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 and Delivery of One LDV 4X2 Double Cab. 2018-05-04 12:00 SCM/INFR34/2017/2018
Provision of Route Master Licencing & Maintenance Services. 2018-05-04 12:00 SCM/2019/03/FIN
Water Quality Monitoring 2018-05-09 10:00 ANDM/IDMS-WSA/87/10/04/18
Supply and Delivery of Office Furniture for a Period of Twelve (12) Months(Re-Advert). 2018-05-04 12:00 SCM/FS04/2017/2018
Supply and delivery of 15 note counter machines including a 12 month on-site warranty. 2018-05-07 11:00 PMO-CP-008-2017/2018
Maintenance of standby generators (3 years). 2018-05-07 11:00 RFQ E 1809 W
Provision of PMS Support and Web-Based Performance Management System. 2018-05-07 13:00 SCM/2018/194/MM
Provision of External Loans. 2018-05-07 13:00 SCM/2019/04/FIN
Provision of Events Services. 2018-05-07 13:00 SCM/2018/199/STRAT
Expression of Interest for Implementation of an Agri – Parks Development Programme 2018-05-10 12:00 ANDM/PED/LED/88/10/04/18
Removing of boiler water pump and replacement. 2018-05-07 23:00 OLT1104474
Operator and Manager Liabilities Training related to Managing risk when dealing with Transport. 2018-04-26 14:00 SQ11800228
Supply a 3x3 ablution unit. 2018-04-30 12:00 GD11801069
Refurbishment of Mbizana Oxidation Pond System. 2018-05-14 12:00 ANDM/IDMS-WSP/93/12/04/18
Supply Outdoor denier backpack 2018-04-30 12:00 GL11800736
Supply: 20 seater boardroom table 2018-04-30 12:00 GL11800737
Refurbishment of Mbizana Water Scheme 2018-05-14 10:00 ANDM/IDMS-WSP/92/12/04/18
Testing & inspection of lifting equipment (code of practice 29) - as & when required (24 months). 2018-05-08 12:00 OPS 18/19 - 010
Rack welding / grinding (railway track) - as & when required (12 months). 2018-05-08 12:00 OPS 18/19 - 011
Ntibane Water Supply Scheme Phase3 – Contract 3A Luthatheni Water Reticulation 2018-06-01 10:00 ANDM/IDMS-PMU/89/10/04/18

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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