A CIDB grade is determined by the contractor’s financial capability and your works capability. This enables the Public Sector, Private Sector and the Public in general to access a contractor’s ability to undertake a respective project.
A large part of success in tendering involves a decision making process that a tenderer should have prior to tendering.
The process can be as simple as only tendering for work you have experience in, e.g. only tender for construction tenders or only venture into tenders by understanding the basics of the particular tender by using a method of breaking down the tender in three parts of A, B and C in the manner below.
“A” is for Ability to Produce.
Ability to produce on the objectives of the tender should be the primary decision to tender. This is always read as “Functionality” on tender documents.
This component involves understanding the Scope of Work to be undertaken and meeting this requirement with the necessary expertise.
This process produces better understanding of how to price and estimate each component of the work and therefore understand your prospective gains from the venture.
“B” is for Black Economic Empowerment
BEE and BBBEE are government and social aspects that strives to give access to opportunity to the previously disadvantaged.
The BBBEE certificates and Affidavits are empowerment tools that assist established businesses to trade with smaller businesses and be able to gain their respective empowerment points.
BBBEE comes well into play in the subcontractors, joint ventures and suppliers you chose for the tender, the better their score the better your overall procurement score.
“C” is for Compliance
Compliance is an important aspect of a tender as it ensures the tenderer has the necessary documentation to enter into the contract.
These documents are;
1. CIPC Company Registration Documents
2. Tax Clearance Certificates can be obtained from your SARS office as proof that you are in good standing with your tax affairs,
3. Professional Certification such as CIDB certificates are important for any Construction Industry Regulated work and NHBRC certification for any work that involves Home Building.
All three parts done well improve your chances of tender success. Should you need assistance in improving any of these parts for your business, feel free to reach out to us at TenderPoint SA and we will guide you in every aspect of your tenders.
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