Knowing how to win government tenders in South Africa is mostly knowing the paperwork, the scoring rules and the calendar. The state buys every working day, from stationery and security guards to bridges and software, and the rules for who may sell to it are published. This guide is for owners and managers of businesses of any size, with small and growing firms in mind. It covers quotations versus tenders, where buyers advertise, how to register and stay compliant, how bids are scored (with a worked example), how to submit, what happens afterwards and how to avoid the fraud that surrounds tendering.
This guide was last reviewed on 29 October 2026 and is general information, not legal advice. Thresholds, grades and forms change, so confirm each one against the buyer’s bid document. Our free Tender Finder lists every tender open now on the National Treasury eTender portal, which is a good place to start looking.
The short version: register on the Central Supplier Database (CSD), get your SARS tax compliance status in order, hold the right B-BBEE proof and any sector registration such as CIDB grading, read each bid document line by line, price to the buyer’s formula and submit before the closing time. Most bids are lost on missing documents, not on price.
What a tender is, and how it differs from a quotation
A quotation is a price for a defined need, usually small. A competitive bid (tender) is a formal, advertised process with a bid document, a closing date and a scoring system. For scoring, the Preferential Procurement Regulations treat both as tenders: a written offer made in response to an invitation “through price quotations, competitive tendering process or any other method”.
The value decides which process the buyer must follow:
- Up to R2,000: national departments may use petty cash.
- Above R2,000 up to R1 million (national departments and Schedule 3A and 3C public entities): at least three written quotations from three different suppliers registered on the CSD, unless the buyer records why that was impossible.
- Above R1 million: open competitive bids advertised on the eTender portal. Buyers may lower these limits in their policies but not raise them, and may not split a purchase to stay under one.
- Municipalities: as gazetted in 2005, formal written quotations above R10,000 up to R200,000 and competitive bidding above R200,000. Quotations above R30,000 must also be advertised for at least seven days on the municipality’s website and notice board. Treasury published a draft amendment with higher figures in October 2020, but we could not confirm it was finalised, so read the municipality’s own policy.
Buyers also use the labels RFQ (request for quotation), RFB and RFP. We found no official Treasury definition of RFB or RFP, so do not rely on the label: read how the document says offers will be evaluated.
Many purchases are quotations that never reach a public portal: Treasury’s eTender instruction says publication is not compulsory for price quotations. Those invitations go through the CSD, so a complete, active profile matters early.
Where tenders are published
- The eTender portal. etenders.gov.za provides access to tenders by public sector organisations at all spheres of government. Departments and PFMA public entities must publish open bids, amendments, cancellations and awards there, and open bids normally for at least 21 days unless urgent. The Tender Finder reads from this portal and adds alerts.
- The CSD. National buyers can invite registered suppliers to quote through it.
- Municipal and entity sites. Municipalities advertise in local newspapers and on their websites. Eskom publishes on its tender bulletin, and Transnet runs an e-tender site and asks suppliers to check it and its new eSupplier portal.
Step 1: Register on the Central Supplier Database
The Central Supplier Database is National Treasury’s register of suppliers to government. Registration is free. You need an email address, a cellphone number and a bank account. The steps below follow the Treasury user guide, and screens may have changed:
- Register a user and activate the account with the emailed link and an SMS one-time PIN.
- Add your supplier identification. For a company or close corporation CIPC returns the name, status and directors automatically, so your CIPC record and annual returns must be current. Our guide to CIPC annual returns covers that.
- Add a bank account in the business’s name, which the CSD verifies.
- Add your tax details, which the CSD verifies with SARS.
- Add B-BBEE information: a certificate, a sworn affidavit or none.
- Add what you supply and submit. The CSD generates a supplier number and a unique registration reference number.
The supplier number begins with MAAA, and bid forms ask for it: the standard invitation form (SBD 1) has a field for a “Central Supplier Database No: MAAA”.
