As a general rule many private companies follow government
procurement models but with a couple of important deviations. These deviations are generally in the way
that private industry approach the market. On one hand, for the majority of
their tendering, Governments rely on an open public tendering process which allows the market to determine what is
a fair and reasonable price for the particular goods or services the Government Department requires. Private
organisations on the other hand will generally request prices from a select group of tenders or a select
The other deviation from the Government tendering model can be seen in
the tender evaluation process applied by private industry. Government evaluation procedures apply "value
for money" principle to the tender evaluation process. Private industry evaluation process, on the other hand
consider price as the most important evaluation criteria and any others secondary.
Having said that it is important to understand Private industry
tendering processes and in particular the mechanisms by which contractors are selected.
Pre-Registration is a process where the tenderer provides information on
their capacity, HSES processes, Quality Assurance, insurances among others, to pre-qualify as a
preferred tenderer. This process allows the principle to pre-select the companies that will receive
invitations to tender.
Expression of Interest
Many companies will request an "expression of interest" to a tender
process, this process will generally see an advert placed in the paper which calls for companies interested in a
particular project to express their interest in the project prior to receiving the tender documentation.
Invitation to Tender
Private tendering can also be by way of invitation to tender. An
invitation to tender can either be an open tender process where the company calling for the
tender will place an advert in the tender section of a newspaper requesting prices for a particular project.
Or alternatively, can be a direct invitation to a company that has previously contracted work for the
The tendering process that private companies use can be a combination of
different tendering processes to call for tenders. The important issue here is to ensure that you have
registered your interest in tendering for the particular project with the company that is calling for
the tender. It is very important that you contact the company calling for the tender to ensure that you
are eligible to tender on the project.
Remember, unsolicited tender responses may be
rejected by the company calling for the tender.