Imagine the field of tendering as an obstacle course fraught with hidden dangers that will cost valuable time and resources, money and possibly your reputation, not to mention the irritation and frustration associated with unnecessary delays, possible legal action and a compromised cash flow.

However, with a map of the course and a suggested route in hand, contractors can avoid these traps.

The ECA(SA)’s first free webinar, The Pitfalls of Tendering, was presented by Herman Kriel, MD of Brand Engineering SA on 25 April and his sage advice cleared the muddy waters and, in effect gave a ‘map’ to get contractors through the minefield of tendering in South Africa today.

In this 60-minute presentation, ‘The Pitfalls of Tendering’, Kriel examined the following definitions:

  • Tender submission – a poker game in which the losing hand wins.
  • Tender sum – a wild guess carried out to two decimal places.
  • Successful tenderer – a contractor who is wondering what he left out.
  • Completion date – the point at which liquidated damages begin.
  • Liquidated damages – a penalty for failing to achieve the impossible.
  • Subcontractor – a gambler who never gets to shuffle, cut or deal.

Kriel’s presentation also provided valuable information about:

  • General tender principles (size of project, etc).
  • Key tender principles (communication; application of rights; mutual fairness; control of debtors).
  • Tender information (specific conditions; contract variables; price basis; timeframe; design responsibility; and discrepancies).
  • Tender qualifications (definition of scope; payment terms; P&Gs; materials on site; tender validity; suppliers’ specific requirements; free issue equipment; insurance deductibles; hoisting, scaffolding and services; and participative cleaning);
  • Tender preliminaries (payment and adjustments).
  • Important tender terms (such as Waiver of Lien; cession; nominated or selected subcontractor; prime cost; and provisional sum).

This was the first in the first series of webinars and will be followed by ‘The Pitfalls of Project Administration’ and ‘The Pitfalls of Project Management’. The second series will see more detailed short courses being presented to participants.

This important first webinar is available online at: http://sluggvideos.co.za/videos/Webinar Recordings/Eca/Eca (sa) Presents The Pitfalls Of Tendering- 25th April.m4v


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