Issue Date: 
Monday, September 14, 2015

Joint Ventures - Important Tool in the Tender Process

On 1 May 2015 the Amended B-BBEE Codes of Good Practice came into effect. These Amended Codes will have a major impact on the B-BBEE Scores of all businesses that participate in B-BBEE in South Africa. The fact of the matter is that the B-BBEE scoring levels have changed drastically. If a company does not have any sort of Black Ownership it is going to be very difficult to achieve a decent B-BBEE Score.

In the Amended B-BBEE Codes of Good Practice the Ownership Element Score has been adjusted from 20 points to 25 points. It is widely accepted that on the "old Codes" a good B-BBEE score was between 65 to 75 points. Businesses that achieved such a score usually got a Level Four B-BBE Score which in turn meant that these businesses had a 100% Procurement Recognition Level. A Level Four Procurement Recognition Level was great and everybody was happy.

The problem is that due to new concepts in the Amended B-BBEE Codes such as Priority Elements and higher scoring levels, it will become a challenge to reach the same recognitions levels as in the past. This is where Joint Ventures will play a major role in ensuring that good B-BBEE Scores can be achieved by businesses.

One of the most important instances where B-BBEE Scores are of utmost importance is in the tender process. It is common knowledge that the better the B-BBEE Score, the better your chances of winning a tender. Government Entities must use the Preferential Procurement Point System (either the 80/20 or 90/10 system) to calculate which tender response will be awarded the tender - if you do not have a good B-BBEE Score and if it is a close race, you are going to lose out with a low B-BBEE Score.

Keeping all the above in mind, Joint Ventures can be a great tool to use to increase B-BBEE Scores. Remember that when you tender through a Joint Venture you must submit a Consolidated Joint Venture B-BBEE Certificate. If you have the correct Joint Venture partner, with a good B-BBEE score, the overall score that you will achieve in the Preferential Procurement Point System can be much higher than going into the tender alone.

How2Tender's workshops provide much insight into Joint Ventures and much more. Please visit our website for more details www.how2tender.com or email estelle@how2tender.com should need any assistance in this regard.

Title Closing Date Tender No.
The provision of clinker removal and rope access at Camden Power Station for a period of 36 months 2019-07-29 10:00 MPGXC005631
Panel: Client Decor Services 2019-07-08 12:00 CTICC 038/2019 PANEL: CLIENT DÉCOR
Provision of collecting, stripping and assessment of medium voltage motors including on site white meta bearing repairs of selected Medium Voltage Motors at Arnot Power Station 2019-07-25 10:00 MPGXC 005619
Germiston Station Minor Building Works Upgrade 2019-07-08 11:00 RFQ 02-1911150/06/2019
The province of KwaZulu-Natal, Department of Transport, invites tenders of Vukuzakhe Contractors for the Betterment and Regravelling of L2602 Contract 1 in the Ulundi Municipality within the Zululand District. 2019-08-13 11:00 ZNT373/ C266/ 2111/ S/ 1/ 2018T
Renovational Services for the National Health Laboratory Service (NHLS) at Pietersburg Hospital Lab, Polokwane 2019-07-18 11:00 RFB021- 19- 20
Renovation Services for the National Health Laboratory Service (NHLS) at Bongani Provincial Hospital, Welkom 2019-07-17 11:00 RFB0018- 19- 20
General maintenance including roof replacement; 25 Voortrekker Road; Murraysburg. 2019-07-24 11:00 G003/ 19
Water and sanitation programme phase 3A at Zamangothando Secondary School, Khawuleza PS, Sishongani PS and Induduzo PS, Ulundi 2019-07-26 11:00 ZNTU 02480 W
Water and sanitation programme phase 3A at Maphovela High School, Ulundi 2019-07-26 11:00 ZNTU 03956 W
Phase 14 Storm Damage: Repairs and Renovations to Storm Damaged Schools Throughout The Province of KwaZulu Natal 2019-07-22 11:00 VARIOUS
The Construction of the Apli Cold Storage Facility, Depot and Packhouse 2019-07-15 12:00 CDC/ 327/ 19
NDPW:Rehabilitation and Construction of the New Office block at 85 Anderson Street,Johannesburg (Heritage) 2019-08-06 11:00 JHB.19/ 20
TKZN intends to appoint a marketing services agency to provide integrated marketing services aligned to the TKZN’S 2014-2020 strategy and annual performance plan for the period of twelve months 2019-07-19 12:00 TKZN NO: 03/ 2019
TKZN intends to appoint a suitable service provider to provide Public Relations and Communications support to the organization for the period of twelve months. 2019-07-19 12:00 TKZN NO: 01/ 2019
TKZN intends to appoint a suitable service provider to supply, install, develop, configure and maintain the SAP Business one application system including Microsoft SQL server database 2019-07-19 12:00 TKZN NO: 04/ 2019
CapeNature seeks the expertise of a suitable service provider for the supply, delivery and installation of Atmospheric Water Generators with a solar solution at the Anysberg Nature Reserve, CIDB and Local content conditions apply 2019-07-26 11:00 WCNCB 01/ 06/ 2019
Appointment of a service provider to manage Media Relations and Communication services on behalf of the Broad-Based Black Economic Empowerment Commission (‘the B-BBEE Commission’) for a period of 2 years. 2019-07-12 11:00 dti 06/ 19- 20
Appointment of a service provider to supply, install, configure and maintain a Telephone Management and Switchboard System for the Office of the Valuer-General on a lease basis for a period of 36 Months 2019-07-12 11:00 OVG (03) 2019/ 20
TKZN intends to appoint a Social Media Management Agency to provide social media services for a period of twelve months 2019-07-19 12:00 TKZN NO: 02/ 2019

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2 items that determine tender pricing

Article by Werner van Rooyen

www.howtotender.co.za

31 January 2019

Many bidders that respond to tenders struggle when it comes to calculating a price for a specific tender. One of the reasons for this is that a large number of Small Business Owners are usually new to the tender process and therefore they lack the necessary experience to price their bids correctly.

Without getting into the fundamentals of accounting there are two basic items that determine your... Read More

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