Construction tender basics

Construction tender basics: a South African contractor’s guide

Definition. Construction tender basics are the essential rules, documents, safety obligations, pricing methods, and scoring criteria that South African contractors must understand to submit responsive and competitive public-sector construction bids. In practice, Construction tender basics mean (1) the right CIDB class and grade, (2) attending compulsory briefings, (3) complying with the Occupational Health and Safety Act and the OHS Construction Regulations, 2014, (4) delivering a robust safety file and method statements, (5) keeping COIDA and insurance current, and (6) presenting quality, resources, and programme so that evaluators can award you full functionality points while your schedule of quantities and risk allowances keep your price sharp and deliverable.

Understanding the CIDB grading system (GB, CE, SO classes)

Public bodies rely on the Construction Industry Development Board framework to ensure bidders have suitable capacity. The cidb grading system gb so classes is a shorthand for what you’re qualified to build and up to what value.

Classes of Works most small and medium contractors encounter include:

• GB (General Building): alterations, new buildings, finishes.

• CE (Civil Engineering): roads, stormwater, earthworks.

• SO (Specialised Other): e.g., steel security fencing, fire detection, landscaping, etc.

Grades range from 1 to 9. A Grade 2 GB, for example, is permitted to tender up to the financial value indicated on CIDB’s tables (adjusted from time to time).

Your actions:

1. Register/Update your class(es) and grade(s) and keep the status Active.

2. Ensure CIPC ownership and CSD banking data match your CIDB profile.

3. If bidding as a JV, calculate the combined grade correctly and attach the JV agreement.

4. Mirror the Class of Works exactly as the tender specifies—if the scope is CE with GB elements, your primary class must match CE unless the conditions say otherwise.

Proof pack for the file:

• CIDB active status printout with class and grade highlighted.

• For JVs, combined grading working and signed JV agreement.

Compulsory site briefings and pre-bid inspections

Compulsory briefings are a common go/no-go gate. They allow the employer to show existing site conditions, hazards, access constraints, and to answer clarifying questions.

Why it matters: Non-attendance is an instant non-responsiveness finding at many municipalities and SOEs.

How to do it right:

• Register each partner if the bid insists on all JV members’ attendance; otherwise, send the lead as required.

• Arrive early, sign the attendance register, and keep the certificate/receipt in your submission.

• Capture site photos and preliminary hazard notes; these will feed into your method statement and risk assessment.

• If the procuring entity issues addenda after the briefing, ensure your team reads and implements them—especially if they change the bill of quantities or programme assumptions.

Construction tender basics: OHSA Construction Regulations 2014 tender requirements

Many invitations reference the OHS Act 85 of 1993 and the OHS Construction Regulations, 2014 by name. To comply with the ohs construction regulations 2014 tender requirements, your bid should demonstrate you can:

• Accept the legal appointment chain: 16(2) appointee, Construction Manager, Construction Supervisor, and Competent Persons for scaffolding, excavations, fall protection, electrical, etc.

• Produce a baseline risk assessment (BRA) and develop a site-specific risk assessment upon award.

• Prepare and maintain health & safety plans, induction training, permit-to-work systems, and incident reporting processes.

• Manage PPE, medical surveillance where required, and toolbox talks.

• Coordinate with the Client/Principal Contractor if you are a subcontractor.

Include a short, plain-English paragraph in your methodology that maps each legal requirement to your proposed controls. Evaluators will recognise the competence signals immediately.

Construction tender basics: safety file contents for contractors and COIDA

A compliant safety file shows you can start work safely and legally. The exact safety file contents for contractors vary by employer and risk profile, but commonly include:

• Legal appointments (16(2), CR 8, CR 12, CR 13, CR 15, etc.).

• Site-specific H&S plan approved by the client/agent.

• Risk assessments and method statements for high-risk activities (excavations, work at height, lifting operations, temporary works).

• Fall-protection plan, scaffold registers, excavation permits, confined space permits, hot-work permits where applicable.

• Incident/accident registers, First Aid certificates, firefighting certificates, medical fitness for operators.

• Equipment registers (ladders, harnesses, power tools, plant).

• Training records and toolbox talk logs.

• COIDA documentation—including a current coida letter of good standing contractors.

COIDA tip: Apply for renewal before the expiry. Many employers treat an expired Letter of Good Standing as a disqualifier during evaluation or a stop-work trigger at award.

Method statement example construction tender—turning scope into safe, buildable steps

Evaluators want confidence that you can execute. A strong method statement example construction tender section typically:

1. Summarises the sequence: site establishment → setting out → temporary works → main works → testing and commissioning → snagging → demobilisation.

