Public infrastructure work is allocated through tenders that most small contractors cannot respond to, not because the work is beyond them but because the entry requirements sit in front of it: supplier registration, construction industry grading, tax compliance and a track record you cannot build without first getting work. Subcontracting is how most contractors break that circle.
Get the registrations in place first, because none of it is retrospective.
Register before you look at tenders
Government buys through a central supplier registration system, and you cannot be paid without being on it. You need a registered entity with current annual returns at the Companies and Intellectual Property Commission, tax compliance, banking in the business name and a B-BBEE affidavit or certificate.
This takes time and none of it can be done after a tender closes. Contractors who start when they see an opportunity have already missed it.
Construction grading determines what you may bid for
Contractors undertaking public construction work must be registered with the construction industry regulator and are graded by class of work and financial capability. Your grade caps the value of the contracts you may tender for.
Grading rises with demonstrated completed work and financial capacity, which is why the first contracts matter beyond their own value.
Subcontracting is the realistic entry
Large contractors need subcontractors, and many public contracts carry requirements to subcontract a portion to smaller and locally based enterprises. That is the accessible route in.
Subcontracting also builds the completed-work record that raises your grade. Approach main contractors on projects in your area directly rather than waiting to be found.
Training and support exist, and are underused
Public entities run contractor development programmes providing training, mentorship and access to work, and completing one is a credential in itself.
Free business planning and compliance support is available through the Small Enterprise Development and Finance Agency. Be realistic about cash flow: public payment terms are long, you fund materials and wages upfront, and that gap ends more small contractors than any shortage of work does.
Frequently asked questions
What must be in place before tendering?
Central supplier registration, a compliant registered entity, tax compliance, business banking and a B-BBEE affidavit. None of it is retrospective.
What does construction grading do?
It caps the value of public contracts you may tender for, based on class of work and financial capability.
How do small contractors get started?
Through subcontracting to main contractors, which is also how you build the completed-work record that raises your grade.
Are there programmes to help?
Yes. Public entities run contractor development programmes offering training, mentorship and access to work.
What is the biggest risk?
Cash flow. Public payment terms are long while you fund materials and wages upfront.
Further reading
Originally published in March 2018. Updated September 2026 into guidance on becoming a supplier to public infrastructure projects.
