Bid disqualification risks

Bid disqualification risks: what it means and how to avoid them

Definition. Bid disqualification risks are the recurring compliance, timing, and eligibility mistakes that cause a public-sector tender submission to be ruled non-responsive and excluded from scoring—no matter how competitive your price or solution is. In South Africa, bid disqualification risks typically arise under section 217 of the Constitution, the Preferential Procurement Policy Framework Act (PPPFA) and regulations, the PFMA/MFMA supply chain rules, the CIDB framework (for construction), and National Treasury instruments (CSD, SBD forms). Understanding these rules—and building a repeatable checklist—prevents avoidable exclusions and keeps your bid in the race.

Bid disqualification risks: late delivery and time-control tactics

Missing the deadline is the simplest—and most expensive—way to lose. Late bids are normally not opened at all.

Why it happens

• Underestimating traffic, printing, portal upload times, or last-minute signatures.

• Misreading amended closing times in addenda.

• Uploading the wrong file type or exceeding a portal’s size limits.

How to prevent it

1. Work backwards from the closing time with a detailed minute-by-minute plan for printing, binding, or uploading.

2. Pre-submit checks the day before: verify the portal account, naming conventions, and file formats (PDF/XLSX).

3. Two clocks: set cell phone and laptop to automatic network time; screenshot final upload receipts.

4. Hard copy? Drive to the venue early; keep a spare sealed copy in your boot.

5. Put “submission proof” on your compulsory documents tender submission list: a receipt with time stamp or portal confirmation email.

Tip: Include a “T-0” line in your master plan: if a last-minute document is still pending, submit the compliant version on time rather than a “perfect” version that arrives late. Late equals out.

Bid disqualification risks: unsigned forms and authority to sign

Unsigned or incorrectly signed forms (SBD/MBD, Form of Offer, declarations) are classic non responsive bid reasons South Africa.

What evaluators look for

• SBD/MBD 1 signed and dated by a duly authorised person.

• Form of Offer and Acceptance (for construction/procurement based on GCC, JBCC, NEC, etc.) signed; totals agree with the pricing schedule.

• SBD/MBD 4, 6.1/6.2, 8, 9 initialled on every page, completed in full.

• Resolution/Power of Attorney proving the signatory’s authority (Companies Act).

Prevention checklist

• Use a board/CC resolution template with specimen signature.

• Assemble a signature pack 48 hours before submission; tab where each signature/initial is needed.

• Second reviewer to perform a “finger-on-every-signature” walk-through.

• Ensure names and designations match your CIPC and CSD profiles.

Pricing schedule arithmetic errors tenders — making numbers bulletproof

Arithmetic slips derail otherwise strong bids. Common pitfalls include transposed digits, VAT inconsistencies, and totals that don’t match the Form of Offer.

Controls that work

• Build a locked calculation sheet that mirrors the buyer’s pricing schedule—no hidden cells, no macros that might break on export.

• Round consistently (to 2 decimals) and apply VAT according to the tender’s rule (some require VAT-inclusive comparisons).

• Run an independent tally on a separate workbook; have a colleague re-capture key figures to spot typos.

• Compare BoQ totals to Form of Offer; differences must be corrected and initialled.

• Ensure unit rates align with narrative assumptions (delivery frequency, escalation basis).

If the buyer allows post-submission clarifications, only obvious clerical errors might be corrected. Structural price changes usually aren’t—so get it right first time.

TCS PIN invalid during evaluation — tax status traps and fixes

Nothing stings like being thrown out because your tax status slipped after submission. TCS PIN invalid during evaluation is a red flag evaluators can’t ignore.

How to stay compliant

• Generate your Tax Compliance Status (TCS) PIN in eFiling and test it on the SARS checker before including it.

• Confirm all returns (VAT, PAYE, CIT) are filed; if you’re on a payment arrangement, ensure it’s active and reflected.

• Calendar two checks: T-48 hours (pre-submission) and T+10 days (common evaluation window).

• Keep a screen-grab of a compliant status for your records; it shows you were diligent if a transient error occurs.

If it flips to non-compliant

• Engage SARS immediately; obtain a case number and proof of rectification. Some buyers consider this if status reverts to compliant by the adjudication date—but don’t rely on indulgence.

Bid disqualification risks: non-attendance and mandatory briefing session proof

Many tenders require a compulsory site or briefing meeting. Non-attendance is fatal.

What to do

• Register and diarise the event when the tender is issued.

• Arrive early, sign the attendance register, and keep mandatory briefing session proof (certificate/slip or a photo of the signed register if permitted).

• If a representative attends for a JV/consortium, ensure the arrangement complies with the bid rules (some require all partners to attend).

