Issue Date: 
Thursday, January 31, 2019

Must my business be registered in order to tender?

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Once, a very anxious business owner phoned me and asked if I can supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly for what did he need a CK number for? He said that because of my Tender Manual that he bought, he thought that maybe I can help him with a CK number. Also, at the briefing session of the tender that 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 general business 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 in various forms of 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.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth and Cape Town. Book and pay online at www.howtotender.co.za. Please contact Estelle at Estelle@howtotender.co.za should you require more information.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Term Contract: 24 Months : Repairs and Maintenance to Refrigeration Plant and Associated Equipment: Area 1-7. 2019-10-04 11:00 CPTYT 23/ 19
To appoint an implementing agent to undertake Green Economy Ecosystem Support work, which entails working closely with industry, investors and government in a number of sectors - including: waste economy, water, renewable energy and energy services; to identify economically viable green economy business opportunities and to unlock barriers that prevent them from being realised ; and to help businesses to green their operations, value chains and product lines, thereby enabling businesses to improve their own resource resilience and stimulating demand for green technologies, products and services. 2019-10-15 11:00 EDT 018- 19
Procurement of a service provider with relevant expertise and experience to undertake phase 2 of the exploration and development of financial mechanisms and models toward improving economic water resilience in the Western Cape. 2019-10-15 11:00 EDT 014- 19
Request for Proposals for appointment of a service provider for provision of Managed Voice and Data Services for a period of three (3) years 2019-10-07 11:00 CMS/ 052019/ 2020
Appointment of a Service Provider to Provide Printing Services for a period of three (3) years for the CCMA as and when required. 2019-10-04 11:00 CCMA/ 2018/ 11(A)- COPS
Appointment of a service provider to provide office space on a lease agreement for the CCMA in the Port Elizabeth office for period of five (5) years. 2019-10-04 11:00 CCMA/ 2019/ 29- PE
Appointment of a service provider to provide office space on a lease agreement for the CCMA in the Kimberly office for period of five (5) years. 2019-10-04 11:00 CCMA/ 2019/ 28- NC
Request For Proposal For Provision Of Training Services – Three (3) Learnerships 2019-10-07 12:00 CDC/ 432/ 19 (A- C)
Supply of Periodicals Subscriptions ( South African Magazines and Journals) to All Public Libraries in KZN Under Arts and Culture. 2019-10-11 12:00 DAC005/ 1920
Water and sanitation programme phase 3A at Sinothile PS (Kuneningi PS), Pongola 2019-10-14 11:00 ZNTU 03972 W
Water and sanitation programme phase 3A at Ntsonyane P School, Ulundi 2019-10-15 11:00 ZNTU 02409 W
Water and sanitation programme phase 3A at Manqwashu P School, Nongoma 2019-10-14 11:00 ZNTU 03978 W
Renovations to Mtuba camp roof, floors and painting at Department of Transport, Mtuba camp 2019-10-14 11:00 ZNQ UM 3089 U
Karee Military Base: Junior Mess, Officer’s mess,Signal Unit Mess, and Upgrading of kitchen Equipment 2019-10-07 11:00 H19/ 013 AI
Saldanha: Military Base: Construction of new sickbay facility 2019-10-04 11:00 CPT1005/ 19
Appointment of contractor to perform general maintenance work at Bitou Campus 2019-10-02 12:00 SCC 82/ 2019
Supply of periodicals subscriptions (international magazines and journals) to all public libraries in KZN under arts and culture. 2019-10-11 12:00 DAC006/ 1920
Appointment of contractor to perform general maintenance work at Beaufort West Campus 2019-10-02 12:00 SCC 80/ 2019
Appointment of contractor to perform general maintenance work at Oudtshoorn Campus (Huis Sommers) 2019-10-02 12:00 SCC 79/ 2019
Elliotdale Police Station: Condition Based Maintenance of Station and Official Quarters on all Elements 2019-10-10 12:00 CDC/ 132/ 19

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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

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