What is Tendering or Bidding?
Tendering or bidding is a process used to select a supplier or contractor for a specific project or service. It’s a competitive process where multiple parties submit proposals or bids for the work. The goal is to find the best value for the money, considering factors like price, quality, and experience.
How Does It Work?
- Invitation to Tender: The entity seeking the goods or services (e.g., government agency, private company) issues a public or private invitation to tender.
- Submission of Bids: Interested suppliers or contractors submit their bids, which typically include:
- Price: The cost of providing the goods or services.
- Technical Proposal: A description of how the bidder will fulfill the requirements.
- References: Evidence of previous work or experience.
- Evaluation of Bids: A committee or panel evaluates the bids based on predetermined criteria.
- Award of Contract: The highest-scoring bid or the lowest-priced bid in certain cases is typically awarded the contract.
Why Use Tendering?
- Fairness: Ensures that all qualified suppliers have an equal opportunity to compete.
- Transparency: Increases accountability and reduces the risk of corruption.
- Cost-Effectiveness: Helps to secure the best value for money.
- Competition: Stimulates innovation and efficiency among suppliers.
Common Examples of Tendering:
- Government Contracts: Roads, bridges, public buildings, and infrastructure projects.
- Private Sector Procurement: Large-scale purchases, IT services, and construction projects.
- Non-Profit Organizations: Procurement of goods and services for their programs.
Tendering or Bidding in Zimbabwe.
The tendering process in Zimbabwe is overseen by the Procurement Regulation Authority of Zimbabwe ( PRAZ). Businesses interested in bidding should be registered with PRAZ among other general requirements below.
General Requirements
- Registered with PRAZ
- Vendor Number
- Registered with NSSA (NSSA Certificate a requirement)
- Registered with ZIMRA (Tax Clearance a must)
- Registered with Company Registrar and Deeds ( Certificate of Incorporation, CR6)
- Company profile
- At least two contactable references
Other Requirements.
They may be other requirements, depending with nature and industry of the government body offering the tender.
- Vendor Number
- Registration with Motor Industry (if you are supplying vehicles)
- Registration with Ministry of Transport and Infrastructure development ( supply of vehicles)
- Registration with Ministry of Industry and Commerce
