What is Compliance?

Understanding what tender compliance is and why its important.

Ever heard of 80/20 or 90/10 on tenders? This is a tender weighting consideration that looks at Pricing and Compliance as a way to determine the successful tenderer. Basically the tender is split into two important components, Price and Compliance. 


This post will break down Compliace.


What is Compliance?

Compliance is a very critical component of the tender success journey it ensures the first step of the tender puzzle is completed.

The Compliance part looks at:


  1. CIPC: Is your company active and all returns paid?
  2.  SARS: Is the company in good standing with the South African Revenue Services?
  3. BBBEE: Is the company legible to claim preferential points such as Black Owned, Youth Owned or Women Owned?
  4. Registrations: CSD, CIDB, COID - Are the required registrations in place?

Once this critical step is confirmed the tender moves on to the next stage which is pricing and the rest of the tenders are set aside as non-compliant or nonresponsive. This means the end of the road. After all the stress of preparing a tender submission!


How do you prepare for your Compliance?


The best way to prepare your documents is to create an annual and quarterly check of your company documents.


Annual: This is for your CIPC Returns (due every creation day of the company), SARS Returns (every end of Financial year, mostly end of February), COID Submissions (due every March 1st new Finacial year) and BBBEE (valid for 12 months).


The best time is to prepare all your documents for the new Finacial year (March 1st). So by February, all your documents should be updated.


Quarterly: This is for ensuring your VAT Returns (every two months), CSD (most tenders require Reports not older than 30 days), SARS (ensure all compliance is up to date) and CIDB (based on expiry date).


The best time is to redownload new certificates every quarter. 


Most tenders require documents to be active at the time of submission and valid at the time of adjudication. So ensuring you keep your documents prepared and up to date at all times will increase your chances of your tender moving on to the next step of the tender adjudication stage.


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