T is for Tender

"T" is for Tender

 

There is much excitement when a Project Status moves into Tender Stage. This means the project is going out to tender – tender for construction! Whoop whoop! Things are happening, construction is going to commence shortly. If, however, the Project goes out to tender for the professionals the Project Status will remain in Procedural stage as this is a tender for professional services to conduct feasibility studies, EIA studies etc.

But, back to the tender for construction. This could be an invited tender and this is limited to preferred contractors only who are invited by the developer to tender on the contract. These tenders are very hard to obtain information about as they are, well, invited. “Invited” also translates as code for “big secret, don’t tell anybody anything!”

Open/public Tenders are published in newspapers and the media and these are open to general contractors who may only be limited by their CIDB grading. With publishing of the Tender notices comes site inspection dates (which are generally compulsory) and site attendance registers. The Tender closing date is perhaps the second most important date after the site attendance date. The Tender notices (DTA) that are listed on the Projects include a hyperlink which links the Project and Tender. Once the Tender has closed and the bids are in, bidders lists are then requested and if successfully obtained, the bidders list is attached to the DTA and the Project as a document.

On average, it takes about 3 – 4 months for Tenders to be awarded, (but it can take longer. Much longer in Africa). Once 3 months have passed, it is time to follow up on the Tenders and see if any awards have been made and this is when the fun begins.

It involves phoning the contact(s) listed on the Tender, usually in the Procurement Department and hoping they are willing to release details of the awarded company. When phoning African countries, this could involve many calls and being transferred to several different people and then finally being told…. “No, you cannot have the award details”. So, I wait (after all, “good things come to those who wait”) and try again in another couple of weeks or months depending on the forcefulness of the ‘No’. Sometimes, I get lucky and if the Project is big enough to warrant media attention, and an article appears in a local newspaper giving details of the awarded company I am able to update the award details on our database.  Alternatively, more phone calls and emails, until eventually (sometimes only once construction has commenced) a kind person will relent and give me the award information. Other times, sadly I am not so lucky……

But I digress …… back to getting the award information….

When obtaining the award information, it is important to get the spelling of the awarded company’s name correct, usually using the NATO phonetic spelling which is: Alpha for A, Bravo for B, C for Charlie etc. However, it appears that not everyone is able to recall this list when it comes to spelling and in Africa there appears to be many variations to this list, including the use of animal names – and I have had some more unusual phonetic names, including “J” …. for Giraffe and “A” for ….Umbrella!! Really!?!

T is for Tenacious, E is for Excellent, N is for Never giving up, D is for Diligent, E is for Enduring and R is for Relentless: T E N D E R

 

 

 

About Marlaine Andersen

Leads 2 Business Advertising Co-ordinator and Digital Designer

Understanding the Tender Life Process

It's better to be at the bottom of the higher class; than the top of the lower class

 

In the 9th Grade, I got to choose which science class I would be assigned to. My marks had landed me right in the middle of the class breakdown, so my teacher gave me a choice. I could go to the “lower” class or the “higher” class, the following year. The implication being that the “higher” class would be harder.

 

There are few instances where being slap bang in the middle are beneficial. Bidder’s Lists are one of them. There is nothing more perplexing than looking at the prices submitted on a tender and there is one extremely high tender price and one ridiculously low tender price. You can almost imagine the tender prices in the middle huddling together trying not to make metaphorical eye contact with either end of the Bidder’s List, in a bid not to be “tainted”. You do not want to stand out on a Bidder’s List. This is not the time to be an individual. Because if you are that incredibly low price; people will assume that you’re under cutting your prices. And if you’re that really high tender price; they assume you don’t know what you’re doing and trying to win the “tender lotto”.

 

Granted, tenders aren’t awarded by price alone. But price still speaks volumes.

 

Tendering is not a passive endeavour. It isn’t something that just “happens”. It has to be enforced and monitored at every stage. Tenders are about being competitive and cost effective; while promoting equality, transparency and fairness (I can practically see you rolling your eyes). Yes, I know you are more likely to see the words “corruption” and “price fixing” when reading any headline concerning tenders. And I can’t argue with that. Those in Supply Chain Management Units need to be trained in the correct and legal way of handling tenders, and those in the building and construction industry need to know just as much. The right hand keeps the left hand honest, as it were. In case, no one’s told you; you are allowed to object. If you see any dodgy dealings, call them on it. Maybe you’ve become too jaded; and gone to the private sector (no one can blame you). Maybe you’re too new and naïve; and not sure of the procedures (go learn them). Hell, maybe you’ve joined them.

 

If you don’t like what your industry has become, change it. If the client isn’t paying you; cancel the contract. If your contractor isn’t doing the job correctly; kick them to the half-finished kerb. In a legal and professional manner, of course. It happens all the time; so why can’t it happen every time? Yes, this is overly simplified. I realise, on the ground, it is far more complicated and messy and nuanced than an outsider like me; could possibly understand. Hard choices abound.

 

I can only offer this piece of advice my dad gave me “It’s better to be at the bottom of the higher class; than the top of the lower class”. At least you’ve got somewhere to go.

 

 

 

 

 

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.

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