Challenges of Government Business
It has been observed that businesses are generally scared of doing business with Government due to following reasons:
> Bid Security/ Earnest Money Deposit (Up to 5%)- A refundable deposit required to ensure offer is honored but leads to choking of cash flow for a duration of 3-6 months.
> Performance Security (Up to 10%) - A refundable security deposit required for ensuring that the given contract would be performed by the selected bidder called Contractor. This again leads to choking of cash flow for a duration of 3-6 months beyond warranty/ defect liability period.
> Procures from Pre-Registered Vendors - For certain kind of requirements, Government procures from Pre-Registered Vendors only. This initially is a challenge.
> Complex Eligibility Conditions - The eligibility conditions are complex and not easily understood. Businesses find it difficult to comprehend the same. Government follows certain stipulated guidelines to define the same.
> Vague Technical Specifications - The technical specifications for the required products/ solutions are vague and leads to ambiguities.
> Tender Documents - The tender documents are difficult to comprehend as they run in hundreds of pages and the conditions are repeated with lot of inconsistencies.
> Inexperience of Executing Government Contracts- Businesses many a times fail to execute the Government Contracts due to lack of understanding of documentation requirements.
While these challenges are big deterrence to do business with Government but with our approach we make it a Cake Walk for you.............To know how...Drop a line of which all challenges are faced by you...so that we can appropriately address the same with suitable solution....