Understanding the Tender Process

6 Aug 2014

Understanding the Tender Life Process

by Claire Donaldson | posted in: Construction Chat | 3

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.

16 Jul 2014

Mining in Africa – why we ‘dig’ it!

by Marlaine Andersen | posted in: General | 3

Africa is a mineral-rich continent with untapped value to be unlocked. Mining and metals remains one of the best performing sectors despite economic uncertainty – it is one of the industries that continues to attract investment and drive economic growth in most Africa countries – Wickus Botha, Mining & Metals leader

The African Continent is richly endowed with mineral reserves and ranks first or second in quantity of world reserves of bauxite, cobalt industrial diamond phosphate rock, vermiculite and zirconium. Gold mining is Africa’s main mining resource.

According to Wikipedia : “As of 2005”, strategic minerals and key producers on the African continent were:

Diamonds : 46% of the world, divided as Botswana 35%; Congo (Kinshasa) 34%; South Africa 17%; Angola, 8%.
Gold : 21% of the world, divided as South Africa 56%; Ghana, 13%; Tanzania, 10%; and Mali, 8%.
Uranium : 16% of the world, divided as Namibia 46%; Niger 44%; South Africa less than 10%.
Bauxite : (used for aluminium): 9% of the world, divided as Guinea 95%; Ghana 5%.
Steel : 2% of the world, divided as South Africa 54%; Egypt 32%; Libya 7%; Algeria 6%.
Aluminium : 5% of the world, divided as South Africa 48%; Mozambique 32%; Egypt 14%.
Copper (mine/refined) : 5% of the world, divided as Zambia 65%/77%; South Africa 15%/19%; Congo (Kinshasa) 13%/0%; Egypt 0%/3%.
Platinum/Palladium : 62% of the world, divided as South Africa 97%/96%.

Mining projects are actually very interesting – so much more than just “a hole in the ground”. Yes, there are the open-pit mines and the underground mines, obviously depending on what mineral/precious metal they are trying to extract. These new mines are often located in very remote places which means there is no infrastructure and this very often has to be constructed by the Mining Companies themselves in order to gain access to the mine. New roads are needed, railway lines need to be upgraded and in some cases new lines need to be built in order to transport the product to the nearest port for distribution to overseas markets for further fabrication. Port facilities also need to be upgraded, expanded and improved to allow for the storage of the product, prior to shipping.

So, as a result of new mines being built, infrastructure in the various countries is upgraded and improved. In addition to transport, adequate water and a regular electricity supply is needed to run the mines and more often than not, new electricity lines, power stations and substations are constructed to power the mine. Pipelines to carry water to the mine and new tailings dams to store water are also constructed. Mines that are located in remote locations far from towns and cities, also provide accommodation for their workers and families. Mining companies spend a lot of money on upliftment projects for the surrounding communities in the form of schools, clinics etc.

In Private Projects I research and follow Greenfield and Brownfield mining projects throughout Africa, including SADC and South Africa and there are currently 345 active mining projects on our database ………………… Just sayin’!

About Marlaine Andersen

Leads 2 Business Advertising Co-ordinator and Digital Designer

24 Jun 2014

Creative ways to get your Bill of Quantities

by Sasha Anderson | posted in: General, How To | 2

Bills of quantities are prepared by Quantity Surveyors we all know that thanks to the previous blog post “What is a Bill of Quantities (BoQ)?”

So how does one obtain a Bill of Quantities? Let me count the legal ways…

1. Request the BoQ from the Quantity Surveyor
2. Purchase the Tender Document which contains the BoQ
3. Download off a website if it is available
4. Request the BoQ from the Client directly
5. Request the BoQ from the Architect
6. Request the BoQ from the PA of the Quantity Surveyor
7. Contact Leads 2 Business

All of these methods lead back to the Quantity Surveyor. Surely we could obtain a Bill of Quantities in a more creative way? Maybe the answer would be to become a Quantity Surveyor and draw up your own BoQ. Sounds easy right? Not so quick.
Firstly we need to understand the role a Quantity Surveyor plays in the Construction Industry.

When asked what a Quantity Surveyor does many people will say “Erm. They survey quantities”. That’s what I would have said before working at Leads 2 Business.

From the inception of the project the QS will estimate costs throughout the process based on industry knowledge, substantiating their results with previous projects in order to make estimates on how much the project will cost. A QS performs various roles including managing the costs of a project, calculating quantities (how many bricks a house will need), advice on tendering procedures and contractual arrangements to name a few. Explains why you need to study at least 4 years to obtain a degree.
Becoming a Quantity surveyor may assist you to obtain a BoQ creatively but perhaps not the most efficient way to do so and I doubt anyone would go to such lengths especially when you take into consideration that you may not be appointed on the project you might be interested in pursuing. So what is the alternative?

