A business tender is an offer to do work or supply goods at a fixed price. The tender or bid process is designed to ensure that the work to be done is given out in a fair way. There are a number of policies (known as ‘procurement policies’) which are used as guides on how to make decisions on which tender to accept. Although price is very important in the decision on which tender or bid to accept, it is not the only factor taken into account.
Once the client entity accepts a tender, it is binding on both parties. This means that the person or company that won this business opportunity has to provide the goods or services in the manner agreed to and at the price offered, and the client entity must pay the agreed price at the agreed time. In other words, once accepted, a tender is a binding business contract.
Even if you don’t win the work this time, writing a tender can clarify your aims, strengths and weaknesses and you can learn for next time by asking for feedback on your bid. It raises your profile with the client and helps you learn about the client’s needs.
How To Win Tenders In South Africa
Step 1: Find Government Tenders relevant to your business
The first thing you need to do is find a Tenders or a RFQ that fits your business. Tenders and RFQ’s are advertised in various places, ranging from newspapers to websites.
You can find the Government’s weekly Tender bulletins – unfortunately it’s usually over 200 pages long.
Consequently, the easiest way to find the right Tenders and RFQ’s is probably Tender notification services. A Tender notification service notifies you whenever there’s a new Tender available in your area that’s relevant to your business.
Step 2: Ensure your business can complete the job
Winning a Tender means two things: firstly, that the Government has chosen you as the most promising supplier and secondly, that you’re going to take on the Government as one of your clients.
Consequently you have to make sure you have the staff, the cash flow, the skills and the equipment to deliver the services the Government needs at the proposed rate and within the proposed timeframe – just like with any other client.
Luckily, if you don’t have the cash flow needed for a 2 to 3 year contract, there are funds and loans available from multiple institutions for Tenders.
Step 3: Register on the Central Supplier Database (CSD)
Your business has to be registered on the Central Supplier Database (CSD) in order to apply for Government Tenders.
The CSD is the Government’s list of approved suppliers. To get your business on this list, you have to complete an online registration on the National Treasury’s website where you’ll be required to provide your details along with compulsory Company documentation (also see step 4).
Once submitted, the Government will asses your documentation and add you if everything is in order.
Step 4: Get the required Company Documentation in order
Very often Companies apply for Government Tenders without complying with the list of requirements or without submitting the necessary documentation. Consequently will result in being eliminated before you even get a chance to compete with the other applicants.
Make sure you read the Tender Document thoughtfully and make sure you get all the required Company documentation in order.
Step 5: Fill out your first Tender Application before the deadline
First of all, make sure you submit your application well before the closing date to avoid having an incomplete application, by the time of the deadline.
Allow yourself enough time to research what good Tender responses look like and how competitive your pricing can realistically be.
Step 6: Repeat the process until you reach Tender success!
Now that you’ve completed your first Tender application, the trick is mastering your Government Tender applications.
As a result of great, competitive Tender responses you’ll be paving your way to Tender success soon enough!
Source: ptycompanyregistration.co.za, onlinetenders.co.za