Africa-Press – Eswatini. It is the beginning of the year and there are going to be a lot of business activities.
This might be the year you may have declared as your year, and you really want to see things happening in the business landscape.
Having gone past those tough phases of Covid-19, with some businesses having closed down, you might be ready for a big come back and getting huge tenders is one of your biggest plans. Congratulations on having that dream, now let’s look at how we can get started in 2023.
Tenders for the new year have already been closed, but more government tenders will be opened as the government year is coming to an end in March.
Bidding for tenders is one big decision small businesses need to make and most small businesses fail to participate in public procurement because of the requirements set.
Tendering processes are usually cumbersome and without proper information on how tenders work, especially for public enterprises and government, many small businesses are left out.
Today let’s look at some of the main requirements for participating in a public tender. I assume you already know what public procurement and tender are all about.
Tender Documents
When you have decided to participate in public tenders, you look out for tender adverts or listings. The adverts will be inviting interested businesses to participate and the first step would be to register your interest and obtain the relevant tender document.
This document will outline the full details, requirements and instructions of the particular tender you intend to bid for.
You choose from the list of tenders advertised and you buy the tender document specifically for the particular tender so that you abide by the specific needs and requirements as well as the terms and conditions of that tender.
Each tender document will include the details of what needs to prepare for the bid.
This includes all the instructions, terms and conditions that need to be met, the specific details of the products or services needed by the buyer, technical details, selection and evaluation criteria, delivery timelines, pricing and costing schedules as well as the closing date and how to submit all documents.
If you intend to participate in more than one tender, you have to register your interest for each tender separately.
There is a non-refundable fee that has to be paid for each tender to obtain the tender document.
Make sure you carefully read the tender document before you start completing it, and once you have gathered all other requirements, complete the tender document, enclose all attachments and mark the envelope accordingly, as stated in the instructions. Follow the procedures for submitting.
Some tenders are now done online documents can only be submitted online, thanks to e-tenders.
Company Registration Documents
The main supporting documents you will need to include with your tender document are the registration documents of your business. The registration documents are the Memorandum and Articles of Association, Certificate of incorporation, Form J, Form C, Share Certificates in some cases and the identity particulars of all directors and/or shareholders.
The tender requirements usually indicate that these registration documents need to be certified and you need to ensure that you abide by such requirements to ensure that you pass the minimum requirements. When your company registration documents are not in order, your application will not be accepted.
Licensing & Certification
Another main supporting document is a valid trading licence and/or any other certification that is relevant to the particular tender. Sometimes a trading licence alone is not enough, for example in the construction industry.
You will need the certificates from an affiliation board or regulatory board together with the trading licence. The trading licence must be valid and be for the specific tender you are bidding for. You cannot use a trading licence for a general dealer for a cleaning or security services tender.
Your Capacity to Tender
Having all the documents to participate in a tender process can be exciting, but the biggest decision you need to make is whether you have the capacity to supply.
The tender documents will list the required skills and training, and you need to make sure that you are all set. Capital is one of the biggest challenges for small businesses and tenders usually take longer than normal to pay suppliers.
You need to make sure you have enough financial resources for the duration of the tender. Doing your costing will help you determine how much capital you need, putting into consideration that you may go for months without payment while the buyer needs you to supply for all those months.
If you do not have enough funds, you then need to seek financial assistance from financial institutions. Besides capital, your capacity may include special skills, qualifications and experience.
Bank Statement
Part of the requirements are bank statements for a certain period, say three months, six months or even 12 months. The bank statements will help the buyer to assess your financial position. The bank statements have to be for the company you are submitting the tender for. If you are not using a business bank account, then you are not eligible.
Tax Clearance Certificate
This is the biggest nightmare, not only for small businesses but for every business when it comes to public procurement.
One of the key or main requirements for public tenders is a tax clearance which you can only obtain if you paid or made arrangements to pay all taxes with Eswatini Revenue Service (formerly SRA), and all your returns are up to date.
Labour Compliance Certificate
Another common requirement for public tenders is a Labour Compliance Certificate (LCC) which is obtained from the ministry of labour after you have met all the requirements.
You may need to engage a labour inspector to help you comply.
One of the requirements for a Labour Compliance Certificate is a Compliance Certificate from ENPF.
Basically, it means you need to be a registered employer for your business to participate in public tenders. Issuance of a LCC means meeting the requirements of employment and skills for the type of your business and the requirement of the tender.
Timely Submission
As a business person, you don’t need to be reminded that closing dates for submissions are important. Once you miss the deadline, you can longer submit your documents, even if you have everything that is required. When you obtain the tender document, paying attention to the closing date and how the submission has to be done is very crucial. You don’t need to work hard to get everything in place and then fail to submit.
Also ensure you have your checklist and that all is in place.
For feedback, comments or help in getting set for public tenders, contact me on 7662 6188 or 7992 9188 or email to [email protected]
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