bbbee certificate for tenders

B-BBEE for tenders: certificate or affidavit

Smaller businesses often pay for a certificate they do not need. Here is how to tell.

5 min read

B-BBEE evidence is part of almost every public bid, and it feeds the preference points that can let a higher price still win. What surprises many small businesses is that the evidence is often free.

This explains the two routes and how to work out which applies to you.

Affidavit versus certificate

An Exempted Micro Enterprise, defined by annual turnover below a threshold set in the B-BBEE codes, may use a sworn affidavit rather than a verification certificate. The affidavit is a standard template commissioned in front of a commissioner of oaths, so it costs nothing but the time.

Qualifying Small Enterprises that are majority black owned have a similar affidavit route. Larger entities, and QSEs that do not meet the ownership test, need a verification certificate from an accredited agency.

Confirm the current turnover thresholds before you sign anything, because they are set in the codes and have been revised. Signing an affidavit you do not qualify for is a false declaration, not a shortcut.

How it affects your score

Preference points are awarded for specific goals defined in the tender, and B-BBEE status commonly features among them. Points are split between price and those goals on either an 80/20 or 90/10 basis depending on the contract value, and the tender document states which applies.

The practical effect is that a stronger B-BBEE position lets your price sit above the lowest bid and still win on total points. How far above is arithmetic you can work out in advance.

Keep it current

Affidavits and certificates both carry a validity period, and an expired one is treated as no evidence at all. Because compliance is verified at evaluation rather than submission, renew well before the date rather than on it.

Common questions

Do I need a B-BBEE certificate to bid for a government tender?
You need B-BBEE evidence, but that is not always a paid certificate. An Exempted Micro Enterprise can generally use a free sworn affidavit, as can a majority black owned Qualifying Small Enterprise. Confirm the current turnover thresholds before deciding.
Can I still bid with a low B-BBEE level?
Yes. B-BBEE affects your preference points, not your eligibility. You can win with a weaker B-BBEE position by being cheaper, and the tender's split tells you how much cheaper you need to be.

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