What you didn’t realise about the difference between Public and Private Tenders

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Public Tenders vs Private Tenders

 

The difference between public tenders and private tenders is that public tenders are advertised in the public domain and are open to the public, and private tenders aren’t.

 

Can I go home now?

No.

Right….

 

The first problem is the terminology. Public vs open, private vs closed etc. I tend to favour “Public” and “Invited” when describing the difference between these two types of tenders. “Private” can be misconstrued. When someone asks me after a “private” tender, my first question is; are they looking for tenders from Private entities (which could be public or invited) or do they mean “invited” tenders? Private entities make use of publicly advertised tenders as well. Not a lot to be perfectly honest, but it is a way for them to freshen up their supply chain. So for the sake of clarity, I’m going to stick to “Public” and “Invited”.

Public tenders are predominately Government. That is literally the entire point of Government Procurement. The Government is spending the “People’s money”, so it better be out in the public domain where everyone and their uncle can have their say. [tweetthis]The five pillars are: Value for Money, Open and Effective Competition, Ethics and Fair Dealing, Accountability and Reporting, and Equity.[/tweetthis]  “Open and Effective Competition” is represented by the public aspect of advertising your tender notices. These tender notices are advertised in newspapers (not for very much longer, apparently), eTenders, Government Tender Bulletin, Provincial Tender Bulletins, Government websites, Provincial websites, Municipal websites and Notice Boards. The information is out there to be found. If you can find it, then you can participate. Anyone can rock up to a site meeting or a tender closing; no one can stop you. However, the award is very much dependent on how you fulfill the specific criteria required. Anyone can play the game, but only the professional and serious have an actual shot at winning. Plus, generally fly-by-nights and chancers are not appreciated or tolerated. So don’t be one of these. Just don’t.

 

Public tender notices can be advertised by private entities/ companies as well. It isn’t very common, like I said; but it does happen. Most private entities have their own Supply Chain Management Department and processes. This department handles the supply chain process for that company. Does the company need a cleaning company or a new security company? Does the furniture need replacing? Are they considering building a new headquarters? These are the same types of questions that Government has to deal with, but it’s not out there for all to see. The private entities will usually utilise their tried and tested methods that they’ve been using for years. This rarely involves advertising to the public. The most common tool I’ve come across, is the Supply Chain Database. Private companies would have their own database that they maintain. They approach those companies listed, as they would already have a history with that company so there’s a certain sense of trust and expectation of product or service. Private entities, just like Government, do not want to be wasting their time and money on chancers. How do you get listed on a private entity’s database? Ask! Do you have a Supplier Database? Yes, awesome. Who do I send my company details to? What’s the procedure? You will never learn, if you don’t ask.

 

Unlike public tenders, invited tenders are generally only heard about after the fact. You tend to hear about them from your mates’ brother’s sister-in-law who overhead it at a bar brawl. Like bread crumbs scattered in the wind, and you have to chase them back to the source. Invited tenders are held very close to the chest. This, unfortunately, gives them a bit of a shady reputation. Not necessarily the case, since companies nowadays have time considerations and budgets that don’t really allow for un-invited delays and inclusions. The sad fact is, if you weren’t invited; then be prepared to be bounced from the party.

 

Government utilises invited tenders as well. Which is a neverending source for debate and scandalous speculation. When it’s all on the up and up, simply time and money are against going out to public tender. For example: an Emergency. When an actual emergency occurs, say a natural disaster, nobody is going to tolerate the Government or a Municipality going out to public tender. Why? It takes too long. So tenders are invited. Where would the contractors be sourced from, you ask? The applicable Supplier Database. Verbal quotes, or more likely written quotes are called for. In emergencies, the aim is to fix the problem as quickly and efficiently as possible to prevent further issues. Bear in mind, that all decisions related to this situation would have to be recorded. All decisions concerning Supply Chain Management, have to be recorded. Otherwise, a certain word starts surfacing “misappropriation”.

 

It’s also interesting to note, that “lack of planning” does not constitute an emergency. If suddenly a pen cannot be found in your Municipality for love nor money, then this is not an emergency but terrible terrible planning. It’s pencils for you, until the tender can be awarded.

