Issue Date: 
Tuesday, March 15, 2016

Tender misconceptions in South Africa

There are many wonderful stories of companies that won tenders in the Public as well as the Private Sector plus some horrible ones of how things can go wrong.  However, two of the most common misconceptions regarding tenders and the tender process in South Africa are:  

1. All tenders are awarded fraudulently:

This misconception is the most common and it is hard to defend it. The media are full of articles of tenders that have been awarded fraudulently - especially Government tenders. This might be so, but the reality is that there are hundreds of tenders available on a daily basis in South Africa and if all of these tenders were awarded fraudulently then our economy would come to a standstill. The fact of the matter is that more tenders are awarded in a fair and transparent manner than on a fraudulent one.

2. You can only win tenders if you are a Black South African:

Although the focus of Government - both National and Provincial - is to encourage and promote Black business in South Africa, there are instances where a White owned businesses can be awarded a tender. The fact of the matter is that if the Preference Point System is used correctly then the best company will win, irrespective of whether it is Black or White owned.

When you respond to tenders ensure that you are doing it 100% correctly. If all your compulsory documents as well as your additional documents are submitted you can't be disqualified. If you pass the Functionality test you will advance to the Preferential Point Scoring system and then the outcome is dependent on your Price and B-BBEE Score. If your product or service is well priced and you have a good B-BBEE Score then chances are good that you might just get lucky.

Learn to earn

Tenders, B-BBEE and the new Preferential Procurement Regulations 2017

We have previously asked: How important is a good B-BBEE status level of contributor in the tender process?

The answer is still the same: VERY IMPORTANT!

In all tender documents, you will find the NEW Standard Bidding Document 6.2 which is used to claim your Preference Points for B-BBEE. The higher your B-BBEE status level of contributor, the more points you will score on the Preference Points System. Ultimately the bidder or bidders scoring the highest points will be awarded the tender.

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