You could go with some of the conventional methods I listed. If however you are looking for a creative 21st Century approach to obtaining a BoQ that is legal and efficient, Leads 2 Business may be a perfect fit for you.

About Sasha Anderson

Millennial Mom + wife living the hash-tag life. Reach out if you want to talk: L2B, social media, construction, technology, marriage, parenting, popular culture and travel. Remember: If You Fail - Fail Forward

10 Jun 2014

How growth in Africa filters into Projects?

by Marlaine Andersen | posted in: General | 0

“In 2011 over 15 African countries registered growth rates exceeding 5% despite the world economic recession” (Ernst & Young)

“More than 800 infrastructure projects have been identified in Africa in 2012” – (Ernst & Young)

According to this information, these are exciting times for new developments/construction opportunities in Africa.

“New US$32 investment for Nairobi’s Garden City Development” (African Business Review)

Headlines like this are exactly what I am looking for – possible new project leads for our subscribers. The search is on to turn these headlines into project leads that our subscribers can benefit from.
Where do I start, do I consult my crystal ball – I wish! No, it’s called research and it generally starts with the newspaper or article headline and from there my first stop is Google. If the world is your oyster, then Google is the pearl! It is possible to source anything, you just have to know where and how to look.

I start researching the project – where in Africa it is (Country, City, GPS co-ordinates), who is the private developer or client, have any professionals like architect, quantity surveyor and engineers been appointed, have all approvals such as town planning and environmental authorisation, been received (although some projects in Africa have been known to get Environmental Authorisation after the project is completed!), will the proposed project be going out to invited tender or open tender? These are some of the questions that I need answers to, to enable me to publish the project on our website.

The most important, and perhaps the most difficult, is sourcing the correct contact details for the people working on the project. Sourcing contact information in Africa presents all sorts of challenges, telephonic communication, can be very difficult, there are some countries, cities and even people in Africa who do not speak English as a first, second or even a language at all and sign language is not an option! Telephones in some government departments ring unanswered during working hours for what seems like days on end. Websites of African companies are generally not as up-to-date as the rest of the world and telephone numbers listed sometimes date back to early 2000 and generally no longer work. Emailing is generally the preferred and most reliable method of communication.

Back to Google, I wade through websites, peruse periodicals, industry-related magazines, company presentations, local newspapers, town planning notices, EIA notices, Government Gazettes, tender notices, reports, make phone calls, send emails, whatever it takes to source the information needed. Finally, once I have all the information required, the project is ready to be published. But it doesn’t end there, once published, the projects are followed and updated through the various stages, procedural right through to completion, but that’s another blog, for another time …… watch this space!

There are currently 691 projects in Africa – projects including dams (Metolong dam, Lesotho), roads (Trans-Sahara Highway Project), railways, (Trans-Kalahari railway), mega-cities like Tatu City in Kenya and Eko Atlantic in Nigeria, hotels (Crowne Plaza Hotel, Ethiopia), office blocks (Pinnacle Projects ,New Office Block, Kenya) and even mining projects (Simandou iron-ore project, Guinea) to name but a few, listed on our database and this list grows daily as more new projects get added.

So, If you are looking to expand your business into Africa, or you are looking for project leads in Africa and you are Not subscribed to Leads 2 Business – you have to ask yourself – Why?

Marlaine Andersen – Dedicated and Tireless Researcher

About Marlaine Andersen

Leads 2 Business Advertising Co-ordinator and Digital Designer

21 May 2014

The Benefits of being on a good Directory

by Sherina Shawe | posted in: General | 1

Believe it or not Directories fascinate me!

This interest began years ago as a kid when I use to spend my time reading our “national telephone Directory”, so imagine my delight when I found myself working for Leads 2 Business, a Company who has the Biggest Construction Directory in the Country….. and then still be asked to run this department for them.

Now, there are a fair amount of directories out there, and I’m sure you have found yourself on one or more of these in the past, Did you find what you were looking for? Was it user friendly? When searching “Brick suppliers” did you end up on a bridal page rendering “No results”?

What I have found is very few of the directories are as specialised in construction as Leads 2 Business, we focus on Professionals, Contractors and Sub-contractors, with a vast array of trades, industries and regions to choose from.

The use of the common directory has moved away from simply trying to find a telephone number for your local plumber, to rather establishing business relations with key people in your industry.

