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Today's Tender Tips

Daily South African Government Tender Insights

pricing Tip #6

Pricing is Not Everything

Lowest price does not always win tenders

South African tenders evaluate functionality, compliance, and BBBEE alongside pricing, not price alone.

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Government procurement in South Africa follows a multi-criteria evaluation system. While price is important, it is only one component of the scoring process. Functionality, compliance, experience, and BBBEE contribution often carry significant weight. Many bidders mistakenly reduce prices too aggressively, which can make their proposals financially unrealistic or technically weak. A balanced pricing strategy aligned with value delivery is more effective for winning tenders.

Action Tip: Balance pricing with compliance and value delivery