Top 10 Tendering Mistakes to Avoid

23 Mar 2016

Top 10 Tendering Mistakes to Avoid

by Sasha Anderson | posted in: Construction Chat, Frequently Asked Questions, General, How To | 0

Top 10 Tendering Mistakes to Avoid

What are the Top 10 Tendering mistakes?

Most things in life revolve around the dos and don’ts; the game of tendering is no different. It may seem exciting to push the boundaries in life sometimes but deviating from the requirements when tendering can cost you a valuable tender that your business desperately needs.

There are many examples of tendering mistakes some of which may seem minor or harmless but could cost you a tender. Let’s be pro-active!

Here are the Top 10 Tendering Mistakes to Avoid:

1. Don’t be late – For the Site Meeting or the Closing Date. Mark the dates on your Calendar, set reminders and know where you are going, preferably before and not on the day. Submit the tender with time to spare. Account for things like traffic, unknown locations or any other obstacles that could result in a last minute rush.

2. Site Meeting – Attend and sign the Register. The purpose of a Site Meeting is for you to have a detailed understanding of the tender requirements and is also significant as you will be able to see who else is planning to tender. When evaluating your tender the Client may check whether you attended and if it’s a Compulsory Meeting you will most likely be disqualified. Either way it makes sense to attend to get useful info regarding the tender.

3. Don’t Assume – if you have questions, if you are unsure, if you think something is incorrect or missing, communicate with the relevant contacts and get clarification, chances are you’re not the only one asking. On that note if your tender is unsuccessful ask why so that you can use the information when applying for future tenders.

4. Don’t be Irrelevant – Keep all your answers clear & concise and most importantly relevant.

5. Copies, Copies, Copies – remember to submit the correct number of copies required and keep an extra copy for your own records.

6. Don’t be Untidy – Imagine how frustrating it is for the person evaluating or adjudicating a tender to try and decipher poor handwriting, or make sense of pages which aren’t in order. An organized and legible document creates a positive impression. After all, you want to present your company in the best light and a well presented tender creates the impression that contracts will be handled with the same care and attention to detail.

7. Don’t Misrepresent – Stick to the facts. Don’t make false statements about your company or its ability. A Tender Document is a legal document and therefore enforceable by law. Misrepresentation or unsatisfactory practices could lead to your company being placed on the National Treasury Restricted List. “Some of the common practices that lead to the restriction of suppliers are poor performance, breach of contract, failure to obtain permission to do remunerative work outside of employment, supply of counterfeit products, and collusion.”

8. Follow the Requirements – Meet all the minimum requirements. Go through the requirements carefully ensuring you meet them. Tenders that do not meet the minimum requirements otherwise known as non-responsive are disqualified.

9. Check, Check & Check again – Admittedly not the most exhilarating task but vitally important. Get someone with fresh eyes to check your tender a final time while making sure all the required documents are attached. Be 100% confident that the tender you are submitting is complete and accurate.

10. Delivery Location – Make sure you know exactly where your tender needs to be delivered to, right down to the Tender Box number, before the Closing Day.

Bonus tip:
Keep abreast of the developments in your sector. Subscribe to a service that provides direct, simple access to valuable building and construction information delivered daily directly to your Inbox, thereby ensuring consistent wealth of new business leads. A service which also provides Support Services if you need assistance or have a query. Want to know more? Contact me on SashaA@L2B.co.za

DYK (according to www.getbiz.co.za):
“A bidder must not quote more than R1 million when the bid document stipulates that the bid is an 80:20. This means that proposals cannot exceed R1 million. Bidders must be aware that 90:10 bids, on the other hand, are valued above R1 million, but bid issuers are not allowed to indicate how much they have budgeted for a project. However, bid issuers are required to indicate whether a bid is a 90:10 or 80:20 in terms of the Preferential Procurement Policy Framework Act (PPPFA). So this serves as a good indicator of how much the bid issuer has set aside for the project.”

