Trouble with tenders?

Getting a government tender is not always easy – particularly if you’re the new kid on the block.

The problem is beating the competition and finding one that suits your businesses’ capabilities. However, there are things you can do to improve your chances:

1. Get registered

The first thing anyone who’s applying for tenders needs to do is register with the Central Supplier Database (CSD). A tax clearance certificate will be vital.

2. DIY online research

Historically, tenders were printed in newspapers and gazettes, but these days most of what you’re looking for is online. But there’ve been some ‘gremlins’ in the works.

‘Before January this year the government had the national Tender Bulletin which came out every Friday. It listed all the tenders and who had secured the tenders that closed the week before. It’s a great shame that this has collapsed as this was a very reliable source of information to see what’s happening in the industry,’ says Catherine Townsend, operations director at TenderServices.

The government has replaced the bulletin with its eTenders website, but it does have some flaws. In June this year, the Daily Maverick reported how the site has been beset with technical failures.

‘On eTenders you don’t find out who won the tender, but you could find that out on the Tender Bulletin, and you could look back through previous copies and compare,’ adds Townsend.

Besides the government’s eTenders website, you have the option of comparing tenders on various websites – some free, some paid for. With TenderServices, for example, you pay R380 for two weeks, while a year’s subscription costs just over R8,000.

While it could be costly, the paid route may be worthwhile as you can tailor the search for the tenders you specifically want.

3. Go for suitable grades

The most basic construction tender (like building carports for the municipality) may, for example, get a 1GB (general building) grading. This is typically suited to one service provider or one company owner with a few labourers.

‘However, that will be attracting a whole range of people who are new to the industry,’ points out Townsend. ‘The more basic the tender the more you must make sure your application is perfectly completed. You can’t be late to a site inspection – there will be no flexibility on those things.

‘If you are new to the industry, you could get a chance. Once you’ve secured a tender and delivered on it well, you have a chance of getting something bigger and working your way up,’ adds Townsend.

4. Attend site visits

You need to ask questions and see the site to get a comprehensive picture of what the work involves as the adverts aren’t always detailed. ‘Seeing the site gives you more understanding of the tender itself but incurs costs. If you don’t get there and it’s compulsory, then you’re out of the game,’ warns Townsend.

5. Respond swiftly

Sometimes the closing date on tenders leaves a very narrow time frame for a response. It’s therefore important to choose the right tender information service. Some businesses subscribe to two different procurement information services so that they can be sure that they never miss a tender by accident.

6. Form reliable relationships

If you need quotes from other suppliers, you’d have to act quickly as it’s all about the turnaround time. ‘With so much time pressure, you need to have reliable people in your team. For a bigger tender you might need a project manager, architect, structural engineer, environmental impact assessment and a town planner, so you need to be sure that they will be responsive within two working days else you are wasting your time,’ says Townsend.

7. Get BBBEE certified

According to business consulting agency Cenfed one of the biggest benefits to having a BBBEE (Broad-Based Black Economic Empowerment) certificate is being able to conduct business with government sectors – including municipalities – and public entities. The higher the level of your certificate, the more you can improve your chances of winning a tender.

A reliable income?

While getting a government tender could offer that extra bit of prestige you shouldn’t rely on this solely.

Townsend explains: ‘People spend money tendering. It’s not the most efficient way to secure work. Let’s say 20 companies go for a tender – that means 20 teams put time aside for a tender site meeting and pay for a tender document.

‘In the end only one can win. But the rest need feedback on who won and what the fee was. Now that the Tender Bulletin is gone it’s hard to find that information.’