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.
Construction of Workshop at Jouberton Campus 2019-03-01 11:00 No reference number
Department of Science and Technology Illumination Assessment 2018-2019 2019-03-04 13:00 RFQ-0000062
Provision of security services 2019-02-28 12:30 08/2/16/57
Panel of two (2) Service providers for Supply and delivery of protective clothing for a period of 36 months(as and when required) 2019-03-01 11:00 LNM071/2018/19
Printing and folding of municipal monthly statements for a period of 36 months 2019-03-01 11:00 LNM067/2018/19
Supply and delivery of ICT equipment 2019-02-26 11:00 LNM050/2018/19
Professional Service provider for licensing of municipal borrow Pits 2019-02-26 11:00 LNM056/2018/19
Professional Service provider for review of environment management plan 2019-02-26 11:00 LNM055/2018/19
The Madikwe River Lodge is calling for proposals from reputable tourism agencies to provide marketing and sales services to the resort. 2019-03-20 13:00 MRL001/19
Organised supply and delivery of reagents for the analysis of Chemical Oxygen Demand and Free Chlorine at BCMM municipal laboratory 2019-02-22 12:00 RFQ/DSS/2018-19/364
Operation of an electrical control centre and fault centre in Buffalo City Metropolitan Municipality for a period of three years 2019-03-19 12:00 ED: 405
Re-advertisement: TD-01/06/18: Provision of tyres and tyre associated service items, including new and re-treaded replacement tyres, puncture repairs, fitment, wheel balancing, wheel alignment, wheel rotation and emergency call out to attend to tyre breakdowns for a period of three years 2019-02-22 11:00 TD-01/06/18
Tender for heritage study: De Rust, Dysselsdorp & Oudtshoorn 2019-03-25 12:00 TD-01/02/19
Provision and administration of an electricity and water prepayment vending system for a contract period ending 30 June 2022 2019-03-25 11:00 TD-05/02/19
Supply, delivery, assembly and installation of various items of furniture and accessories for Thusong Centre in Motherwell. 2019-02-28 11:00 SCM/19-97/G
Expression of interest for the supply and delivery of PPE. 2019-03-14 11:00 SCM/19-139/G
Document: Archiving: Learners and Drivers licences. 2019-03-14 11:00 SCM/19-114/S
Standards of Generally Recognised Acccounting Practices (GRAP) financial reporting training service provider for a two year period 2019-02-28 12:00 SAICA0032019
Provision of Security Services at Various ECDC Owned Premises for thirty Six months (3 years) 2019-03-11 12:00 ECDC/ELN/108/012019
Supply and delivery of Road Construction Material for Taweni Access road 2019-03-11 12:00 IHLM/87/01/2018-19/TS

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10 things to remember when you tender

By Werner van Rooyen

31 January 2019

There are many things that you as a small business owner must remember when you respond to a tender and sometimes responding to a tender can be overwhelming. Experience has taught me that there are some important things to remember when responding to a Tender and there are some less important things to remember when responding to a Tender.

Here are ten of the important things to remember when responding to a Tender. Please remember that all ten of these items mention here are equal... Read More

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