Sources:
http://www.getbiz.co.za/index.php/biz-news/business-and-economy/82-top-five-mistakes-that-can-cost-you-a-tender

The business of tenders

https://www.westerncape.gov.za/tenders/support/tips

10 top tender tips for small business owners

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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

2 Mar 2016

A day in the life of a Tenders Researcher

by Claire Donaldson | posted in: Construction Chat, Frequently Asked Questions, General | 0

2 Metaphors for a Tender Researchers day

The first instinct when faced with the task of describing “A Day in the Life of a Researcher” is to list the various tasks and duties that have to be done throughout the day, and the week, the month and the year. The fact that the light slowly drains from my brother’s eyes when I waffle about my day, is a clear indication that this might not be the best approach. It’s not that he doesn’t care about what I do (I pay his bills, so he has a vested interest), it’s that the “how” has no context for someone on the outside. The usual follow up question is “It got done, right?” is a clear indication that the “how” is not as important as the end result.

“Researcher Sympathy” only comes from other researchers. Like “Accountant Sympathy” only comes from those who inhabit the daunting world of debits and credits. How long can you feign interest in that?

No one on the “outside” really cares how many phone calls you made, or how many people you had to speak to and introduce yourself to and state your purpose to and how far you had to stretch the definition of “polite and professional” for the information that is our bread and butter. If you aren’t in the trenches with us, then you can’t really understand the perseverance required sometimes. And if you’ve been nodding your head knowingly through that last sentence, then I hate to break it to you; but you are a Researcher. How many times today have you spelt “L-E-A-D-S, like leading someone”?

I reread my blog article “Understanding Awards” from 29 October 2014 for some sort of inspiration, and I’m happy to announce, nothing has changed. The same challenges and concerns, the same misapprehension and suspicion we faced back then is alive and well today. So how do I convey the energy spent and the time taken, without boring the life out of you or utilising the “humblebrag”.

[tweetthis]Our business is information. Fast and accurate information. [/tweetthis]This information takes the form of leads or doorways of opportunity, as you will. We present it, and our subscribers run with it.

Think of our day like a race.

There’s a starting point and an end (metaphorical because, especially on a Friday, it definitely feels like it will never end). And all along the way there’s certain checkpoints that have be reached and ticked off the list. Tender notices are meant to have a certain regularity to them. The Government Tender Bulletin is published each Friday, for example. If we don’t reach these checkpoints, we have to go in search of them or keep coming back until we can tick them off the list.

Think of it like an Easter egg hunt, where someone is constantly hiding Easter eggs.

Doesn’t tell you how many eggs there are but assures you that they are in fact out there. And sometimes hides the eggs in the same place that you’ve already searched over and over again at irregular intervals. And your phone won’t stop ringing while you are searching for these eggs, and some of the eggs are cracked. And then there’s Scam eggs. And you get the picture.

This race (I’m mixing my metaphors) is not a straight line, but a circle. It just starts again. And on the information ride, there’s nowhere to get off. These checkpoints can represent anything really. They are the newspapers we buy (maybe not for much longer according to National Treasury) and the websites we check. They’re the telephone calls and emails needing to be answered. They are our current subscribers and potential subscribers. They are the tender awards and award follow ups. Illusive site registers, bidder’s list, bills of quantity and tender documents.

It’s a bizarre balance between maintaining routine and consistency and then trying to adapt to the unexpected. Anything can throw a spanner in the works, from Municipal strikes to newspaper delivery to a slow internet connection. The balance between expectation and reality. It’s only experience and willingness that has taught us how to deal with these bumps in the road. The metaphorical duck on water comes to mind. Except the duck has developed Carpal Tunnel Syndrome and an unhealthy obsession with internet speed.

The long and the short of it is, that we deliver.

You don’t have to worry about the “how” because we’ve got that covered.

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.

10 Feb 2016

Understanding the Tender Process in Africa

by Cecile Van Deventer | posted in: Construction Chat, Frequently Asked Questions | 3

Understanding the African Tender Process is not much different from the South African Tender process (see link to previous blogs referencing SA Tender Process).

