Pricing Your Security Bid: Rates per Guard in Gauteng

Price is the most frequent reason for disqualification in the security sector. In Gauteng's competitive market, many firms either 'over-price' themselves out of the running or 'under-price' so severely that they are flagged as non-compliant with labor laws. This security pricing guide breaks down the math of a 2025 security bid, ensuring your proposal is profitable and perfectly aligned with PSIRA rates in 2025.

Understanding 'Area 1' Pricing (Gauteng)

For the purposes of the National Bargaining Council for the Private Security Sector (NBCPSS), most of Gauteng—including Johannesburg, Pretoria, and Ekurhuleni—is classified as 'Area 1'. Area 1 has the highest minimum wage requirements in the country. If you use 'Area 2' or 'Area 3' rates in a Gauteng tender, you will be disqualified for undercutting.

The Real Cost of One Guard (Monthly Estimate)

Common Pitfalls in Tender Costing for Security

Many SMMEs forget to include 'Leave Relief' in their tender costing for security. If your contract requires one guard on-site 24/7, you actually need 4.2 guards on your payroll to cover rotations, sick leave, and annual holidays. If you only price for 4 guards, you will lose money on the 13th month and over-time.

The 60/40 Rule for SMMEs

In a healthy security bid, your direct labor costs should never exceed 70% of your total bid price. The remaining 30% must cover your Control Room, vehicle fuel, office overheads, and a sustainable profit margin. A bid where labor cost is 90% of the price is 'reckless' and will likely be rejected for being financially unsustainable.

How to Justify Your Pricing

Don't just provide a single total number. Successful Gauteng bidders provide a transparent 'Price Breakdown Structure'. Show the evaluators that you have included the provident fund, the bargaining council levies, and the correct night shift allowances. This transparency builds trust and proves you are a 'compliant' employer.

Key Insight: The PSIRA Compliance Limit

PSIRA publishes a 'Recommended Fee' schedule annually. While you can bid below this recommended fee, you cannot bid below the direct statutory cost. If your security tender bid price for a 24-hour post is less than the cost of 4.2 guards at minimum wage plus COIDA/UIF, the tender committee is legally obligated to flag your bid for investigation.

Conclusion

Accurate pricing is the foundation of a sustainable security company. By using the Area 1 rates for Gauteng and budgeting for leave relief and overheads, you ensure your business can grow without falling into the 'low-price trap'. For more on the operational side of security in Pretoria, see our City of Tshwane Security Guide