How to find and compare suppliers

1. Start with a clear brief

The best way to get comparable quotes is to describe the job the same way to everyone. A vague request gets vague prices that are impossible to compare. Before you contact anyone, write down:

• What you need done, in plain words, with measurements or quantities where you can
• Where the work or delivery will happen
• When you need it started and finished
• Your budget range, even a rough one
• Must-haves, such as a specific brand, a certificate of compliance, or work outside office hours
• Photos of the space, the problem or a sample of what you want

Send this same brief to every supplier. It saves time for both sides and makes quotes easier to compare.

2. Get at least three written quotes

Three quotes give you a feel for the fair price. If one is far cheaper than the others, find out why before you get excited. It often means something has been left out. A good quote should show:

• The scope of work, described in detail
• Materials, with brands or specifications and who supplies them
• Labour, and any call-out or travel fee
• Whether the price includes VAT. Only VAT-registered businesses may charge VAT, and their VAT number should be on the quote
• Start date and expected completion date
• Payment terms: deposit, stages and final payment
• Warranty or guarantee on the work and on the materials
• How long the quote is valid

3. Check the business is real and registered

A few minutes of checking can save you a lot of money. How much you check depends on the size of the job, but for anything beyond a small repair, work through this list.

• Company registration. Registered companies have a CIPC registration number. You can search a company name or number on the CIPC or BizPortal websites to confirm it exists and is active.
• VAT registration. If the supplier charges VAT, check the VAT number is valid using the VAT vendor search on SARS eFiling.
• Tax compliance. For larger business contracts, ask for a Tax Compliance Status PIN. You can verify it on SARS eFiling or the SARS online query system. Green means their tax affairs are in order at that moment.
• Trade registrations. Many trades must be registered by law. Ask for the registration number and check it with the relevant body.
• Insurance. For work on your property, ask whether they have public liability insurance in case something is damaged.
• B-BBEE status. If your business has procurement targets, ask for a B-BBEE certificate or sworn affidavit.

Common trade registrations to ask about:

• Electrical work: only a registered electrical contractor may issue an electrical Certificate of Compliance (CoC). You need a valid CoC when you sell or transfer a property, and after new electrical installations or alterations.
• Plumbing: ask whether the plumber is registered with the Plumbing Industry Registration Board (PIRB), which can issue plumbing certificates of compliance.
• Building a new home: home builders must be registered with the NHBRC, and the home enrolled before building starts.
• Construction contracts: contractors doing larger or public-sector work are graded on the CIDB register of contractors.
• Security services: security businesses and guards must be registered with PSIRA.

4. Check references and past work

• Ask for two or three recent customers you can call, and ask them whether the job was finished on time, on budget and to standard
• Look at photos of real jobs, not stock images
• Read reviews from completed jobs, especially how the business responded when something went wrong
• For goods, ask for a sample, or visit the premises or showroom for large orders
• Check that the business name, address and contact details are the same everywhere you see them

5. Put the agreement in writing

A short written agreement prevents most disputes. It can be a signed quote plus a few lines added by email, as long as both sides confirm it. Include:

1. The exact scope of work, with the quote attached
2. The total price and what it includes
3. Start and completion dates
4. Payment stages and what must be done before each payment
5. How changes (variations) will be priced and approved
6. Warranty on workmanship and materials
7. Who cleans up and removes rubble or packaging

6. Pay safely

• Pay in stages. A reasonable deposit for materials is normal. Full payment upfront is not.
• Pay the business, not a person. The bank account name should match the business name on the quote.
• Confirm banking details by phone using a number you already trust, before the first payment and any time the details “change”. Fake invoices with changed banking details are a common fraud.
• Get a receipt or invoice for every payment, even small ones.
• Pay the final amount only when the work is done and you have checked it, including any certificate of compliance.

Quick checklist before you accept a quote

• My brief was the same for every supplier
• I have at least three written quotes
• Each quote shows scope, materials, VAT, timeline, payment terms and warranty
• I have checked the company registration and VAT number
• I have checked any trade registration the job needs
• I have spoken to at least one past customer
• The agreement is in writing, with payment in stages
• I have confirmed the banking details by phone

Official sources and further reading

• CIPC company search: cipc.co.za and bizportal.gov.za
• SARS VAT vendor search and Tax Compliance Status verification: sars.gov.za
• Plumbing Industry Registration Board: pirb.co.za
• National Home Builders Registration Council: nhbrc.org.za
• Construction Industry Development Board: cidb.org.za
• Private Security Industry Regulatory Authority: psira.co.za
• National Consumer Commission: thencc.org.za

This guide is general information, not legal, tax or financial advice. Rules and fees change, so confirm details with the official body or a qualified adviser before you act.