Issue Date: 
Wednesday, October 14, 2020

Who is the bidder or his or her representative?

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative”. This question causes confusion amongst certain bid responders. To add to the confusion the same document refers to company, directors, trustees and members.

To answer the questions in bid documents correctly bid responders needs to understand the different type of business entities that exists in South Africa. There are many types of business that can be operated and registered. Here is a list of the most common busines types in South Africa:

  1. Sole proprietor / one-man busines

A person can operate a business in his or her own name. The business is not registered as a company or close corporation and the business has no legal power. All the business is done in the name if the owner.

  1. Partnerships

Partnerships are formed between two or more businesspeople who wants to operate a business for profit. There are many forms of partnerships that can be formed:

  • Normal partnerships – are usually formed between professional people such as attorneys or doctors who share office expenses to safe on costs to ensure profits.
  • Joint Ventures – are typically formed between two or three businesses to execute a contract joining their recourses to be more competitive and increasing their changes of being successful.
  • Consortium – a Consortium is typically formed between more than three businesses to execute a contract combining their recourses to be more competitive and increasing their changes of being successful.
  1. Legal entities

Legal entities are formed by shareholders to operate a business for profit. In South Africa there are several legal entities that can be registered at the CIPC (Companies and Intellectual Property Commission):

  • Private Company ((Pty) Ltd) – a Private Company has between 1 and 50 shareholders. It is a legal entity which is managed by directors on behalf of the shareholders. The shareholders can be natural persons or other legal entities. Private Companies need to have a representative who sign contracts and tenders on behalf of the company.
  • Public Company (Ltd) – a Public Company has more than 50 shareholders. It is a legal entity which is managed by directors on behalf of the shareholders. The shareholders can be natural persons or other legal entities. Public Companies need to have a representative who sign contracts and tenders on behalf of the company.
  • Close Corporation (CC) – Close Corporations was formed between 1 and 10 MEMBERS. It is a legal entity which is managed by the members on behalf of the members. The members can only be natural persons. Close Corporations need to have a representative who sign contracts and tenders on behalf of the Close Corporations. Existing Close Corporations can still operate in South Africa but since 2008 one cannot register a new Close Corporation anymore.
  1. Trusts – Business Trusts can be erected to operate a business. A trust is managed by trustees on behalf of its beneficiaries. Business Trusts need to have a representative who sign contracts and tenders on behalf of the Business Trusts.

If the bidder is any of the entities mentioned in points 2 to 4 above, the bidder will have to appoint a representative. The representative is usually the person that has authority to sign tender documents on behalf of the bidding entity.

We hope this brings clarity in responding to tenders.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops/webinars presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at  estelle@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Copyright HowtoTender (Pty) Ltd © 2013 – 2020

Title Closing Date Tender No.
Appointment of a service provider to manage the implementation of expanded public works programme (EPWP) on school food garden project and Agriparks within the Gauteng Department Of Agriculture and Rural Development (gdard) for a period of thirty- six (36) months 2022-02-11 11:00 GT/GDARD/007/2022
Organising, managing and hosting a virtual Agri-Food Fest event 2022-02-11 11:00 GT/GDARD/006/2022
Appointment of service provider for supply and delivery of agricultural production inputs for subsistence producers within Gauteng Province for a period of thirty-six (36) months 2022-02-11 11:00 GT/GDARD/008/2022
Supply and delivery of office stationery for Gauteng Provincial Government (GPG) for a period of 36 months 2022-02-11 11:00 GT/GPT/002/2022
Provision of vehicle parking space for the Gauteng Department of e-Government for a period of 36 months 2022-02-11 11:00 GT/GDeG/001/2022
Integrated Waste Management Services at Cape Town International Airport 2022-02-14 12:00 CIA 6753/2021/RFP
Provision of Upgrade and Maintenance of College Website 2022-02-10 12:00 CO 22/02 O
Supply and delivery of protective clothing and equipment for a period of three years 2022-01-28 12:00 8/2/RNM0334
Provision of internal audit, risk and performance management system for a period of 36 months 2022-02-04 12:00 8/3/1-37/2021
Electrification of households at Dihlabaneng Turnkey 2022-02-07 12:00 Lim473/Dihlabaneng-Elect/21/22/25
Appointment of a Service Provider(S) to Render Guarding Services at The South African Social Security Agency (SASSA) Limpopo Region for a period of thirty six (36) months 2022-02-04 11:00 SASSA: 46-21-CS-LP
The supply and installation of 555.531m fence around the Zenzo Multipurpose Centre in KZN 2022-02-11 10:00 CORP 5615 - R
Provision of screening and verification services for GMM employees for a period of 36 months 2022-02-04 12:00 8/3/1-12/2021
Construction of Manyelrti to Mamone Central Internal Street 2022-02-07 12:00 LIM473/Mamone-road/21/22/24
Construction of Mochadi road and bridge 2022-02-07 12:00 LIM473/Mochadi-Road/21/22/23
Appointment of service provider for the supply, delivery, installation and maintenance of a chemical dosing pump including the wash and rinse aid chemicals for the hood-type dishwasher for a period of twenty-four (24) months to iThemba Labs, Faure, Western Cape 2022-02-04 11:00 iLABS/RFQ 2021/22:182
Supply, delivery, installation and commissioning of automated fluorescence microscope 2022-02-17 12:00 2021/056(a)
Supply and Delivery Of an Industrial Video-Scope 2022-02-17 12:00 2021/030(a)
Business insurance for a period of 12 months 2022-01-28 11:00 REQ0004252
Petrol 93 Unleaded 2022-01-27 11:00 ‪‪‪RFQ-012495

Pages

Who is the bidder or his or her representative?

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

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