2. Maps risks to controls: e.g., “Excavation > 1.5 m” → appoint Competent Person, shoring, daily inspection register, barriers and lighting.

3. Allocates resources: foreman to crew ratios; plant lists with fleet availability; supplier lead-times.

4. Links to programme: shows how activities sit on the critical path and how weather windows or access constraints are handled.

5. References standards: SANS specs, OEM manuals, municipal details, and the OHS Construction Regulations, 2014.

Use diagrams or a short Gantt to make the plan “see-through” for evaluators. Clarity converts to functionality points.

Public liability insurance tender requirement and other risk-transfer instruments

Most construction bids require proof of cover. Address the public liability insurance tender requirement and any contract works or professional indemnity needs up front:

• Public Liability: Typical limits vary (e.g., R10–R50 million). Attach a policy schedule or insurer’s letter of intent naming the employer as an interested party.

• Contract Works: Especially for capital projects—cover for physical loss/damage to works, often on specified perils and all-risk basis.

• Plant/Equipment: Own/hired plant insurance, with proof of hire-in agreements’ limits.

• PI Insurance: Demand arises where you design or undertake temporary works design.

Explain how deductibles are managed and how you will extend cover for subcontractors. Insurers might issue project-specific endorsements—flag your readiness to do so.

Schedule of quantities pricing tips and cost-risk strategy

Pricing can win or lose your bid, but arithmetic errors or non-conforming models will sink it. Practical schedule of quantities pricing tips:

• Mirror the BoQ religiously. If the employer supplies an XLSX template, work inside it—do not add hidden rows or formulas that could break on export.

• Unit rates vs lump sums: Where you price lump sums, attach a price build-up in your internal file so you can explain variances if asked.

• Preliminaries and General: Align with programme length, site establishment costs, supervision ratios, PPE, testing, and as-built documentation.

• Risk allowances: If allowed, include measured contingencies; otherwise, embed risk in unit rates.

• Escalation: Check if prices are firm, non-firm, or adjustable and model the scenario that evaluation uses.

• Arithmetic checks: Run a clean sum-check; compare BoQ total to Form of Offer; apply a two-person sign-off.

State any assumptions the Conditions of Tender allow (e.g., access hours, spoil sites, available utilities). Do not submit alternatives unless explicitly permitted.

Quality evaluation construction tenders—resources, programme, and scoring

In many bids, functionality—often called quality evaluation construction tenders—is a gate or a weighting. Typical sub-criteria and how to respond:

• Proposed methodology (20–40%): Use the method statement guidance above; tie features to client benefits.

• Key personnel (20–30%): Present CVs with years, registration numbers, project role, contactable references, and availability letters.

• Relevant experience (20–30%): Provide completion certificates and reference letters that match the class of works and scale; include client contacts.

• Resources and plant (10–20%): List owned and hired plant with proof of availability; attach hire agreements/letters of intent for critical items.

• Programme (10–20%): Provide a realistic, logic-linked programme (Gantt/critical path). Show how weather and permit risks are managed; include float and milestone definitions.

Always check whether there is a minimum functionality threshold. If so, you must clear it to reach price/preference scoring.

Construction tender basics: subcontracting, JVs, and local content (where applicable)

Your structure affects eligibility and points. Under many policies and the PPPFA regulations, procuring entities may prescribe compulsory subcontracting to designated groups on contracts above certain values, or they may set local production and content thresholds for specific product categories.

Do this well:

• Present a clear JV agreement (lead partner, liability, bank, decision rules) and calculate combined CIDB grading correctly.

• Identify packages suitable for subcontracting; include letters of intent reflecting realistic scopes and durations.

• Where local content applies (e.g., steel products, transformers, buses), prepare Annexure C/D/E with verifiable calculations and supplier declarations.

• Align subcontractor safety capability with your OHS plan; include them in the safety file structure from the outset.

Construction tender basics: submission pack, SBD/MBD forms, and responsiveness

Even the best technical offer fails if it’s not responsive. Your Construction tender basics file should include:

• SBD/MBD forms: SBD1/3/4/6.1/6.2/8/9 (or municipal equivalents) completed, initialled, dated, and consistent with company details.

• CSD report (or supplier number) and validated banking letter.

• SARS TCS PIN (tested as compliant).

• B-BBEE affidavit/certificate aligned with your turnover class and sector code.

• CIDB active status printout (and JV combined grade where applicable).

• COIDA Letter of Good Standing and insurance proof.

• Attendance certificate from the compulsory briefing.

