Leads 2 Business Blog

9 May 2019

How Funding affects Construction in Africa

by Minnie Zondi | posted in: General | 0

Construction is a vital sector of any country’s economy because the physical construction of the developments become the backbone of the nation’s economy that enables goods and services to be distributed within and outside the country.

Furthermore, the functionality of the designs and construction of the developments have an impact on the productivity with which other business activities can be undertaken. Thus it can be said that the infrastructure of a country influences the competitiveness of enterprises and the country’s abilities to attract foreign investment, which is important in an era of globalisation as nations compete to attract foreign domestic investment.

However, with the general economic weaknesses Africa faces as a developing continent it means that we do not enjoy the realities of the above utopia.

Construction in Africa is predominantly funded through the following four Funding mechanisms

Government Funding
The Government is spending the “peoples money” to fund the project.

Private Funding
A project which is funded by a private developer which can be a private individual or company.

Loans
Financial assistance provided by an international bank or international financial institution to the government which is repayable after some time with interest. e.g. a loan from the African Development Bank or a generous loan from generous ‘ China ’

Public-Private Partnerships
A contract between a government institution and a private company, in which the private company bears significant risk and management responsibility, and payment is linked to performance.

Regional Construction Focus

East Africa

With 166 underway projects on our website: East Africa accounts for 23.4% of projects on the continent.

Southern Africa

With 1229 underway projects on our website. The region accounts for 30.7% of all projects in Africa.

Central Africa

With 14 underway projects on our website. The region continues to be negatively affected by lower commodity prices, as all countries in the region are resource dependent. In total Central Africa is home to a few major public projects worth about US$9.8bn.

West Africa

With 66 underway projects on our website. The region accounts for 26.1% of all projects in Africa.

North Africa

With 50 underway projects on our website. The region accounts for 13.2% of all trackable projects on the continent.

Just taking into account the 1 525 projects that are marked as underway on our website out of the 6 412 captured,(with a cidb grading value 8-9. In stages between Conceptual – Underway) we can deduct that Africa requires an unprecedented magnitude of funds that individual countries do not have or just cannot afford to fully invest in. Furthering the dependency of international loans that we receive from the likes of China. This then minimizes the opportunities for local companies to make a sizeable splash in the construction pond.

The lack of funding or rather the ability for African nations to allocate more of their financial resources into construction has also cultivated a culture of non-payment of accounts. The amounts due to construction companies and a failure to make payment in time, lead to horrible liquidation or business rescue of established first-tier companies that boost the sector.

Furthermore due to the general economic weakness in the continent and a high need for infrastructure development means that we see more contracts that are uneconomical if work was to be given to local contracting professionals.

We further see delays in the completion of contracts within the scheduled times, if ever because of a lack of funds: which adversely affect the chances of any African nation attracting good and healthy direct foreign investment to boost the overall economy of the country. Furthermore, it affects local construction professionals because it becomes hard for them to afford to take the work.

Africa’s construction industry deficit is a cause of great distress. The problem of internal funding shortage and the large size of the infrastructure needs, require a lot of funding options. That we have! However, it would be great if we had ones that lessen the over-dependence on international loans because this allows excessive exposure and vulnerability of the continent and its resources.

Responsible lending and borrowing behaviour are required on the part of Africa and its development partners to avoid unsustainable external debt levels which are detrimental to Africa’s construction industry growth.

No matter what cause I pick for my topic, the prevalent effect seems to mimic a viscous airtime advance system cycle: You borrow airtime. Load airtime to pay back the service provider. Clear your debt. Be left with nothing. Then you have to borrow airtime again to survive and in the end, you have not looked after your own interests. In my opinion, the health and growth of the local construction scene by our own labour should be of main interest for the decision makers when funding the sector is concerned.

Concluding I have to admit, I would fail to propose a well developed, practically applicable solution model to the effects I have presented above. However as much as there are a whole lot of challenges surrounding construction operations in Africa, there is potential for growth. If we would just find suitable and positive investment strategies that will work for a developing continent, without harming the wealth of business knowledge, skills and labour we already have, in years to come the industry could be so well developed it would practically fund itself.

