How B-BBEE Level Affects Your Score Under the 90/10 and 80/20 Rules in 2026 — April 2026 Update
As a General contractor in Gauteng, you're likely aware of the strict compliance requirements that come with government procurement. In this environment, it's essential to understand how your B-BBEE level impacts your score under the 90/10 and 80/20 rules, especially with the PFMA (Public Finance Management Act) and PPPFA (Public-Private Partnership Finance Act) in place. Failure to comply can result in costly delays and damage to your reputation. Take, for instance, a small enterprise, Malaika Construction, which specializes in building maintenance services. They recently attempted to bid on a Gauteng Department of Education tender but fell short due to non-compliance with the B-BBEE Act. In this article, we'll walk you through their experience and provide a step-by-step guide on how to achieve compliance.
By Compliance Team
As a General contractor in Gauteng, you're likely aware of the strict compliance requirements that come with government procurement. In this environment, it's essential to understand how your B-BBEE level impacts your score under the 90/10 and 80/20 rules, especially with the PFMA (Public Finance Management Act) and PPPFA (Public-Private Partnership Finance Act) in place. Failure to comply can result in costly delays and damage to your reputation. Take, for instance, a small enterprise, Malaika Construction, which specializes in building maintenance services. They recently attempted to bid on a Gauteng Department of Education tender but fell short due to non-compliance with the B-BBEE Act. In this article, we'll walk you through their experience and provide a step-by-step guide on how to achieve compliance.
The Regulatory Framework
The PPPFA, enacted in 2004, regulates public-private partnerships in South Africa. A key provision of the Act is the requirement for B-BBEE compliance in all government procurements. In 2007, the Department of Trade and Industry introduced the BBBEE Act, which sets out the B-BBEE scorecard with five elements: ownership, management control, employment equity, preferential procurement, and enterprise and supplier development. The Construction Industry Development Board (CIDB) Act, 2000, governs the construction industry and sets standards for contractors. In Gauteng, General suppliers must adhere to the PFMA, which governs public finance management, and the Municipal Finance Management Act (MFMA), which regulates municipal finance.
What General Suppliers in Gauteng Must Have in Place
To bid on government tenders, General suppliers in Gauteng must have the following in place:
- A valid Construction Industry Development Board (CIDB) registration: The CIDB is a statutory body that regulates the construction industry. Suppliers must register their companies and obtain a valid CIDB registration certificate. The registration process can be completed online through the CIDB website. The registration is valid for three years.
- A Broad-Based Black Economic Empowerment (B-BBEE) certificate: Suppliers must obtain a B-BBEE certificate, which is valid for three years. The certificate can be obtained by submitting an application to the National B-BBEE Commissioner or by using an approved verification agency.
- A South African Revenue Service (SARS) Tax Compliance Status (TCS) certificate: Suppliers must obtain a TCS certificate, which indicates their tax compliance status with SARS. The certificate is valid for 12 months.
- A Companies and Intellectual Property Commission (CIPC) registration: Suppliers must register their companies with the CIPC. The registration process can be completed online through the CIPC website.
- A Compensation for Occupational Injuries and Diseases Act (COIDA) registration (if employing staff): Suppliers who employ staff must register with COIDA, which provides compensation for occupational injuries and diseases.
Step-by-Step Compliance Approach
To achieve compliance, follow these steps:
- Register your company with the CIPC: Start by registering your company with the CIPC. This will provide you with a unique company number and a tax reference number.
- Obtain a B-BBEE certificate: Next, obtain a B-BBEE certificate by submitting an application to the National B-BBEE Commissioner or by using an approved verification agency.
- Register with the CIDB: Register your company with the CIDB and obtain a valid CIDB registration certificate.
- Obtain a TCS certificate: Obtain a TCS certificate from SARS, which indicates your tax compliance status.
- Ensure COIDA registration (if applicable): If you employ staff, register with COIDA to provide compensation for occupational injuries and diseases.
