Tender Process Steps In South Africa: A Step-By-Step Guide For SMEs

If you’re an SME or supplier in South Africa, tenders can be a predictable pipeline of work, if you know the rules of the game. The challenge? The tender process steps in South Africa can feel complex, with acronyms, mandatory forms, and strict deadlines. This guide breaks everything down into plain language so you can find the right opportunities, prepare your documents, and submit a compliant bid that’s actually competitive. You’ll get practical examples, recent trends, and checklists you can apply today.

Whether you’re quoting for a municipal supply contract, a construction project, or a private-sector RFP, the core principles are similar: readiness, responsiveness, and value. Let’s map the landscape, then walk the process from notice to award, so you can move with confidence.

Understanding The South African Tender Landscape

Public Vs Private Tenders

Public tenders are issued by national departments, provinces, municipalities, state-owned companies, public entities, and universities. These follow statutory rules to ensure fairness and value-for-money. Processes are formal, timelines are strict, and evaluation is transparent (at least on paper). Expect compulsory briefings, standard forms, and preferences under B-BBEE and local content where designated.

Private tenders (or RFPs) are issued by corporates, mines, banks, and large developers. They’re often faster, may allow more negotiation, and can be relationship-driven. You still need compliance documentation, but criteria and timelines can be more flexible.

Practical example: A municipality might publish an RFT to supply 2,000 LED streetlights with specified SABS standards and an 80/20 evaluation. A private developer may issue an RFP for “lighting design and supply” where innovation, delivery speed, and references carry more weight than B-BBEE points.

Key Laws And Policies (PFMA, MFMA, PPPFA, B-BBEE)

PFMA and Treasury Regulations: Govern national and provincial procurement. Expect SBD forms.
MFMA and Municipal SCM Regulations: Govern municipalities and municipal entities. Expect MBD forms.
Preferential Procurement Policy Framework Act (PPPFA) and Regulations: Set the 80/20 and 90/10 price–preference systems and allow for local content designations.
B-BBEE Act and Codes: Determine your B-BBEE level. EMEs (turnover ≤ R10m) and many QSEs (R10m–R50m) can use sworn affidavits: larger entities need verification certificates.
CIDB Act and Regulations: Cover graded construction works.

Tip: Always read the organ of state’s Supply Chain Management (SCM) policy. It ties the above to their internal procedures (like objection periods and delivery rules).

Common Solicitation Formats (RFQ, RFP, RFT, EOI)

RFQ (Request for Quotation): Lower values, simplified specs, best price among compliant quotes.
RFP (Request for Proposal): Emphasis on solution, methodology, and capability alongside price.
RFT/ITB (Request for Tender/Invitation to Bid): Formal, detailed specifications and strict compliance.
EOI (Expression of Interest): Market sounding to shortlist suppliers for a later RFP/RFT.

You’ll sometimes see “open tender,” “panel establishment,” or “framework agreement.” For SMEs, panels can be gold, one bid gets you on a multi-year roster of work.

Prequalification: What To Put In Place Before You Bid

Register On The Central Supplier Database (CSD)

CSD registration is mandatory for most public contracts. Your CSD profile verifies basics like company details, directors, bank account, tax status, and government restrictions. Keep it active and synced with your SARS tax status. Many organs of state will only pay to bank accounts validated on CSD.

Action steps:

Register on the National Treasury CSD.
Verify directors on CIPC and ensure they match SARS records.
Keep contact details current, bid clarifications often go to the CSD email.

Get Compliance Documents (Tax, B-BBEE, COIDA, UIF, CIDB)

SARS tax compliance PIN: Must show “Compliant” at time of evaluation.
B-BBEE: EME/QSE affidavit or certificate, aligned to your latest financial year.
COIDA Letter of Good Standing: Required for work involving labor and site activity.
UIF registration (and PAYE, SDL if applicable): Demonstrates statutory compliance.
CIDB grading (construction works): Match the class (e.g., CE, GB) and grade to the tender value. For example, a 5CE may not be eligible for a 7CE contract.
Sector permits/registrations: PSIRA (security), NRCS (regulated products), SANAS accreditations (testing), SACPCMP/SACQSP professional registrations where required.

Pro tip: Create a compliance pack PDF with labeled bookmarks so evaluators can navigate quickly. It subtly increases perception of professionalism.

Build Capability Proof (Track Record, Team, Equipment, References)

Evaluators look for evidence you can do the job:

Track record: 3–5 relevant projects with values, dates, client contacts, outcomes.
Team CVs: Show certifications, roles, and availability. Avoid generic CVs, align to the scope.
Equipment lists: Owned/leased with proof (e.g., lease agreements), maintenance records for plant.
References: Signed, on letterhead, with phone numbers that actually work.
Quality systems: Even a simple QA plan, safety file templates, or ISO certificates help.