Sources:
George Ofori, Ph.D., D.Sc., Funding Construction Industry Development
Deloitte, Africa Construction Trend Reports
BDO South Africa, Saving the Construction Sector
African Business, Boosting development through sovereign wealth funds
Wikipedia

If you are interested in becoming one of our subscribers, please visit Leads 2 Business.
To view notes with screenshots on how to use our website, please visit Leads 2 Business Wiki.
To view more Events, please visit our Leads 2 Business Blog.

About Minnie Zondi

I am an insanely optimistic ambivert that does everything from the heart instead of the mind. Deeply interested in people and matters that pertain to mankind.

30 Apr 2019

The Difference between Residential and Commercial Construction

by Caroline Clark | posted in: General | 1

To understand the difference between Residential and Commercial Construction, you must first understand what each one is.

If your brain works anything like mine, when you hear the word “Residential” you may think of homes where there may be a street of houses which all look pretty similar from their green grass lawns and their borders of brightly coloured flowers, this is generally where you would find the consumers and generally where people would live.

When you hear the word “Commercial”, you may think of the public, attracting the public eye and making whatever your commercial item may be whether its a building or product it has to be what the people want, it has to sell to the consumers, generally where one’s workplace would be.

Commercial Construction

According to Wikipedia, “Commercial buildings are buildings that are used for commercial purposes and include office buildings, warehouses, and retail buildings (e.g. convenience stores, ‘big box’ stores, and shopping malls). In urban locations, a commercial building may combine functions, such as offices on levels 2-10, with retail on floor 1”.

A good example of a well-known commercial building in South Africa is the iconic Nelson Mandela Square in Sandton City, Johannesburg.

Here you will find a variety of restaurants, jewellers, banks, etc. and the list goes on. Buildings such as these provides ample job opportunities for people living in the surrounding residential areas.

Residential Construction

Residential Construction is a far more self-explanatory type of building.

Residential construction is the business of building and selling individual and multi-family dwellings. The building unit is divided into single-unit, manufactured, duplex, apartments and condominiums. According to the Oxford English Dictionary, Residential means “designed for people to live in.”

The best example and probably the most obvious one is where you currently live,

Your furniture is made for comfort, your wall personalised with family photos, everything designed how you want it in order for you to be comfortable.

When you buy a new lounge suite for your home you do not invite all of your friends to come and test all the couches in the shops before you buy it, You test them out yourself,

For someone buying furniture for a commercially owned building they generally buy what looks best in a building, not so much what feels best. This is once again to impress the consumer/buyer.

Although Commercial Construction and Residential Construction have a few of the same factors such as the same professionals, Architects and Projects Manager involved with the design and construction, the outcome and the aim of each building being built is different.

It may be great to live close to your local shopping mall, however I would not recommend building a 3-bedroom stand-alone house right next door in your central CDB (Central Business District).

Sources:

Itsallaboutbusiness
Rennieproperty
Wikipedia
Oxforddictionaries
Redfin
Propertymetrics
Pexels

About Caroline Clark

When I am not at work you will find me spending quality time with my family. You will always find a smile on my face and a snack in my bag.

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18 Apr 2019

The Real Truth about Retail Therapy

by Marlaine Andersen | posted in: General | 2

The Real Truth about Retail Therapy

“What we’re doing with retail therapy is we’re desperately trying to regulate our emotions. We don’t like distressing or uncomfortable emotions. So we’ll do short-lived things that make us feel good in the moment” … Joanne Corrigan – Psychologist.

Retail therapy … is it really therapy or is it as Joanne suggests above a “quick fix” for when we are feeling down and need a quick boost or lift? I mean, who doesn’t love a new pair of shoes or a new handbag, or the latest perfume, right? And most of the time when you buy something new, you do feel good, great even. You can imagine how awesome you will look in your outfit with your new shoes or new handbag and the compliments you will get. BUT it is short-lived, because at some point, the indulgence is going to cost you, especially if it something you haven’t budgeted for and it’s a spur of the moment splurge. Once you realised you have overspent, then the depression sets in and so it becomes a vicious circle, of feeling down and depressed, indulging in some retail therapy, feeling good immediately after the purchase, but some time later feeling down once more when you realised you have overspent, yet AGAIN.

