2018-10-22 11:00 ARC/ 11/ 09/ 18
Installation of Speed humps and Rumble strips on P1-8. 2018-10-23 11:00 ZNT373T/ C237/ 12000/ S/ 12
Refrigerated Cross-Border Transport and clearing of cargo; including payment of import Value Added Tax (VAT) for the import of the Foot-and-Mouth Disease (FMD) vaccines from Botswana via the Kopfontein Border Post 2018-10-29 11:00 ARC/
Installation of Speed humps and Rumble strips on P12-2.: Civil Engineering services: Tender must be registered as grade 2CE only with the CIDB register of contractors.Tender must be registered as Emerging Contractors in the Vukuzakhe Emerging Contractor Development Programme (as per database of Department of Transport) 2018-10-23 11:00 ZNT373T/ C237/ 12000/ S/ 11

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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
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