Technical advisory services for grap 104 transition at moqhaka local municipality

The appointed service provider will provide technical assistance and advisory services covering the

recognition, classification, measurement, impairment, and disclosure of financial instruments under GRAP

104.

The appointed service provider must deliver, at a minimum:

Impairment Methodology Design and Revies.

The service provider must design, develop, and implement a GRAP 104-compliant ECL framework,

including: A comprehensive review of Moqhaka’s existing impairment approach. Verification of all

assumptions, formulas, and calculation logic. Alignment with GRAP 104 principles. The ECL methodology

must be based on a simplified, judgement driven approach.

2. Data Assessment and Assumptions

2.1 The engagement must include:

Identification of all data inputs (loan balances, arrears, restructures, write-offs, recoveries, interest rates,

collateral, etc.).

Assessment of data completeness, consistency, and reliability.

Identification and documentation of data gaps and limitations.

Development of reasonable, GRAP-aligned assumptions where data is incomplete and/or unreliable.

Preparation of a data dictionary and assumption register to support auditability.

Moqhaka Municipality will provide input data and operational support through Finance, Credit, and ICT

teams.

The service provider must clearly specify any additional data requirements so that Moqhaka Municipality

can assess feasibility as part of project initiation after appointment.

2.2 ECL Methodology Development

The ECL framework must incorporate:

• Loss rate development based on Nkandla Municipality’s historical loss experience.
• Incorporation of quantitative and qualitative credit indicators such as arrears trends, covenant

breaches, restructurings, and observable credit risk signals.

• Reasonable and supportable forward-looking adjustments based on documented judgement and

observable economic indicators.

• Clear and operationally simple staging criteria for 12-month (Stage 1) and lifetime (Stage 2&3) ECL.

2.3 Calculation Tool and Model Implementation

The servicer provider must deliver:

• A transparent, auditable, Excel-based impairment calculation tool.
• Clearly defined inputs, formulas, assumptions, and outputs.
• Built-in validation checks to identify missing or inconsistent data.
• Alignment between the calculation tool and the documented methodology.

2.4 Governance, Validation and Benchmarking

The engagement must include:

• Benchmarking against comparable public-sector or development finance institutions.
• Review of model overrides and governance processes.

• Design of a formal model governance framework covering approvals, overrides, documentation

standards, and change control.

• Retrospective application of the methodology over at least three prior financial years to assess

impact.

• The service provider must prepare governance and documentation artifacts that are AGSA ready,

including audit trails, assumption registers, decision logs, and methodology documentation

sufficient for external audit scrutiny.

2.5 Impact Assessment and Transition Support

The service provider must:

• Quantify the financial impact of adopting GRAP 104.
• Prepare transition journals, opening balance adjustments, and reconciliations.
• Support the preparation of comparative information where required.
• Draft GRAP 104-compliant disclosure notes for the 2025/26 Annual Financial Statements.
• The transition and disclosure work must be scoped. This typically includes, but not limited to,

opening balance adjustment, reconciliations, comparative information (where required), and full

GRAP 104 compliant disclosure notes.

2.6 Audit and Post-Implementation Support

The service provider must provide post-implementation support for the 2025/26 reporting cycle, including:

• Technical support during AGSA audits.
• Resolution of audit quarries attributable to the scope of work.
• Refinement of calculations where required, up to final audit sign-off.
• This support is limited to the completion of the AGSA 2025/26 external audit process.
• Knowledge Transfer and Capacity Building.

The engagement must include:

• Training sessions for Finance and Credit teams.
• User guides and operational manuals.
• Full handover of tools, documentation, and methodology.
• Guidance on ongoing maintenance and annual review of the framework.

• **A maximum of 20 points (80/20 preference points system), will be allocated for specific goals. The

maximum points for these goals are as follows:

• Locality of Supplier – 10 Points
• B-BBEE status level of contributor - 10 Points

These goals are specified in MBD6.1 in terms of the PPR2022

Eligibilty criteria

Only those suppliers who:

• Are willing and able to keep their cast prices/ rates fixed for the maximum period of 120 days from

date of the RFQ closing- Shall be eligible to participation further on price and preferential points.

