How to win tenders in Eastern Cape municipalities.

Finding tenders in Eastern Cape municipalities

To win tenders in Eastern Cape municipalities you must first register on the Central Supplier Database (CSD), get your compliance documents in order, and then watch the tender bulletins of the specific municipalities you want to work with. There is no single portal that lists every municipal tender in the Eastern Cape. Each municipality publishes its own bids on its website, notice boards and sometimes in local newspapers.

The Eastern Cape has two metropolitan municipalities, Buffalo City and Nelson Mandela Bay, plus several district municipalities such as OR Tambo, Chris Hani, Joe Gqabi, Alfred Nzo, Amathole and Sarah Baartman. Local municipalities under each district also advertise their own tenders. You need to check each one separately.

Step 1: Register your company properly

Before you can do any government work, your business must be legally registered. You register a company with the Companies and Intellectual Property Commission (CIPC). If you are a sole trader you can still do some work, but most municipalities prefer or require a registered company.

You also need a tax reference number from SARS. If your turnover is above the threshold set by SARS, you must be registered for VAT. Even if you are below the threshold, some municipalities will still ask for a VAT number, so check the specific tender requirements.

KAGO offers a Registration Basic service for R995 if you need help getting your company registered quickly and correctly.

Step 2: Register on the Central Supplier Database

The CSD is run by National Treasury. No municipality in the Eastern Cape can pay you if you are not on the CSD. You register online on the CSD website. You will need your company registration details, banking confirmation letter, and the ID numbers of your directors or owners.

Once registered, you get a CSD number and an MAAA number. You will use these numbers every time you respond to a tender. Keep your CSD profile updated. If your banking details or contact information change, update the CSD immediately.

Step 3: Get your compliance documents ready

Most Eastern Cape municipalities will ask for the same set of documents with every tender. These include:

1. CSD report or CSD summary
2. Tax Compliance Certificate from SARS
3. B-BBEE certificate or affidavit
4. Certified ID copies of directors
5. Company registration documents from CIPC
6. Recent municipal rates and utilities account (if you own property)
7. Lease agreement or proof of address (if you rent)
8. Letter of authority if someone else signs on behalf of the company

If you are a black-owned business with a turnover below a certain threshold, you can use a sworn affidavit instead of paying for a B-BBEE certificate. Read the exact threshold rules on the B-BBEE certificates issued by verification agencies or check with SEDA.

KAGO sells a Compliance Kit for R2,495, which helps you pull together the standard documents municipalities ask for.

Step 4: Find the actual tenders

There is no central Eastern Cape tender portal. You must check each municipality individually. Here is where to look:

• The official website of the municipality
• The notice board at the municipal offices
• Local newspapers such as Daily Dispatch and Herald
• The National Treasury eTenders website, which sometimes lists municipal bids
• The municipality's supply chain office, where you can ask to be added to their supplier database for smaller quotes

For Buffalo City Metro, check the Buffalo City Metropolitan Municipality website under the Supply Chain Management section. For Nelson Mandela Bay, check the Nelson Mandela Bay Municipality website. For district and local municipalities, search for the specific municipality name plus the word tenders.

Step 5: Read the bid document carefully

When you find a tender you want to bid for, download or collect the bid document. Read it from start to finish before you do anything else. The document will tell you:

• What the municipality wants to buy
• The compulsory briefing session date and venue
• The closing date and time
• The returnable documents you must submit
• The evaluation criteria, including price and B-BBEE points
• Any specific requirements such as CIDB grading

If there is a compulsory briefing session, you must attend. If you miss it, your bid will be disqualified. Arrive early and sign the attendance register.

Step 6: Prepare your pricing and B-BBEE score

Municipal tenders are usually evaluated on two main things: price and B-BBEE. The lower your price, the more points you get. The higher your B-BBEE level, the more points you get. A Level 1 contributor gets the most B-BBEE points. A Level 8 gets the least.

Do not underprice your work just to win. If you cannot deliver at the price you quote, you will fail the contract and be reported. This can ruin your chances of getting future tenders.

If your business is in a sector that requires Construction Industry Development Board (CIDB) grading, such as building or road works, make sure you have the correct CIDB grade before you bid. Without it, your bid will not be considered.

Step 7: Submit before the closing date

Late submissions are not accepted. Not even one minute late. Check the closing date and time on the bid document. Submit your bid in the exact format requested, usually in a sealed envelope with the bid number and name of your company written on the outside. Drop it in the tender box at the municipal offices before closing time.

Keep a copy of everything you submit. If there is a query later, you will need proof of what you handed in.

Common mistakes to avoid

Many first-time bidders lose tenders because of simple mistakes. These include:

• Missing the compulsory briefing session
• Submitting expired tax clearance or B-BBEE certificates
• Forgetting to sign the bid declaration forms
• Not providing proof of CSD registration
• Pricing too low and then failing to deliver
• Not having the right CIDB grading for construction work

Check your documents twice before you submit. If you can, ask someone else to check them for you.

How KAGO can help

KAGO does not promise or guarantee that you will win any tender. The funder or the municipality always decides. What KAGO does is help you become tender-ready. We can register your company, build your company profile, prepare your compliance pack, and write a business plan if the municipality asks for one as part of a bigger bid.

If you are starting from scratch, the KAGO Complete package at R7,995 includes company registration, a business plan, a financial plan, a company profile, a logo and a compliance kit. This covers most of what a municipality will ask for in a tender pack.

If you only need help with compliance documents, the Compliance Kit at R2,495 is a good starting point.

Final point

Winning tenders in Eastern Cape municipalities is about being prepared and being consistent. You will probably not win your first bid. Keep applying, keep your documents updated, and keep checking the municipal websites. The businesses that win repeatedly are the ones that show up every time with a complete and correct bid.

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