Difference between Sub-contractors, Consortia and Joint Ventures
Written by Werner van Rooyen The Preferential Procurement Regulations of 2017 outline that, where feasible, 30% of all government contracts exceeding R30 million must be subcontracted to designated categories of SMMEs. These SMMEs include, but are not limited to, businesses that are black female-owned and black youth-owned. To clarify the distinctions between forming a Joint […]
Advantages and disadvantages of Joint Ventures
Written by Werner van Rooyen The advantage of having a Joint Venture when you bid for a contract is that you combine the skills sets of the participants involved in the Joint Venture. Another advantage is that you minimize your risk and exposure towards the bid and the participants also share the profits as well […]
Extension of validity period
Written by Werner van Rooyen Those experienced with tender responses are likely aware that it is standard practice for procuring entities to request an extension of the bid price validity period. We have received several inquiries concerning this extension. The client has mentioned that three companies are competing for an Organ of State tender, which […]
B-BBEE and Enterprise development
Written by Werner van Rooyen B-BBEE and Enterprise development is one of the most current buzz phrases in South Africa. Everybody from Government to Large Corporates to SMME’s must either perform Enterprise Development or must be the beneficiaries of Enterprise Development. According to the Stellenbosch Business School Enterprise Development is defined as “the act of […]
Functionality scoring
Written by Werner van Rooyen As per the Preferential Procurement Regulations 2017, the evaluation criteria must remain objective to ensure that enterprises have a fair chance of advancing to the next evaluation stage, which includes Price and B-BBEE. While most tenders are evaluated based on Functionality, an Organ of State will outline the tender evaluation […]
Compiling your tender response
Written by Werner van Rooyen One issue that often frustrates me is the poor compilation of Tender and Request for Proposal documents. It frequently appears that previous documents were simply copied and pasted into new tenders, resulting in content that is largely irrelevant. This is particularly concerning because the Tender document includes forms that are […]
Cancellation of Government Tenders
Written by Werner van Rooyen Many of you who have submitted bids for Government tenders may have felt disappointment when a tender is cancelled. After dedicating countless hours to your efforts, receiving the unfortunate news of cancellation can be disheartening. So, do Government entities have the authority to cancel tenders? Yes, Government entities can cancel […]
Features of a sound Joint Venture Agreement
Written by Werner van Rooyen If you choose to bid through a Joint Venture, it is crucial to have a solid Joint Venture Agreement in place to protect all parties involved. A well-crafted agreement safeguards the interests of the Joint Venture partners. Ensure that your signed Joint Venture Agreement is included in your tender proposal. […]
B-BBEE and tenders
Written by Werner van Rooyen B-BBEE and Enterprise development is one of the most current buzz phrases in South Africa. Everybody from Government to Large Corporates to SMME’s must either perform Enterprise Development or must be the beneficiaries of Enterprise Development. According to the Stellenbosch Business School Enterprise Development is defined as “the act of […]
Bid Adjudication Committee Rules
Written by Werner van Rooyen All competitive bids bestowed by Government Entities must be entrusted to the discerning gaze of a Bid Adjudication Committee. In accordance with Treasury Regulation 16A6.2, a Government Entity’s supply chain management system must, among other duties, facilitate the adjudication of bids through this esteemed committee, along with the establishment, composition, […]