Government and private sector tenders represent a massive opportunity for South African businesses. The public sector alone spends over R1 trillion annually on procurement. But for first-time tenderers, the process can seem overwhelming. This comprehensive guide will walk you through everything you need to know to start winning tenders.
What is Tendering?
Tendering is a formal procurement process where organizations invite suppliers to submit competitive bids to provide goods, services, or works. It's designed to ensure fair competition, value for money, and transparency.
The Basic Tender Process
Tender Advertised
The procuring entity publishes a tender notice, usually on the eTender portal, Government Gazette, newspapers, or their website.
Documents Collected
Interested bidders collect or download the tender documents, which include specifications, terms and conditions, and required forms.
Compulsory Briefing (if applicable)
Some tenders require attendance at a briefing session. Missing a compulsory briefing disqualifies your bid.
Questions & Clarifications
Bidders can submit questions before a specified deadline. Answers are shared with all bidders.
Submission
Completed bids are submitted before the closing date and time, either physically in a tender box or electronically.
Evaluation
Bids are evaluated based on functionality, price, and B-BBEE status. This can take weeks to months.
Award & Contract
The winning bidder is notified, and a contract is signed. Unsuccessful bidders can request feedback.
Types of Tenders
Understanding the different types of tenders helps you identify opportunities that match your business capabilities and competitive position.
Open Tender
Advertised publicly, any qualified supplier can submit a bid. Most common for government procurement. Highest competition but most transparent.
Restricted/Closed Tender
Only pre-selected suppliers invited to bid. Usually follows a pre-qualification process. Lower competition but requires prior relationship or registration.
Request for Quotation (RFQ)
Simplified process for lower-value purchases. Faster turnaround, less documentation. Often limited to 3-5 invited suppliers.
Request for Proposal (RFP)
Used when the solution isn't fully specified. Bidders propose their approach. Common for consulting, IT, and professional services.
Framework Agreement
Pre-qualification to become an approved supplier. Once on the framework, you can be called to bid on specific work without full tender process.
Set-Asides
Tenders reserved for specific groups: women-owned, youth-owned, designated groups, or SMMEs. Check if you qualify for preferential access.
Government vs Private Tenders
While the basic principles are similar, government and private sector tenders have important differences:
| Aspect | Government Tenders | Private Tenders |
|---|---|---|
| Regulations | Strict PFMA/MFMA rules, SCM regulations | Company policies, industry standards |
| Transparency | Publicly advertised, results published | Often confidential process |
| B-BBEE | Mandatory preference points | May be required by policy |
| CSD Registration | Required for all national/provincial | Not required |
| Payment Terms | Usually 30 days, can be slow | Varies, often faster |
| Documentation | Very prescriptive, SBD forms required | More flexible, varies by company |
| Appeals | Formal appeal process available | Usually no formal recourse |
Tender Readiness Checklist
Before you can start tendering, you need certain documents and registrations in place. Here's your essential checklist:
Company Registration & Compliance
Company or Close Corporation registration certificate. Annual returns must be up to date.
SARS Tax Compliance Status PIN showing your tax affairs are in order. Verifiable on CSD.
EME affidavit or verification certificate from an accredited agency.
Proof of workers' compensation registration if you have employees.
Central Supplier Database registration for government tenders.
Business Documentation
Professional profile covering history, capabilities, team, and experience.
Certified copies of all directors' or members' IDs.
Original letter from your bank confirming account details.
Latest audited or reviewed financial statements (often required for larger tenders).
Letters from previous clients confirming satisfactory work.
Where to Find Tenders
Knowing where to look is half the battle. Here are the main sources for finding tender opportunities:
Government Tenders
eTender Portal
The official government tender portal. All national and provincial tenders must be advertised here.
www.etenders.gov.zaGovernment Gazette
Official publication with tender notices. Available online and at Government Printing Works.
www.gpwonline.co.zaMunicipal Websites
Local government tenders on municipal websites. Check the SCM or Procurement section.
Private Sector & Parastatals
- Eskom: procurement.eskom.co.za
- Transnet: transnet.net (Supplier Registration)
- Sasol: sasol.com/suppliers
- Mining companies: Individual company supplier portals
- Private tender services: Tender Bulletin, SA Tenders, Leads2Business (subscription services)
Understanding Tender Documents
Tender documents can be intimidating, but they follow a standard structure. Here's what you'll typically find:
| Document | Purpose |
|---|---|
| Invitation to Bid | Overview, closing date, briefing session details, contact information. |
| Terms of Reference / Specifications | Detailed description of what's required: scope, deliverables, timelines, quality standards. |
| SBD Forms | Standard Bidding Documents: declarations, pricing schedule, B-BBEE, local content (government tenders). |
| Contract Conditions | Legal terms that will govern the contract: payment, warranties, dispute resolution. |
| Evaluation Criteria | How bids will be scored: functionality requirements, price weighting, B-BBEE points. |
| Returnable Documents | Checklist of everything you must submit: forms, certificates, supporting documents. |
Preparing Your Submission
A winning tender submission is complete, compliant, and competitive. Follow this process:
Step-by-Step Preparation
Assess the Opportunity
Before starting, ask: Can we deliver this? Do we have the capacity, skills, and resources? Is the timeline realistic? What's the likely competition?
Attend the Briefing Session
Even if not compulsory, attend the briefing. You'll get clarity on requirements, see the site (if applicable), and understand what the client really wants.