Recent trend: Organs of state increasingly ask for sustainability and social value plans (local jobs, youth training, waste reduction). Bake this into your standard bid pack.

Where To Find Tenders And How To Read Notices

National Treasury eTender, Municipal Portals, And Industry Boards

National Treasury eTender portal: Central listing for many national, provincial, and entity tenders. Use alerts and filters by province, category, and closing date.
Municipal portals: Check your local municipality’s SCM page or portals like Municipal Money to find links. Some metros run their own systems.
SOEs and universities: Eskom, Transnet, PRASA, SANRAL, ACSA, DBSA, and universities publish on their sites and sometimes on eTender too.
Industry boards: CIDB i.Tender for construction, Mining industry portals, and sector associations often share opportunities.
Private sector: Company supplier portals (mines, banks), procurement platforms, and LinkedIn postings.

Decoding The Advert: Eligibility, Briefings, And Closing Rules

When you open a notice, scan for:

Eligibility: CIDB grades, OEM status, local presence, minimum experience, designated groups.
Compulsory briefing/site meeting: Date, venue/Teams link, attendance register rules. Miss this and you’re out.
Closing date/time: South African Standard Time, often 11:00 or 12:00. Late = non-responsive.
Submission method: Physical box vs electronic portal: number of copies: flash drives: labeling.
Evaluation method: Functionality thresholds, 80/20 or 90/10 preference, local content.
Contact window: Where to submit clarification questions and by when.

Mini-check: If three or more items above look risky (e.g., wrong CIDB grade, impossible delivery time), don’t bid, save resources for winnable work.

The Tender Process: Step-By-Step From Notice To Submission

Step 1: Download Bid Documents And Attend Compulsory Briefings

Pull every file: main RFT, specifications, drawings, BOQ, SBD/MBD forms, returnable schedules, and addenda. Create a folder with a version log. If there’s a compulsory briefing, diarize it with travel buffer. Arrive early, sign the register, and ask smart clarification questions. If addenda are issued afterward, acknowledge them in your submission.

Step 2: Go/No-Go Decision Using A Bid Readiness Checklist

Score yourself against mandatory requirements, functionality criteria, and delivery risk. Typical checklist items:

Eligibility: CIDB grade, OEM/agent status, certifications.
Capacity: Stock, plant, team availability, cash flow.
Compliance: CSD, tax PIN, COIDA, B-BBEE, forms.
Competitive edge: Unique value (warranty, local footprint, turnaround time).

If you can’t hit 80% confidence on responsiveness and functionality, it’s a No-Go.

Step 3: Craft The Technical Response Aligned To Specifications

Mirror the structure of the specification. Use the client’s headings and numbering so evaluators can tick off requirements fast.

Methodology: Step-by-step approach, timelines, milestones, risks and mitigations.
Team: Roles, CVs, professional registrations, organogram, availability declarations.
Experience: Project summaries with outcomes tied to the current scope.
Quality, Safety, Environment: QA/QC plan, safety file approach, legal compliance, waste plan.
Social value: Local SMME participation, skills transfer, enterprise development.

Practical example: If the spec calls for “response within 4 hours, resolution within 24 hours,” include a service model with an on-call roster, spares holding, and escalation path. Don’t just say “we’ll respond quickly.”

Step 4: Price The Bid And Complete The BOQ Correctly

Price is king, after you pass functionality. Do a bottom-up estimate:

Quantities: Verify BOQ arithmetic: query obvious errors during clarification window.
Inputs: Labor, materials, plant, overhead, risk allowance, escalation assumptions.
Delivery: Transport, fuel, site establishment, security, permits, testing.
Warranty and spares: Price what’s required for life-cycle costs.
Exchange rates: If importing, set assumptions and hedge if necessary.

Fill the BOQ exactly as instructed, no extra lines unless the form allows. Check VAT rules (usually price inclusive of VAT for total). Round consistently. A math mistake can cost points or render you non-responsive.

Step 5: Complete Standard Forms (SBD/MBD) And Declarations

These are mandatory and often cause disqualifications if incomplete.

SBD/MBD 1: Invitation to bid, acceptance of terms.
SBD/MBD 4: Declaration of interest (conflicts).
SBD/MBD 6.1: Preference points claim (B-BBEE). Attach affidavit/certificate.
SBD/MBD 6.2: Local content declaration where designated. Include Annexures C, D, and E with supporting manufacturer letters.
SBD/MBD 8 and 9: Past practices and fronting/collusive tendering declarations.
CSD summary and tax PIN.

