Cancelation of Government Tenders

Many who have responded to Government tenders have been disappointed when a tender is cancelled. Many days and nights’ worth of effort is wasted when the bad news is received.

The question is – do Government entities have the right to cancel tenders?

Government entities do have the authority to cancel a tender before it has been awarded. Regulation 12 stipulates that a tender can be cancelled –

What is my chance of winning a tender?

What is my chance of winning a tender? This question gets ask many times. The problem is that there is no straight forward answer. People expect us to say “your chances are 50% or 60%” or whatever the case might be.  But the real answer is much more complex than a simple percentage.

It is imperative for all potential bidders to familiarize themselves with the tender process in South Africa. There are procedures that need to be followed by Government Entities when they issue a request for quotation or competitive bid (tender). These procedures are governed by different Acts such as the Preferential Procurement Policy Framework Act (Act no 5 of 2000) and the Public Finance Management Act (Act 1 of 1999 as amended by Act 296 of 1999) to name but two.

Compiling your tender response

When responding to Private as well as Private Sector tenders, experience has taught that the system and steps explained below have worked the best. These are simple and easy to replicate and worth following when compiling your tender response.

1. In a normal tender response (not electronic), it is important to compile your tender documents in a neat, legible manner;

2. A well printed cover page gives the tender response a professional impression;

Tenders explained

Each day hundreds of tenders are being advertised but we often only hear about those where things have gone wrong or where the concept has been abused. It gives ‘Tenders’ a stink it doesn’t deserve. In today’s blog, we look at what exactly a tender is.

Understanding the Tender Process

By Werner van Rooyen

www.how2tender.com

3 March 2014

Sometimes I am surprised at how little business people in South Africa know about tenders and the tender process. Simple things like terminology and general tender information seem difficult to comprehend, not to mention the standard bidding documents and tender pricing.

Submitting your tender

By Werner van Rooyen

www.how2tender.com

2 June 2014

After our recent tender workshop: How to complete a tender, we realized that there are still people that struggle with submitting a completed tender document.

Underneath are tips on submitting your tender response. Ensure that you follow these guidelines when you submit your tender response.

Policies & Procedures - Tenders

By Werner van Rooyen

www.how2tender.com

17 June 2014

Last week I had a look at an Eskom tender. In it was a section pertaining to Policies and Procedures. It made me wonder how many SMME’s have got Policies and Procedures in place. The problem with Policies and Procedures is that it sounds much more complicated than it actually is.

Must my business be registered in order to tender?

By Werner van Rooyen

www.how2tender.com

1 September 2014

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When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the... Read More
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