If you have clothes or shoes in your cupboard that you have never worn or items in your house that you have never used (we all are guilty of this, although some more than others … just think of the TV show “Hoarders”), then it is time to rethink your retail therapy.

Although retail therapy might work in the short term, it can never cure what’s driving us to shop in the first place, it just temporarily numbs the pain. So … is there a way of achieving a balance?

I have come up with a few tips on how to make the best use of retail therapy without blowing your budget every time you feel down.

Always have a monthly budget. (Very Important!) and not just in your head. Write all your expenses down. Every month so you can see exactly where your money is going and then stick to it.
When you feel down, instead of going out and just aimlessly buying, how about window shopping instead? You can look, wish for it, but just don’t buy it. The same goes for shopping online – the wish list is there for a reason. Use it.
Instead of buying those expensive shoes or outfit outright, put them on lay-by or hold for a few days while you think seriously about how much you really need/want them. Maybe after a day or two you will realise that you don’t actually really need them, yes, you may always want them, but the question to ask is, “Do I really need them?”
Look for alternative things to do when feeling down – phone or talk to a friend, get outside into the fresh air for some exercise, take your dog (or a friend or neighbour’s dog) for a walk, read a book or magazine. The options are endless and sometimes making someone else happy, ends up making you feel happy too. That’s a win/win situation.
Take time to laugh. Laughter IS the best medicine.

Life is short, yes, but if buying the shoes means you have to live off bread and water for the rest of the month, then the answer is No. Don’t buy the shoes!

So, what is the real truth about Retail Therapy? It is necessary in our lives, we all need it, but the key is not to let it rule our lives and take over our lives, by buying stuff we don’t really need, but want in an effort to make us feel (temporarily) good about ourselves and our lives. What we need to remember with retail therapy, like most things in life, is Moderation. Find a balance. Find an alternative to shopping/buying when feeling down or depressed.

Sources:

Vendhq
Fitsmallbusiness.com
Wordstream
Shopify
CampaignMonitor
Pixabay

About Marlaine Andersen

Leads 2 Business Advertising Co-ordinator and Digital Designer

11 Apr 2019

Clever Marketing Strategies Retail Outlets use

by Debbie Wessels | posted in: Construction Chat, General | 0

Clever Marketing Strategies Retail Outlets use

Many years ago, my uncle had a general trading store in a little town called Komga in the Eastern Cape, South Africa. He was building his store up from scratch and had many items for sale. One particular item, a box of pens, had been sitting on the shelf, not selling and were priced at 99c each. He made a sign, wrote the word “Special – R 1.00 each”, put the box on the counter and all the pens were sold within a week.

My uncle’s strategy was visual (no mobiles and social media invented yet) but today’s retailers have many more options at their disposal. Many people are bargain hunters and the words “special” or “sale” are like homing beacons, calling us, tantalizing and convincing enough that sometimes, even if we don’t really need the item, we buy it cause we are getting it on “special”!

In this consumer driven world that we live in, we are bombarded from all sides with marketing ploys and adverts, specials, etc to convince you that THIS is the store, THIS is what I need. To draw the foot traffic into their stores, retailers have many options at their disposal and how they use them will determine if their strategies are working……