Step 6: Package And Submit (Physical Or Electronic) On Time

Physical: Bind neatly, label envelopes with bid number, description, closing date and your company details. Include original and required copies. Use a time buffer for traffic and security at buildings.
Electronic: Upload early: large files take time. Confirm correct file formats and portal receipt. Keep screenshots of submission confirmation.
Addenda: Ensure you’ve included revised pages and acknowledged addenda.

Internal drill: Do a final compliance check using a two-person review the day before closing. Late or incomplete submissions are summarily disqualified.

How Bids Are Evaluated And Scored

Responsiveness Checks And Mandatory Requirements

First gate: did you follow the rules? Evaluators check attendance at compulsory briefings, signed forms, tax compliance, CSD registration, correct envelopes or portal uploads, and whether all mandatory returnables are present. One missing form can end your bid.

Functionality Thresholds And Evidence Requirements

Next, they assess technical merit against published criteria. Common weights include methodology, experience, team, equipment, and project plan. There’s usually a minimum functionality threshold (e.g., 70/100). If you don’t meet it, price and preference aren’t even considered. Evidence matters: attach signed references, CVs with certificates, and proof of equipment.

Price And Preference Points (80/20, 90/10) And Local Content

Compliant bids move to price–preference scoring under PPPFA:

80/20: For lower-value bids (commonly up to R50 million). 80 points for price, 20 for B-BBEE level.
90/10: For higher-value bids. 90 for price, 10 for B-BBEE.

Local content: For designated sectors (e.g., buses, transformers, PPE items, valves, power pylons, certain textiles), minimum local production thresholds apply. You must submit SABS Annexures C, D, and E and supporting letters. If you can’t meet the threshold, you’ll be ruled non-responsive unless exemptions are granted.

Pricing tip: If functionality is tight among competitors, a 1–2% price edge can swing the award under 80/20. Revisit logistics and supplier quotes to shave legitimate costs.

Adjudication, Award Decisions, And Objection Periods

After scoring, the Bid Adjudication Committee (BAC) confirms the recommendation. Awards are published on the portal or website. Most organs of state allow an objection period (often 5–14 working days). If you intend to challenge, act quickly and follow the stated process. Otherwise, contracting starts.

Special Cases And Practical Nuances

Construction Tenders, CIDB Grades, And Site Conditions

Construction is tightly regulated. You must have the correct CIDB class and grade. Site conditions influence risk: access, live services, weather windows, and community dynamics. Always attend site briefings and measure. Include allowances for site establishment, safety, traffic management, testing labs, and as-builts. For professional services (engineers, QS, architects), SACPCMP/SACQSP or relevant council registrations may be compulsory.

Recent trend: More emphasis on health and safety competence, environmental method statements, and community participation plans to minimize disruptions.

Subcontracting Rules And Designated Sectors

Some tenders mandate subcontracting a portion to EMEs/QSEs or local SMMEs. Document your approach, list intended partners, and include letters of intent. In designated sectors with local content, ensure your subs also comply with thresholds, evaluator findings extend to your supply chain.

Joint Ventures, Consortiums, And Use Of Subcontractors

JVs/consortiums can help you meet capability or grade requirements. Provide a signed JV agreement covering profit share, leadership, and liability. Submit consolidated B-BBEE certificates or a JV affidavit as instructed. For subcontractors, include capability proof and clear scope splits to avoid duplicate pricing.

Practical example: A 6CE contractor teams with a 4CE for a 7CE tender under a JV, pooling plant and experience. They submit combined references and a JV B-BBEE affidavit aligned to the rules.

Private Sector RFPs Vs Government Tenders

Private RFPs may request pricing options (base + alternates), proof-of-concept demos, and site pilots. NDAs are common. Payment terms can be negotiable (but beware of extended terms). You’ll have more room to propose innovations, use it to differentiate on outcomes, not just inputs.

After Award Or Loss: Contracts, Delivery, Payment, And Debriefs

Contracting, SLAs, Performance Security, And KPIs

Read the contract carefully, GCC, NEC, JBCC, or the organ’s standard terms. Clarify service levels (uptime, response), liquidated damages, penalties, retention, and performance bonds/guarantees if required. Ensure your insurance cover (public liability, professional indemnity, CAR) matches contract levels.