In general, tendering follows the following (simplified) process:

A need for a service is identified.
Approval is obtained from the necessary entities.
Documentation (including Bid Documents, BoQ, Drawings, Specifications, etc.) is prepared and approved.
Advertising of Tenders.
Receipt and opening of tenders.
Evaluation of Bids.
Awarding of Bids

Procurement can be achieved via the following methods:

Single Source (also referred to as Direct Contracting), Requests for Quotations (RfQ’s), Two-Stage Tendering, Request for Proposals (RfP’s), Restricted Tendering, Open Tendering, Prequalified Tenders. (For an explanation of the methods, please see http://procurementclassroom.com/procurement-methods/).

Of course, each country will have its own Public Procurement Regulations, rules and laws that govern the procurement process. Furthermore, each institution may have its own policy that is applied over and above the country’s regulations. Each advertisement will identify the forms and documents that will be required for that specific bid.

Some things to bear in mind specific to understanding the African Tender Process are the following:

There might be language barriers: depending on which country is advertising the bid, it might be advertised in another language (not English). Some bids will include a copy of the bid documentation which has been translated to English, but in the cases where they do not provide translated documents, it might be necessary for a translator.

When needing to contact the specific institution, ensure that you have the right dialing code for the country you are trying to contact.

It might be easier to communicate via email and this will ensure that there is also a paper trail of any queries raised and answered, in which case, the correct email address is a necessity.

[tweetthis]Communication with the right people and always confirming the details is essential.[/tweetthis]

For some tips on tendering, please have a look at the following articles:

http://www.miningreview.com/tender-process/

http://www.esi-africa.com/tender-process-17196/

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.

26 Aug 2015

What is the PRASA Saga all about?

by Sasha Anderson | posted in: General | 4

The PRASA Saga – What is it really about?

A little background:

The PRASA (The Passenger Rail Agency of South Africa) Saga revolves around an Upgrade Project that was out outsourced by PRASA to Swifambo Rail Leasing which in turn awarded the contract to Vossloh España for R3.5 billion.

The height of the Afro 4000 Locomotives purchased for the Shosholoza Meyl long-distance passenger service in relation to the height of the overhead power lines has come into question. The Initial order height for the locomotives was 4.262m high and the current height is 4.1m. All current locomotives in use have a maximum height of 3.965m. The normal accepted safe distance between a locomotive roof and electrical cables is at least 150mm (ie. the cables should be at least 4.5 metres above the rail tracks). Although the power lines are supposed to be no lower than 4.5m there are many places in the country where, because of poor maintenance, overhead wires are much lower. In order to provide safe travel conditions for the new locomotives overhead power lines will have to be raised, the costs of which are unclear at this point.

A brief Timeline:

13 October 2013 – The DA requests that the Auditor-General, Terrence Nombembe, investigate the PRASA R3.5 billion locomotives deal

February 2014 – A report from PRASA in February 2014 points out four places where overhead lines are as low as 4.22m.

January 2015 – One of the four batches of locomotives procured by PRASA from Spanish manufacturer Vossloh España arrive in Table Bay Harbour.

March 2015 – Transnet Freight Rail General Manager, Caesar Mtetwa wrote to to PRASA’s Chief Engineer, Dr Daniel Mtimkulu, stating the locomotives exceeded the permitted height limit for Transnet’s rail system.

10 May 2015 – ‘Rapport’ publishes an article regarding issues surrounding the Locomotive Tender

5 July 2015 – ‘Rapport’ publishes an article stating the Locomotives procured are “too high for the long distance routes they were intended for”.

6 July 2015 – Lucky Montana, the CEO of PRASA speaks at a media briefing regarding the “grossly misleading” article published in Rapport.

12 July 2015 – An article published in the ‘Rapport’ with documents attached highlight the following:

* PRASA sent a message to Spain on 5 November 2013 to ask whether the locomotives, which had been ordered eight months previously, could be lowered.

* PRASA wanted the locomotives heights lowered to 3 965mm.

