Building your dreams

Building the Tenders Dream

 

If you had told me years ago that I would be contributing to a blog, I would have laughed in your face unashamedly. The ugly laugh. There would be hooting and slapping of knees. I would have wiped the tears from my eyes and told you “Good one”. Well, here I find myself. A contributing editor on a blog. Where my opinion will exist in digital eternity. O goodie.

 

So when in doubt, I do what most do these days – “To the Internet”. Frantic searches for “how to” infographics; scrolling though endless websites listing anything and everything. Truly Alice-down-the-rabbit-hole kind of stuff. However, in amongst all this, I got distracted. As you do. I had wandered down a virtual alleyway and found the below piece of random inspiration:

 

Build your own dreams,

or someone else will hire

you to build theirs.

And it got me thinking… A dangerous pastime… I know.

Who’s building their own dream on their own? Nobody does it by themselves. There’s always experience from the first job, advice from mentors and parental units, funding and faith money; first offices in truly inspiring places like “the garage”. Oh no. All successful, profitable businesses comprise of just one person. Probably very stressed. I mean, who’s making them coffee?

No matter what your pursuits, business, endeavours, dreams or whatever, everyone strives for success in some form or another. Granted, everyone has their own definition of success, but for the sake of this article let’s narrow it down to the opportunity to “fight another day”. Business is difficult. Business is competitive. It’s built on old school thinking and traditions, and has to constantly adapt to new technologies, ideas and expectations. No one does it alone. Partnerships, support and opportunities exist in your own organisation or you learn to recognise it in others. And then get them on board. I hate to say it, but network, people, network.

And this might be naive, but the excitement and joy we hear on the phone when talking to subcontractors, main contractors or consultants when they’ve won a tender, sounds exactly the same – Beers all round and an afternoon off.

The trick? Hire the right people to build your dream.

And maybe learn to golf.

About Claire Donaldson

I started working at Leads 2 Business in February 2005, and have served as Head of Department of Daily Tenders from 2007 until the present. I oversee both the Daily Tenders South Africa and Africa Departments.

How does early project development benefit me and my company?

Early Private Project Construction Benefits

 

I have to revert back to the dictionary again and break that heading down, just the keywords, those are the important ones:

  • Early: Dictionary.com says “in or during the first part of a period of time, a course of action, a series of events”,
  • Benefit and its dictionary.com definition is: “Something that promotes or enhances well-being; an advantage”.

 

So, I could change the heading to: How does a course of action involving developments promote myself and my company? Conceptual is the earliest stage that we add new projects, normally this entails various studies that still need to be done, business plans, feasibility studies etc. This is an opportunity for everyone, might be a little early for the contractor to start sharpening his tools but he will know about this development and can follow the progress through the early stages while waiting to pounce when it’s his turn but if your forte is turning an idea into a viable business plan, this could be your moment. Procedural is still pretty early and here is when environmental studies will be done. There is a strong possibility that a professional team has not been appointed yet and this is where the Project Managers, Developers, Engineers, Quantity Surveyors and Architects can ply their trade and promote themselves as to why they would be the best person for the job. Design is a little later but still early enough in the game and perhaps the rest the professional team is still being sourced….this is your cue, call the contact that is listed on the project and promote you and your company should your profession not be listed. Today could be your day. We let you know about the opportunity as early as possible and being proactive you would use the opportunity to benefit you and your company.

 

For more information on Leads 2 Business, please visit www.L2B.co.za

About Debbie Wessels

I started at Leads 2 Business in April 2008 in the tenders Department and transferred to the Projects Department during the same year. I was appointed Head of Department for Projects from February 2011 to March 2022. April 2022 I started a new adventure as Content Regulator.

Shifting construction landscape requires flexibility

posted in: General 0

Shifting construction landscape requires flexibility

Africa’s construction industry is experiencing a significant upswing. The project and tender services of Leads 2 Business help business owners position their companies to maximise the opportunities presented by the infrastructure development boom across Africa.

