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Getting Contracts in Nigeria

Getting Contracts in Nigeria

It is generally believed in Nigeria that it is not possible to successfully get and win contracts from the government and private sector without necessarily needing a connection to pull it off.

It is not entirely true, because you can get and win contracts even if you do not have that connection. What you need is to know the relevant procedure and be prepared fully in order to increase your chances.

Winning contracts often lead to making significant profits which are difficult to replicate anywhere else. Contracts are being awarded almost daily at different levels of government and by the private sector. There are 774 LGA in 36 states and the FCT. So contracts worth billions of Naira are awarded regularly. 

They are awarded by the government and different organizations for numerous procurements, maintenance, development, and other special projects.

There will of course be much competition as many agencies and individuals will be bidding to win these contracts. It is therefore very important for you to be equipped with the required knowledge and information that can enable you to beat off other competitors.

Types of Contract you can get from the Government and big Companies

There are different types of contracts you can get from the government and big companies but they will be discussed under the two categories below.

Major Contractors

These types of contracts are mainly for big companies and multinationals. This sector is mostly dominated by foreign multinational companies. These categories of contractors handle the following contracts.

Civil and Building Engineering: this category of contractors have to do with major constructions such as major brides, federal and state roads, oil refineries, hydro-electric power station, major government building, construction of dams, and construction of stadium.

Technical Consultancy: this category provides consultancy on different areas such as engineering simulation, structural integrity, engineering test rigs and trials, laboratory analysis, thermal hydraulics, human factors, remote operations and inspection, corrosion, measurement, noise, and computational fluid dynamic (CFD).

Supplies and Finance: this has to do with the management and securing of finance of projects. It is an important and critical aspect of contracts that is required to be handled by the experts in finance management sectors.

The Sub-contractors

The Subcontractors are the local independent contractors who handle some parts of the major contracts won by the major contractors. They can be regarded as contractors to big companies because the big companies get major contracts from the government, and the sub-contractors in turn, get some portion of the major contracts from the big companies. The sub-contractors can be in charge of supplying materials and equipment to the major contractors. 

Eligibility

For you to be able to bid for contracts from the Government and large organizations there are certain conditions you are expected to meet before you are deemed eligible.

1. Statutory Requirements

(a). You need to have evidence of Incorporation of your company with the Corporate Affairs Commission (CAC) with updated annual returns, Article of Association: From C02 & Form C07.

(b). Evidence of fulfilling Tax obligations involving the following documents

Updated Tax Clearance Certificate (TCC) for the last 3 years, Tax Identification Number (TIN), and VAT registration certificate.

An audited account of your company for the last 3 years and it must be duly endorsed by a firm of Professional Accountants.

Evidence of financial capacity to execute the contract, this includes a statement of account or turnover and a reference letter from your bank.

(c). you will present evidence of inclusion in the PENCOM register.

(d). you will also present a certificate of compliance, which is evidence of fulfillment of statutory to the Industrial Training Fund.

(e). A sworn affidavit from the court in conformance with section 6 of the procurement Act 2007.

(f). A letter authorizing the Authority to conduct Due Diligence on all the documents submitted by your company in other to confirm the genuineness of all the documents you submitted.

2. Technical Requirements

(a). you will provide evidence of work experience as the main contractor that is executing or having executed a minimum of 4 similar projects which must have been within the last 3 years. This should also be accompanied by photocopies of award letters and an interim certificates of valuation if you have any ongoing project or certificate of completion if the project is completed already. All certificates should be enclosed together.

(b). Evidence of personal holding of at least 4 relevant professionals, stating your roles, experience, and designation.

(c). Evidence of possession of relevant machinery and equipment is required to be provided where applicable and depending on the nature of the contract.

(d). You will also provide a well-crafted methodology for the project implementation. This should include a summary of your company’s operational capabilities and a clear plan of how you intend to execute the contract.

How to start Getting Contracts in Nigeria

To start getting contracts in Nigeria, there are steps you need to follow so that you don’t make mistakes.  Below are steps that serve as a guideline for you to follow:

1. Research the company

You should research companies within your market and specialty regularly. This way, you will be able to know when any company is in need of your services. Find relevant information for all the area business buildings, contact their facilities manager, and list the contracts that involve the services you can provide.

2. Call the Procurement manager

Call the procurement manager for the companies you qualify as a potential contractor. Ask if they are in need of a contractor or if you will need to place your bid and also request they include your company on their list.

3. Request Detailed Information

You should also request detailed information on the company’s procurement process and bid requirement. Submit all the relevant documents which they can use to verify and validate your company as a good choice to get contracted.

4. Read the request for Bid Proposal

Ensure to read the request for bid proposal that you received from prospective businesses thoroughly. Get to know and understand every detail to increase your chances at a successful bid.

5. Start your bid process

You should begin submission of your bid with a summary of your company’s qualifications and why you should win the contract. Also, state how to intend to carry out the job. Make sure all forms are well-filled correctly and with the right information.

6. Calculate your Bid

Calculate all the expenses it will take to execute the contract and your profit margin. You should calculate it well so that you don’t try to bid so low that the contract will not be profitable.  Remember that there are other competitors, so you should not put a price that will scare them away.


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