Issue Date: 
Tuesday, October 13, 2015

10 Essential documents needed to tender

By Werner van Rooyen

12 October 2015

Last week we were asked to help a client respond to a request for a quotation for cleaning services to a Public Entity. It seemed pretty easy at first but once we got to the stage where we had to submit the required and mandatory documents the problems started. The main reason it became a challenge was that this particular business that required our services was a start-up business and being a start-up means it’s going struggle to comply with all the required and mandatory documents.

The 10 required and mandatory documents are essential if you want to be successful in your response. The Public Entity stated it very clearly on the request for quotation that if you do not attached these documents to your response you will be disqualified. The required and mandatory documents were:

  1. Original Valid Tax Clearance Certificate (verification will be done with SARS);
  2. Original or Certified copy of Valid BBBEE Certificate (from SANAS accredited Verification Agency) or from the Auditors approved by the Independent Regulatory Body of Auditors (IRBA);
    Any EME (Exempt Micro Enterprise) or QSE (Qualifying Small Enterprise) is only required to obtain a sworn affidavit on an annual basis, confirming the following;
    1. Annual Total Revenue of R10 Million or less (EME) or Revenue between R10 Million and R50 Million for QSE;
    2. Level of Black Ownership
      ANY MISREPRESENTATION IN TERMS OF THE ABOVE CONSTITUTES A CRIMINAL OFFENCE as set out in the BBBEE Act as amended;
  1. Certified copy of Company Registration Document that reflect Company Name, Registration number, date of registration and active Directors or Members;
  2. Certified copy of Shareholders’ certificates;
  3. Certified copy of ID documents of the Directors or Members;
  4. Last three years audited/reviewed financial statements;
  5. Letter of guarantee from a registered Financial Institution or Financier covering 3 months’ operational costs as per Bidder’s proposed costs;
  6. Proof of Public Indemnity Cover for minimum of R1 million;
  7. Letter of Good Standing with Department of Labour for Unemployment Insurance Fund;
  8. Letter of Good Standing with Department of Labour for Compensation for Occupational Injuries and Diseases.

For this specific request for quotation the Public Entity also required, as mandatory documents the following:

  1. Proof of compliance with the Sectorial Determination for the Cleaning Industry;
  2. Proof of Membership of the National Contract Cleaners Association.

Most of these documents are fairly easy to obtain and won’t be a problem but when it comes to guarantees and Public Indemnity it starts to get costly. This is the challenge - getting guarantees and insurance are expensive and belonging to associations also costs money and most start-ups simple cannot afford this. The result is that they end up not being awarded the tender because of this which is unfortunate as it is in fact the start-ups that need contracts like these.

In our daily endeavours responding to tenders on behalf of companies, we try and overcome these obstacles, it is sometimes difficult but we try to get a solution around for each obstacle.

Learn today - earn tomorrow

When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the... Read More
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