• Quotes in line with these pro ranges (R30 000.00 – R300 000.00) will be considered for further

evaluation.

• Bidders are requested to bind their documents in a presentable manner and not include loose

papers.

Printing fee

Printing fee of R150.00 can be made at the cashiers at the main Municipal Building, Hill Street or directly into

the municipal bank account. Proof of payment (Pop) can be submitted to the SCM Offices if EFT payment

was made it can be forwarded to the following SCM officials: [email protected] and after which

the complete bid document forwarded to the bidder. The bid document can also be collected from the

SCM offices, Kroonstad Municipality (Magasyn Building), Cnr 11th & 12th Way, Kroonstad, 9499.

.

Section 3.1 Mbd1: bid for the requirements of the moqhaka local municipality

Part a

Invitation to bid

You are hereby invited to bid for requirements of the (name of municipality/ municipal entity)

BID NUMBER: 1/1/001/2025-26 CLOSING DATE: 10 June 2026 CLOSING TIME: 12:00 PM

Appointment of a service provider to provide technical assistance and advisory services to facilitate

Description transition to the new grap 104

The successful bidder will be required to fill in and sign a written contract form (mbd7).

Bid response documents may be deposited in the bid box

Situated at (street address)

Moqhaka Local Municipality (Magasyn Building)

Cnr 11th & 12th Way

Kroonstad

9499

Supplier information

Name of bidder

Postal address

Street address

Telephone number code number

Cellphone number

Facsimile number code number

E-mail address

VAT registration number

TAX COMPLIANCE STATUS TCS PIN: OR CSD No:

Are you aare you the accredited

Foreign basedrepresentative in south

Supplier forafrica for the goods

THE GOODS/SERVICES OFFERED? Yes No /SERVICES

Yes No OFFERED?

[If yes, answer

[If yes enclose proof] part b:3 ]

Total number of items total bid

Offered price r

Signature of bidder .................................... Date

Capacity under which this

Bid is signed

Bidding procedure enquiries may be directed to: technical information may be directed to:

Department SCM unit led unit

CONTACT PERSON MS. R Matsoso CONTACT PERSON Mr. R Buys

Telephone number 056-216-9187 telephone number 056-216-9320

E-MAIL ADDRESS [email protected] E-MAIL ADDRESS [email protected]

Part b

Terms and conditions for bidding

1. Bid submission:

1.1. Bids must be delivered by the stipulated time to the correct address. Late bids will not be

Accepted for consideration.

1.2. All bids must be submitted on the official forms provided (not to be re-typed) or online

1.3. This bid is subject to the preferential procurement policy framework act and the preferential

Procurement regulations the general conditions of contract (gcc) and, if applicable, any other

Special conditions of contract.

2. Tax compliance requirements

2.1 Bidders must ensure compliance with their tax obligations.

2.2 Bidders are required to submit their unique personal identification number (pin) issued by SARS to

Enable the organ of state to view the taxpayer’s profile and tax status.

2.3 Application for the tax compliance status (tcs) certificate or pin may also be made via e-filing. In

Order to use this provision, taxpayers will need to register with SARS as e-filers through the

Website www.SARS.GOV.ZA.

2.4 Foreign suppliers must complete the pre-award questionnaire in part b:3.

2.5 Bidders may also submit a printed tcs certificate together with the bid.

2.6 In bids where consortia / joint ventures / sub-contractors are involved, each party must submit a

Separate tcs certificate / pin / csd number.

2.7 Where NO tcs is available but the bidder is registered on the central supplier database (csd), a csd

Number must be provided.

3. Questionnaire to bidding foreign suppliers

3.1. Is the entity a resident of the republic of south africa (RSA)? yes NO

3.2. Does the entity have a branch in the RSA? yes

NO

3.3. Does the entity have a permanent establishment in the RSA? yes NO

3.4. Does the entity have any source of income in the RSA? yes NO

3.5. Is the entity liable in the RSA for any form of taxation? Yes NO

If the answer is “NO” to all of the above, then IT is not a requirement to register for a tax compliance

Status system pin code from the south african revenue service (SARS) and if not register as per 2.3

Above.

