Issue Date: 
Tuesday, November 3, 2015

Three Challenges to Starting a Business to Tender

Every day the average business owner faces different challenges in the tender process. Several challenges keep on repeating themselves over and over again especially when you are a start-up business or if you opened a company with the specific intention to respond to tenders. These challenges are:

1. Experience

Tender responses are evaluated according to Functionality. One condition under Functionality is always the amount of experience you or your company have in a specific industry. The experience element usually counts for a number of points and these points all add up to your total score that you need to achieve in order to move on to the next phase of evaluation. If you lack experience you are going to struggle to earn points. To resolve this we suggest that you respond to tenders that you have relevant experience in. A good example is where an IT sector person responds to tenders in the IT sector - this way you can use your own experience on your CV to earn points on Functionality.

2. Site visits

Currently the trend from Government Entities is to do site visits to ensure that the bidders are real companies. The problem with opening a company with the sole intention of responding to tenders is that the company is not really operational in business and therefor has no site from which it operates. Depending on the kind of tender that you are responding to the minimum that you need to do is to set up an office of some sort, even if it is at your house. You need to show them that you have capacity in order to earn points on Functionality and to move forward to the next phase.

3. Compulsory Governing Body registration

In South Africa there are numerous Governing Bodies that businesses and their employees and/or owners have to belong to. Three examples of such Governing Bodies are:

  • National Home Builders Registration Council (NHBRC),
  • The Financial Services Board (FSB) and
  • The National Contract Cleaners Association.

There are many more but we will discuss to these three. Many Government tenders require registration certificates showing your affiliation to a Governing Body. Failure to produce such a certificate can lead to your tender response as being judged as non-compliant and this can lead to you being disqualified.

There are two major challenges that the business owner faces when registering with the appropriate Governing Body:

  • Firstly the rules and regulations that the business must be adhered to in order to register and
  • The cost involved.

The solution would be to try and register even if it is costly. Remember that you will have to comply in any case with the rules and regulations of the Governing Body should you be lucky enough to win the tender. Find out what the rules and regulations are and start to comply now and register.

Starting a business is a very complicated process - starting a business specifically for the purpose to respond to tenders is even more difficult. Rather start a small business, get it up and running, get some experience under the belt, earn a bit of income and then start responding to tenders.

Visit our website for more details on our upcoming How-to-Tender workshops www.how2tender.com

Learn today earn tomorrow

Title Closing Date Tender No.
Tenders are invited to provide Lumion Essentials Training 2017-12-04 11:00 CSQ11171189
Supply: Gloves 2017-11-29 10:00 GA1180192A
Tenders are invited to provide Revit Advanced Training 2017-12-04 11:00 CSQ11171189
Tenders are invited to provide Revit Intermediate Training 2017-12-04 11:00 CSQ11171189
Supply 20 each x harness; weedeater 2017-11-28 10:00 GA1180193A
Tenders are invited to provide Revit Essentials Training 2017-12-04 11:00 CSQ11171189
Supply: Plants 2017-11-28 16:00 GC11800356
Bidders are invited to provide training for Intermediate Leadership Programme 2017-12-04 11:00 CSQ11171187
Bidders are invited to Repair Scrubber Machine for Fresh produce market Scope of Work 2017-12-04 11:00 CSQ11171187
Supply Klorman Cartridges for Water Purifying 2017-11-28 16:00 GC11800357
Manufacture, Supply and Commissioning of an Inkjet Printing System to Upgrade an Existing Wide Web Printing Press at the Government Printing Works. 2018-01-15 11:00 GPW- M 361
Appointment of a service provider to render hygiene services for the Department of Rural Development and Land Reform: Office of the Chief Registrar of Deeds, Deeds Registry Pretoria, Chief Surveyor General and Surveyor General for a period of 36 months 2017-12-15 11:00 DRDLR (CRD- 08) 2017/ 18
Supply and print ambulance return books x 600 units 2017-12-01 11:00 ZNQ 459/ 17/ 18
Supply and Deliver Bark Chips to City Parks Depot , Sacks Circle Drive Bellville South. 2017-11-28 16:00 GC11800358
Stationery items 2017-12-01 11:00 ZNQ 130 / 2017/ 2018
Appointment of a service provider to render Security Services in Klerksdorp Regional Office for a period of 24 months 2018-01-05 11:00 DMR/ 018/ 2017/ 18
Appointment of three service providers to supply and deliver fresh fruit as and when required over a period of twenty four months (24) . 2017-12-15 11:00 NRFNZG- 027- 2017/ 18
Supply carbolic soap 2017-11-28 16:00 GC11800360
Appointment of a service provider to render Security Services in Rustenburg Regional Office for a period of 24 months 2018-01-05 11:00 DMR/ 019/ 2017/ 18
Appointment of two service providers to supply and deliver fresh and processed vegetables as and when required over a period of one (1) year 2017-12-15 11:00 NRFNZG- 028- 2017/ 18

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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