Issue Date: 
Monday, September 14, 2015

Joint Ventures - Important Tool in the Tender Process

On 1 May 2015 the Amended B-BBEE Codes of Good Practice came into effect. These Amended Codes will have a major impact on the B-BBEE Scores of all businesses that participate in B-BBEE in South Africa. The fact of the matter is that the B-BBEE scoring levels have changed drastically. If a company does not have any sort of Black Ownership it is going to be very difficult to achieve a decent B-BBEE Score.

In the Amended B-BBEE Codes of Good Practice the Ownership Element Score has been adjusted from 20 points to 25 points. It is widely accepted that on the "old Codes" a good B-BBEE score was between 65 to 75 points. Businesses that achieved such a score usually got a Level Four B-BBE Score which in turn meant that these businesses had a 100% Procurement Recognition Level. A Level Four Procurement Recognition Level was great and everybody was happy.

The problem is that due to new concepts in the Amended B-BBEE Codes such as Priority Elements and higher scoring levels, it will become a challenge to reach the same recognitions levels as in the past. This is where Joint Ventures will play a major role in ensuring that good B-BBEE Scores can be achieved by businesses.

One of the most important instances where B-BBEE Scores are of utmost importance is in the tender process. It is common knowledge that the better the B-BBEE Score, the better your chances of winning a tender. Government Entities must use the Preferential Procurement Point System (either the 80/20 or 90/10 system) to calculate which tender response will be awarded the tender - if you do not have a good B-BBEE Score and if it is a close race, you are going to lose out with a low B-BBEE Score.

Keeping all the above in mind, Joint Ventures can be a great tool to use to increase B-BBEE Scores. Remember that when you tender through a Joint Venture you must submit a Consolidated Joint Venture B-BBEE Certificate. If you have the correct Joint Venture partner, with a good B-BBEE score, the overall score that you will achieve in the Preferential Procurement Point System can be much higher than going into the tender alone.

How2Tender's workshops provide much insight into Joint Ventures and much more. Please visit our website for more details www.how2tender.com or email estelle@how2tender.com should need any assistance in this regard.

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

Pages

2 items that determine tender pricing

Article by Werner van Rooyen

www.howtotender.co.za

31 January 2019

Many bidders that respond to tenders struggle when it comes to calculating a price for a specific tender. One of the reasons for this is that a large number of Small Business Owners are usually new to the tender process and therefore they lack the necessary experience to price their bids correctly.

Without getting into the fundamentals of accounting there are two basic items that determine your... 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.