Guide
Why bids get disqualified, and how to avoid it
Many bids fail on compliance rather than on price or quality. Several of the grounds are printed on the standard bidding forms themselves or set by Treasury rules and the municipal supply chain regulations. This guide lists them, form by form, with what to check before you submit. The bid document adds its own conditions, so read it as well.
- Applies to
- Bids to national, provincial and local government.
- Last reviewed
The issued tender pack always takes precedence. Buyers customise the standard forms and add their own conditions, so complete the forms and follow the rules in the pack you received. This guide explains the official forms; it is general information, not legal advice.
From SBD 1 and MBD 1
- Late bids are not accepted. Bids must reach the correct address by the stipulated time; a bid delivered late, or to the wrong place, is not considered.
- Not on the official forms. Bids must be on the official forms provided, not re-typed, or in the manner the bid document prescribes (MBD 1: or online).
- Tax compliance. Bidders must ensure they are tax compliant and give their SARS TCS PIN, or their CSD number where no PIN is available. In a joint venture, consortium or with subcontractors, each party must give its own.
- Persons in the service of the state. SBD 1: no bids will be considered from persons in the service of the state, companies with directors who are, or close corporations with members who are. MBD 1: no bids will be considered from persons in the service of the state.
- Missing particulars. The NB at the end of SBD 1 warns that failure to provide or comply with any of its particulars may render the bid invalid. It also asks for proof of the signatory's authority, such as a company resolution.
From SBD 4 and MBD 4
- A bidder listed on the Register for Tender Defaulters or the List of Restricted Suppliers is automatically disqualified.
- The bid is disqualified if the disclosure is found to be false (2026 revision) or not true and complete in every respect (2022 version).
- Revised SBD 4 (in effect from 1 November 2026, and in any pack that already uses it): failure to disclose all CSD-registered active companies linked to all directors leads to disqualification.
- MBD 4: no bid will be accepted from persons in the service of the state.
From SBD 6.1 and the PPR 2022
Missing proof for a specific goal does not disqualify you: SBD 6.1 says the points for specific goals are then treated as not claimed. False claims are different: if a buyer believes you submitted false information about a specific goal, it must tell you and give you 14 days to make representations, and may then disqualify you or end the contract and claim damages (PPR 2022, regulation 9).
From MBD 8, MBD 9 and the municipal SCM regulations
- A bid may be rejected if the bidder or any of its directors abused the municipality's supply chain system, was convicted of fraud or corruption in the past five years, wilfully neglected, reneged on or failed to comply with a public sector contract in the past five years, or is listed on the Register for Tender Defaulters (MBD 8; regulation 38).
- A municipality may reject a bid if the bidder or any of its directors owes municipal rates, taxes or service charges more than three months in arrears, or if the bidder failed to perform satisfactorily on a public contract in the past five years after written notice (regulation 38). MBD 8 asks about both.
- A municipality may not consider a bid unless the bidder gave its full name, ID or registration number and tax reference (and VAT number, if any), authorised the municipality to check its tax matters with SARS, and declared whether it, its directors, managers, principal shareholders or stakeholders, or their spouses, children or parents are or were in the service of the state in the past twelve months (regulation 13).
- A municipality may not award to a person in the service of the state (regulation 44), or to a person whose tax matters SARS has not declared to be in order (regulation 43).
- MBD 9: the bid is disqualified if the certificate of independent bid determination is found not to be true and complete in every respect.
From the Central Supplier Database rules
Departments and public entities must state in their bid invitations that suppliers must be registered on the CSD before they bid, must verify bidders' tax compliance status on the CSD, and may not issue an award to a supplier that is not registered (National Treasury SCM Instruction 4A of 2016/17). Register early: see CSD registration.
From the bid document itself
Each tender adds its own conditions. Look for the sections called "returnable documents", "mandatory requirements", "pre-qualification" or "responsiveness criteria". Conditions bid documents often set:
- Attending a compulsory briefing session or site meeting.
- Signatures on every form that asks for one, initials on each page, or a resolution authorising the signatory.
- A required registration or licence attached, such as CIDB grading, PSIRA, professional registration or accreditation.
- Pricing on the schedule that was issued, with prices that match across forms.
- A minimum functionality score, where the tender sets one. The PPR 2022 no longer regulate functionality; the bid document sets the criteria and the minimum score.
A final check before you submit
- Closing date, time and submission address or method checked against the latest eTenders notice and any amendments.
- Every form is the one in the issued pack, completed in ink or as the pack allows, signed, dated and in the right order.
- Tax PIN and CSD number for every party; tax status checked on the day.
- Disclosures checked with every director: state employment, relationships, related companies and their MAAA numbers.
- For municipal bids, no rates, taxes or service charges more than three months in arrears for the business or any director.
- Proof attached for every specific goal you claim, and every returnable on the pack's list included.
- One person reads the whole bid against the returnables list before it leaves the office.
Questions
- Can a buyer let me fix a missing document after the closing date?
- Only if the bid document allows it. Some tenders let the buyer ask for a missing document that does not affect price, functionality or preference points; many say that a missing mandatory document makes the bid non-responsive with no chance to correct it. Treat every returnable as required on the closing date.
- Is an unsigned form a reason for disqualification?
- Treat it as one. SBD 1 warns that failing to provide or comply with any of its particulars may render the bid invalid, the declarations on SBD 4, SBD 6.1 and MBD 9 are statements the signatory certifies, and many bid documents list unsigned forms as grounds for disqualification.
How Lula Bid helps
- Reads the tender pack you upload and builds a checklist of the returnables and forms it names, including mandatory items (Prepare package and up).
- Warns before you sign when a form answer could disqualify the bid, for example state employment on SBD 4 or a related company without its CSD number on the revised SBD 4.
- Picks the correct SBD 4 version from the closing date, and the SBD or municipal MBD set from the buyer.
You still check every answer and sign the forms yourself. See what each package includes
Official sources
- SBD 1 Invitation to bid (Version 1 of 2023, Word) · National Treasury, Office of the Chief Procurement Officer
- MBD 1 Invitation to bid (revised, Word) · National Treasury, Office of the Chief Procurement Officer
- Revised SBD 4 Bidder's disclosure (Annexure A to PFMA SCM Instruction 12 of 2026/27, Word) · National Treasury, Office of the Chief Procurement Officer
- PFMA SCM Instruction 3 of 2021/22: Enhancing compliance, transparency and accountability in SCM (with the 2022 SBD 4 as Annexure A) · National Treasury, Office of the Chief Procurement Officer
- SBD 6.1 Preference points claim form in terms of the PPR 2022 (Word) · National Treasury, Office of the Chief Procurement Officer
- Preferential Procurement Regulations, 2022 (GN 2721, Government Gazette 47452, 4 November 2022) · National Treasury, Office of the Chief Procurement Officer
- Frequently asked questions and generic answers: Preferential Procurement Regulations, 2022 · National Treasury, Office of the Chief Procurement Officer
- Municipal Bidding Documents (MBD 1 to MBD 9, zip of Word forms) · National Treasury, Office of the Chief Procurement Officer
- Municipal Supply Chain Management Regulations, 2005 (GN 868, Gazette 27636) and amendments · National Treasury, MFMA
- National Treasury SCM Instruction 4A of 2016/17: Central Supplier Database · National Treasury, Office of the Chief Procurement Officer
- Standard bidding forms (SBD and MBD) · National Treasury, Office of the Chief Procurement Officer
Last reviewed 10 October 2026 against these documents. Forms and instructions change; check the buyer's pack and National Treasury's site for later versions.