Issue Date: 
Monday, April 20, 2015

12 Factors considered by Adjudication Committee

By Werner van Rooyen

20 April 2015

www.how2tender.com

The Tender Adjudication committee usually does a risk analysis before awarding a tender.

Prior to being recommended for acceptance, a tender should be subjected to a risk analysis to ensure that it would, if accepted, not place the Government Entity or the bidder, at undue risk. The following features of the tender and the bidder should, inter alia, be considered:

  1. The tender price and its make up;
  2. Unduly high individual rates;
  3. Unduly low rates;
  4. The bidders ability to obtain the required performance guarantee, if applicable;
  5. The bidders previous experience;
  6. The bidders total resources;
  7. The resources which the bidder could mobilize for the contract;
  8. The bidders current commitments/availability of key employees;
  9. The bidders track record on previous similar contracts;
  10. Ability to supervise and control labour and, if required, to supply materials and provide plant/transport;
  11. Understanding of the scope of work required;
  12. Imbalances in pricing;

The risk analysis is best performed by interviewing bidders. Tenders may be overlooked if the price mark-up of portions of the work differ substantially from the estimated price and the bidder is unable to account for such discrepancies.

Eliminating the risk factors will help you to be more successful in your tender responses.

Gain all the knowledge when it comes to tender responses by attending one of our How-to-tender workshops. Please visit our website for more detail at www.how2tender.com.

Happy tendering

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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