Retailers need to ensure that their STOREFRONTS are relevant and enticing, when it is a sweltering 40 degrees outside, gorgeous fur coats draped over the mannequins with lace up boots and scarfs will not set the right tone. INCENTIVES TO RETURN and a LOYALTY PROGRAM, this marketing strategy is widely used and is very successful. If I am faced with two shops, side by side, selling the same merchandise but one is offering me an incentive to enter, boy oh boy, that is the one I am going to choose, I mean, who does not want a free coffee while I browse through wonderful stuff that I don’t really need? And if buying something results in a “kickback” to me (loyalty points etc) that’s the way I am gonna go. SOCIAL MEDIA is a powerful tool utilised in retailer’s marketing strategies, promoting their in-store goods on line and even better when there is a limit to the special e.g. buy 2 leggings for R50, Special ends Monday. Goodness, best I get there right now, good price and it ends soon and I don’t want to miss out! Advertising on FACEBOOK, INSTAGRAM and pinning your goods to a PINTEREST board is always a good idea. REVIEWS! Personally I like to check reviews and they most certainly have an influence as to whether I wish to patronise that retailer or not. BRANDS, lets face it, a lot of people are brand conscious and a brand name beats a no-name brand any day! Retailers have a multitude of options at their fingertips and in order to succeed they need to stay one step ahead of their competitors.

Leads 2 Business takes great pride in producing relevant, comprehensive and updated information in the Construction Industry by publishing new tenders and projects on a daily basis. Our up-to-date, user friendly website is a breeze to operate and will save you time when looking to increase your order book. Do not miss out on this opportunity! For further information on our services please contact me on DebbieW@L2B.co.za , I look forward to hearing from you!

Sources:

Vendhq
Fitsmallbusiness.com
Wordstream
Shopify
CampaignMonitor
Pixabay

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.

3 Apr 2019

Inspiring Mall Designs

by Meghan Coslett | posted in: General | 2

Inspiring Mall Designs

When one thinks of a mall certain things initially spring to mind. When I think of a mall, it just reminds me of working there. Not knowing what the weather outside is doing, I think they need to build more malls with open-air garden courts or glass roofs. But a Mall all depends on whose mind it is, Clothing stores, grocery stores, appliance stores, movies, restaurants, coffee shops, international chain stores. According to Dictionary.com; “A Mall also called a shopping mall is a large retail complex containing a variety of stores and often restaurants and other business establishments housed in a series of connected or adjacent buildings or in a single large building”.

That is the perspective of the general public. But shall we take another point of view? Today’s malls are not only about what you can get inside but what the surroundings look like. Some of the worlds top architectural firms and designers use eye-catching materials to enhance the retail experience along with art installations and landscaped enhancing gardens.
Nowadays a mall may not be just a mall. The Mall of Africa, for example, is one of the largest, to be built in a single phase in Southern Africa. The 131 000 m² mall was announced as the winner of the Engineering Excellence Award. The Mall of Africa, is part of a mixed-use development which includes offices, residential, retail, a logistics hub, schools, hotels, a hospital, parks, restaurants, entertainment and more. So not just a shopping centre.

The Mall drew inspiration from Africa’s geological beauty, a ‘column-free’ mall design, wide passages, high shopfronts, an undulating roof feature in the middle. Atterbury Property Group says “The Mall of Africa combines the latest international trends, environmentally sustainable materials and technologies. It is designed around new urbanism principles of walkable, mixed-use environments to create a truly cutting-edge shopping experience”.

Sources:
MissNadiaSingh
Dictionary.com

About Meghan Coslett

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28 Mar 2019

Directory Ranking: Tips That You Need to Know

by Sally Nell | posted in: General | 0

This won’t be a long read but I promise it will be worth your time 😉

As you are all aware we have an extensive directory that lists anyone from Painters to Civil Engineers and anyone in between, in other words – anyone that you will ever need in the construction, civil and mining industry…you’re welcome!

In amongst this vast array of professionals, vendors and contractors you get our Buyers.

Our Buyers are subscribed to our Leads 2 Quotes (L2Q) platform, aka The Pricing Platform. They use our directory to price their tender documents by sending out Request for Quotes (RfQ’s) and in turn, get to know and appoint sub-contractors for those specific contracts if and when they are awarded the contract.

On our directory, we also have our vendors who are active to receive the above referred to Request for Quotes (RfQ’s). You can be a non-paying Vendor or a paying Vendor (referred to as our Open Quotes Subscribers), both Vendor and Open Quotes subscribers will receive RfQ’s and will be able to price or decline online and view specifications or drawings should the contractor upload these.

