Issue Date: 
Monday, September 1, 2014

Must my business be registered in order to tender?

By Werner van Rooyen

www.how2tender.com

1 September 2014

Once, a very anxious business owner phoned me and asked if I could supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly what did he need a CK number for? He said that because he had bought my Tender Manual he thought that may be I can help him with a CK number. Also, at the briefing session of the tender which he was responding to, the person in charge of the tender said that if the responders to this tender didn`t have a CK number their tender responses would be disqualified!

Obviously I was flattered by the compliment that this person thought I could help him with everything regarding his tender response but I was really confused why all responders to this specific tender needed a CK number. Now for those of you that do not know what a CK number is, it is the general term that is given for a Close Corporation registration number; all Close Corporation numbers started with the prefix CK followed by some numbers. The ridiculousness of this statement - that all responders must provide a CK number - just proved how little this official new about business in general in South Africa.

This brings us to the question - must I have a registered business to respond to tenders in South Africa. The short answer is simply no; you don`t need a registered business to respond to a tender.

In South Africa you can do business via various entities. The most popular of course is a private company or (Pty) Ltd as it is commonly known. In 1984 the South African Government of the time thought it good to give an alternative to the private company in the form of a close corporation. The idea behind the close corporation was to make it easier for entrepreneurs to have access to a legal business entity. The close corporation as a legal entity was very popular in the 1980`s and 1990`s. It became less popular as business owners realized that it didn`t provide sufficient security against them personally and eventually close corporation registrations were stopped in 2011. Close corporations that are still in existence can still operate but no new ones are allowed to register.

The fact of the matter is that if you respond to public sector tenders you are allowed to respond in your own name. The standard bidding documents makes provision for this. Just remember that you will still need all the compulsory documents to respond to the tender albeit in your own name.

Then there is the question of experience; the Evaluation Committee members may think that you lack experience if you do not respond in the name of a legal entity. And as we all know, experience counts when you respond to a tender.

Until next time, keep on responding to those tenders and if you need an edge visit our website atwww.how2tender.com for more information or buy our Tender Manual.

Title Closing Date Tender No.
Supply of material and installation of Beta fencing at Thubelitsha Park in Kayamandi 2017-09-05 11:00 FQ/SM30/18
Supply: Filing kit, file, chain, guide bar 2017-08-23 12:00 W041800160
Appointment of a Suitably Qualified, Professional Conference Facilitator to Organise a Housing Summit in Conjunction with Directorate: Human Settlements and Property Management at Stellenbosch Municipality in September 2017 as per specifications 2017-08-31 11:00 FQ/SM 32/18
Supply and deliver ifm inductive sensors 2017-08-23 12:00 W041800163
Purpose of the proposed programme is to celebrate national youth day through a Mayoral Skills Development programme 2017-09-05 11:00 FQ/SM35/18
Mayoral Youth Skills Development: General building maintenance training 2017-09-05 11:00 FQ/SM37/18
Supply and delivery of 66 EPWP uniforms 2017-08-28 12:00 KZN294/00016-EPWP/2017/18
Training of TDA Staff in Coreldraw 2017-08-29 12:00 A071800124
Driver Training, Code C1 (10) & EC (14) in TDA 2017-08-29 12:00 A071800128
Supply: Taps 2017-08-28 15:00 R101800139
Basic Incident Command Training (Based on FEMA ICS) 2017-08-29 12:00 A071800127
Portable toilet hire & service 2017-08-24 14:00 A071800126
Provision of Legal Services 2017-09-01 12:00 SCM/2018/90/CORP
Supply and delivery of 40" tv with brack 2017-08-24 11:00 W061800095
Hiring of ambulances 2017-08-23 12:00 ZDMQ0201/08/2017
Supply and delivery of sound equipment 2017-08-29 11:00 W061800090
Accommodation for Msizi NQF 3 training around Ulundi 2017-08-23 12:00 ZDMQ: 0203/08/2017
Supply: Safety clothing 2017-08-25 10:00 R011800157
Accommodation for the Msizi Learnership Training around Ulundi 2017-08-23 12:00 ZDMQ: 0204/08/2017
Supply and delivery of telephones 2017-08-24 11:00 W061800103

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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