The construction landscape in Africa has shifted dramatically in the last 10 years, staying ahead requires your business to be flexible and open to challenges.
In South Africa there has been an upswing in the construction industry outlook with the FNB/BER building confidence index breaking through the key 50 point mark for the first time since 2007 Q4, the slower growth in residential building is being offset by sustained growth in non-residential building work. An increase in architect and quantity surveyor activity suggests that the recovery in the building sector has not lost momentum.

Presently, the market is favouring the world’s second largest continent with at least 223 billion dollars’ worth of mega projects already underway in Africa.
Standard Chartered Bank is forecasting that Africa will grow by 7% pa over the next 20 years and the International Monetary Fund projects that between 2011 and 2015, seven of the ten fastest growing countries globally will be African.

In Ethiopia the concrete skyline of Addis Ababa is dotted with cranes and scaffolding, sandy tracks are being dug up to be replaced by paved roads, the construction boom, funded by both public and private sectors is being driven by the country’s rapid economic growth. Reuters reports that Africa’s middle classes are growing, providing the backbone of an economic revolution that is attracting billions of dollars of foreign capital and changing the face of the poorest continent.
Further afield, Tanzania and Burundi have recently signed a Memorandum of Understanding for the joint construction of a 195km railway line worth TSh 1 Trillion (over 1 billion Rand), whilst Kenya plans on borrowing $2 billion to refinance an existing loan of $600 million to fund the construction of infrastructure projects.

 

Positioned for Opportunities

“This is all positive and upbeat news, indeed” states Victor Terblanche, CEO and founder of project and tender research company, Leads 2 Business  “to benefit, you need to position your business, be prepared and know when to act by staying abreast of industry changes and by knowing what’s in the pipeline.  With careful planning, your business will be positioned to grasp the opportunities presented by the infrastructure development boom across Africa.”

Leads 2 business researches project and tender information and is strategically aware of the significant fluctuations within the industry.  Construction developments in Africa make up a substantial percentage of the project and tender notifications we publish and in the last few years we have seen a steady increase in the subscription to our Africa project and tender services. We actively research in 25 out of the 57 countries in Africa and remain flexible,  so as and when the need is present and significant, we add new regions. Last year we published over 53 000 tenders from Africa specifically related to construction.”

 

“Obviously one needs to do one’s research and be mindful, business models and methods differ vastly from country to country and you don’t want to be caught on the back foot of your decision, but in saying that I do not believe we can afford to pass up opportunities because of scepticism of the African market.   There are opportunities out there, you just need to be informed and in a position to take them” concludes Terblanche, “and this is where a niche construction industry resource such as Leads 2 Business plays a pivotal role.”

For more information on Leads 2 Business, please visit www.L2B.co.za

About Lee Finch

I started my journey at Leads 2 Business in 2004 as an account executive. In 2006 I moved over to MAPRO (Marketing, Advertising and PRO), and in 2012 I became a Director. It’s exceptionally rewarding being a part of the Leads 2 Business team. I’m incredibly proud of the achievements and business ethos and I’ve always firmly believed we offer a valuable service, fine-tuned to our subscriber needs. I am a Mom of two beautiful children, a lover of human interaction, laughter and light, sprinkled with a generous dose of fun.

What is a Bill of Quantities (BoQ) & a Bill Extract?

posted in: General 0

Bill of Quantities (BoQ): According to www.ask.com, “A Bill of quantities is a list of numbered items, each of which describes the work to be done in a civil engineering or a building contract. Each item shows the capacity of work involved. The bill is issued to tenderers, who return it with a price opposing each item.”

Bill Extract: The portion/s of a BoQ which relates to the supplier/vendor/sub-contractors’ trades, i.e. the specific trade/s that a supplier/vendor/sub-contractor does.

