25 Jan 2018
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L2B Blog: How do Projects differ from Tenders on our website?

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What is the difference between a project and a tender?? This is the question Clients and Potential Clients often ask.

It can potentially get a little confusing, but in short, a project is a development that is tracked from conception to completion e.g. The development of a hotel. A tender is a specific tender for a specific requirement e.g. a tender might go out for the supply of bricks.
There might be several tenders that go out within a specific project.

Tenders:

Generally speaking, 95 – 99% of tenders are for government or parastatals as they are required by law to put their requirements out to tender. Private developers aren’t legally required to tender, so most of the time they will invite or negotiate with suppliers to price.

Leads 2 Business researches from various sources for building and construction-related Tenders throughout Southern Africa. We have a dedicated team who collate tenders published on websites, newspapers, online portals and government gazettes.

We publish these on a daily basis in a user-friendly template on the website. These tenders are categorised according to their location, CIDB Grading and industry. This allows our subscribers to access all live and awarded tender information,

which is easy to search and refine, to give YOU the information that is relevant to YOUR business. We also send an e-mail containing a summary of the leads that match your online profile at the end of each business day.

 

A tender document is sent out, for example, a tender may go out for bricks for a particular project.

 

This begins the process whereby interested and qualified suppliers are able to provide pricing for the tendered materials, and the contractor who tendered for those materials can review pricing and service offerings and award the tender to a suitable supplier.

 

Projects:

When we refer to a project, we look at it holistically from start to finish. This is where we track the developments through all the different stages and provide our clients with the contact details of the right person at the right stage of the project. We define the project stages as follows:

Conceptual

The conceptual stage is the beginning phase of the project development. The following can occur at this stage of the development:

  • Appointment of a Client / Developer
  • Feasibility Process
  • Securing Funding
  • Request for Proposal
Procedural

Procedural stage of project development involves obtaining various approvals and authorisations:

  • Basic Design
  • Geotechnical Study
  • Licensing
  • EIA Process
  • Property Rezoning
  • Professionals
Design

The design stage of a project involves detailed design, this is where the majority of the Project Professionals such as Architects, Quantity Surveyors and Engineers get appointed.

Where the following can occur:

  • Detailed Design
  • Expression of Interest
  • Negotiation
Tender
At this stage, the main contractors will submit pricing for the project as a whole.
Bidding Contractors’ details are listed under Bidders.

The following can occur:

  • Tender
  • Appointment of an Anchor Tenant
  • Invited to Tender list
Awarded & Underway
The main contractor and subcontractors have been awarded reflecting the Main Building and Civil Contractor details under Awards.
Completed
In the completed phase of project development, it means practical completion is nearing the end, or it is already structurally complete.
Cancelled 
A development may be cancelled for a number of reasons. Sometimes the developer runs out of funds, perhaps the environmental studies picked up on a species of frog that cannot be relocated and the project is cancelled until a new site can be acquired…. Whatever the reason, the cancellation of a project is always an inconvenience, and we alert our subscribers as soon as possible so that any parties that were interested or bidding on the project can plan and react accordingly.
Postponed 
Project developments can be postponed or put on hold for various reasons. If you are monitoring a project where this occurs, you will receive an update email when the status changes.
I hope you now have a better understanding of the difference between projects and tenders! Happy searching on our site, and may all stages of “Project 2018”, from conception to completion, be prosperous for you 😉
Sources:

About Amy Steyn

I started at Leads 2 Business in August 2017, so I am relatively new to the L2B family. In my role as Account Executive, I am one of the lucky ones that get to interact with you, the client, on a day to day basis! I'm learning every day, and I look forward to what the future holds at L2B!

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