Issue Date: 
Monday, November 24, 2014

6 Reasons why tenders fail

By W van Rooyen

www.how2tender.com

24 November 2014

There are many reasons why your tender response might fail. Here are six reasons why tender responses usually fail:

  1. Pricing

A tender response has to be competitive. It has to be competitive in pricing as well as good value for money. It is not to say that if your price is the lowest, you will be awarded the tender. If your supply is under par it can cost you a tender.

  1. Administrative reasons

Administrative errors can cause your tender to be disqualified. You might forget to sign the tender or to initial every page. Perhaps your tender is late or you submit it into the wrong tender box. These errors are all causes for your tender being disqualified.

  1. Missing information

Ensure that you supply all the additional information that the tender asks for. It is always good to read the tender document thoroughly whilst making a list of all the additional documents that will be required. As soon as you are finished with your tender response tick every item on the list that you have made.

  1. Unclear proposal

Communication is everything. In order to stand a change of winning a tender you have to communicate your supply in such a way that it is clearly understood what you are offering. Ensure that your writing skills are up-to-date. Write in understandable English.

  1. Requirements not met

This point can be confused with point 3, but it is not the same. Together with additional information come specific and general requirements. These requirements will be picked up by the responder when examining the tender document. Ensure that you meet all the requirements and if there are any requirements that you are not sure how to respond to, ask. Once you have clarity regarding difficult requirements you can respond properly. Not responding to all requirements of a tender may lead to disqualification of your tender response.

  1. Be precise

When responding to a tender be precise, especially when it comes to describing your tender supply. If the supply is of foreign origin ensure to mention that in your proposal.

For more information on Tenders and how to respond to them please visit our website at www.how2tender.com. You will also find our Tender Manual there - the Tender Manual guides you through the whole process of responding to a Tender or a Request for Proposal.

Until next time.

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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