L2QFlow

View this Diagram as a PDF

For more information on Leads 2 Business, please visit www.L2B.co.za

About Cecile Van Deventer

I joined the L2Q Team in 2006, as a L2Q Support Assistant and have been the HOD since 2010. I supervise L2Q Bills, Daily Tender Bills, Control Lists and Directory.

What is a Tender?

posted in: General 4

What is a Tender?

When I started at Leads 2 Business, it was called Daily Tenders. I didn’t even know what a tender was, until I did some research before my interview. That was 2005. Every day since, has been tender notices, in one form or another. Government tenders, Invited Tenders, Quotations, Bids, Request for Proposals, Expressions of Interest, Pre-qualifications; not to mention Requests for Information and Supplier Database Application notices. Show me a contract number, and I can probably guess which Municipality put it out. Not a trick that goes down well at parties, I admit; but  oh so impress in the office. So what’s the difference in the those I mentioned above? Let me tell you…

 

Government Tenders – Government money, government timing and no one answering the phone at 15:00 on a Friday afternoon.

 

Invited Tenders – Not publicly known, but invariably someone hears about it from their cousin’s wife’s nephew who heard about it in a bar somewhere. All hush hush. But not hush hush enough, if we get to hear of it. And we hear a lot.

 

Quotations – Smaller values, shorter tendering periods; and impressive in the sheer quantities that the Municipalities pump out at any given time.

 

Request for Proposals – “How do we do this?”

 

Expressions of Interest – “Who would be willing to do this?”

 

Prequalifications – “Prove you can do this”.

 

Request for Information – “Tell us why we need this thing, how to use it and for how much”

 

And let us not forget the various incarnations of the Tender Award – “You’re kidding, right?”. “Call back in two weeks”. “It’s already completed” and everyone’s favourite “Who are you? And why do you want this information?”

 

(Disclaimer: Definitions are humorous interpretations, and are not to be taken seriously. Unless you have had anything to do with tenders. Ever. And then you get it).

About Claire Donaldson

I started working at Leads 2 Business in February 2005, and have served as Head of Department of Daily Tenders from 2007 until the present. I oversee both the Daily Tenders South Africa and Africa Departments.

What is the difference between a Tender and a Project?

What is the Difference between a Tender & a Project?

This is one of the most asked questions that I have received over the years. What is the difference between a Tender and a Project?  So I thought I would break it down as best as I understand it.

A Tender is is put out for supply of services or products where various entities can bid to be awarded the contract. This is one phase in a Project life cycle and generally happens over a short period of time e.g. two to three weeks.

A Project is the full life cycle from Conceptual stage to Completion/Postponement/Cancellation.

The stages of a project could be broken up as follows:

Conceptual stage is the beginning phase of the project.

Client / Developer – Feasibility Process – Securing Funding – Request for Proposal – Procedural stage involves obtaining various approvals and authorisations. Basic Design – Geotechnical Study – Licensing – EIA Process – Property Rezoning – Professionals.

Design & Tender

This stage involves detailed design, the tender process and bill pricing. The majority of the Project Professionals have been appointed at this stage. Bidding Contractors’ details are listed under Bidders. Detailed Design – Expression of Interest – Negotiation – Tender – Anchor Tenant – Invited List.

Awarded & Underway

The main contractor and subcontractors have been awarded and construction is underway.

Complete/Postponed/Cancelled

Practical completion is nearing the end or is structurally complete. The project is on hold for various reasons.
All this information is captured on our system in an accessible manner for our subscribers so they can keep up to date and put their business’s in the right position to take advantage of the opportunities that exist.

This is a very basic explanation, I know.  If you want to add to it, please feel  free to provide feedback for those reading.

.

About Carmen Barends

Social media adventurer for Leads 2 Business, exploring new frontiers and taking new ground. “Not all those who wander are lost.” JRR Tolkien

A Day in the Life of … Tenders Department

We have a wealth of Tender information on our system.  This information is researched and added daily by a stellar Tender Department.  We speak to the Head of Department, Claire Donaldson, to find out what typically happens in a day.  Take it away Claire…….