Nb: failure to provide any of the above particulars may render the bid invalid.

NO bids will be considered from persons in the service of the state.

Signature of bidder: ...................................................

Capacity under which this bid is signed: ...................................................

Date: ................................

Section 3.2 Bank details

Bank name:

Branch: branch code:

Account holder:

Account number: account type:

Authorised signature: .................................................................................................................

Name:................................................................................................................................................

Capacity:...........................................................................................................................................

Date: ..................................................................................................................................................

Section 3.3 Mbd 4 declaration of interest

1. No bid will be accepted from persons in the service of the state.

2. Any person, having a kinship with persons in the service of the state, including a blood relationship,

may make an offer or offers in terms of this invitation to bid. In view of possible allegations of

favouritism, should the resulting bid, or part thereof, be awarded to persons connected with or

related to persons in service of the state, it is required that the bidder or their authorised

representative declare their position in relation to the evaluating/adjudicating authority.

3. In order to give effect to the above, the following questionnaire must be completed and submitted

with the bid.

3.1 Full Name of bidder or his or her representative:.................................................

3.2 Identity Number: ..........................................................................................

3.3 Position occupied in the Company (director, trustee, shareholder12):.........................

3.4 Company Registration Number: ......................................................................

3.5 Tax Reference Number:.................................................................................

3.6 VAT Registration Number:.............................................................................................

3.7 The names of all the directors / trustees / shareholders members, their individual identity

numbers and state employee numbers must be indicated in paragraph 4 below.

3.8 Are you presently in the service of the state? YES / NO

3.8.1 If yes, furnish particulars...............................................................................................

....................................................................................................................................

3.9 Have you been in the service of the state for the past twelve months? YES / NO

3.9.1 If yes, furnish particulars..................................................................................................

.......................................................................................................................................

3.10 Do you have any relationship (family, friend, other) with persons in the service of the state

who may be involved with the evaluation and/or adjudication of this bid? YES / NO

3.10.1 If yes, furnish particulars...................................................................................

1. MSCM Regulations: “in the service of the state” means to be –

(a) a member of –

(i) any municipal council;

(ii) any provincial legislature; or

(iii) the national Assembly or the national Council of provinces;

(b) a member of the board of directors of any municipal entity;

(c) an official of any municipality or municipal entity;

(d) an employee of any national or provincial department, national or provincial public entity or constitutional institution within the meaning of the Public

Finance Management Act, 1999 (Act No.);

(e) a member of the accounting authority of any national or provincial public entity; or

(f) an employee of Parliament or a provincial legislature

2. Shareholder” means a person who owns shares in the company and is actively involved in the management of the company or business and exercises

control over the company

..............................................................................................................................

3.11 Are you aware of any relationship (family, friend, other) between any other bidder and any

persons in the service of the state who may be involved with the evaluation and/or

adjudication of this bid?

Yes / NO

3.11.1 If yes, furnish particulars............................................................................................

.................................................................................................................................

.

3.12 Are any of the company’s directors, trustees, managers, principle shareholders or

stakeholders in service of the state? YES / NO

3.12.1 If yes, furnish particulars.........................................................................................

...............................................................................................................................

3.13 Are any spouse, child or parent of the company’s directors, trustees, managers, principle

shareholders or stakeholders in service of the state? YES / NO

3.13.1 If yes, furnish particulars...........................................................................................

.................................................................................................................................

3.14 Do you or any of the directors, trustees, managers, principle shareholders, or stakeholders of

this company have any interest in any other related companies or business whether or not

they are bidding for this contract? YES / NO

3.14.1 If yes, furnish particulars............................................................................................

...................................................................................................................................

