16
BUSINESS AND TRAINING
Tendering for your first project as a plumbing subcontractor
By
Uwe Putlitz
As was explained in an earlier article , going it alone is not just a matter of ‘ I have bakkie and can now be a plumber ’. When entering the tendering process all ducks must be in a row !
Not just tendering , but running a proper business requires the same admin and ensuring one operates professionally :
Statutory compliance – Registration as a business with CIPC and SARS , bank accounts .
Staff registration as a plumber . Compulsory registration is not required but may become a requirement in the future .
Promoting your business – highlight any specialisations , for example , solar installations , heat pumps , experience in hospital systems .
Work identification – Identification of one or more potential projects through introductions or subscribe to public ‘ tender bulletins ’ issued by Organs of State , Local Authorities , or larger Private Sector companies ‘ collect ’ the tender documents ( Note - some may have to be purchased ).
Time to tender – Ensure you have an inventory of equipment and tools and charge out rates Ensure you have a register of own / contract staff and charge out rates . Create / update a record of costs / rates from previous projects as a guide . It takes time to tender – and to obtain prices from suppliers .
Preliminaries – Carefully scrutinise the tender documents : Check Preliminaries to ascertain what has been included , and more important , from your experience , what has not been included , is required , and costs money .
Health & Safety – Pay attention to the ‘ Health & Safety ’ section – compliance with the Covid-19 statutory requirements costs ( your ) money and time as fewer persons are allowed on site or working together so extending the construction period . Recent research in the UK suggests that projects may take about 20 % longer and cost up to 35 % more to include staggered working times , delayed delivery of materials and goods , additional transport costs , additional personal protection equipment , sanitisers , and staff facilities on site .
Trade bills of quantities – Carefully scrutinise the tender documents : Check trade bills to ascertain if specified items are readily available / must be imported / time to deliver / forex payment ( require an advance payment from the employer ), require handling / use of equipment to install and / or commission ( requiring disposable materials and / or access to utilities ), and more important , from your experience , what has not been included , is required , and costs money .
Programme – Confirm that the time to completion is realistic – note Covid-19 restrictions as well as imported items .
Project location – Consider the location of the project , access to site , safety of the site , appointment of local labour ( may be an employer requirement , unskilled , if not employed sometimes vandalise the works ), safe storage of materials and goods .
Design of the works – Review the design and note anything that , from your experience may not comply with regulations or be impractical , or a specified product may no longer be available – raise such matters with the project manager , engineer , or quantity surveyor before finalising your tender – remember that , on completion of the project , you may have to issue or instruct others to issue a certificate of compliance .
Risk assessment from your experience – undertake a risk assessment of the project and of items or tasks that could go wrong , and the possible consequences :
• Design and specification issues and adequacy of documentation provided .
• Site conditions , location , and access , surrounding settlements and safety .
• The Standard-form Contract to be used , any unilateral modifications ?
○ Should be an original hardcopy / e-document without alterations ; ( all alterations listed in appendix – tenderer can object if ‘ changes ’ are unfair for example , payment within 120 days !)
○ Some refer to extended defects liability period = maximum - 1 year
○ Check that non-payment by the employer to the contractor is not passed to the subcontractor – no relationship with employer
○ If employer is an Organ of State or state-owned company , some unique conditions may apply – check !
○ Ensure that the contract is signed – and that you have a complete copy of all contract documents .
www . plumbingafrica . co . za @ plumbingonline @ plumbingonline @ PlumbingAfricaOnline March 2022 Volume 28 I Number 1