 

 

“In the Daily Tenders Department, we strive to meet the needs of our subscribers through constant research and subscriber contact. It is essentially a balancing act between our priorities and responsibilities; whether it is sorting through numerous newspapers, websites or gazettes or following up on award information, assisting subscribers or potential subscribers; each day has its own challenges. There is nothing more satisfying than a day done and dusted, knowing we’ve published information that directly benefits our subscribers.”

 

 

The various industries that our Tender Department researches are:

Alternate Energy, Fleet Management & Transportation, Demolition & Blasting, Mechanical, Air Con & Refrigeration, Building

Infrastructure, Consultants, Electrical & Instrument, Facilities Management, Fencing, IT & Telecom, Materials & Supplies, Plant & Machinery, Security & Fire, Supplier Database and Trades.

 

You can find more information at www.L2B.co.za

About Claire Donaldson

I started working at Leads 2 Business in February 2005, and have served as Head of Department of Daily Tenders from 2007 until the present. I oversee both the Daily Tenders South Africa and Africa Departments.

What do I need to complete a Tender?

What do I need to complete a Tender?

Being an author on a blog certainly stretches you. Our Company started a blog this year to reach out to people and try address some of the questions we encounter in an informal manner.  It is harder than it looks.  We have some staff who are amazing authors and in doing so make it look so easy.  It isn’t you know.  But it does give you the opportunity to expand your skills somewhat.

That being said, one of the questions I encounter is “What do I need to Complete a Tender?”  There doesn’t seem to be a one-stop shop for all the tender documentation needed (if there is and I haven’t located it, please share, I would love to know).  So we have attempted to locate some tips of the trade from some websites and list some of the documentation needed.  Also find the link to our blog below the article where we have a list of all the electronic documents we could find.  So here goes….

Step-by-step guide to tendering for government

Get registered with relevant departments on their database.

Goods and services:

For tenders under R30 000 the relevant government department will usually approach three registered providers for a quote
Tenders of more than R30 000 must generally be advertised to all subscribers
Tenders over R20 0000 must be advertised and formally adjudicated
Building and engineering:

Tenders over R2-million have to be adjudicated and formally advertised
Tenders below R2-million are seen as minor and under R100 000 as micro

How do I know my business is ready to tender?

If it’s a registered business
If it has a good banking record and relationship with suppliers and clients
If it is able to deliver on all specifications
If there is no possible conflict of interest with the government body or anyone adjudicating on the tender application, in the form of directorships or shareholding or family relationships
If the business has the required cash flow
If there are qualified staff
If employees are registered with the Department of Labour
A sole trader or partnership can tender – however, the business must be licensed or registered with the relevant local authority, must have a bank account and must have up-to-date tax clearance

Keys to success:

Complete tender documentation in full
Ensure the business is properly registered and licensed, and that taxes have been paid
Preference points will be given to previously disadvantaged individuals (PDI) or women. Generally, for tenders over R50 000, 80% will be adjudicated on price and 20% on PDI or gender status. For tenders over R500 000, the 90% to 10% price system applies
Price plays an important role and the most expensive tenders are likely to be excluded first. Keep in mind that some costs can change, such as labour, material and equipment and this needs to be factored in

Tender documents must contain:

A VAT registration number

  • Any proof of product guarantee – like SABS or ISO marks of quality
  • Permits for goods not made in South Africa and prices for goods must be supplied
  • A number of forms need to be completed for national and provincial government tenders. These include:
  • Invitation to bid, in which the company agrees to be bound by terms and conditions of tender (eg Form ST 36)
  • Official cover page of the tender document; (eg Form ST 8)
  • Tax clearance certificate (eg Form ST 5)
  • One form requires: closing date, tender number, price, delivery period (eg Form ST 7)
  • Preference point certificate to highlight if there are previously disadvantaged candidates (eg Form ST 11)
  • A declaration of interest – businesses are required to declare relationships with members of the tender board or government. A list of these forms can be found on: (eg Form ST 12)

Have you been accepted or rejected?

