Issue Date: 
Friday, July 27, 2018

How can a start-up business win a tender?

In the tender process, it is essential that an enterprise be knowledgeable of the supply it wants to bid for. In fact, the more knowledge the enterprise has of its supply, the better its odds are of being awarded a tender.

The question is ‘where or how do start-up enterprises gain experience?’ or, ‘can a start-up enterprise win a tender?’ The simple answer is yes, start-up enterprises can win tenders.

Organs of State have identified certain industry sectors such as cleaning, grass cutting, security and a few others where they will try and award tenders to start-up enterprises. Furthermore, the new Preferential Procurement Regulations 2017, have got three specific Regulations that Organs of State can apply, to the advantage of designated groups, through sub-contracting 30% of a tender to Small, Medium and Micro Enterprises (SMME’s).

An alternative to overcome the lack of experience would be to go into a Joint Venture. Collaborate with an enterprise that has the necessary expertise and that complies with the Functionality of a specific tender. Finding enterprises to go into a joint venture with can be difficult but if a start-up enterprise can bring unique skills or Black Ownership to a joint venture, it will be easier to find a joint venture partner.

It is practical to start a business in something that you have experience in, so we advise start-up entrepreneurs to use their experience, gained through studying or working in a specific sector, in their tender responses. Use personnel references and ask the supplier/s that you dealt with in your previous job/s to be your references.

The Preferential Procurement Policy Framework Act dictates that Organs of State enforce certain minimum requirements when awarding tenders, in order to verify that an enterprise is legally operating and is tax compliant.

The minimum requirements any enterprise must met in order to respond to tenders are:

  • Being tax compliant;
  • Be registered on the Central Supplier Database;
  • Have an B-BBEE certificate or an EME Affidavit (in the case of a startup);
  • A Fixed address;
  • Bank account;

If you want to learn more about the tender process and how to complete a tender correctly and hopefully successfully, we advise that you attend one of our tender courses. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender which specializes in tender consulting and tender training. (04/05/2018)

Title Closing Date Tender No.
Timber 2018-10-18 14:00 PNQ2 TIMBER
Sale of institutional zone 2 property: Erf 10046: Beaufort West 2018-10-26 14:00 Notice No. 100/2018
Supply: Hardware items 2018-10-18 12:00 GG11900591
Alien and unwanted vegetation clearing and cleaning, grass cutting of open erven inclusive of all illegal dumping 2018-10-24 11:00 FQ/SM: 46/19
Supply, delivery and installation of play equipment in various parks in Stellenbosch (WC 024) 2018-10-25 00:00 FQ/SM : 42/19
Pattern Making Training 2018. 2018-10-17 11:00 7G‐128
Supply, delivery and installation of palisade fencing: parks and cemeteries in Stellenbosch (WC 024) 2018-10-25 11:00 FQ/SM: 43/19
Supply and delivery of Structural Fire Fighting Suits with a 100% Local Content as and when needed until 30 October 2019 2018-10-24 11:00 FQ/SM : 32/19
Remove, Supply and Install of up to 100 Wayfinding Signs (refer detailed appendix 1). 2018-10-19 14:30 WO.477043
Supply, delivery and Off-Loading of Garden Equipment 2018-10-24 11:00 FQ/SM : 34/19
Supply and delivery of Uniform for Law Enforcement 2018-10-25 11:00 FQ/SM 48/19
Sale of vacant residential erven and business zone 1 properties in Merweville 2018-10-26 14:00 Notice No. 98/2018
Bulk meter replacements and telementry installations on an as and when basis for a period of 36 months. 2018-11-20 10:30 JW 13901
MBDA seeks suitable service providers to quote for Plastic Recycle Bins with Lids 2018-10-22 11:00 BDA1018626
The MBDA seeks quotes for: 1 * Windows 10 Pro 64GB,14"-Core i7 6820HQ-8GB RAM-500GB HDD, Intel Graphics 530,TPM Security Chip and Backlight 1 * Backpack for laptop 2018-10-22 11:00 BDA1018625
Supply and Deliver Riot Shields Protection 2018-10-22 11:00 GQ10181960
Linbro Water Upgrades. 2018-11-20 10:30 JW 13899
Supply and Deliver Deluxe Riot Helmets 2018-10-22 11:00 GQ10181960
Supply and Deliver Deluxe Body Protection 2018-10-22 11:00 GQ10181960
Project Management Accelerated Short Courses, Project management Diploma NQF Level 6 and Project Management Advance Diploma NQF Level 7 on an "as and when required" basis at Eskom Academy of Learning. 2018-11-21 10:00 CORP4556

Pages

Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.