Tenders invoke indignation from some and enthusiasm from others. Either way, it’s best to learn the basics – and learn them fast.
By Craig Falck for Africa Report.
Photograph: © Jonathan Ross | Dreamstime.com
Tendering is big business. In Africa, companies vie for multi-million and billion dollar contracts, making the tender process a lucrative, but frustratingly protracted process. While it may seem like a complex dealing, it’s actually quite easy to understand once you strip it down.
What: Tenders are offers to provide a service or product at an agreed-upon price. An invitation is sent out and any number of companies who are in the industry may submit their proposals to do the work. Guidelines, rules and regulations must be followed and the best proposal should be offered the contract, in a legal and fair manner. At least, that’s the theory behind it. Sometimes, personal ties matter more than quality proposals. Either way, up your game and make sure your proposal is watertight.
Why: Governments use the tender process because they are able to negotiate better prices for the job and create further employment opportunities. Companies prefer to tender because they might have more expertise than another company or might be able to offer a better price. By tendering, they have a fairer chance of being awarded the business. It’s also a favourite among SMEs. Consider it a future project option if your business is on the right track.
Where: There are a number of places to find tender opportunities, like newspapers and trade magazines, government tender documents, government department websites, and the Online Tenders website, among others. Research is key. Do your homework and you’ll find a viable tender somewhere.
How: The first step is to find an opportunity. Check that you meet the requirements for the tender. Analyse the opportunity and how you would complete the job if awarded the contract. Fill out the docs and put together a proposal. For this, you might need to bring in outside consultants. Documents normally consist of your business bid, tax clearance certificate, pricing structure, motivation declaration, preference certificate and contact form. Submit it. Cross your fingers and wait to see what happens.
Tendering is an easier way to ‘win’ work rather than waiting for customers to come to you. More often than not, large sums of money are involved and the project is of an enormous nature. You could find your company climbing the industry ladder if you perfect your tendering process. If you can prove that you have a reliable and professional business that does what it promises on the tender application, consider half the job done already.
Source: http://www.onlinetenders.co.za/how-to-tender.aspx#how-do-you-find-tenders
