Issue Date: 
Monday, August 31, 2015

Tenders explained

Each day hundreds of tenders are being advertised but we often only hear about those where things have gone wrong or where the concept has been abused. It gives ‘Tenders’ a stink it doesn’t deserve. In today’s blog, we look at what exactly a tender is.

A tender is an offer to perform work, supply goods, services or products at a fixed price. The tendering process is generally utilized for procurements or contracts involving substantial amounts of money. Generally speaking, it is government departments, offices, agencies, private sector companies and businesses that put requests out on tenders. By so doing, they basically ask the public for price offers to supply required products or services. Once the tenderer accepts a tender, it is binding to both the tenderer and the person or company who won the tender. Therefore, the person or company has to provide the goods or services in the manner agreed to and at the price offered. In turn, the tenderer must pay the agreed price on the agreed deadline.

What is tendering?

Tendering is the process of making an offer, bid or proposal. It can also be expressing interest in response to an invitation or request for tender. Organisations will seek other businesses to respond to a particular need, such as the supply of goods and services and will select an offer or tender that meets their needs and that provides the best value for money.

Where are tender requirements stated?

The requirements of a tender are stated in the Requests for Tender (RTF) or Requests for Proposal (RFP) documents. In these documents, the service or products the particular tendering organisation needs or requires are outlined. These documents also outline the criteria and provide instructions that are to be followed.

Tenders are usually widely advertised in both print and electronic publications. This is to allow as many people as possible to take note of the opportunity. It also stimulates competition and provides wide variety of choice. Interested suppliers will then prepare a tender response to the offer, including pricing, schedules as well as their eligibility for the project.

Once the tendering period has closed, the submitted tender responses are evaluated with regard to defined criteria. The process must be done fairly and honestly, free from bias or favoritism. The offer that best meets all of the requirements and provides value for money should win the contract.

While the concept of tendering may seem daunting at first, it can be easily tackled by having a plan of ‘action`. It is important to understand your business` suitability for the project and ability to manage the contract if you win the tender. By understanding these points and demonstrating that you are able to meet the criteria and offer a competitive bid, you will increase your chances of success.

How are tenders awarded?

After the closing date, all the tenders are checked for basic compliance to the tender regulations. Tenders can be disqualified during this process if they are found to be non-compliance. The compliance of the products or services offered and price is considered. All tenders which comply with the specifications are listed in order of price. Those in the lowest price tender list are in the lowest price group. Preference points given to those suppliers on the list of lowest price tenders are first verified. Preference points are only awarded after the most expensive tenders have been excluded, as this makes the process quicker and fairer. Those with verifiable information come out with the best preference points and are therefore awarded the contract.

The above formulate what tenders are and if you understand these, then you are in the best position to bid for a tender.

Title Closing Date Tender No.
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
Service provider that specializes on 11kv substation protection scheme for the following substations: 11kv main substation_13 panels Wesselton main substation_7 panels Kwazanele main substation_4 panels Breyten main_3 panels 2019-03-18 11:00 8/3 24/2018
Repairs and servicing of emergency vehicles in the municipal fire and rescue fleet for a period of three (3) years commencing 1 February 2019 to 28 February 2022. 2019-03-18 11:00 8/3 23/2018
Replacement of copper overhead lines: as and when required for the period ending 30 June 2019. 2019-03-13 11:00 8/3 22/2018
Provision of an electronic document management system at GMM for 36 months 2019-03-15 12:00 8/3/1-05/2019
Upgrading of the Rooikoppen Sewer 2019-03-08 12:00 DTS 11/2018/2019
Supply, delivery of material to site, installation and commissioning of energy efficient lighting for high masts within Lekwa Local Municipality 2019-03-08 12:00 DTS 10/2018/2019
Construction of Workshop at Jouberton Campus 2019-03-01 11:00 No reference number
Department of Science and Technology Illumination Assessment 2018-2019 2019-03-04 13:00 RFQ-0000062
Provision of security services 2019-02-28 12:30 08/2/16/57
Panel of two (2) Service providers for Supply and delivery of protective clothing for a period of 36 months(as and when required) 2019-03-01 11:00 LNM071/2018/19
Printing and folding of municipal monthly statements for a period of 36 months 2019-03-01 11:00 LNM067/2018/19
Supply and delivery of ICT equipment 2019-02-26 11:00 LNM050/2018/19
Professional Service provider for licensing of municipal borrow Pits 2019-02-26 11:00 LNM056/2018/19
Professional Service provider for review of environment management plan 2019-02-26 11:00 LNM055/2018/19

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10 things to remember when you tender

By Werner van Rooyen

31 January 2019

There are many things that you as a small business owner must remember when you respond to a tender and sometimes responding to a tender can be overwhelming. Experience has taught me that there are some important things to remember when responding to a Tender and there are some less important things to remember when responding to a Tender.

Here are ten of the important things to remember when responding to a Tender. Please remember that all ten of these items mention here are equal... Read More

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