The major benefit of being subscribed to Open Quotes is – that you will receive all award information for all Request for Quotes received! This gives you the opportunity to send your prices to the awarded contractor too! You will also be able to ensure that your directory entry is up to date to ensure that you receive the relevant Request for Quotes as well as ensuring that if anyone wanted to contact you that they could successfully.

So after some background information let’s move onto the tips on how you can improve your ranking on our directory. This just means that the better your company scores the higher it will rank in position on the list of companies (vendors or suppliers) our buyers see when they want to send out Request for Quotes (RfQ’s).

See tips below:

1) Just price the RfQ’s that you receive

When you receive an RFQ from a contractor please price it online or send it back via email and “reply all” on the email so we can get a copy and make sure that the positive response is entered into our system (the buyer can see this too).

2) Regularly Update the details on our database

Even if there is nothing to change just ensure that we know that your details are still correct so we can go update it or mark it as still correct and this will help rank you higher, try do this every 3 months or so – if you are an Open Quotes subscriber you can do this from a link on the Request for Quote email you receive:

3) Subscribe to Open Quotes and we can help you get into contact with our buyers

The more contact you make with the buyers, whether it be sending through your prices or sending them your company profile or specials you may be running the more your company name will come up and you are more likely to be remembered and this could lead to your company becoming a preferred supplier/vendor of theirs and ultimately end up with your company ranking higher.

If you have any questions or would be interested in subscribing or updating your details, please send us an email on Directory@L2B.co.za and I will be happy to assist you.

Happy Pricing

About Sally Nell

I joined Leads 2 Business in November 2011. I started in the Daily Tenders department and later moved to the Directory Department in May 2014.

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12 Mar 2019

Simple Tips that will improve Vendor Responses

by Nadine Vermeulen | posted in: Construction Chat, General, How To | 0

As the main contractor, your daily schedule involves plenty of organizing, planning, and meticulous work. In a busy world with a busy schedule, it is very easy to lose track of time and lose your objective for the day, even if it is just slight details or information that you need to obtain.
When you tender on a project (or a few), the stressful work can get a bit much, but never fear, as Leads 2 Business is here with a solution.

By using our L2Q Pricing Platform, life has become a little simpler in obtaining prices from various Vendors in just a few clicks.

Once a Bill of Quantities has been added onto your pricing platform profile, you can send Request for Quotes (RFQ’s) to various vendors to obtain prices for specific trades that you require.

Our dedicated Control List team will meticulously follow up on these RFQ’s to assist in obtaining the necessary responses.

By using the following tips, the responses you receive from vendors could be improved:

Provide vendors with drawings and/or specifications of the project.
Should a vendor contact you with regards to the quotation, assist as much as you are able to at the time.
Confirm that you are sending the RFQ to the correct vendor i.e read the description of the company, which will give you the necessary insight on their scope of works.
Keep an open line of communication, as good communication will assist with dealing with the same vendor in the future. For example; if the tender has been awarded, notify the vendor if you have been awarded the tender or not. This will let the vendor know that he/she is not pricing in vain.
Give the vendors sufficient time to respond to the RFQ (at least 5 – 7 days).

Hopefully, using these few tips, it will assist in an even smoother process to obtain your responses from various vendors, without being bombarded by unnecessary responses that you don’t need.

Feel free to give us a call if you require more information about our Leads 2 Quotes package on +27(0)860 836 337.

To view more articles, please visit the Leads 2 Business Blog.
If you are interested in becoming one of our subscribers, please visit Leads 2 Business.
To view notes with screenshots on how to use our website, please visit the Leads 2 Business Wiki.

About Nadine Vermeulen

I started working at Leads 2 Business in October 2014 in the Leads 2 Quotes Department. I managed all the Daily Tender Bill Requests and followed up on BoQ's for our Daily Tender Subscribers. In 2017, I was promoted to L2Q Assistant and now work with Bill of Quantities for Contractors. 🙂

7 Mar 2019

Jumpstart your spread with L2Q

by Shanelle Suresh | posted in: General | 0

Jumpstart your spread with L2Q

I must be honest…when I first started working at Leads 2 Business, the department that “freaked me out” the most was by far L2Q. I knew the only way I would overcome my fear was to get myself into L2Q and learn as much as I possibly could. And here I am.