Create a Compliance Matrix
List every requirement from the tender documents. Check off each one as you address it. This ensures nothing is missed.
Complete All Forms
Fill out every SBD form completely. Sign and initial where required. Don't leave any sections blank – write “N/A” if not applicable.
Write Your Technical Proposal
Respond to each specification/requirement. Show you understand the scope and have a solid approach. Include relevant experience and team CVs.
Prepare Your Pricing
Complete the pricing schedule accurately. Check your calculations. Ensure your price covers all costs plus reasonable profit.
Review and Check
Have someone else review the submission. Use the returnable documents checklist. Ensure all pages are numbered and indexed.
Submit on Time
Submit well before the deadline. Late submissions are never accepted. If submitting physically, get a receipt from the tender box.
How Tenders Are Evaluated
Government tenders follow a structured evaluation process with three main stages:
Stage 1: Administrative Compliance
First, evaluators check if your bid is complete and compliant:
- All required documents submitted?
- Forms completed and signed correctly?
- Submitted before closing time?
- Correct number of copies?
Stage 2: Functionality/Technical Evaluation
If administratively compliant, your technical proposal is scored:
- Does the proposed solution meet the specifications?
- Does the bidder have relevant experience?
- Are the proposed team members qualified?
- Is the methodology sound?
Stage 3: Price & B-BBEE Points
Bids that pass functionality are scored on price and B-BBEE:
| Tender Value | Price Points | B-BBEE Points |
|---|---|---|
| Up to R50 million | 80 points | 20 points |
| Above R50 million | 90 points | 10 points |
B-BBEE Preference Points
Your B-BBEE level determines how many preference points you receive. This can make or break your bid on competitive tenders.
80/20 System (Tenders up to R50 million)
| B-BBEE Level | Points |
|---|---|
| Level 1 | 20 |
| Level 2 | 18 |
| Level 3 | 14 |
| Level 4 | 12 |
| Level 5 | 8 |
| Level 6 | 6 |
| Level 7 | 4 |
| Level 8 | 2 |
| Non-compliant | 0 |
Common Mistakes to Avoid
Learn from others' mistakes. Here are the most common reasons tenders fail:
Missing Documents
Forgetting to include a required certificate or form. Always use the returnable documents checklist.
Late Submission
Arriving even one minute late. Allow extra time for traffic, parking, or technical issues.
Incomplete Forms
Blank fields, missing signatures, or unsigned pages. Complete every section.
Expired Certificates
Tax clearance, COIDA, or B-BBEE documents past expiry. Check dates before each submission.
Ignoring Specifications
Not addressing all requirements in the Terms of Reference. Respond to every specification.
Calculation Errors
Pricing mistakes that don't add up. Double-check all arithmetic and totals.
After Submission
The waiting period after submission can be lengthy. Here's what to expect:
Timeline
- Evaluation period: Usually 4-12 weeks, sometimes longer for large/complex tenders
- Clarification requests: Evaluators may request additional information
- Notification: All bidders notified of outcome (successful or unsuccessful)
If You Win
- Review the contract carefully before signing
- Ensure you can meet all obligations
- Arrange any required performance guarantees or insurance
- Plan your delivery/implementation
If You Lose
- Request feedback on your submission
- Ask for your scores vs the winner (government must disclose)
- Use the feedback to improve future bids
- Consider whether to appeal (if process was unfair)
Building Your Track Record
Experience is often required for larger tenders. Here's how to build your track record:
- Start small: Target RFQs and smaller tenders where experience requirements are less stringent
- Subcontracting: Partner with established companies to gain experience on larger projects
- Joint ventures: Team up with complementary businesses to meet requirements together
- Private sector first: Build experience with private clients before tackling government work
- Document everything: Keep completion certificates, reference letters, and project photos
- SMME set-asides: Look for tenders specifically reserved for small businesses
Frequently Asked Questions
How long does CSD registration take?
If all your documents are in order, CSD registration typically takes 3-5 business days. Bank verification can take longer if there are issues matching your account details.
Can a new company with no experience win tenders?
Yes, especially for smaller tenders, RFQs, and SMME set-asides. Focus on demonstrating the qualifications and experience of your team members, even if the company itself is new.
What if I miss the briefing session?
If it's marked as “compulsory”, your bid will be disqualified. If non-compulsory, you can still bid but may miss important information. Always try to attend.
Can I submit a tender by email?
Only if the tender specifically allows electronic submission. Most government tenders require physical submission in a tender box. This is changing with the eCM system.
How do I know if my price is competitive?
Research market rates for similar work. After tenders close, you can sometimes obtain the price of the winning bid to benchmark against. Don't price too low – you still need to deliver profitably.
What is a bid bond / performance guarantee?
A financial guarantee (usually from a bank or insurer) that you'll perform the contract if awarded. Usually required for larger tenders. Costs around 1-3% of contract value.
Related Resources
eTender Portal
The official government tender portal with all national and provincial opportunities.
www.etenders.gov.zaStart Browsing Tenders
Ready to put your knowledge into practice? Browse live government tender opportunities on the Okhantu TenderOS platform.
Need Help With Your Tender Application?
Get quotes from verified tender consultants, bid writers, and compliance specialists who can help you prepare winning submissions.
- Experienced tender writers
- Bid document preparation
- CSD registration assistance
- B-BBEE compliance support