The Tender Board will notify companies as to whether they have been accepted. It’s important to note that sometimes this can take some time and may not leave unsuccessful companies time to appeal, so experts approached by Corruption Watch advise keeping in contact with the government department and checking on the status of the tender process.

The departments or parastatals are not required to list on their websites who has been appointed, which many feel is a weakness, particularly for small businesses.

Objections:

Companies can also object to the department or government entity if they feel the period for application is not sufficient, or they may request a copy of the decision by the tender board.

For a further blog article with links to the various documents, click here.

 

 

 

Some helpful websites:

http://www.l2b.co.za/ProductInformation/Proformas

http://www.seda.org.za/MyBusiness/Factsheets/Pages/HowdoItender.aspx

http://www.westerncape.gov.za/tenders/how_to_tender

Source information:

http://www.corruptionwatch.org.za/

About Carmen Barends

Social media adventurer for Leads 2 Business, exploring new frontiers and taking new ground. “Not all those who wander are lost.” JRR Tolkien

What is a Project?

posted in: General 3

What is a Project?

What is a Project?

I googled the definition and got the following: (1) An individual or collaborative enterprise that is carefully planned to achieve a particular aim (from www.oxforddictionaries.com) and (2) something that is contemplated, devised, or planned; plan; scheme (from www.dictionary.reference.com).

Well the definition of Project at www.L2B.co.za is OPPORTUNITY. Yes, that’s right, OPPORTUNITY!

We source information on new construction that is planned and add it to our website as a Project. These Projects are potential Leads that can be accessed by our subscribers through the various stages it goes through, namely: Conceptual (idea) Procedural (studies) Design (drawings) Tender (pricing) Awarded (whoo-hoo got the job) Underway (building) and last but not least, Complete (finished).

We are dedicated researchers (my team of ‘investigators’ and I) that are constantly updating our projects with relevant information as we follow the progression of each project.

So, where does my definition of OPPORTUNITY take place?… Everywhere!

At each stage, there is an opportunity depending on what you do. Whether you are interested in the Private Sector or Public Sector, Project Management or only interested in Private construction work, it is worth your time and energy to investigate subscribing to Projects at Leads 2 Business. For example in Conceptual stage, a Professional Team is needed (could that be you?), once the drawings are done in the design stage,  a Quantity Surveyor is needed to draw up the Bill (this can be priced on our L2Q platform – but that is a story for another day), are you the Contractor that is going to be Awarded or are you the Vendor with the beautiful light fittings that you are so keen to install in a new building for everyone to admire? Oh yes, don’t forget about the scaffolding required and security needed on site.

Think about it, I have mentioned so many OPPORTUNITIES already, make sure you are not the one missing them.

About Debbie Wessels

I started at Leads 2 Business in April 2008 in the tenders Department and transferred to the Projects Department during the same year. I was appointed Head of Department for Projects from February 2011 to March 2022. April 2022 I started a new adventure as Content Regulator.

Who needs to register for Construction Industry Development Board (CIDB)?

Who needs to register for Construction Industry Development Board (CIDB)?

GUIDELINES FOR CONTRACTOR REGISTRATION

Who must apply?
All contractors seeking to participate in public sector infrastructure delivery must be registered on
the cidb Register of Contractors.

Contractors who are exempted from registration are:
• Home builders, unless they also wish to tender for other kinds of public sector construction work.
• Those who undertake contracts consisting substantially of the provision of labour.
• Those who undertake contracts consisting substantially of the provision of supplies.

