Types Of Tenders In South Africa: A Practical Guide For SMEs And Suppliers

If you’re trying to understand the different types of tenders in South Africa, and how to actually win them, you’re in the right place. Tendering can feel like alphabet soup: RFQs, RFPs, EOIs, panels, transversal contracts…and then there’s B-BBEE points, local content, and CIDB grades. This guide breaks it all down in plain English for South African entrepreneurs, suppliers, and SMEs. You’ll learn how tendering works, where opportunities are published, what buyers look for, and the exact tender types you’ll encounter in the public and private sectors. We’ll include real examples, current rules, and practical moves you can make this month to increase your win rate.

How Tendering Works In South Africa

Public Vs. Private Procurement

South Africa has two broad procurement streams:

Public procurement (national, provincial, municipal, and state-owned entities): Governed primarily by the Constitution, PFMA/MFMA, and National Treasury instructions. Preferential points systems (80/20 or 90/10) and specific goals aligned with B-BBEE are applied under the Preferential Procurement Regulations, 2022. Public tenders are regulated, auditable, and must be fair, equitable, transparent, competitive, and cost-effective.
Private procurement (corporates, mines, banks, retailers, developers): Not bound by PFMA/MFMA, but they do follow internal policies and often mirror good practice. They may use prequalification, supplier panels, or invite-only processes more often.

In both spaces, the fundamentals are similar: clear specifications, due dates, evaluation criteria, and contract terms. Your job is to qualify quickly, prepare a compliant bid, and offer the best value-for-money solution.

Where Tenders Are Published And What You Need To Register

Where to find public opportunities:

National Treasury’s eTender Publication Portal (official). Some entities also post on their own websites and in newspapers.
Municipal portals and provincial tender bulletins (e.g., Gauteng, KZN, Western Cape).
Industry boards (CIDB for construction notices) and professional councils.
Aggregators like eTender SA that centralize verified tenders from multiple sources and add filters, alerts, and support.

Core registrations and compliance documents you’ll typically need:

CSD (Central Supplier Database) registration and MA number
SARS tax compliance (TCS PIN)
B-BBEE affidavit (EME/QSE) or B-BBEE certificate (large companies)
COID/Letter of Good Standing
Certified CIPC docs, ID copies, and proof of address
Bank confirmation letter
Municipal rates clearance or lease agreement
Sector-specific registrations: CIDB grading (construction works), NHBRC (home building), PSIRA (security), HPCSA/SANC where health services are relevant
Health & Safety compliance: sometimes ISO certifications for quality/safety

Tip: Keep a compliance pack updated quarterly so you’re never scrambling the week bids close.

How Bids Are Evaluated (Functionality, Price, And B-BBEE)

Most public bids are evaluated in three stages:

Functionality/Technical: You must pass a minimum threshold (often 70%). Criteria could include experience, methodology, key personnel, references, equipment, and local content compliance for designated items.
Price & Specific Goals (80/20 or 90/10): Once you’re technically compliant, you’re scored on price and specific goals (aligned to B-BBEE and other developmental outcomes set by the organ of state under the 2022 Regulations). Smaller bids typically use the 80/20 system: larger, the 90/10.
Risk/Due Diligence: Some buyers conduct site visits, capacity checks, financial assessments, or security vetting before award.

Local content: For designated sectors (e.g., buses, steel, valves, textiles, certain PPE), you must meet minimum South African content and submit SABS Annexures. Non-compliance is a knockout.

Result: The award goes to the highest-scoring responsive bidder, not necessarily the cheapest.

Open Competitive Tenders

When Open Bidding Is Used

Open competitive tenders are the default for larger procurements in government. Entities publish a public invitation and anyone who meets the minimum criteria can bid. Typical triggers:

Above the competitive bidding threshold (often R200,000 including VAT in municipalities, check each SCM policy). Some national/provincial departments set different cutoffs. Always read the bid document.
Complex services, long-term contracts, or projects with measurable technical requirements.

Examples:

Supply and delivery of laptops to a provincial department
Cleaning and hygiene services for a hospital complex (36 months)
Road resurfacing for a district municipality

Eligibility, Documents, And Timelines

What to expect:

Compulsory briefings/site meetings (especially construction and facilities). Missing it is usually disqualifying.
A 21–30 day response window for most open tenders: complex projects can be 60+ days. Requests for clarification may be issued.
Standard Bidding Documents (SBDs) or MBDs, pricing schedules, declarations of interest, and tax compliance checks.
Technical submission: methodology, team CVs, past projects with reference letters, equipment lists, project plan, risk register, and quality assurance approach.

