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.
Kwazulu-Natal: Department of Education: Kwamashu: J. G. Zuma High School: Water and Sanitation: Phase 3. 2019-06-21 11:00 ZNTD 03922W
ZNTD 03864W: WIMS 063948: Kwazulu-Natal: Department of Education: Stanger: Ikhusana Combined School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03864W
Kwazulu-Natal: Department of Education: Durban: Matabetulu Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03893W
Kwazulu-Natal: Department of Education: Maphumulo: Mankayiyna Primary School. Replacement of roof coverings to eight (08) classrooms 2019-06-24 11:00 ZNTD 03774W
ZNTD 03893W: WIMS 063666: Kwazulu-Natal: Department of Education: Ndwedwe: Magongolo Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03893W
Kwazulu-Natal: Department of Education: Hillcrest: Kwadinabakudo Combined School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03829W
ZNTD 04062W: WIMS 064026: Kwazulu-Natal: Department of Education: Hillcrest: Khabazela High School: Water and Sanitation: Phase 3. 2019-06-21 11:00 ZNTD 04062W
Kwazulu-Natal: Department of Education: Esiphukwini Junior Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03844W
Kwazulu-Natal: Department of Education: Tongaat: Manaba Secondary School: Water and Sanitation: Phase 3. 2019-06-21 11:00 ZNTD 03939W
Kwazulu-Natal: Department of Education: Mandeni Primary School: Storm Damage Disaster programme: Phase 16 2019-06-24 11:00 ZNTD 04499W
ZNTD 03908W: WIMS 063648: Kwazulu-Natal: Department of Education: Shangase Village: Kwashangase Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03908W
ZNTD 03861W: WIMS 063906: Kwazulu-Natal: Department of Education: Stanger: Mazisi Ntuli Primary School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03861W
Tenders are hereby invited for the provision of Hygiene Services for a period of three(3) years. 2019-06-03 11:00 WCC- HYGIENE- 2019
ZNTD 03826W: WIMS 063740: Kwazulu-Natal: Department of Education: Inanda: Inanda Senior Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03826W
Tenders are hereby invited for the supply & delivery of electrical hand tools. 2019-06-03 11:00 WCC- ELECTRIC HAND TOOLS-2019
ZNTD 03865W: WIMS 063907: Kwazulu-Natal: Department of Education: Stanger: Ndleleni Primary School: Water and Sanitation: Phase 3 2019-06-21 11:00 ZNTD 03865W
Tenders are hereby invited for the supply and delivery of vehicles. 2019-05-27 11:00 WCC- NV- 2019
ZNTD 03866W: WIMS 063947: Kwazulu-Natal: Department of Education: Stanger: Mnawe Junior Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03866W
Tenders are hereby invited for the supply, delivery, installation & commission of fitting & turning machines 2019-06-03 11:00 WCC- FIT & TURN MACHINES- 2019
Tenders are hereby invited for the supply, delivery, installation & commission of fitting & turning machines 2019-06-03 11:00 WCC- FIT & TURN MACHINES- 2019

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Must my business be registered in order to tender?

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Once, a very anxious business owner phoned me and asked if I can supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly for what did he need a CK number for? He said that because of my Tender Manual that he bought, he thought that maybe I can help him with a CK number. Also, at the briefing session of the tender that he was responding to, the person in... Read More

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