Maintenance matters as much as registration. Treasury’s fact sheet says a quotation cannot be submitted, and RFQs will not be awarded to non-compliant suppliers, where the CSD shows a red flag for proof of address, a government employee among the directors, a restricted supplier or director, or ownership that does not add up to 100%. Tax shows red if non-compliant, and an expired B-BBEE document or unverified bank account is flagged too. Check your profile before every bid.
Step 2: SARS tax compliance status
SARS replaced the paper tax clearance certificate with the Tax Compliance Status (TCS) system. You apply on eFiling under Tax Status and receive a PIN, which you give the buyer so it can check your status online at the date and time of checking. SARS says the old “Tender” option no longer exists and you should use the Good Standing application.
SARS says to be compliant you should have no outstanding returns, no debt unless a payment arrangement is agreed, registration for every tax you are liable for, and up-to-date registered details. Status changes with your behaviour, so a PIN that was green in March can be red in October. SBD 1 asks for your TCS PIN or CSD number, and each member of a joint venture must supply its own.
Step 3: B-BBEE proof
Under the Codes of Good Practice an Exempted Micro Enterprise (EME) has annual revenue of R10 million or less, and a Qualifying Small Enterprise (QSE) between R10 million and R50 million. An EME needs only a sworn affidavit each year confirming its revenue and level of black ownership. The B-BBEE Commission’s Practice Guide 01 of 2022 says the dtic templates must be used and an affidavit is valid for 12 months from the date it is commissioned. The dtic’s EME affidavit template is free. A company with turnover under R10 million can alternatively apply for a certificate through CIPC if its annual returns are current.
Two cautions. Since January 2023 buyers score “specific goals” they choose rather than your B-BBEE level, so a certificate counts as evidence only if the bid document asks for it. And a false affidavit is a criminal offence under the Codes. The framework is under review, as we reported in the Presidency’s commitment to B-BBEE and its review.
Step 4: Sector and compliance documents
CIDB grading for construction
For construction works contracts above R30,000 for an organ of state, the Construction Industry Development Board (CIDB) register applies. Your grade (1 to 9) and class of works decide the largest contract you may bid for. These figures are from the CIDB requirements page as at 29 October 2026.
| Grade | Largest contract (incl. VAT) | Largest completed contract, past 5 years | Best annual turnover | Available capital |
|---|---|---|---|---|
| 1 | R500,000 | None | None | None |
| 2 | R1 million | R130,000 | None | None |
| 3 | R3 million | R450,000 | R1 million | R100,000 |
| 4 | R6 million | R900,000 | R2 million | R200,000 |
| 5 | R10 million | R1.5 million | R3.25 million | R650,000 |
| 6 | R20 million | R3 million | R6.5 million | R1.3 million |
| 7 | R60 million | R9 million | R20 million | R4 million |
| 8 | R200 million | R30 million | R65 million | R13 million |
| 9 | No limit | R90 million | R200 million | R40 million |
COIDA letter of good standing
A bid document may ask for a letter from the Compensation Fund. The Fund says an employer is in good standing when its return of earnings and payments are up to date, and the letter is generated online and validated by its certificate number. File your return early: you cannot generate the letter the day before closing if the account is in arrears.
Bank letter and other items
The CSD verifies your bank account itself, and we found no CSD rule that you upload a bank letter, but a particular bid may ask for one among its returnable documents. A municipal bid expected to exceed R10 million must include three years of audited financial statements where you must prepare them, and a certificate that no municipal charges are more than 30 days overdue.
How bids are scored: the preference point system
The Preferential Procurement Regulations, 2022, in force since 16 January 2023, set two systems. 80/20 applies when the rand value including all taxes is R50 million or less: up to 80 points for price and 20 for specific goals. 90/10 applies above R50 million: 90 for price and 10 for goals. Price points are:
80 x (1 minus (your price minus lowest price) divided by lowest price), using 90 instead of 80 for 90/10. Price means the total including all taxes, less unconditional discounts, and totals are rounded to two decimal places.