* But Vossloh España said in a letter, which Rapport obtained, that the PRASA request was not possible, “Although it is not possible to reduce Euro 4000 locomotives’ height below 4 140mm … it is understood that with actual height and with the information we manage, the locomotives should be acceptable for operations on South African tracks,” sent in late 2013.

* 1 week later PRASA paid R468m for the first locomotives.

16 July 2015 – PRASA Board resolves that CEO of PRASA, Lucky Montana will not be required to complete his notice period (1 June to 31 November 2015) due to him not complying to the conditions of serving out his notice.

17 July 2015 – PRASA Executive Manager for Engineering, Daniel Mthimkhulu, is suspended as a result of an inquiry revealing he lacked the necessary qualifications.

17 July 2015 – The Public Protector’s office confirms it has concluded an investigation into PRASA and CEO Lucky Montana after a union requested a probe in 2012 into allegations of maladministration relating to financial mismanagement and tender irregularities and will be “ready to release it on 23 July”.

23 July 2015 – The Public Protector, Thuli Madonsela postpones the release of her report. According to City Press, staff at PRASA had approached Madonsela requesting to make representations against Ex CEO Montana now that he was not at work. “They feared they would lose their jobs, but now they feel at ease and want to make submissions,” said a government official.

23 July 2015 – PRASA Chairman, Dr Popo Molefe reports that he has received death threats which have been reported to the Police who are investigating ‘a case of conspiracy to commit murder’.

27 July 2015 – PRASA Executive Manager for Engineering, Daniel Mthimkhulu resigns. PRASA is to continue with its criminal case against Mr Mthimkulu.

Is all this controversy really over a 400mm clearance between a locomotive and the contact wires or is it something more? Is it about R3.5 Billion which has been spent on locomotives which may not be able to operate on our railways? Is it about Politics? Is it about Corruption? Is it about Tender Irregularities? Is it about a lack of leadership?

In my opinion it is the latter; a lack of leadership. Let’s consider:

In essence what is leadership? The following adjectives come to mind: Accountable, Alert, Approachable, Authentic, Aware, Communicative, Credible, Customer-focused, Decisive, Dedicated, Ethical, Knowledgeable, Moral, Motivating, Pro-active, Responsible, Transparent, Trustworthy and Vigilant.

Does this describe those in leadership roles in the PRASA Saga?

In order for any organisation to succeed and prosper, it is critical that the right leadership is in place. I think Dwight D. Eisenhower said it best, “The supreme quality for leadership is unquestionably integrity. Without it, no real success is possible, no matter whether it is on a section gang, a football field, in an army, or in an office.”

What are your thoughts? Please leave a comment.

Sources:

http://www.bdlive.co.za/business/transport/2015/07/07/prasa-ceo-says-detractors-want-to-tarnish-him-in-train-saga

http://www.news24.com/SouthAfrica/News/Newsmaker-Popo-Molefe-vows-to-stay-put-at-Prasa-20150726

http://www.news24.com/SouthAfrica/News/Prasa-war-heats-up-20150718

http://www.netwerk24.com/nuus/2015-07-05-r600-m-optelfout

http://www.biznisafrica.co.za/prasa-dismisses-zar600-million-train-saga/

http://www.iol.co.za/the-star/casualties-symbolic-of-derailed-prasa-1.1889710#.VbX2EvmqpHw

http://www.politicsweb.co.za/party/something-fishy-about-prasas-r35bn-locomotives-dea

http://ewn.co.za/2015/07/17/Prasas-engineering-executive-suspended

http://www.news24.com/SouthAfrica/News/Prasa-Transnet-had-concerns-over-locomotive-height-documents-20150712

https://www.linkedin.com/pulse/prasa-leadership-failure-case-study-vusi-thembekwayo

About Sasha Anderson

27 Aug 2014

T is for Tender

by Marlaine Andersen | posted in: Construction Chat, Frequently Asked Questions | 0

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

23 Apr 2014

What is the difference between a Tender and a Project?

by Carmen Barends | posted in: Frequently Asked Questions | 0

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

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