Make a compliance checklist:

CSD summary report, tax PIN, signed SBDs
B-BBEE affidavit/certificate (make sure the correct legal entity name and dates match)
JV agreement if partnering: letters of intent from key subcontractors
Insurance confirmations (public liability, professional indemnity where relevant)
Local content forms (if designated)

Common Pitfalls And How To Stand Out

Pitfalls that sink otherwise good bids:

Missing a mandatory returnable (one unsigned form can disqualify you)
Arithmetic errors or inconsistent pricing between the BOQ and summary
Copy-paste methodologies that don’t respond to the exact scope
Over-claiming experience without verifiable references
Ignoring addenda issued close to the deadline

How to stand out:

Mirror the buyer’s language and structure. Use their headings in your proposal and answer every requirement.
Prove capacity with specifics: named equipment, confirmed staff availability, and a realistic schedule.
Showcase local socio-economic impact aligned to the buyer’s specific goals: local jobs, training plans, SMME participation.
Offer measurable value adds (e.g., preventative maintenance visits, response-time guarantees) without inflating price.
Submit early and request the bid register (when available) to benchmark competition in future.

Restricted And Pre-Qualified Tenders

Closed/Invited Bids And Limited Bidding

Not all bids are wide open. Buyers sometimes run restricted tenders where only shortlisted or pre-identified suppliers are invited. Reasons include:

Urgency or specialized needs
Continuity of service
Market tests following an EOI/RFI

Limited bidding can still be competitive (3–5 invited firms). Treat it like a full tender, same level of rigor and proof.

Pre-Qualification Criteria (B-BBEE, Local Content, CIDB, Experience)

To reduce risk, buyers pre-qualify using criteria such as:

B-BBEE level or specific goals (e.g., women- or youth-owned) in line with the 2022 PPP Regulations’ allowance for organs to set their own specific goals
Minimum CIDB grade for construction works (e.g., 6CE or higher)
Proven experience in similar size/scope projects
Compliance with designated local content thresholds
Security clearances, OEM authorizations, or original equipment warranties

Actionable move: If you’re close to the next CIDB grade, plan your financial and works history to upgrade, many projects are grade-gated.

Supplier Panels And Framework Agreements

Government and corporates often create panels/frameworks of vetted suppliers for repeat needs. Once appointed, you’ll receive mini-competitions or orders over a period (12–36 months).

Why panels matter:

Lower bid burden per order once you’re on the panel
Predictable pipeline and relationship-building

How to get on:

Watch for panel establishment tenders (wording like “framework agreement,” “panel of service providers,” “database of suppliers”).
Nail the technical threshold and demonstrate coverage (geography, capacity, turnaround times). Add a contactable reference list with recent work.

Quotations And RFQs (Low-Value Procurement)

Typical Thresholds And Quick Turnarounds

Requests for Quotations (RFQs) are used for low-value, routine buys. While thresholds vary, common patterns include:

Petty cash/small purchases up to a few thousand rand
Written or formal quotations for values up to around R30,000–R200,000 (entity-specific)
Above a certain threshold (often around R200,000 for municipalities), full competitive bidding kicks in

Expect tight deadlines, sometimes 24–72 hours. Price competitiveness is key, but you still need to meet specs and basic compliance (CSD, tax, declarations). RFQs are a great entry point for SMEs to build references.

Becoming An Approved Supplier And Staying Visible

To receive RFQs, you need to be on the buyer’s database and CSD-linked. Practical steps:

Register on CSD and ensure commodity codes match what you supply (many miss out because their codes are wrong or too narrow)
Submit database forms to target municipalities, hospitals, and SOEs
Keep your B-BBEE affidavit and COID valid and uploaded
Build relationships with end-users ethically: understand common items they buy and typical lead times
Respond cleanly: branded quote, clear validity period, delivery timeline, and warranty terms

Quick win: Set up keyword alerts on eTender SA and shortlist common RFQ items in your niche so you can price fast with pre-built templates.

RFPs, EOIs, RFIs, And Two-Stage Tendering

When Buyers Use EOIs/RFIs Before Tendering

Before publishing a full tender, buyers sometimes issue:

RFI (Request for Information): To understand the market, options, and cost drivers
EOI (Expression of Interest): To gauge capable suppliers and shortlist for a later RFP

Responding to RFIs/EOIs positions you early. You can shape specs by highlighting practical constraints (lead times, standards, spares availability) and innovation (energy efficiency, digital reporting).