 

Invited tenders can be the chosen form of procurement when specialty works or products are required. Supply Chain Departments are supposed to have an idea of who can do what for them. It they know that there’s stacks of suppliers of a certain product, then it’ll be open competitive bidding for them. But if they know there’s only two companies that can supply a certain product, it’s not viable to go out to public tender. Both companies are invited to tender, and one is awarded. There’s cases where there’s only one supplier/ contractor. That guy gets asked to price. It’s too costly and too time consuming to go out to public tender, when you already know who your suppliers could be. This actually implies that there’s a bit of common sense being utlilised in the Government. Someone actually hoped to save money and time, by not relying on mindless bureaucracy. Treasury Regulation 16A6.4 comes into play, but it has to be recorded and reported. Everything has to be recorded and reported.

 

Invited tenders can also be the result of other supply chain processes: Panels, Pre-Qualifications and Expression of Interests (EOI). These are the most common. Think of it as a gathering of potential suppliers/ contractors. They are assessed and then invited to tender. Generally, the pre-qualification/ EOI are out in the public domain. But the invited tenders will be behind the scenes. I tend to see these for long term projects, where a certain aim is hoping to be achieved. The idea being that if the Government wants to refurbish an entire Province’s schools (for example), then going out to tender for each individual school is just nuts. Get a group of potential pre-qualified contractors together in one go, and then divvy the jobs out as budgets and time allows.

 

When hoping to do business, hedge your bets.

 

If you want to work with a private company, talk to them. If you want to continue working with the Government, talk to them as well. Whether it’s public tender notices or invited, information is key.

 

 

http://www.treasury.gov.za/legislation/pfma/supplychain/General%20Procurement%20Guidelines.pdf

http://www.treasury.gov.za/divisions/ocpo/sc/Guidelines/SCM%20Jan900-Guidelines.pdf

 

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.

The Twitter beginners guide to Tender Influencers

Leads 2 Business : Twitter influencers

So how do you become the McGuyver of Twitter Tender influencers?

 

No, I am no guru of the Twitterverse, but I spend a bit of time using it. As far as social goes I can operate with a fair amount of ease on some social media platforms. But it still takes time to find your feet and potentially find the information you are looking for. So today’s tip would be how to find useful Tender tweeps to follow on Twitter.  They may or may not be tendering themselves, but have knowledge or report on topics or factors that effect Tendering or the Construction industry.

Now I am sure that everyone has their own list on Twitter with their favourites, and this one is by no means exhaustive. This is a BEGINNERS guide. So, hu erm, with no further adieu….

 

Step one would be to start at the beginning…. have Twitter loaded on your desktop, tablet or smartphone. If you are at a loss, you can click this link to the Twitter App and be directed to Google Play to download it. Then get yourself versed on using this microblogging tool quickly on either YouTube or by getting the lowdown from a social media leader like Mashable.

So you are up to speed. Easier than you thought right!?!

 

For keeping in the know about what is happening in the Construction industry on the continent:

 

@BusinessNewsCT

@ConstrucReview

@busrep

@concretetv

@ConstWorldSA

@EngNewsZA

@justmobility

 

Some International Construction Companies that are an influence on the Industry on Twitter:

 

@TenderManageLtd

@Tenders_Unltd

@Venturesonsite

@RFPConstruction

@ToyotaEquipment

@CMnewsandviews

@BuildMomentum

@TenderSoko

@iTenderPtyLtd

 

Some Construction Industry bodies:

 

@The_CESA

@SaiaArchitects

@YPFSouthGauteng

@SANRAL_za

@saice_civil

@ewbukzn

 

Some influential Tweeps:

 

@MHLUNGUOLUHLAZA

@JoubertBotha

@markperera

@DazMSmith

@brianmawdsley

@RichSimmonds

 

Well, there is your starting point. An easy one at that. This will help give you a foundation to begin with until you learn more about Twitter and find more interesting tweeps to follow. Please let me know who you find that is interesting … always good to meet new people.

 

Until then, see you in the Twitterverse at @L2Bcoza.

 

 

 

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

A day in the life of a Tenders Researcher

Leads 2 Business : A day in the life of a Tenders Researcher

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.

Shifting construction landscape requires flexibility

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Shifting construction landscape requires flexibility

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.

What is a Tender?

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What is a Tender?

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

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.

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

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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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