Understanding Tender Terminology: A Beginner’s Glossary

If you’re new to bidding, the jargon in tender documents can feel like a foreign language. This beginner-friendly glossary explains the most common terms you’ll see in South African tenders, so you can read with confidence and submit stronger bids.

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Core procurement documents

• RFI (Request for Information): A market scan to gather info. Not a bid—no award is made. Helps buyers shape a later RFQ or RFP.
• RFQ (Request for Quotation): A quick, price-focused request for standard goods/services. Usually lower values and short lead times.
• RFP (Request for Proposal): A detailed request that evaluates technical approach, experience, methodology and price.
• Tender / Bid: Your formal offer responding to an RFQ/RFP/ITB.
• ITB/Invitation to Bid: Formal notice inviting suppliers to submit bids (also “Invitation to Tender”).

South African compliance & registrations

• CSD (Central Supplier Database): National Treasury’s supplier registry. Many organs of state require an active CSD registration to be eligible.
• BBBEE (Broad-Based Black Economic Empowerment): A scorecard system that can affect preference points and subcontracting obligations.
• PPPFA (Preferential Procurement Policy Framework Act): The law governing preference/points in public procurement; implemented via current regulations in the bid docs.
• CIDB: Construction Industry Development Board grades/registrations used on construction works tenders.
• Tax Compliance Status (TCS): Proof from SARS that your tax affairs are compliant (often verified electronically).

Bid packaging & mandatory forms

• SBD / MBD forms: Standard/Municipal Bidding Documents that must be completed and signed (e.g., SBD1, SBD4, SBD6.1, SBD8, SBD9). Missing or incorrectly completed forms can make a bid non-responsive.
• BOQ (Bill of Quantities): Itemised list to price each work element in construction/engineering bids.
• Technical Proposal: Your methodology, approach, team and relevant experience.
• Financial/Price Proposal: Your pricing schedule or detailed quote (often in the prescribed template).
• Supporting Documents: Certificates, company docs, references, track record, resumes, financials and any required accreditations.

Process & evaluation terms

• Briefing Session / Site Meeting: A meeting (sometimes compulsory) to clarify the scope; attendance registers are used.
• Closing Date/Time: The strict deadline for submission. Late bids are usually rejected unopened.
• Validity Period: How long your offer must remain open for acceptance—often 60–120 days.
• Addendum: An official change/clarification issued during the tender period. Must be acknowledged in your bid.
• Clarification: Buyer questions to explain parts of your bid (not a chance to materially change price or scope).
• Mandatory Requirements: Pass/fail criteria (e.g., certifications, attendance, forms). Missing these = automatic disqualification.
• Functionality / Technical Threshold: A minimum score your technical proposal must achieve to be considered further.
• Responsive Bid: A bid that meets all mandatory and submission requirements.
• Preference Points: Points awarded based on price and preference criteria (e.g., BBBEE) as set out in the regulations/bid docs.
• Award / Letter of Award: Formal notification that you’ve won. Often followed by contract finalisation.

Commercial & contract terms

• Performance Guarantee / Bid Security: Financial security (if required) to ensure performance or bid seriousness.
• Service Level Agreement (SLA): Contract terms covering scope, KPIs, response times, penalties, etc.
• Delivery Lead Time: Time from order to delivery/commencement.
• Payment Terms: How and when you’ll be paid (e.g., 30 days from invoice).
• Subcontracting: Portion of work performed by another party; may be mandatory for certain categories.
• Deviation / Variation: Approved change to scope/specs after contract award.

How to use this glossary when you bid

1. Skim the whole document first. Circle unfamiliar words and look them up here.
2. Check mandatory items early. Confirm CSD, TCS, BBBEE and required SBD/MBD forms.
3. Build a submission checklist. Include forms, technical docs, price schedules and signatures.
4. Note the validity period and closing time. Work backwards to plan internal reviews.
5. Track addenda. If one is issued, acknowledge it and adjust your proposal if needed.

Final tips

• Always use the buyer’s exact templates (forms, price schedules, BOQ).
• Sign everywhere a signature is requested (including witnesses if required).
• If a briefing is compulsory, attend and sign the register.
• Ask clarifying questions before the cutoff date listed in the tender.
• Keep copies of everything you submit.

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