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.
Appointment of a service provider for the provision of Sharepoint implementation and migration of current EPPF intranet onto Sharepoint 2020-11-20 12:00 No reference number
Provision of Secretarial Services 2020-11-16 12:00 NCT 4/3/2/38
Public Relations Agency 2020-11-16 12:00 SAT UK 001/20
Provision of auto-electrical repairs inclusive of supply and fitment of batteries for 6 areas 2020-11-23 10:00 149G/2020/21
Consulting engineering services for the administration and construction monitoring of the upgrade on National Route 2 from Kwamashu interchange, section 25 (km 28.6) to Umdloti River Bridge, section 26 (km 14.0) 2020-11-20 11:00 SANRAL N002-260-2018/9S-B
Provision of Panel for Business Separation Programme IT Work Stream 2020-11-25 10:00 CORP5201
Electrification of Mthatha West Phase 4 2020-11-24 12:00 SCM: 028/2020/21
Cape Mail: 3 months cleaning and hygiene services 2020-11-04 11:00 RFQ 20/21/013 I Cape
Appointment of a service provider to provide firefighting assessment for insurability 2020-10-28 12:00 RFQ/TIM/001/2020
Procurement of an Audit management Software Tool for Armscor 2020-11-09 11:00 EICT/2020/12
Appointment of the service provider for the supply, installation and maintenance of Dell Core Switch for Public Protector South Africa (PPSA) 2020-11-13 11:00 PPSA 009/2020
Appointment of a Panel of Service Providers for Municipal Vehicles for a period of 3 Yrs 2020-11-27 12:00 PS 013 OF 2020
Supply and delivery of ready mix concrete and sand 2020-10-27 10:00 CRAC-ELF-34080
Supply and delivery of road works materials 2020-10-30 12:00 SRVM-RFQ 05/2021
Supply and delivery of plumbing accessories and fittings 2020-11-02 12:00 SRVM-RFQ 08/2021
The provision of physical guarding services in the KZN OU and east grid (distribution, transmission and telecoms) 2020-11-17 10:00 KZN0088/DG
Disposal of scrap ferrous metal 2020-11-11 10:00 MP020-06
The provision of C&I maintenance at Komati PO 2020-11-11 10:00 MPGXC006244R1
Appointment of a transaction advisor for the KZN Growth Fund Trust 2020-11-03 12:00 KGFT RFP 2020/017
Provision of proof reading and editing services of sector skills plan (SSP) and marketing related publication as and when required for the period until 31 March 2021. 2020-10-26 11:00 RFQ/2020/21/38

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