Mobilization, Delivery, Quality Control, And Variations

Mobilize a project kickoff within days. Share a delivery plan, contact tree, and reporting cadence. Carry out quality checks (incoming inspection, factory acceptance tests, site QA checklists). For changes, insist on written instructions and approved variation orders before doing extra work. Keep photographs and site diaries.

Purchase Orders, Invoicing, And Payment Timelines

No PO, no work, unless explicitly authorized. Reference the PO number on all invoices. Submit delivery notes, timesheets, test certificates, and completion sign-offs. Under PFMA/MFMA frameworks, government entities are expected to pay within 30 days of receiving a valid invoice and all supporting documents. Track due dates and escalate before cash flow becomes a problem.

Requesting Reasons, Objections/Reviews, And Lessons Learned

Didn’t win? Request written reasons within the stated window and politely ask for a debrief. If you believe there was a scoring error or procedural flaw, lodge an objection within the published period and follow the SCM policy. Whether you win or lose, conduct a post-bid review: what worked, what to fix, and which references to collect for next time.

Compliance, Ethics, And Risk Management

Anti-Corruption, Fronting, And Conflict Of Interest

Never offer inducements or collude on pricing. Declare any relationships with officials. Fronting is illegal and severely penalized, your B-BBEE profile must reflect real ownership and control. If something feels off (e.g., “gatekeepers” offering to influence awards), walk away and report via proper channels.

Document Control, Confidentiality, And Data Management

Adopt a version-controlled folder structure. Lock final PDFs, and watermark confidential sections when allowed. Keep supplier quotes, rate build-ups, and correspondence organized for audits. For electronic submissions, double-check file sizes and naming conventions.

Common Pitfalls And How To Avoid Disqualification

Missing compulsory briefing or late submission.
Unsigned or incorrectly completed SBD/MBD forms.
Tax status non-compliant on evaluation day.
Ignoring local content annexures in designated sectors.
BOQ arithmetic mistakes or altering the structure of the pricing schedule.
Overpromising capabilities without proof.

Quick win: Create a master compliance checklist you reuse for every bid. It’s boring, and it saves bids.

Conclusion

Mastering the tender process steps in South Africa isn’t about luck. It’s about disciplined readiness (CSD, compliance pack, references), smart opportunity selection, and a submission that mirrors the client’s specification while proving you offer the best value-for-money. Start small, build a track record, and scale into bigger work with JVs or panels when it makes sense.

If you’re serious about turning tenders into revenue, the next step is simple: find the right opportunities consistently. Visit eTender SA to access verified tenders, set alerts, and move faster on the bids you can win.

Frequently Asked Questions

What are the tender process steps in South Africa?

Typical tender process steps in South Africa are: find opportunities (eTender, municipal/SOE portals), download bid pack and attend compulsory briefing, make a go/no-go decision, craft the technical response, price and complete the BOQ, fill SBD/MBD forms, package and submit on time, then await evaluation, adjudication, award, and objection period.

How does the 80/20 vs 90/10 preference system affect pricing and B-BBEE points?

Under PPPFA, lower-value bids use 80/20 (80 price, 20 B-BBEE), higher-value bids use 90/10. Once you meet functionality thresholds, the lowest evaluated price scores most points. A 1–2% price edge can swing results under 80/20, so sharpen logistics, supplier quotes, and remove non-essential costs.

Do I need to register on the Central Supplier Database (CSD) before bidding?

Yes. CSD registration is mandatory for most public tenders. It verifies your company, directors, bank account, and SARS tax status. Keep details current, as clarifications often go to the CSD email. Many entities only pay to bank accounts validated on CSD, so ensure continuous compliance and active status.

Which forms and documents are mandatory for a compliant government bid?

Expect SBD/MBD forms (1, 4, 6.1, 6.2 where applicable, 8, 9), CSD summary, tax compliance PIN, B-BBEE affidavit/certificate, and any local content annexures (C, D, E). Add CVs, references, proof of equipment, and CIDB grading for construction. Sign where required, initial pages, and acknowledge all addenda.

How long do tender process steps in South Africa usually take from advert to award?

Timeframes vary. Many open tenders run 4–8 weeks from advert to closing, then 4–12 weeks for evaluation, adjudication, and award, depending on complexity and approval cycles. Add possible objection periods of 5–14 working days. Always plan bid work early and expect longer cycles for large, multi-stage procurements.

Can foreign companies bid in South African tenders, and what should they prepare?

Yes. Foreign bidders can participate, but should register on the CSD, align tax compliance (per Treasury/SARS guidance), and meet all mandatory criteria, including local content where designated. For construction, CIDB grading or a JV with an appropriately graded local partner is often required. Factor exchange rates and import lead times in pricing.