• CVs, registration certificates, reference letters, and OEM authorisations where required.

• Method statements, programme, and any design warranties appropriate to the scope.

Create a clean folder structure and an index page. If the buyer requires electronic submission, follow the file naming and format conventions exactly.

FAQ: Construction tender basics — detailed answers for contractors

1) What CIDB class must I choose if the project mixes building and civil works?
Follow the tender’s primary Class of Works. If the scope is predominantly roads and stormwater with a small building component, the employer will typically specify CE as primary. You may support with a GB partner or subcontractor if your own GB is weak. When in doubt, ask a clarification.

2) Can a Grade 2 GB tender for a project above its typical limit?
Only if the tender allows “potentially emerging contractor” provisions and you meet those conditions (e.g., mentorship/support plan). Otherwise, stay within the published limits for your grade or form a JV with a higher-grade partner.

3) What must appear in a minimum safety file at award?
At a minimum: legal appointments, a site-specific H&S plan, risk assessments, method statements for risky activities, COIDA proof, PPE plan, training records, and registers for equipment. Your client or agent may provide a template; adapt it to the site.

4) Is a COIDA Letter of Good Standing required for every construction tender?
If your employees will work on site, yes in practice. Clients use COIDA as a gate for occupational injury coverage. Keep the coida letter of good standing contractors current and include it in your submission.

5) How detailed should my method statement be?
Enough that an engineer can see feasibility, safety, and sequencing at a glance—typically 2–5 pages per major activity, with diagrams. Tie each step to controls referenced in the OHS Construction Regulations, 2014.

6) What insurance proofs are accepted at tender stage?
Most buyers accept a policy schedule or insurer letter of intent that confirms the public liability insurance tender requirement (and any contract-works cover) will be in force at award. Ensure limits match the tender.

7) How are quality/resources/programme scored?
Under quality evaluation construction tenders, panels use a rubric: methodology, team experience, past projects, resources, and programme. They award points by how convincingly your evidence shows capability and risk control. Provide contactable references and proof of plant availability.

8) Should I price for escalation?
Only if the Conditions of Tender allow non-firm or adjustable pricing and state a basis (e.g., CPAP). If prices are firm, include foreseeable market movements within rates. In all cases, keep your schedule of quantities pricing tips discipline—mirror the template and double-check arithmetic.

9) Can I submit alternative materials or methods?
Only if the tender explicitly permits alternatives. If permitted, submit a conforming offer and a clearly labelled alternative with evidence of equivalent standards (SANS/OEM). Alternatives that reduce life-cycle cost should be justified with a concise benefit case.

10) Do all JV partners need to attend the compulsory briefing?
That depends on the bid rules. Many employers require at least the lead partner to attend; some require all partners. Play it safe—send everyone where possible and keep the attendance proof.

11) Which OHSA appointments are usually required?
Typically: 16(2) appointee (employer representative), construction manager, construction supervisor, competent persons for excavations, scaffolding, temporary works, electrical installations, and a fall-protection planner where work at height occurs.

12) Where do I show my programme—inside the method or as a separate annexure?
Provide a one-page Gantt in the main submission (for quick scoring) and attach a detailed programme as an annexure. Reference it in your methodology and Preliminaries & General pricing.

13) What proves my past performance?
Completion certificates, client reference letters, and photos of completed works. Align each reference to the CIDB class and scale of the current tender; include contact details.

14) Do I need professional registration certificates for site staff?
Where specified—yes. For example, Pr. Eng/Pr. Tech Eng for design oversight or ECSA registrations for temporary works design. Always include operator licences for cranes, forklifts, and other plant.

15) The bid mentions “quality control plan”. What should it contain?
Inspection and test plan (ITP), hold points, material certificates, calibration records, concrete cube test plan, as-built documentation process, and snagging/defects correction procedures tied to programme milestones.

References (South African legal authorities)

These authorities together form the legal backbone of Construction tender basics—defining who may bid, how safety is managed, which documents prove eligibility, and how quality is measured.

Useful Links

• CIDB – Contractor Registration & Classes of Works: Official reference for classes/grades, JV combination rules, and application forms. Essential when checking eligibility and value limits.

• Department of Employment and Labour – OHS Construction Regulations: Primary source for legal appointments, safety plans, and site-specific risk requirements you must reflect in your method statements and safety file.

• National Treasury – SCM & SBD Forms: Access to current Standard Bidding Documents and supply chain guidance to ensure your submission is responsive.

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.

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).

Meyer and Partners Attorneys have offices in Centurion and can assist with all of your Family Law, Civil Law, Contractual, and labour-related matters.