Three Challenges to Starting a Business to Tender | SA-Tenders.co.za
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.
NW405 - J B Marks – Potchefstroom Local Office Accommodation 2018-06-08 11:00 IEC/ NW- 01/ 2018
EC443 - Mbizana Local Office Accommodation 2018-06-08 11:00 IEC/ EC- 03/ 2018
Appointment of a panel of service providers for the supply of Ethernet Layer 2 services (Wireless connectivity services) to Sentech SOC (Ltd) for a period of Three (3) years with and optional extension of two (2) years). 2018-06-19 12:00 SENT/005/2018-19
Northern Cape: Victoria West Provisioning of office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW038/ 2017
Northern Cape: Loeriesfontein Provisioning of office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW002/ 2018
Cleaning services at SABC Bloemfontein offices. 2018-06-19 12:00 RFP/LOG/2018/36
Placement or outright purchase of film coverslipper analyser for NHLS Braamfontein, Doctor Goerge Mukhari Hospital, Chris Hani Baragwanath Hospital and NIOH for a period of three years 2018-06-11 11:00 RFB031/ 18/ 19
Placement of Haemoglobinopathy Analyser for Groote Schuur Hospital. 2018-06-20 11:00 RFB 014-18-19
Northern Cape: Nieuwoudtville Provisioning of Office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW004/ 2018
Northern Cape: Frazerburg Provisioning of Office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW003/ 2018
Placement of haemoglobinopathy analyser for Groote Schuur Hospital. 2018-06-20 11:00 RFB 014/ 18/ 19
General Building Maintenance. 2018-06-20 11:00 COR-A46/2017/2018
Secunda: Dol: Acquisition of office Accommodation Measuring Approximately 192.50sqm and no Parking Bays 2018-06-20 11:00 NST18/ 019
Supply abdominal swabs size: 370 x 450mm x 4ply sterile case of 48 x 5 SABS approved as per specification 2018-05-28 11:00 ZNQ 74/ 18- 19
Amersfoort: Dol: Acquisition of office Accommodation Measuring Approximately 115.20sqm And 02 Parking Bays 2018-06-20 11:00 NST18/ 020
The appointment of a professional service provider(s) to assist with organisational strategy review, policy alignment, business process mapping, business continuity management including annual reporting methodology for the organisation. 2018-06-21 12:00 RE-ADVERT ERW201706/TNDR-009
Supply swabs gauze absorbent size: 100 x 100 x 8ply non-sterile SABS approved as per specification 2018-05-28 11:00 ZNQ 119/ 18- 19
SECUNDA: SAPS: Acquisition of office Accommodation Measuring Approximately 1455.88sqm and 14 Parking Bays 2018-06-20 11:00 NST18/ 017
Supply and deliver toxicoligy kits x 30 kits 2018-05-25 11:00 09/ 2018/ 19
Supply, Planning, Installation and Support of Point to Multipoint Microwave Equipment to Sentech SOC (Ltd) for a period of Five (5) years with the option to renew for an additional two (2) years. 2018-06-21 12:00 SENT/006/2017-18

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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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