If you missed it

• Most buyers cannot waive this requirement. Don’t spend further resources on the bid. Learn and move.

Bid disqualification risks: joint venture agreement tender requirements & cidb joint venture combined grading

For construction works, eligibility depends on the CIDB grade/class and, in JVs, on the combined capacity. Mistakes here cause automatic exclusions.

Essentials

• A signed JV agreement detailing leadership, percentage split, liabilities, and banking arrangements—this satisfies joint venture agreement tender requirements.

• Confirm the required Class of Works (e.g., GB, CE) and minimum grade.

• Calculate cidb joint venture combined grading per CIDB rules—don’t guess.

• Ensure each partner’s CSD profile, tax status, and COIDA letter are valid.

• Submit a JV resolution authorising the signatory and, if required, a consolidated B-BBEE plan per bid rules.

Pro tip: If you’re a grade below, check whether the tender recognises “potentially emerging” status and what additional support plan is required.

Bid disqualification risks: responsiveness, compulsory documents tender submission list

“Responsiveness” means your bid includes everything the buyer listed as mandatory, in the right format, and valid at the closing time.

Build a zero-failure system

• Convert the buyer’s list into your own compulsory documents tender submission list with owner and due date.

• Typical mandatories: CSD supplier number, TCS PIN, B-BBEE affidavit/certificate, COIDA Letter of Good Standing (if on-site work), CIDB proof, municipal statements, SBD/MBD forms, attendance certificate, OEM letters, and CVs with registrations.

• Store scanned PDFs named exactly as the buyer labels them. Portals often require specific names.

• Keep an expiry-date register (B-BBEE, LoGS, tax) to avoid stale documents.

Non-responsive bid reasons South Africa most often cited: missing SBD/MBD page signatures; expired B-BBEE affidavits; unverified bank letter on CSD; mismatched legal names across CIPC/CSD/SARS.

Wrong CIDB grade or class — eligibility vs potentially emerging

Submitting with the wrong grade or class causes instant disqualification.

Prevention

• Verify the scope against CIDB classes of works; complex projects may specify multiple classes—your lead class must match.

• If the bid allows emerging contractor recognition, attach the required business plan and mentorship evidence.

• Keep your CIDB status active and consistent with your CIPC and CSD details to avoid verification flags.

How to correct tender submission errors — what can and cannot be fixed

Knowing how to correct tender submission errors can save a close call—but there are hard limits.

Generally fixable via clarification

• Obvious clerical errors (e.g., one page missing an initial) if the buyer’s rules allow.

• Ambiguities in technical narratives where the underlying compliance is clear.

• Proof of existing facts as at closing (e.g., a certificate that existed but wasn’t included) only if the rules permit and all bidders are treated equally.

Not fixable

• Late bids, missing compulsory documents, failure to attend a compulsory briefing, wrong CIDB grade, or non-compliant tax status at closing (unless the buyer’s policy expressly says otherwise, which is rare).

Bottom line: Build quality in. Don’t rely on mercy.

Bid disqualification risks: ethical pitfalls, collusion, and misrepresentation

Beyond paperwork, ethics matter. Disqualifications (and even blacklisting) follow from:

• Collusion (price-fixing, cover-quoting) or sharing confidential information with competitors.

• Misrepresentation of capabilities (fake CVs, invented references, B-BBEE fronting).

• Conflict of interest (undisclosed relationships with officials).

Protect your bid with:

• A Certificate of Independent Bid Determination (SBD 9) completed truthfully.

• Verified references and consent letters.

• A clean conflicts register and disclosure on SBD/MBD 4.

A one-page prevention checklist for bid teams

Use this before every submission:

1. Timeline: Closing time confirmed; addenda checked; submission plan locked.

2. Attendance: Mandatory briefing session proof filed; site certificate included.

3. Eligibility: CSD active; TCS PIN tested; municipal statements current; COIDA LoGS valid.

4. Authority: Board/CC resolution attached; all SBD/MBD forms signed and initialled.

5. Pricing: Totals match Form of Offer; VAT handled correctly; no pricing schedule arithmetic errors tenders; no unpriced items.

6. CIDB (if applicable): Grade and class verified; JV combined grading calculated; joint venture agreement tender requirements met.

7. Responsiveness: Every item on the buyer’s compulsory documents tender submission list included and correctly named.

8. QA: Second person cross-checks signatures, dates, numbering, annexures.

9. Ethics: SBD 9 completed; conflicts disclosed; subcontracting honesty confirmed.

10. Submission: Upload/hand-in early; keep proof.

FAQ: Bid disqualification risks — practical answers for South Africa

1) What are the top three Bid disqualification risks?
Late submission, unsigned/incorrectly signed SBD/MBD forms (including the Form of Offer), and invalid tax status. These are routinely fatal and entirely preventable with a disciplined checklist.

