The word “Tender”, if it comes in the ears of business people they know it has to do with competitive bidding process. Tenders they came in various forms for various jobs. The Government or Private companies can issue them.
In most African countries, for a company to be; recognised as a supplier, it has to be registered under the Procurement Regulatory Board of the Government. It is in that same platform where potential suppliers will see tenders available for bidding.
The proper channel for a company to be awarded a tender whether for a service or supply of goods must be through an open Bid process. Tender at times saves a company cost, as they will have a variety to choose from the bidders.
Usually lowest priced quotes or recommended companies are; usually awarded the tenders. Tenders, eliminates element of corruption, because if a job is said to been published to the public, it means there have removed an element of favouritism/nepotisms.
Tenders awarded based on nepotism; are usually highly priced, as many people might be involved in the corrupt deals requiring a token of appreciation.
China eliminated corruption, and it led to their economy to be one of the best in the world. Tenders if awarded to incompetent suppliers, it is bound to be costly to the issuer of the tender because of failure by the supplier.
A tender, comes in various media forms, through either a newspaper, or social media platform. Some elements of a tender include requesting for a site visit. Some they request for a Government certificate for the actual supplying category, they also have validity period, submitting procedure, via email or via ballot box. Some tenders request company documents such as CR6 and CR4 to confirm if there is no foul play of same people competing for the same tender via different companies.
Most of the tenders clearly state if a company is to be VAT registered and must include VAT if not its very important to show the BP number. Tax clearance is very important as supporting documents for a tender requirement.
No company wants to deal with a company that is not tax complaint. It is important to also note that, a tender has validity period where if passed, any bid after the bidding period is closed, it will no longer considered.