How B-BBEE Level Affects Your Score Under the 90/10 and 80/20 Rules in 2026 — May 2026 Update

By Thabo Mokoena

As a procurement strategist, understanding the impact of B-BBEE level on your score under the 90/10 and 80/20 rules is crucial for General contractors in Gauteng. The current regulatory environment demands that suppliers adhere to the Public Finance Management Act (PFMA), the Preferential Procurement Policy Framework Act (PPPFA), and the Broad-Based Black Economic Empowerment Act (BBBEE Act). In this May 2026 update, we will explore how B-BBEE level affects your score and provide guidance on compliance strategy, positioning, and smart supplier readiness.

The Regulatory Framework

The PPPFA sets out the framework for preferential procurement, aiming to promote economic development and redress the imbalances of the past. The BBBEE Act is a key component of this framework, aiming to promote economic transformation by broadening participation in the economy. General contractors in Gauteng must be familiar with the CIDB Act, which regulates the construction industry, and the PFMA, which governs public financial management.

The BBBEE Act categorizes suppliers into five levels, with Level 1 being the most advantageous and Level 4 and below being less advantageous. The Act also introduces new requirements, such as the 80/20 rule, which stipulates that 80% of procurement spend must be directed towards suppliers that are at least 51% owned by historically disadvantaged individuals. The 90/10 rule requires that 90% of procurement spend be directed towards suppliers that are at least 30% owned by women.

What General Suppliers in Gauteng Must Have in Place

General contractors in Gauteng must ensure they have the necessary documentation and registrations to comply with the regulatory framework. These include:

• A valid Construction Industry Development Board (CIDB) registration, issued by the CIDB portal (www.cidb.org.za
  ), which is valid for a period of 3 years.
• A valid Broad-Based Black Economic Empowerment (BBBEE) certificate, issued by the South African National Accreditation System (SANAS), which is valid for a period of 3 years.
• A valid Tax Compliance Status (TCS) certificate, issued by the South African Revenue Service (SARS), which is valid for a period of 3 years.
• A valid Company and Intellectual Property Commission (CIPC) registration, which is valid for a period of 10 years.
• If employing staff, a valid Compensation for Occupational Injuries and Diseases Act (COIDA) registration, which is valid for a period of 1 year.

If any of these registrations lapse, the supplier may be liable for penalties and may not be considered for procurement opportunities.

Step-by-Step Compliance Approach

To ensure compliance with the regulatory framework, General contractors in Gauteng should follow these steps:

1. Always read the full tender document before starting your submission. The most common failure is applicants who do not respond directly to every evaluation criterion.
2. Ensure you have a valid CIDB registration and BBBEE certificate to meet the 80/20 rule requirements.
3. Ensure you have a valid TCS certificate to meet the 80/20 rule requirements.
4. Ensure you have a valid CIPC registration to meet the registration requirements.
5. If employing staff, ensure you have a valid COIDA registration to meet the registration requirements.

The Most Common Compliance Failures

The most common compliance failures include:

• Failure to submit a valid SBD form, which is a critical component of the tender submission.
• Failure to submit a valid BBBEE affidavit, which is required to support the BBBEE certificate.
• Failure to verify the CSD status of the supplier, which is a critical component of the tender submission.
• Failure to attend a compulsory briefing session, which is required to meet the registration requirements.

2026 Context: What General Suppliers Should Focus On

In 2026, General contractors in Gauteng should focus on the following:

• Ensuring compliance with the 80/20 rule requirements to meet the BBBEE Act requirements.
• Ensuring compliance with the 90/10 rule requirements to meet the BBBEE Act requirements.
• Developing a strong B-BBEE strategy to improve their B-BBEE level and increase their competitive advantage in the market.

How Tenders-SA.org Helps

Tenders-SA.org provides a range of services to help General contractors in Gauteng comply with the regulatory framework and improve their competitive advantage in the market. These include:

• AI matching for General opportunities aligned to your compliance profile.
• Company Profile Builder capturing CSD information.
• Tender Alerts to ensure you stay up-to-date with the latest procurement opportunities.

Browse General tenders

Compliance & Policy Specialist with 15+ years in public sector procurement. Former supply chain manager with deep expertise in regulations, PPPFA, and legislative compliance.