2) If my price is the best, can I still be thrown out?
Yes. Responsiveness comes first. If you miss a compulsory item or violate eligibility (e.g., wrong CIDB grade), your bid won’t even be scored on price and preference.

3) What proof is required for compulsory briefings?
Bring and keep mandatory briefing session proof—a signed register page or attendance certificate. Many municipalities publish registers; still, keep your own copy in the bid file.

4) Our TCS flipped to “non-compliant” after we submitted. Are we doomed?
Not always, but it’s risky. Some procuring entities verify at closing and again during evaluation. If TCS PIN invalid during evaluation, fix it urgently, obtain a SARS case number, and notify the buyer. However, many policies require compliance at closing—plan to be safe at both points.

5) Can we correct a maths mistake after submission?
Usually no—unless it is a minor clerical error and the rules permit clarifications affecting all bidders equally. Treat all arithmetic like a contract: it must be right when the gates close.

6) Do all JV partners need to attend the briefing?
Check the bid rules. Some require only the lead to attend; others require each partner. When in doubt, send all. You also need a signed JV agreement and, for construction, a cidb joint venture combined grading calculation.

7) What exactly is a “non-responsive” bid?
A submission that fails a mandatory requirement (e.g., missing SBD form, wrong CIDB grade, late, no attendance certificate), or doesn’t follow the format prescribed. “Non responsive bid reasons South Africa” typically come straight from the tender’s returnables list—mirror that list in your internal checklist.

8) Our B-BBEE affidavit expired a week before closing. Can we submit?
No—replace it in time. Many buyers insist on valid at closing and sometimes valid through award. Track expiry dates in your bid calendar.

9) What documents are always on the compulsory list?
There’s no universal list, but common items include SBD/MBD forms, CSD report/number, TCS PIN, B-BBEE proof, COIDA Letter of Good Standing for on-site work, municipal statements, CVs/registrations, OEM letters, and Form of Offer.

10) How do we structure our internal checks?
Adopt a two-person rule: drafter + checker. Use a traffic-light tracker (red = missing, amber = pending signature, green = done). Lock the bid 24 hours before closing for a final page-by-page “finger on every signature” review.

11) What happens if we submit the wrong CIDB class?
You’ll likely be disqualified. If the tender allows potentially emerging recognition, follow those rules to the letter; otherwise, do not submit until the class/grade matches.

12) Any tips for naming files on e-tender portals?
Yes: copy the buyer’s labels exactly, avoid special characters, and keep file sizes within limits. Many portals reject uploads silently if formats are wrong—test early.

13) Where do “ethics” fit into disqualification?
Misrepresentation, fronting, collusion, or undisclosed conflicts can disqualify you and even lead to restrictions from future tenders. Complete SBD 9 honestly and maintain evidence trails for all claims.

14) Is there a remedy if we’re unfairly ruled non-responsive?
Yes. You can submit an internal objection and, if necessary, a PAJA review (see our separate Tender appeal article). But prevention is cheaper: design your process so you pass responsiveness every time.

References (South African legal authorities)

The table shows the legal anchors behind the most common Bid disqualification risks so your team can map each checklist item to an authority.

Useful Links

• National Treasury – eTender & SCM Resources: Official SBD templates, practice notes, and circulars that define many responsiveness requirements.

• SARS – Tax Compliance Status (TCS) PIN: How to generate and share a PIN; critical to avoid “TCS PIN invalid during evaluation”.

• CIDB – Contractor Registration: Classes of works, grading rules, and JV combination guidance to prevent grade/class disqualifications.

If your query is about how to amend a contract click here.

If you would like to know more about suspension conditions and the effect they have on the termination of contracts click here.

If you would like to know more about specific performance as an alternative to cancellation click here.

If you would like to know more about the effect of estoppel when dealing with cancellations click here.

If you would like to know more about the inter-play between novation and cancellation click here.

If you would like a more in-depth article about the cancellation of contracts click here. 

If you would like to know more about the right to cancel during the cool off period click here.

If you would like to know more about non-compete agreements click here. 

If you would like to know more about the authority to sign documents of security click here. 

If you would like to know more about the risks of pay when paid clauses, click here. 

If you would like to know more about challenging pay when paid clauses, click here.

If you would like to know more about completion certificates, click here. 

If you would like to know more about when completion certificates can be withheld, click here. 

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for errors, omissions, loss, or damage arising from reliance upon any information herein. Don’t hesitate to contact Meyer and Partners Attorneys Incorporated if you require further information or specific and detailed advice. Errors and omissions excepted (E&OE).

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