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Government & State Tenders
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As the global recession makes its mark on South
Africa and the rest of the world, an increasing number of small businesses are suffering
as a result of loss of business opportunities. Government work and state tenders
offer a lucrative source of income and potential opportunities – especially for
small and medium business holders. State contracts also give rise to the formation
of sustainable business, creating employment opportunities for many, and assisting
many small businesses during these tough financial times. By following a few basic
guidelines and understanding how the
procurement process works with regards to government tenders, businesses
are able to vastly benefit from tenders such as these.
State contracts vary across a wide number of provinces,
districts and areas, with a large number of industries including SAPS, hospitals,
schools, healthcare facilities, administrative offices or facilities, construction
and many other sectors. Government tenders work much like tenders in the private
sector; however procurement policies and contract terms may differ due to government
administrative systems. Payment times, for example can differ substantially, with
some contracts paid up to eight weeks after invoice instead of the typical 30 day
period common with private sector contracts. This can cause financial setbacks for
SMME (small and medium enterprises) who are relying on a lucrative contract
and have to put up funds upfront to complete a project.
This is why it is always best to fully understand procurement policies before submitting
a tender, to ensure that you are completely aware of any specific terms or contract
payment policies that could affect your business.
Another important factor to consider when submitting
tenders for state contracts is the fact that the ‘preferred
tender supplier’ aspect does not always apply to government projects. The
aim of government tenders is to create opportunities for an even greater number
of SMME’s, and often tenders are granted to one supplier for a project, and then
granted to another supplier for the next project. Despite this, state tenders are highly rewarding, and
can offer a considerable financial benefit for small businesses. Sustainable business
is also created, with increased employment opportunities for both skilled and unskilled
workers. Browse Online Tender’s comprehensive listing of current tenders in South
Africa and find the government contract that best suits your business.
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