Issue Date: 
Monday, August 10, 2015

Important Evaluations Before Responding to a Tender

Although bidding for a tender can be attractive, not all tenders will suit your criteria, experience and expertise. It is not wise to quickly jump into responding to any tender that you come across. An objective decision must be made as to whether or not to bid for a tender.

The decision to bid or not is a decision that should be carefully considered. It should balance the opportunity against a realistic evaluation of the likelihood of success. The approach should be systematic and could be beneficial by using a scoring matrix. To assist you, we have drafted a list with a few objective questions. Answering these questions will help you evaluate your chances of winning the tender and the worthiness of bidding.

Do you meet the mandatory requirements?

The mandatory requirements usually include financial stability, qualifications or accreditations. Buyers generally ask for audited accounts of the past three years. Has your business seen year-on-year growth and if not is there a valid explanation as to why not?

Can you show the relevant experience?

Have you done this type of work before or will you need a partnership to do it effectively? Having relevant references will certainly work in your favour. If you don`t have references, you will need to demonstrate that you have transferable skills from customers with similar needs.

Who are you competing against?

Who is currently servicing the contract and who else is bidding? When you can answer these questions, you can compare your strengths, weaknesses and experience with your competitors and consider your opportunities.

Is the contract the right size for your business?

Will you be able to manage the contract or will it clash with any existing or upcoming work? Remember, all clients are valuable. It is risky to bid if a tender value is more than 25% of your turnover. Buyers will certainly check if the tender contract value is not too much for the company to handle. Do not overstretch the business to the point where service or quality issues will arise as you were too eager to bid.

What is the profit potential of the tender?

Winning a contract can put a strain on a business`s financial resources. It is important to fully understand and assess the risk of the working capital requirements of the contract. It is also important to determine whether your business can support any peaks that may occur.

Do we have sufficient resources to professionally respond within the deadline?

Writing a tender response is time consuming. It is important to have a consistent procedure in place to ensure that time and money is not wasted on contract opportunities which are of no economic or strategic benefit. If you were directly invited by the buyer to bid, but you decide not to, then inform the buyer immediately of your intentions. Explain carefully the reasons for your decision, without prejudicing your chances of being invited to bid for other work in the future.

Consider the questions above. If you can answer them confidently, you certainly can go ahead and bid. If not; wait for the bid that fits your skills, expertise and experience. Patience is virtue and it pays off!

Title Closing Date Tender No.
Appointment of professional service provider to manage restoration and invasive plant projects for 4 months: March 2019 – June 2019 2019-02-26 12:00 334/2018/19
Appointment Of A Service Provider For Supply, Delivery And Off-Loading Of Fire Tunic For City Of Mbombela For A period Of 36 Months 2019-03-05 11:00 164/2018
Supply and delivery of electrical cables for a period of three years. 2019-03-20 12:00 51/2018/19
Procurement of accommodation to support the march 2019 grade 12 SSIP Camps 2019-03-01 12:00 CS/SCM/TDU/SSIP/R18-19/37
Appointment of Three (03) Service Providers to Print, Supply and Deliver Stationery for a period of three (03) years 2019-03-20 10:00 PM104/2018
Lambani Bridge 2019-03-20 11:00 47/2018/2019
Supply and delivery of stationery and office supplies for a period of one (1) year 2019-03-06 12:00 52/2018/19
Supply and delivery of cleaning and maintenance products (highly concentrated and concentrated) for a period of one (1) year 2019-03-06 12:00 53/2018/19
Construction of Gwangwatini to Ngalavhani low-level river crossing 2019-03-25 11:00 48/2018/2019
Supply, delivery and installation of 5MVA transformer with auxiliary items at SS5 substation 2019-03-08 14:00 SCM/BID14/2018/19
Appointment of a service provider: Intabazwe / Harrismith extension 3 new surfaced roads Phase 2 2019-03-22 14:00 SCM/BID13/2018/19
Appointment of a service provider: Construction of sewer reticulation network in Namahadi 2019-03-22 14:00 SCM/BID12/2018/19
Appointment of a service provider: Upgrade of Motebang Street in Qwaqwa: 1km – Phase 1 2019-03-22 14:00 SCM/BID11/2018/19
Request for proposal to develop a market development plan for South African manufactured chemicals 2019-03-12 12:00 T03/02/19
Request for sector development and implementation plan to support sustainable veterinary pharmaceutical industry development in South Africa 2019-03-11 12:00 T02/02/19
Department of Science and Technology: Appointment of a service provider to pilot Bio-cultural Community Protocol in Mpumalanga Province 2019-03-04 13:00 RFQ-0000063
Invitation for project tenders (Phase 1): The Uniting Reformed Church Atteridgeville - Alterations and additions to existing church buildings on Erf 1088 no. 19 Matseke Street 2019-03-12 12:00 No reference supplied
Insurance for Msukaligwa Local Municipality for a period of three (3) years. 2019-03-18 11:00 8/3 27/2018
Maintenance of highmast lights: as and when required for the period ending 30 June 2019. 2019-03-18 11:00 8/3 26/2018
Repairing of open kiosk/mini-sub/ pole mounted transformers: as and when required for the period ending 30 June 2019. 2019-03-18 11:00 8/3 25/2018

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8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures.

There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or... Read More

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