Two-Envelope And Two-Stage Processes

Two-envelope (or multi-envelope) procedures separate technical and financial submissions. The buyer opens and scores the technical envelope first. Only those who pass the functionality threshold have their price/B-BBEE envelope opened.

Two-stage tendering is used for complex projects where the initial stage focuses on concept/methodology and risk, and the second stage finalizes pricing once the solution is agreed. You might see this in ICT platforms, large infrastructure, or specialist healthcare equipment.

How to win in staged processes:

Invest heavily in stage one: method clarity, governance, risk mitigation, and proof of competence
Map evaluation criteria line-by-line and write to score, not to impress
Use assumptions and exclusions wisely to prevent scope creep later

Solution Design, Methodology, And Demonstrations

In RFPs, you’ll often be asked to demonstrate software, run pilots, or present your approach.

For ICT: prepare a live demo dataset, user roles, security model (POPIA), uptime SLAs, and integration plan
For services: show a resourcing model, escalation paths, and measurable KPIs
For manufacturing/supply: prove OEM status or authorized distributorship, warranty support, and spares logistics

Add a simple benefits map: how your solution reduces risk, lowers total cost of ownership, and meets transformation goals.

Construction And Infrastructure Tenders

CIDB Grades, Scopes, And Compliance

Construction works for public sector projects are regulated by the CIDB. Works classes (e.g., CE for civil engineering, GB for general building, ME for mechanical) and grades (1–9) determine eligibility by contract value.

Practical notes:

Check the advertised required grade (e.g., 7CE PE or 6GB). If you’re a PE (potentially emerging) contractor, ensure you meet the mentorship and capacity conditions.
BOQ accuracy matters. Recheck quantities and provisional sums: query ambiguous items during the clarification window.
Tender security/bid bonds may apply for higher values. Factor costs and validity periods.

Compliance checklist:

OHS Act and Construction Regulations (2014) competence
Safety file readiness (baseline risk assessment, plan, inductions, medicals)
Appointment of competent persons (Construction Manager, Safety Officer where required)
Environmental controls and community engagement plans

Professional Services In The Built Environment

Engineering, architecture, quantity surveying, and project management tenders rely on professional registrations:

ECSA (engineers), SACAP (architects), SACQSP (QS), SACPCMP (construction managers), SAICE/SAIMechE memberships are advantageous
Methodology should include design reviews, stage gates, quality assurance, and stakeholder coordination
Fee scales or guideline tariffs may inform price evaluation, read the instructions carefully

Reference letters should quote project budgets, scope, and your firm’s role. If you led a 5 km road rehabilitation, say so plainly.

Health, Safety, And Site-Specific Requirements

Most construction tenders include:

Mandatory site briefings and geotechnical or utility information
Traffic management, community liaison, and environmental method statements
Contractor development or local labor targets, plan training and mentorship line items

Trends: Many municipalities and SOEs now require digital QA/QC records, drone progress photos, and live program updates. If you can offer this, you’ll differentiate.

Term Contracts, Panels, And Transversal Tenders

Multi-Year And On-Call Arrangements

Term contracts keep services on tap for a fixed period (often 24–36 months). You’ll deliver as-and-when required via task orders. Panels work similarly, with mini-bids among panel members.

Transversal contracts are negotiated centrally by National Treasury for use across government (you’ll see RT numbers, e.g., RT15 for certain commodities). Winning a transversal can be transformative, suddenly every department can buy from you.

Pros, Cons, And Capacity Planning For SMEs

Pros:

Predictable demand and better cash flow visibility
Lower sales cost per order once appointed
Relationship depth and references you can leverage elsewhere

Cons:

Price pressure and fixed rates over long periods
Service level penalties if you overcommit
Stockholding and working capital strain

Capacity planning tips:

Model best-case and worst-case call-off volumes and set reorder points
Secure backup suppliers or rental equipment agreements
Negotiate realistic lead times and escalation clauses for volatile inputs (e.g., fuel, imported spares)

Managing SLAs, KPIs, And Variations

Once you win, your performance is the marketing for your next award.

SLAs: Define response times, fix times, uptime, and reporting cadence. Use a simple dashboard.
KPIs: Tie metrics to outcomes (e.g., <2% return rate, 95% on-time delivery). Propose joint quarterly reviews.
Variations: Have a documented change control process. Capture scope creep early and price transparently.

Pro tip: Log every call-out, part, and hour. When renewal time comes, your data will justify rate adjustments.

