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The Tender Adjudication committee usually does a risk analysis before awarding a tender.

Prior to being recommended for acceptance, a tender should be subjected to a risk analysis to ensure that it would, if accepted, not place the Government Entity or the bidder, at undue risk. The following features of the tender and the bidder should, inter alia, be considered:

  1. The tender price and it’s makeup.
  2. Unduly high individual rates.
  3. Unduly low rates.
  4. The bidder’s ability to obtain the required performance guarantee, if applicable.
  5. The bidders previous experience.
  6. The bidder’s total resources.
  7. The resources which the bidder could mobilize for the contract.
  8. The bidder’s current commitments/availability of key employees.
  9. The bidder’s history on previous similar contracts.
  10. Ability to supervise and control labour and, if required, to supply materials and provide plant/transport.
  11. Understanding of the scope of work required.
  12. Imbalances in pricing.

Interviewing bidders is the best way to perform the risk analysis.  Tenders may be overlooked if the price make up of portions of the work differ substantially from the estimated price and the bidder is unable to account for such discrepancies.

Eliminating the risk factors will help you to be more successful in your tender responses.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops and webinars. You can book online at https://howtotender.co.za/workshops/. Contact us at info@howtotender.co.za should you require more information. 

Remember:  We have various manuals and guides to assist you in the process of completing your tender documents.

  • The Tender Manual is a comprehensive, step by step guide how to respond to a South African Tender. It includes examples of completed SBD forms.
  • The Local Content Instruction Manual – completing Standard Bidding Document (SBD) 6.2 and Annexures C, D & E
  • The SBD Manual: Examples of completed Standard Bidding Documents.
  • Joint Venture (JV) agreement template
  • Tender 101: A beginner’s guide to tenders.
  • Tender Example: Cleaning Services.
  • Tender example: Once-off supply (with NO Functionality requirements)
  • Tender example: Once-off supply (WITH Functionality requirements)
  • Tender Example: NEC3 term contract

….. More info