Being able to look up a company and immediately having their information, not only contact information, but what that company has been working on, such as Tenders and private Projects, both past and current…. this is priceless!

This is only one side of the coin though, being on our Directory doesn’t cost you anything, however the traffic our site experiences daily ensures that if your entry on our Directory is accurate you WILL at some point be viewed, whether it’s through a direct Company search, a trade search, Contact search or even if your Company has been linked to our database through a Project or Tender….. you are going to be viewed! That’s free advertising!

So next time you get a call from a Directory…. think before you insist on being removed because you “don’t want to be harassed”,surely no one goes into business to not be seen and contacted . So snap up the opportunity to be viewed and advertised for free!

Take a few minutes and update your details and reap the benefit of being on a specialised Construction Directory like our own 🙂

If you would like to find out if you are on our Directory is your information accurate? Or if you would like to be added please feel free to contact me on Directory@L2B.co.za

I look forward to hearing from you 🙂

About Sherina Shawe

I am a strong believer in "What you put in , is what you will get out" and this drives me every day, whether it's at home with my gorgeous family or at work where I get to fuel my competitive spirit. I love who I am and who I'm becoming. I love where I am , but more importantly where I'm going.... #EternalOptimist #Aspire2Inspire

6 May 2014

Shifting construction landscape requires flexibility

by Lee Finch | posted in: General | 0

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.

30 Apr 2014

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

by Cecile Van Deventer | 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.

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.

25 Apr 2014

What is a Tender?

by Claire Donaldson | posted in: General | 4

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

7 Apr 2014

What is a Project?

by Debbie Wessels | posted in: General | 3

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.

10 Jan 2014

New Year, New Business: How to start it right.

by Taryn Duckham | posted in: General | 0

Business Opportunities

Steps to Success

Do you want increased success in business in the coming year or the chance to enjoy the success you’ve achieved more? Maybe last year was not a great year and you want to change your business outlook?

So what are some of the things you can do?

1. Get Delegating!

There are so many things you need to do when you are running a business, its very easy to convince ourselves that we need to do all of them. It’s not surprising that at the end of a business day we are exhausted and we have no time for ourselves. Delegation is critical to maintaining that all important work-life balance.

So how can our Lead system help you with that all important time factor, delegation and ultimately money?

We are going to start by sending you targeted information on a daily basis. Straight away you are going to save yourself the time of sifting through newspapers, gazettes and websites as well as the subscription expense to these sources.

You are in control with how much or how little information you receive, as everything you want or need to know is determined via your profile.

As for the art of delegation, you can send Tenders, Projects or Awards to your team and get them to follow up on your behalf.

2. Promote your business

Too often the task of marketing and promoting your business slips to the bottom of the to-do list, especially when there are more urgent jobs looming. Why not use some of the time you have created by subscribing to our service & delegating leads to your team to promote your business? It doesn’t take too much time or financial resources to do this on our system. Update your entry on our Platinum Directory and get your name out there so companies can find you, your products and services.

Check out Did you Know #DYK: Why should I subscribe to Leads 2 Business (L2B)? for more information on our products and services.

3. Make planning a weekly event

Planning is vital if you want a blossoming business and there are tools at your finger tips to make this process easier. Earlier we spoke of delegation, now is the opportunity to get feedback on how things are going with your team. Find out which leads have worked for you,which professionals you need to follow up on, who will be attending the next site meeting and where you will be collecting your next set of tender documents from. To assist you in this process we have a handy tool called Leads Management System which will enable you to download reports on your team and begin building an outlook for the year ahead.

4. Network

There is a certain amount of buzz that seems to fuel business when you begin interacting, creating a forum for new ideas, refining old ones or creating new contacts. Make use of our Platinum Directory to create points of contact with Professionals or other potential businesses you could set up joint ventures with in future months.

5. Set realistic goals & make time for you

Setting goals is a valuable habit, specifically if the goals lead to success as opposed to stress. Resolve to make achievable goals rather than pipe dreams as these only lead to frustration. Part of these goals need to include taking time for yourself. All work and no play is an unhealthy recipe, so please take the time to invest in yourself, if you do not, who will?

We understand this aspect of life and have created a business calendar where you can set reminders and synchronise this with your Outlook or Google calendar.

Let us make your life easier. You can see how by clicking here.

About Taryn Duckham

I am a lover of awesome design, customer centricity and the art of influence. Being able to effect this through analysis, written or visual content and front-end design is part of my work, my great love of creatively solving problems that reach across as many parts of Leads 2 Business as I can.

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