So firstly, what does L2Q stand for? Leads 2 Quotes (L2Q) is an electronic pricing platform used by buyers to send out requests for quotes to their preferred suppliers.

You have the following benefits:

One system – which makes it easier and more efficient for you so you don’t have to try and find vendors to provide pricing. It is all right there for you – just by a click of a button;
Trade Mapping – where we will code the trades according to your company’s needs;
L2Q has the ability to transfer a bill of quantity into various electronic formats;
Easy access to a database of vendors / suppliers within different regions;
Time saver;
We have a support team who will follow up on the requests for quotes and update you accordingly on their response;
We upload any drawings that you may have.

The L2Q process is super simple and straight forward and is as follows: Buyers / main contractors will do an L2Q Bill Request on the L2B system, which guides you through the steps such as contract number, description, respond by date, closing date, then on to the trade mapping, attaching files, etc as below:

The bill of quantities can either be attached on the request or the contractors can send it to us directly via e-mail. From there, we will convert it, make it “pretty”, code it into the correct trades and upload it onto the buyer’s L2Q Desktop, for you to begin the process of electrically requesting quotes. This process does take some time, our turn-around times are as follows: Excel bills is a minimum of 24 hours and PDF a minimum of 48 hours.

We then also have Trade Mapping available which is where we will code the trades according to your company’s needs.

You will have the option of selecting your preferred suppliers/vendors. You can earmark the businesses that have given you the best response, service and pricing. Our pricing platform will also start recognising the vendors on our system who have given you the best response to the requests for quotes. So should you not have dealt with a company before, their rating will give you a guideline on their response rate. You can then generate a Control List report which will show you the vendors you have sent to as well as your engagement with them, how they are responding to you as well as the follow ups done by our Control List team.

We understand the time constraints and therefore our directory of over 90 000 companies is expanding and updated on a daily basis which then gives you even more options to your business and ultimately more competitive pricing when submitting a tender.

The e-mails that are sent to the vendors through the L2Q system include your company branding, drawings, addendums, terms & conditions and specifications which bring clarity to the vendors when responding.

In conclusion, Leads 2 Business’ biggest and strongest point of differentiation is our Leads 2 Quotes platform – our very own. I hope that my explanation of the L2Q system has been useful as well as beneficial to you, and that those who have been a bit weary of it, will now grab it by the horns 😉

About Shanelle Suresh

I started at Leads 2 Business in 2023. I worked in the Projects Department as a content researcher for the Northern Cape, Eastern Cape and the Gauteng region. I've experienced many great opportunities for growth and learning in this time. I am now IT Admin Support and I am loving the new ways of contributing to the company's success. My colleagues are always willing to share their knowledge and expertise.

28 Feb 2019

Create a Tender that gets Results

by Lungile Chauke | posted in: Construction Chat, General | 2

Create a Tender that gets Results

In the world of construction, we often hear the word “tender” being used more often than ever…”Who was that tender awarded too?”, “X & Y have just put out a tender for the building of A”, “I wonder which company got awarded that tender?”…the big question then becomes, what is a Tender?

A tender is a process where an offer is put out to do work or supply a service/goods at a fixed price. Usually given by government and financial institutions they invite bids for large projects and have to be submitted in a finite deadline.

Creating a tender that will get the desired results may seem rather impossible but the reality is its all dependant on a few but relevant pointers will have a look at below:

Ensure that you are registered on the supplier database – find a sector that works for your line of business and register to be informed of the tenders that would be published.
Attend the briefing sessions so you would know what’s expected for the project.
Have the correct documents – it’s standard to have the correct documents as a company. Have a valid and current tax clearance and BEE certificate.
Have a good banking record, credit history and relationship with your clients and suppliers.
You must have the cash flow and necessary resources to bid for the tender.
Price in a competitive manner with proof – avoid pricing extremely low, get the pricing just correct.
Provide references – this will assist in boosting your chances of being awarded
Source out partnership – completing a project without assistance is always a bonus but it always helps to get assistance if needed.
Keep note of the of the closing date and submit before that time.
Keep a copy of your tender documents
Never give up – the tendering world isn’t easy at all but just because you didn’t get the first doesn’t mean the ones to follow won’t be a success.

