You might have heard about tenders or may have seen advertisements in news paper or websites. There are many companies which put their advertisement for different-different tenders. But getting a tender is not everyone’s cup of tea.
What does the term Tender describes?
Offering to work or supply goods and services at fixed price is referred as a tender. In particular it usually applies to bigger jobs and public sectors work in particular, ranging from the local council to government departments.
The proposal format of a tender varies widely from industry to industry, but with the same basic requirements. Deadline is the most important part of any tender response. Since this is a highly competitive process, it is very important to remember that you are able to provide the best quote with your bid.
Once the tender has closed, the government and other agencies do not negotiate with the prices. Firstly, the tender process is an understandably competitive one. As everyone wants the same piece of the same pie, this makes sure that the tender you are looking for is up against the toughest of your eligible competitors.
Mentioned below are the steps you must take care of while creating a winning tender:
1. Before tendering you should remember the following:
Get grip of the bid documents and analyze them properly.
Make sure that you can match the technical, skill and experience requirements.
How much will it cost to prepare your bid?
Familiarize yourself with the ins and outs of the tender process – because it’s never as easy as it sounds.
2. Get detailed information:
You need to get detailed information about the contracts that have been put to tender. National and provincial government departments, parastatals, municipalities and big companies in the private sector, all are the kinds of firms that issue different kinds of tenders.
3. Establish your eligibility:
The next step is to determine whether you are eligible to tender for the contract or not. The business should:
Be a registered business or be licensed with the relevant local authority
Have a good banking record, credit history and relationship with its suppliers and clients
Be able to deliver on time, on budget and according to the specifications and to deliver consistent quality
Have an up to date tax clearance certificate
Have the cash flow and other resources necessary to complete the contract
Have or can acquire the right equipment and accessories needed to complete the tender
Have products that comply with SABS or other relevant standard authorities
4. Do the paperwork:
The next step is to complete the documentation process. At this point, filling the tender correctly plays an important part in the potential success of your bid.
5. Get the price right:
Price is a big factor in awarding the tenders. So you want to ensure that your price is competitive. Having said this, you also need to make a profit. Those in the know generally advise that you work on a cost plus 7.5% basis. Working out how much the contract will cost requires you to pay close attention to the specifications in the tender.
Keeping all these points in consideration you can make this process simpler and then achieve the power sectors tender and other tenders easily without any hassle.