The buyer must state in the tender documents which system applies, which specific goals earn points, how many points each carries and what proof is needed. The goals come from the buyer’s own policy, not a national list. Without the proof, Treasury’s guidance says the bid may get zero for that goal. The highest total wins. A tie goes to the higher goal points, and then to the drawing of lots.
A worked example of 80/20 scoring
This is our own illustration with invented numbers. A department invites bids for a cleaning contract estimated at R1.2 million, so 80/20 applies. Three tenderers pass every requirement and price including VAT.
| Tenderer | Price | Price calculation | Price points | Goal points | Total |
|---|---|---|---|---|---|
| A | R1,000,000 | 80 x (1 minus 0) | 80.00 | 4 | 84.00 |
| B | R1,100,000 | 80 x (1 minus 0.10) | 72.00 | 14 | 86.00 |
| C | R1,200,000 | 80 x (1 minus 0.20) | 64.00 | 20 | 84.00 |
B wins on 86.00 although it is R100,000 dearer than A. A and C tie on 84.00, and C would take that tie on goal points, but B outscores both. Treasury’s FAQ puts the premium built into the formulas at 25% for 80/20 and 11.11% for 90/10: a firm with every goal point can price 25% above the lowest bid and only tie it.
Reading a bid document
- Invitation (SBD 1). Closing time, delivery address and compliance fields. The form says late bids will not be accepted, bids must be on the official forms and not retyped, and no bids are considered from persons in the service of the state. Non-compliance “may render the bid invalid”.
- Compulsory briefing. If attendance is compulsory, missing it can end the bid.
- Functionality. Treasury says functionality tests capacity and capability and is not part of the preference points. Where scored, the document sets criteria and any minimum score.
- Pricing schedule (SBD 3.1). Only firm prices are accepted; prices subject to exchange rate variation are not considered. Include all taxes and delivery costs. The schedule states the days your offer stays valid from closing.
- Returnable documents. Tick the list against your pack, and ask questions in writing before the clarification deadline.
Common reasons bids are disqualified
- Arriving after closing, or missing a compulsory briefing or returnable document.
- Retyping the official forms, or qualifying the price with exchange rate clauses.
- Bidding above your CIDB range, or a red flag on the CSD or at SARS when the buyer checks.
- False claims for specific goals: the buyer may give you 14 days to respond, then disqualify you or cancel the contract and claim damages, and SBD 6.1 adds a possible restriction from state business for up to 10 years.
Submitting your bid
Read how the buyer wants delivery. Treasury’s standard invitation form lets the buyer name a physical bid box at a stated address, and municipal bids are opened in public. For CSD quotations submission is online: the system accepts changes until closing, lets you withdraw before then and hides prices from the buyer until after closing. Submit early, because portals slow down and queues form at bid boxes on closing day, and keep proof of delivery.
What happens after you submit
- Evaluation. Compliance first, then functionality if included, then price and preference points.
- Bidders list. A national buyer must capture the list of bidders on the eTender portal within 10 working days of closing.
- Award. The award is complete when the successful bidder accepts in writing, and details must be published on the portal within 10 working days of that acceptance.
- Reasons and challenges. If you lose, ask for written reasons. Under the Promotion of Administrative Justice Act you may request reasons within 90 days of learning of the decision, and a court review must start within 180 days of the dates the Act sets, which include the end of any internal remedy. For delegated municipal decisions, the Municipal Systems Act allows a written appeal to the municipal manager within 21 days of notification. These periods are short, so take legal advice quickly.
- Payment. Treasury Regulation 8.2.3 says creditors must be paid within 30 days of receiving an invoice unless the contract says otherwise. Send a correct invoice quoting the order number and record when it was received. See our report on municipal debt and the draft MFMA overhaul, so check a municipality’s payment record before large work.
Fraud and pitfalls
- Never pay anyone to win a tender. Bribes and “facilitation” fees are corruption, and the briber is exposed too. SBD 6.1 warns of restriction from state business and prosecution.