The Most Common Compliance Failures
The most common compliance failures among General suppliers include:
- Inadequate B-BBEE documentation: Suppliers often fail to provide sufficient B-BBEE documentation, leading to rejection of their bids.
- Incorrect SBD forms: Suppliers may complete the Statement B-BBEE Declaration (SBD) forms incorrectly, which can lead to rejection of their bids.
- Lapsed CSD verification: Suppliers often fail to verify their Central Supplier Database (CSD) status, leading to rejection of their bids.
- Compulsory briefing session non-attendance: Suppliers may fail to attend compulsory briefing sessions, which can lead to rejection of their bids.
2026 Context: What General Suppliers Should Focus On
In 2026, General suppliers in Gauteng should focus on the following:
- Enhanced B-BBEE compliance: Suppliers must ensure that their B-BBEE compliance is up-to-date and meets the required standards.
- Improved tax compliance: Suppliers must ensure that their tax compliance status is accurate and up-to-date.
- Increased focus on enterprise and supplier development: Suppliers must focus on enterprise and supplier development to improve their B-BBEE scores.
How Tenders-SA.org Helps
Tenders-SA.org provides a range of services to help General suppliers in Gauteng achieve compliance and bid on government tenders. These services include:
- AI matching for General opportunities aligned to your compliance profile: Our AI-powered matching system matches you with General opportunities that align with your compliance profile.
- Company Profile Builder capturing CSD: Our Company Profile Builder captures your CSD status and ensures that your company profile is up-to-date.
- Tender Alerts: Our Tender Alerts system notifies you of new General tenders that match your compliance profile.
Government tender compliance specialists with 10+ years experience helping businesses navigate CSD registration and tender requirements.
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Based on this article's topics, here are some current tenders that might interest you
Tender for grave digging and internment related services as well as the general horticultural maintenance of all municipal cemetery and crematorium terrains in the City of Tshwane, as and when required for a 3-year period
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READVERT REPLACEMENT OF DIAMOND MESH FENCE WITH CLEAR VIEW FENCE AT GENERAL DELAREYBHOSPITAL CIDB GRADING 4SQ OR HIGHER
TERM CONTRACT FOR SUPPLY AND DELIVERY OF GENERAL BUILDING MATERIAL FOR DEFECTIVE WORK AT CHRIS HANI DISTRICT FOR A PERIOD OF 12 MONTHS
Tender for the appointment of actuarial services to the City of Tshwane (The City) to perform valuations of employee benefits in terms of International Accounting Standards 19(IAS 19) and Generally Recognised Accounting Practice 25 (GRAP 25) for three financial years namely 2026/27, 2027/28 and 2028/29
PROVISION OF GENERAL BUILDING MAINTENANCE SERVICE, GOODS AND MATERIAL SUPPLY FOR NTCSA REAL ESTATE IN THE EASTERN GRID (CONSISTING OF SUBSTATION BUILDINGS, REGIONAL OFFICE AND CUSTOMER LOAD NETWORK (CLNS) WITHIN THE KWA-ZULU NATAL PROVINCE FOR A PERIOD OF 48 MONTHS ON AN AS AND WHEN REQUIRED BASIS.
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How B-BBEE Level Affects Your Score Under the 90/10 and 80/20 Rules in 2026 — April 2026 Update
As a General contractor in Gauteng, you're likely aware of the strict compliance requirements that come with government procurement. In this environment, it's essential to understand how your B-BBEE level impacts your score under the 90/10 and 80/20 rules, especially with the PFMA (Public Finance Management Act) and PPPFA (Public-Private Partnership Finance Act) in place. Failure to comply can result in costly delays and damage to your reputation. Take, for instance, a small enterprise, Malaika Construction, which specializes in building maintenance services. They recently attempted to bid on a Gauteng Department of Education tender but fell short due to non-compliance with the B-BBEE Act. In this article, we'll walk you through their experience and provide a step-by-step guide on how to achieve compliance.