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.
Sound and Lighting: Live Gospel Show 24 November 2018 2018-11-21 12:00 B346/2018/19
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 2 2018-11-27 12:00 213/2018/19
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 6 2018-11-27 11:00 RFQ214/2018/19
Supply and Install Air Conditioners at Tshepong Laboratory 2018-12-12 10:30 RFQ NO: 1464133
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 9 2018-11-27 12:00 215/2018/19
Renovations to Wf Knobel NHLS Laboratory in Limpopo 2018-12-13 11:00 RFQ NO: 1339393
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 10 2018-11-27 12:00 216/2018/19
Call for Auctioneers to submit quotations for providing service to auction redundant and obsolete inventory and movable assets on behalf of Knysna Municipality 2018-11-27 12:00 190/2018/19
Render a Cleaning Service at the Premises of the Metro North Education District (Mned) Office, Situated at 9 Timmerman Street, Parow for a period of two (2) years, starting from 1 April 2019 to 31 March 2021. 2018-12-14 11:00 B/WCED 2473/18
On-site Auditing, application of Grading System to and Training of 349 Clubs through Club Development Toolkit 2018-12-18 11:00 ZNB: DSR43/ 1819
Provision of Short Term Insurance Services in SIU for a period of 60 months. 2018-12-14 11:00 RFP: 005/ 11/ 2018
Appointment of a Service Provider to provide an Internal Audit Services on a co-sourced basis for a period of Three (3) years 2018-12-07 12:00 RFP/ T 08- 2018/ 19
Appointment of a maximum of four (4) Media Agents to provide media buying (including print, radio, television and online media) and related services to the NRF SAASTA for a period of thirty six (36) months 2018-12-14 11:00 NRF/ SAASTA/ 02/ 2018- 2019
Supply of Integrated Competency Assessment services to SITA for a period of 36 months 2018-12-07 11:00 RFB 1841/ 2018
Provision and Implementation of Integrated Management Information System to Support SASSETA Core Business 2018-11-30 11:00 RFP/ SASSETA/ 201819128
Installation, Configuration maintenance of PABX and Call Centre Management Solution for a period of 12 months with the option to renew 2018-12-10 11:00 RFP/ SASSETA/ 201819129
Supply, Delivery, Installation and Configuration of Firewall and Switches on an outright purchase or rental basis (Managed) and maintenance thereof for a period of 12 months with the option to renew 2018-12-10 11:00 RFP/ SASSETA/ 201819130
Provision of Telecommunication and Internet Services for a period of 12 Months with the option to renew 2018-12-10 11:00 RFP/ SASSETA/ 201819125
Appointment of a service provider for the evaluation, due diligence and monitoring of Discretionary Grants until 31st March 2019 2018-12-10 10:00 RFP/ SASSETA/ 201819127/ 1
The rendering, manufacturing, repairing, fitting and supplying of aids for orthotic and prosthetic services to institutions in the Eden and Central Karoo District under Western Cape Government the Department of Health for a three year period 2018-12-07 11:00 WCGHCC031/ 1/ 2018

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.