Why register?
According to the cidb Act 38 of 2000 no public sector client may award construction contracts to
a contractor who is not registered. The Register grades and categorises contractors according to
their capability to carry out construction projects. There are 9 different grading levels according to
which contractors can be registered. A grade determines the maximum Rand value of a project as
well as the type of construction works a contractor is capable to perform.
Can a contractor be registered in different grades?
A contractor may apply to be graded in one or several grades. However a contractor can only be registered in 1 grade per class of works.

Providing sufficient evidence to support your application
The CIDB evaluates applications for grading and registration based on evidence of works and financial capability provided by the
contractor. Evidence is then used to determine which grade and class of works a company qualifies for. Once a grade has been
determined and approved by the Board a contractor is then able to tender for construction contracts within the approved grade. Should a contractor fail to provide sufficient evidence to support the grade applied for the cidb will determine an appropriate grade based on the information at its disposal.
A contractor has the right to appeal the decision of the cidb.

To determine grading the cidb evaluates a contractor’s financial and works capability.

A. Financial capability requirements:

To determine financial capability the cidb takes into consideration:

1. The best annual turnover over the two financial years immediately preceding the application and available capital.
2. Available capital. The cidb calculates available capital by adding any financial sponsorship to the sum of the net asset value of a
contractor as indicated in the most recent financial statements. Net Asset Value is the difference between the total assets and total
liabilities of a company as reflected in the company’s most recent financial statements.
3. Financial sponsorship. Financial sponsorship must be a collectable financial guarantee by one person (a sponsor) to another, (the
beneficiary).

Financial sponsorship must be:

• A determined amount to support operations of the contractor concerned in order to complete projects. Any sponsorship from another
• company other than a financial institution may not exceed 15% of the sponsor’s net asset value;
• Available to the beneficiary as and when required;
• If applicable, it must be available to a third person, such as a bank, to advance funds or such as a supplier, to advance a line of credit;
• If applicable, it must be in a form acceptable to any financial institution in South Africa as defined in the Financial Services Board Act,
• 97 of 1990; and

Please note that:
a) where the sponsor is a registered contractor or owns 50 percent or more of the applicant contractor, sponsorship may constitute
up to 100 percent of the total required available capital;
b) where the sponsor is not a registered contractor and owns 25 percent or more of the applicant contractor, sponsorship may not
exceed 75 percent of the total required available capital; and
c) where the contractor is not a registered contractor and the sponsor owns less than 25 percent of the applicant contractor,
sponsorship may not exceed 50 percent of the total required available capital.

B. Works capability requirements explained:

Works capability is determined by:

• The largest contract undertaken and completed in the relevant class of construction works within the 5 years immediately preceding
the application;
• The total number of full time registered professionals employed
• The fulfilment of relevant statutory requirements.

Types of grading methods used:
There are two methods that a contractor’s grade may be assessed on:

• Method A is based on financial capacity and works capability and is applicable to all grades.

• Method B is based on available capital and the number of registered professionals employed and is only applicable for grades 5 – 9.
(There are no turnover and track record requirements for Method B). The requirement for available capital and registered professionals
for Method B is higher than the requirement for Method A.

• The contractor must employ the minimum number of registered professionals permanently (full time) or the equivalent number of
persons on a part time basis (totalling 40 hours a week).
• The “full-time equivalent” means that, for example, two part time engineers, each working 20 hours a week, would equal one
full-time engineer.
• A registered professional is recognised by virtue of his or her training and experience as having the necessary qualifications to undertake
construction works in a specific class. All registered professionals (e.g. architects, quantity surveyors, etc.) employed by a contractor are
required to be registered with relevant built environment councils.

Source information:
http://www.cidb.org.za/documents/kc/cidb_publications/brochures/brochure_contractor_registration_guidelines.pdf

About George Harris

I started my incredible journey at Leads 2 Business in 2006. I am the Content Director, custodian of an amazing research team responsible for unearthing hidden gems of information.

1 2 3 4 5