A tender is an invitation to bid for a project or accept a formal offer such as a takeover bid. Tendering usually refers to the process whereby governments and financial institutions invite bids for large projects that must be submitted within a finite deadline.
A business tender is an offer to do work or supply goods at a fixed price. The tender or bid process is designed to ensure that the work to be done is given out in a fair way.
How do you apply for a tender in Kenya?
Trying to make a bit of extra cash in Nairobi? there’s one big way to do so and if you truly believe the system can empower you then see these steps. It is important to know how to apply for a tender in Kenya since this process is the most important for any business in the country.
Owning a company is the surest route to wealth, but without having right connections and knowing how to attract business to your side, your firm may stagnate for as long as you are not strategic enough. Winning a tender is a huge milestone as far as business success is concerned. But what exactly do you need in order to win a tender? Below is the best procedure of applying for a Tender in Kenya.
1. Have a registered business
First ensure you own a registered business entity which is tax compliant and has physical offices. The best company to register in Kenya for tendering is either a partnership or limited company.
2. Have the needed documents
Once a tender has been advertised on News Papers and company websites, make sure you have all the required documents, from the respective companies, and fill the details required as per instructions. Remember to pay attention to details because if you miss to fill a section, your application will be rejected outright.
3. Ensure you’re registered within a certain body
Some contracts may require registration with bodies such as NEMA, National Construction Authority (NCA) for constructions, Energy Regulation Commission (ERC) for electrical contracts and works, The Engineers Board of Kenya (EBK).This will however depend on the field your company operates from. If you have applied for a tender involving Environmental Impact Assessment then you must be registered with NEMA.
4. Make sure you’ve complied with all statutory requirements
Statutory requirement for tender application are Business registration certificate, PIN certificate, Business permit, Tax compliance certificate and filled tender document. If you bought a tender, you must attach a copy of the receipt.
5. Find the optimal value for the tender
The most important point to note is that most companies award tenders for the lowest bidders. Before you quote a figure, ensure you have done your background research to determine the optimal value of the tender.
6. Finally…..
Finally, ensure you return fully filled application, accompanied with copies of Business registration certificate, PIN certificate, Business permit, Tax compliance certificate and technical and financial proposals.
How do I start a tender business in Kenya?
According to the tendering law in Kenya, tendering procedure needs a prequalification stage, in this stage the procuring officers lists all the potential suppliers of a certain good or service, they will select some firms then invite them to express their expression of interest.