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.
Silver electric surgical oscillating orthopaedic medical bone saw (maxi drive) with accessories 2018-08-01 11:00 ZNQ 144 / 2018 / 19
Service provider to service fire extinguishers and hose reels, the company must be CIDB 1ME grade or above. The kilometers from St. Apollinaris Hospital to the clinics (single trip to) is: Sokhela Clinic x 07 (+/- 45.5km); Malenge clinic x 07 (+/-27km); Sphamandla clinic x 07 (+/- 18km); Riverside clinic x 07 (+/- 18km); Kilmun clinic x 07 (+/- 27km); Qulashe clinic x 07 (+/- 52km). 2018-08-02 11:00 84/ 2018/ 2019NSI
Supply Kiwi complete vacuum delivery system with palm pump (50 set) 2018-07-30 11:00 433/ 17- 18
Supply 8 bay mobile filer (04 units) 2018-07-30 11:00 111/ 18- 19
Service provider to service floor cleaning machine and replace the switch, the kilometers from St. Apollinaris Hospital to the clinics (single trip to) is: Riverside clinic x 02 (+/- 18km); Sokhela clinic x 01 (+/- 45.5km); Sphamandla clinic x 01 (+/- 18km); Kilmun clinic x 02 x (+/- 27km); Qulashe clinic x 01 x (+/- 52km); Malenge clinic x 02 x (+/- 27km). 2018-08-02 11:00 86/ 2018/ 2019NSI
6 Units x Portable Vascular Access - Illumination System 2018-07-27 11:00 ZNQ 23- 2018/ 19
Desludging of septic tank, the kilometers from St. Apollinaris Hospital to the clinics (single trip to ) is: Malenge Clinic x 02 (+/- 27km); Riverside clinic x 01 (+/- 18km); Qulashe clinic x 01 (+/- 52km); Sphamandla clinic x 02 (+/- 18km); Sokhela clinic x 02 (+/- 45,5km); Kilmun clinic x 02 (+/- 27km) 2018-08-02 11:00 82/ 2018/ 2019NSI
Supply pop walking heels - large (10 000 units) 2018-07-30 11:00 427/ 17- 18
Appointment of a service provider to supply, install and migrate the existing server infrastructure to a virtual environment. 2018-08-10 11:00 SHRA/ RFB/ ADMIN/ 05/ 201819
Supply lockable stationery cupboard 6ft (24 units). 2018-07-30 11:00 136/ 17- 18
Service provider to clean Jojo tanks,the company must be CIDB grade 1ME or above,the kilometers from St. Apollinaris Hospital to the clinics (single trip to) is: Riverside clinic x 01 x 7500L (+/- 18km) Sokhela clinic x 04 x 5000L (+/- 45.5km) Sphamandla clinic x 08 x 5000L (+/- 18km) 2018-08-02 11:00 109/ 2018/ 2019NSI
Supply floor polisher machine R46 (16 units). 2018-07-30 11:00 136/ 17- 18
Service provider to service airconditioner at Kilmun clinic, the company must be CIDB 1ME or above x 06 unit 2018-08-02 11:00 111/ 2018/ 2019NSI
Supply combi steamer (01 unit) 2018-07-30 11:00 79/ 18- 19
Request for information: A Nursing College Administration System (NCAS) for the South African Military Health Service (SAMHS) nursing college 2018-08-10 11:00 RFI 1772/ 2018
Service provider to service airconditioners at St. Apollinaris Hospital, the company must be CIDB 1ME or above x 87 unit 2018-08-02 11:00 113/ 2018/ 2019NSI
Supply pasteo chairs maroon in colour (130 units) 2018-07-30 11:00 68/ 18- 19
Service to Threatre Aircondtioning And Plantrooms 2018-07-27 11:00 ZNQ 41- 2018/ 19
Provisioning, deployment and training of the Check Point firewall solution for the South African Police Service including support and maintenance for a period of 12 (twelve) months. 2018-08-10 11:00 RFB 1763/ 2018
Servicing of Genset -{720&960- Hour Service and Annual Electrical Service} at New Workshop and Kitchen Genset Plant as per Specification 2018-08-06 11:00 ZNQ 404/ 18- 19

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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