Special Cases: PPPs, Emergencies, And Sole-Source Procurement

Compliance, Oversight, And When Exceptions Apply

Some procurements don’t follow the standard open-tender route:

PPPs (Public-Private Partnerships): Regulated under Treasury Regulation 16. Long-term contracts where private partners design, finance, build, operate assets/services. Expect rigorous feasibility and value-for-money tests, risk transfer models, and lender due diligence.
Emergency procurement: Allowed when there’s an immediate risk to life, property, or critical service continuity (e.g., water outages, hospital equipment failure). Entities may deviate from normal processes but must document reasons and later report for oversight.
Sole-source/single-source: Used where only one supplier can provide (e.g., OEM-specific parts, proprietary systems). Buyers must justify the lack of competition and ensure pricing is fair.

Your role: If you’re an OEM or sole distributor, maintain current authorization letters and publish price lists. If you’re responding to an emergency request, confirm availability, logistics, and warranty terms in writing.

Positioning Your Business For Future Opportunities

Track infrastructure plans (IDPs, SDFs, and sector masterplans) to anticipate upcoming tenders
Engage early via RFIs/EOIs and industry briefings
Build consortiums for PPP-scale opportunities, legal, technical, and financial strength matter
Invest in compliance hygiene: unqualified audits, safety stats, and insurances signal low risk to evaluators

Trend to watch: Digital procurement, e-submissions, and data-driven vendor performance scoring are becoming standard. If you can submit flawlessly online and report performance metrics, you’ll rise above peers.

Conclusion

You’ve just walked through the main types of tenders in South Africa, open competitive bids, restricted and pre-qualified tenders, RFQs, RFPs with two-stage evaluations, construction/CIDB projects, panels and term contracts, plus special cases like PPPs and emergencies. The thread through all of them is simple: get compliant, respond precisely to the scope, and prove capacity with evidence.

Action steps for this month:

Refresh your CSD, tax status, B-BBEE affidavit/certificate, and COID
Map your top 20 commodity codes and fix any mismatches
Create a functionality “evidence library”: references, CVs, equipment lists, safety file templates
Set alerts and shortlist target buyers in your province
Practice pricing three common RFQ items so you can respond in under 2 hours

If you want a cleaner way to discover opportunities and avoid time-wasters, visit eTender SA to find verified tenders matched to your business. Set your alerts, filter by province and category, and start bidding smarter, not harder.

Frequently Asked Questions

What are the main types of tenders in South Africa?

Key types of tenders in South Africa include open competitive bids, restricted/invited tenders, RFQs (quotations), RFPs with two-envelope or two-stage processes, supplier panels/framework agreements, term contracts, construction tenders governed by CIDB grades, transversal contracts (RT), and special cases like PPPs, emergencies, and sole-source procurement.

How are South African tenders evaluated under the 80/20 and 90/10 systems?

Most bids first pass a functionality threshold (often 70%). Then price and specific goals are scored using 80/20 or 90/10, depending on value. Local content rules apply where designated. Finally, buyers may run risk checks like site visits, capacity reviews, or financial assessments before awarding to the highest-scoring responsive bidder.

Where can I find public tenders in South Africa and what must I register?

Use National Treasury’s eTender Publication Portal, municipal/provincial bulletins, entity websites, and the CIDB for construction notices. Aggregators can help with alerts. Core registrations include CSD, SARS TCS PIN, B-BBEE affidavit/certificate, COID, CIPC docs, bank letter, municipal rates clearance, and sector-specific items like CIDB or PSIRA.

What is the role of CIDB grades and local content in construction tenders?

CIDB works classes and grades (1–9) gate eligibility by scope and value; you must meet the advertised grade, including PE conditions where applicable. For designated items, minimum South African content is mandatory, with SABS annexures. Non-compliance on CIDB requirements or local content typically results in automatic disqualification.

Can foreign companies bid on South African tenders?

Yes. Many tenders allow foreign bidders, but you’ll need CSD registration, tax compliance arrangements, and to meet any local content and security requirements. Because specific goals influence scoring, partnering or forming a JV with a local, B-BBEE-compliant firm often improves competitiveness and helps with post-award delivery and support.

What’s the difference between an RFQ and an RFP, and when should SMEs target each?

RFQs are quick, lower-value purchases with tight turnarounds where price and basic compliance dominate—ideal for SMEs building references. RFPs are structured, higher-value competitions that assess methodology, capacity, and often use two-envelope or two-stage evaluations. Target RFQs for fast wins, and RFPs when you can evidence strong technical capability.