- Beware fake RFQs. Treasury says the CSD does not send links or redirect suppliers to another site, and genuine RFQs appear under My RFQ. Treat any email asking you to click a link to quote as suspect.
- Report corruption. The National Anti-Corruption Hotline is 0800 701 701, toll free, and you need not give your name, says the government FAQ. The CIDB runs an anonymous fraud line on 0800 112 432.
- Cash flow. A 30-day term is a default, not a guarantee. See business funding open right now and dtic incentives explained.
A checklist before every bid
| Item | Where it comes from | Check |
|---|---|---|
| CSD profile and MAAA number | Central Supplier Database | All indicators green |
| Tax compliance PIN | SARS eFiling | Compliant today, PIN not expired |
| B-BBEE affidavit or certificate | dtic template, CIPC or agency | Commissioned within 12 months |
| CIDB grade (construction) | CIDB register | Covers tender value incl. VAT |
| COIDA letter | Compensation Fund online | Return of earnings filed |
| Registration, IDs, bank details | CIPC, directors, bank | Match the CSD record |
| Official forms (SBD 1, 3.1, 6.1) | The bid document | Complete, signed, not retyped |
| Briefing and clarification dates | The bid document | In your diary |
Using alerts
A 21-day window leaves little time to gather documents, so see tenders early. The Tender Finder sends a short email when new tenders match what you supply, and the list can be narrowed by closing date, province and category. Keep CSD notifications on too, since invited quotations arrive there.
What the Tender Finder is and is not
The Tender Finder is a searchable, regularly updated list of tenders from the National Treasury eTender portal, with closing dates, buyers, briefing sessions, links to official documents and optional alerts. It is a finding tool. It is not the buyer, does not submit bids, gives no legal advice and cannot guarantee a listing is complete or current. Tenders advertised only on a buyer’s own site, and CSD quotations sent to invited suppliers, may not appear. Always confirm the closing time, requirements and addenda in the official bid document. If our listing and the official document differ, the official document and the buyer prevail.
What changed in 2026
- The new Public Procurement Act is invalid. The Public Procurement Act 28 of 2024 never took effect. On 17 September 2026 the Constitutional Court declared it invalid for inadequate public participation, and Treasury’s statement says the Minister will engage Parliament’s presiding officers. Draft regulations under it were published on 16 April 2026. We found no notice replacing the 2022 Preferential Procurement Regulations, the Treasury instructions or the municipal regulations, so we describe those, but Parliament may legislate again.
- Online RFQ evaluation. From 1 April 2026 the CSD automated evaluation of quotations that need no evaluation committee.
What we could not confirm
We found no official definition of RFB or RFP. We could not confirm whether Treasury’s October 2020 draft municipal thresholds were adopted, we found no standard bid validity period (each document sets its own), and the CSD user guide we read predates some screen changes. Check each point with the buyer or agency concerned.
Frequently asked questions
Do I need to be on the CSD to win a government tender?
For quotations from national departments and Schedule 3A and 3C entities, suppliers must be registered on the CSD. Bid forms also ask for a CSD number where there is no TCS PIN. Registration is free.
What is the difference between 80/20 and 90/10?
80/20 applies to contracts of R50 million or less including taxes: 80 points for price and 20 for specific goals. 90/10 applies above R50 million: 90 and 10.
How soon must government pay me?
Treasury Regulation 8.2.3 requires payment within 30 days of receiving the invoice, unless the contract states otherwise. Keep proof of when you submitted it.
Can I challenge an award I lost?
Yes, but deadlines are short: written reasons can be requested within 90 days, a court review must start within 180 days of the dates the Act sets, and municipal delegated decisions have a 21-day appeal period. Get legal advice early.
Is the Public Procurement Act in force?
No. The Constitutional Court declared it invalid on 17 September 2026 and it had not commenced. The 2022 preferential procurement regulations remain the scoring rules we found.
