Government tenders, nationally and local, are a significant source of business for any entrepreneur. Hence the temptation to commit fraud by manipulation the issue of very lucrative transactions to friends and family.

So how do you tender?

First of all, your business needs to be legitimate and in good standing. This means you must have a valid tax clearance from SARS and in most instances must be a registered vendor with the applicable authority. They will also look at the BEE status of the company and the pricing of the goods or services.

  1. How to find the tender
    Tenders are published various places, for instance in Government Gazettes, websites, newspapers and at local government offices. The easiest are to search on designated websites.
  2. Make sure you are on the Central Supplier Database
    If your paperwork such a company registration documents, certificates, references and BEE certificates are up to date, the supplier database will allow you to tender. The link to National Treasury may be helpful. https://secure.csd.gov.za/
  3. Make sure you can do the job
    It is very unwise to tender for jobs you cannot execute or does not have the resources to complete. You may end up with legal matters that could cost you your business.
  4. Fill in the paperwork
    It is generally a tiresome and sometimes and expensive task to complete the tender documentation. Pay attention to detail.
  5. Make sure you have enough money
    The Governments are notorious bad payers and if you borrowed money to complete the tender, you may run up unexpected interest charges while you wait for payment. This is why most financial institutions will not give you a bank loan to complete a tender.
  6. Be mindful of the deadline
    The project will have to be completed or the services and good delivered by a set date. If you intend to import products, be mindful that it could take a lot longer than you anticipate.
  7. Execute and repeat
    Use your profits to tender for the next project.