Issue Date: 
Wednesday, October 14, 2020

Who is the bidder or his or her representative?

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative”. This question causes confusion amongst certain bid responders. To add to the confusion the same document refers to company, directors, trustees and members.

To answer the questions in bid documents correctly bid responders needs to understand the different type of business entities that exists in South Africa. There are many types of business that can be operated and registered. Here is a list of the most common busines types in South Africa:

  1. Sole proprietor / one-man busines

A person can operate a business in his or her own name. The business is not registered as a company or close corporation and the business has no legal power. All the business is done in the name if the owner.

  1. Partnerships

Partnerships are formed between two or more businesspeople who wants to operate a business for profit. There are many forms of partnerships that can be formed:

  • Normal partnerships – are usually formed between professional people such as attorneys or doctors who share office expenses to safe on costs to ensure profits.
  • Joint Ventures – are typically formed between two or three businesses to execute a contract joining their recourses to be more competitive and increasing their changes of being successful.
  • Consortium – a Consortium is typically formed between more than three businesses to execute a contract combining their recourses to be more competitive and increasing their changes of being successful.
  1. Legal entities

Legal entities are formed by shareholders to operate a business for profit. In South Africa there are several legal entities that can be registered at the CIPC (Companies and Intellectual Property Commission):

  • Private Company ((Pty) Ltd) – a Private Company has between 1 and 50 shareholders. It is a legal entity which is managed by directors on behalf of the shareholders. The shareholders can be natural persons or other legal entities. Private Companies need to have a representative who sign contracts and tenders on behalf of the company.
  • Public Company (Ltd) – a Public Company has more than 50 shareholders. It is a legal entity which is managed by directors on behalf of the shareholders. The shareholders can be natural persons or other legal entities. Public Companies need to have a representative who sign contracts and tenders on behalf of the company.
  • Close Corporation (CC) – Close Corporations was formed between 1 and 10 MEMBERS. It is a legal entity which is managed by the members on behalf of the members. The members can only be natural persons. Close Corporations need to have a representative who sign contracts and tenders on behalf of the Close Corporations. Existing Close Corporations can still operate in South Africa but since 2008 one cannot register a new Close Corporation anymore.
  1. Trusts – Business Trusts can be erected to operate a business. A trust is managed by trustees on behalf of its beneficiaries. Business Trusts need to have a representative who sign contracts and tenders on behalf of the Business Trusts.

If the bidder is any of the entities mentioned in points 2 to 4 above, the bidder will have to appoint a representative. The representative is usually the person that has authority to sign tender documents on behalf of the bidding entity.

We hope this brings clarity in responding to tenders.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops/webinars presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at  estelle@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Copyright HowtoTender (Pty) Ltd © 2013 – 2020

Title Closing Date Tender No.
TENDER MN 97/2021 Panel of contractors for fencing installations for Kwadukuza Municipality for period of 3 years ref advert on KDM webpage 2021-11-01 12:00 MN 97-2021
Refurbishment of Blythedale Beach life savers tower ref advert attached for full details and enquiries 2021-10-15 12:00 MN 78/2021
Invitation to tender for lease of Eskom owned residential properties located in the Eastern Cape Kouga Municipal district 2021-10-18 10:00 IRP308
Appointment of a Service Provider to perform actuarial valuations, build and transfer actuarial model for a period 36 months. 2021-10-25 11:00 TCF 16 2021/22
Provision for deep cleaning services for a period of 12 months 2021-09-30 13:00 EWSETA/RFQ/054/2021
Appointment of a suitable service provider for the supply and delivery of 129 laptop computers for the Free State Community Education and Training College 2021-10-25 11:00 RFT02/2021
Supply And Delivery Of Asphalt Bags 2021-10-29 12:00 TDR225/2021/2022
Supply And Delivery Of Butterfly And Dual Plate Check Valves 2021-10-29 12:00 TDR231/2021/2022
Fiber Connectivity For Internet Bandwith And Mpls Vpn Service Connection For The Joint Operations And Disaster Management Centre 2021-10-29 12:00 TDR242/2021/2022
Painting of The Multimedia Filters at The Mossel Bay Desalination Plant 2021-10-22 12:00 TDR244/2021/2022
Leasing Of The Tolhuis Together With The Adjacent Building On A Portion Of Erf 1001, Ceres 2021-10-14 12:00 08/2/19/12
Periodic Maintenance, General Repairs And Provision Of Spare Parts For Sweeper 2021-09-30 12:00 08/2/19/03
Provision of internal audit services for a period of 3 years 2021-10-18 11:00 RFP 06/2021
Service Provider Needed For Training Of Bus Operator 2021-09-29 12:00 6/5/2/111/A
Appointment of a service provider for the replacement of prepaid electricity meters with smart prepaid meters and related systems at various blocks of municipal flats located at Entokozweni, Emthonjeni and Emgwenya 2021-10-27 12:00 ELM22/09/01
Ntabankulu Local Municipality is looking for the services of extra law firms qualified to provide legal services inclusive of Civil and Criminal laws litigation, conveyancing services, commercial drafting, and labour matters for thirty-six (36) months. A detailed specification will be attached to the tender document. 2021-10-11 12:00 NLM/CS/PLS/2021/2022
Supply and installation of Software for Capturing and Processing of Traffic Fines for a period of three (03) years 2021-11-05 12:00 MNQ/SCM/29/21-22
Service Provider Needed For Training Of Bulldozer Operator 2021-09-29 12:00 6/5/2/111/B
Service Provider Needed For The Service Of Airconditioners At Various Fire Stations From Date Of Appointment Till 30 June 2022 2021-10-04 12:00 6/5/2/392
Supply, Installation, and commissioning of electromagnetic flowmeters at Ixopo Water Works 2021-10-04 15:00 Q21/807/ZC(A)

Pages

Who is the bidder or his or her representative?

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

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