Do remember that tenders are a lengthy process which may take a while before they are awarded, this doesn’t mean you should just bid for one and sit back waiting for the work..put in the effort and do as much research as you can in order to create a tender that will get you the results you desire.

It’s not so much that it is a difficult task but it needs you to be specific and pay close attention to the finer detail.

Sources

News24
Entrepreneurmag
Investopedia
GoogleImages
GoogleImages
GoogleImages

About Lungile Chauke

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27 Feb 2019

Fraudulent Tenders: What to look out for

by Claire Donaldson | posted in: General | 2

Is it too good to be true…

I see all sorts crossing my desk, when it comes to researching and sourcing tender notices. I see not only the various notifications companies and organisations put out alerting the public to the scams out there, but I also get sent quite a few scams myself. This has inadvertently created a new skill set. And that is, inhouse dodgy tender notice identifier.

Fraudulent tenders and scams involving tenders is not new. It tends to take on various incarnations, and, unfortunately, tends to get more inventive as time goes on. There’s a bizarre combination of old tricks and new tricks. So this misuse of imagination keeps everyone on their toes. It takes learning on the job to a new level.

Scams are not limited to any one type of service or product. It can be anything from supplying wheelie bins to building RDP houses. It doesn’t matter what the service or product is, because it’s just used as bait to lure unsuspecting suppliers and contractors to fall for the scam.

Any procurement process is competitive. And companies have to work hard to take advantage of all the opportunities that come their way. Fraudsters tend to prey on this eagerness, and in some cases desperation. They use a company’s naivity to their advantage as well as greed (to be blatantly honest). Heightened emotions, of any kind, put someone at risk of making a risking decision.

Money is the focus for scammers. They are trying to get as much as they can as quickly as they can as often as they can. So a red flag is any tender deposit that is exorbitantly high. A registration fee of any kind, needs to be questioned.

Has a tender notice or request for quotation shown up unannounced? Unsolicited quotations are very common. There are all manner of electronic procurement systems out there allowing buyers to send RFQs to vendors legitimately. But if you do not recognise the format or who the RFQ has come from, always double check. The way to double check, is to not call any numbers listed directly on the quotation. Look up the switchboard numbers of the organisation and call them directly and this will allow you to get confirmation of the legitimacy or the fraudulent nature of the tender notice/ quotation.

These fraudulent quotations/ tenders tend to also ask for very specific goods or products. Usually, where there’s only one company that can supply the item in question. Be wary of these types of quotations, as they channel you in the direction that the scammer wants you to go.

Did you tender for the contract award that has suddenly shown up in your inbox or doorstep? No? Then it’s most likely a scam. You cannot be awarded a tender you did not submit a tender/ quote for.

You will never be asked to pay, before being awarded a tender.

Is the quotation/ tender notice not only on a “official” looking letterhead, but has a watermark and all manner of crests and coats of arms? Trying too hard to look legitimate and official; then give this a wide berth, and call the organisation and check

Is the email address given, some bizarre derivative of an official organisation’s domain name? Then it’s a scam. Government Departments, Municipalities and legitimate private companies do not have various versions of their own domain names. There’s one official domain name and that’s it. This is a dead give away.

Most of these fraudulent tenders/ quotations are variations of exactly the same advert but with varying dates and slightly different cell phone numbers listed. This repetition stands out. Companies are posting warnings of these scams; so a good Google search can quite quickly confirm whether the tender/ quotation is fake or not.

It might be tedious; double checking and notifying the proper companies of these scams out there, but it helps tremendously in shutting these scammers out by spreading the word.

Once bitten, Twice Shy.

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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