Issue Date: 
Monday, April 21, 2014

Tenders Fact and Statistics

By Werner van Rooyen

www.how2tender.com

21 April 2014

It is interesting to know that on average there are between 200 to 250 tenders advertised every week in the Government Tender Bulletin. If you accept that most tenders are valid for approximately one month, then it is save to say that there are at least 800 to 1000+ Government tenders available each month. This is only the tenders that are submitted by Organs of State to the Government Tender Bulletin. There are definitely tenders that do not get published by the Government Tender Bulletin, especially Municipal Tenders.

Government Bids for the procurement of supplies, services and disposals are categorised as follows:

SUPPLIES SERVICES DISPOSALS
Accommodation, leasing of Building Clothing and textiles
Audio visual equipment Civil Furniture
Building material Electrical General
Chemicals: Agricultural/Forestry/ Functional (including cleaning-, and security services) Scrap metal
Laboratory/Water Care General Vehicles
Clothing/Textiles Maintenance of electrical, mechanical  
Computer equipment equipment and plumbing  
Computer software Mechanical  
Electrical equipment Professional  
Electronic equipment Repair and maintenance of vehicles  
Furniture Transport  
General    
Medical    
Office equipment: Labour-saving devices    
Perishable provisions    
Stationary/printing    
Steel    
Timber    
Vehicle (all types)    
Workshop equipment    

Did you know that there are 226 Local municipalities in South Africa? If there are only 5 tenders per month per municipality then this amounts to 1130 tenders per month. Add that to the 1000+ in the Government Tender Bulletin and you are already exceeding 2000+ tenders per month! Unfortunately the Government does not keep track of how many tenders there are at any specific time but it is absolutely more than 2000+ tenders per month. Underneath is a tale with each Province`s Municipality count:

Municipalities Metro poles Districts Locals
Eastern Cape 2 6 37
Free State 1 4 19
Gauteng 3 2 7
KwaZulu-Natal 1 10 50
Limpopo 0 5 25
Mpumalanga 0 3 18
North West 0 4 19
Northern Cape 0 5 27
Western Cape 1 5 24
Total 8 44 226

If you want to do business with Local Municipalities the KwaZulu-Natal is the place to go. It has by far the most Municipalities. But then again, although Gauteng has the least Local Municipalities, these Municipalities will have more procuring power than most of those in KwaZulu-Natal.

There are numerous websites, such as sa-tenders.co.za, which keep record of all available tenders in South Africa. Some of these websites even boast that it receives over 600 new tenders on a daily basis. This includes Government as well as private sector tenders. If you can believe these figures it means that there are over 18000 tenders available in South Africa at any given time. This figure may sound excessive but it is plausible seeing how many companies are bidding these days.

The competition out there for winning tenders are fierce between bidders but winning a tender can be the difference between surviving and closure for a business. But looking at these statistics it is clear that there are enough tenders going around for most of the good businesses in South Africa.

To ensure you stay ahead of your competition visit our website at www.how2tender.com to find out more about our Tender Workshops or purchase the new revived second edition of our Tender Manual: A practical guide on how to tender.

Until the next time - happy tendering.

Don`t delay, get educated today!

When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the... Read More
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