Most losing bids are not beaten on price. They are removed before pricing is opened, on compliance grounds the bidder never hears about.
How evaluation actually works
Bids are assessed in stages. Administrative compliance first, then functionality where applicable, then price and preference points. A bid failing an earlier stage does not proceed, and the bidder is rarely told which stage they failed at.
This is why businesses that believe they were the cheapest still lose.
The recurring reasons
| Reason | Fix |
|---|---|
| Lapsed tax compliance | Check monthly on eFiling |
| Inactive or unverified CSD record | Confirm supplier number is active |
| Expired B-BBEE affidavit | Renew annually |
| Incomplete or unsigned SBD forms | Check every form before submission |
| Missed compulsory briefing | Read the tender document early |
| Late submission | Submit a day early, never on the deadline |
| Wrong submission method | Follow the tender document exactly |
| Insufficient CIDB grading | Check the required grade before bidding |
The pricing mistake
Bidding below cost to win a first contract is common and frequently fatal. Government payment terms can run to thirty days or longer from invoice, and a thin margin cannot absorb that delay.
Price the work properly, including the cost of carrying the receivable.
Asking why you lost
You are entitled to request reasons for a decision. Do it in writing, politely, and use the answer to fix the specific gap rather than guessing.
Where to start
Before your next bid, confirm the five things that disqualify most submissions: CIPC standing, CSD active, tax compliant, B-BBEE current, and SBD forms complete and consistent.
Check your tender readiness free
Score your business against what government buyers check before they award. Free PDF report showing exactly which gaps are costing you bids.
General information, not procurement or legal advice. Requirements vary by tender and by organ of state. Always read the specific tender document.