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Want to do business with govt? Go in with your eyes wide open, warns expert

29 January 2020 12:39 PM
Why do government tenders go sour? Procurement lawyer Dr Peter Volmink expands on the risks detailed in his online opinion piece.

"It has been said that the only thing that’s worse than losing a government tender in South Africa is winning the tender!"

That's how specialist procurement lawyer Dr Peter Volmink opens his opinion piece Is it safe to do business with government, published on fin24.com.

Stopping short of saying small businesses in particular embark on commercial transactions with government at their peril, he warns they should enter the tender fray with their eyes wide open.

RELATED: Secure that tender! Get that loan! A tool your business shouldn't do without…

"Unfortunately, there is no silver bullet to mitigate the risk of doing business with government completely."

Volmink sums up the essence of the article, while also issuing a disclaimer:

The experience of so many small businesses, and large businesses, is that once the initial jubilation has passed, you are dealing with government which is very often a tricky customer, a tricky client.

Dr Peter Volmink, Procurement lawyer

They could chop and change the contractual requirements, they don't pay on time, but even more troubling is they can pull the rug out from under you and cancel the contract for reasons of all kinds of technical non-compliance issues.

Dr Peter Volmink, Procurement lawyer

I don't think I'm suggesting that every contract concluded with government is going to end up as a bad experience and that no-one should ever consider submitting a bid to do business with government but there are real risks.

Dr Peter Volmink, Procurement lawyer

For more on the risks of doing business with government, listen to the conversation below:

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29 January 2020 12:39 PM

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