4. Full details of directors / trustees / members / shareholders.

Full Name Identity Number State Employee Tax Reference Number

Number

Certification

I, the undersigned (name) ..........................................................................

Certify that the information furnished on this declaration form is correct.

I accept that the municipality may act against me should this declaration

PROVE TO BE FALSE (which also includes cancellation of the bid).

......................................... ......................................

Signature Date

.......................................... .......................................

Capacity Name of Bidder

Section 3.4 Mbd 6.1 Preference points claim form in terms of the preferential

Procurement regulations 2022

This preference form must form part of all tenders invited. It contains general information and serves as a

claim form for preference points for specific goals.

Nb: before completing this form, tenderers must study the general conditions,

Definitions and directives applicable in respect of the tender and

Preferential procurement regulations, 2022

1. General conditions

1.1 The following preference point systems are applicable to invitations to tender:

• the 80/20 system for requirements with a Rand value of up to R50 000 000 (all applicable

taxes included); and

• the 90/10 system for requirements with a Rand value above R50 000 000 (all applicable

taxes included).

1.2 To be completed by the organ of state

a) The applicable preference point system for this tender is the 80/20 preference point

system.

1.3 Points for this tender (even in the case of a tender for income-generating contracts) shall be

awarded for:

(a) Price; and

(b) Specific Goals.

1.4 To be completed by the organ of state:

The maximum points for this tender are allocated as follows:

Points

Price 80

Specific goals 20

Total points for Price and SPECIFIC GOALS 100

1.5 Failure on the part of a tenderer to submit proof or documentation required in terms of this tender

to claim points for specific goals with the tender, will be interpreted to mean that preference

points for specific goals are not claimed.

1.6 The organ of state reserves the right to require of a tenderer, either before a tender is adjudicated

or at any time subsequently, to substantiate any claim in regard to preferences, in any manner

required by the organ of state.

2. Definitions

(a) “tender” means a written offer in the form determined by an organ of state in response to an

invitation to provide goods or services through price quotations, competitive tendering process or

any other method envisaged in legislation;

(b) “price” means an amount of money tendered for goods or services, and includes all

applicable taxes less all unconditional discounts;

(c) “rand value” means the total estimated value of a contract in Rand, calculated at the time of bid

invitation, and includes all applicable taxes;

(d) “tender for income-generating contracts” means a written offer in the form determined by an

organ of state in response to an invitation for the origination of income-generating contracts

through any method envisaged in legislation that will result in a legal agreement between the

organ of state and a third party that produces revenue for the organ of state, and includes, but is

not limited to, leasing and disposal of assets and concession contracts, excluding direct sales

and disposal of assets through public auctions; and

(e) “the Act” means the Preferential Procurement Policy Framework Act, 2000 (Act No. ).

3. Formulae for procurement of goods and services

3.1. Points awarded for price

3.1.1 The 80/20 or 90/10 preference point systems

A maximum of 80 or 90 points is allocated for price on the following basis:

80/20 or 90/10

or

Where

Ps = Points scored for price of tender under consideration

Pt = Price of tender under consideration

Pmin = Price of lowest acceptable tender

3.2. Formulae for disposal or leasing of state assets and income generating

Procurement

3.2.1. Points awarded for price

A maximum of 80 or 90 points is allocated for price on the following basis:

80/20 or 90/10

or

Where

Ps = Points scored for price of tender under consideration

Pt = Price of tender under consideration

Pmax = Price of highest acceptable tender

4. Points awarded for specific goals

4.1. In terms of Regulation 4(2); 5(2); 6(2) and 7(2) of the Preferential Procurement Regulations,

preference points must be awarded for specific goals stated in the tender. For the purposes of

this tender the tenderer will be allocated points based on the goals stated in table 1 below as may

be supported by proof/ documentation stated in the conditions of this tender:

4.2. In cases where organs of state intend to use Regulation 3(2) of the Regulations, which states that,

if it is unclear whether the 80/20 or 90/10 preference point system applies, an organ of state

must, in the tender documents, stipulate in the case of—

(a) an invitation for tender for income-generating contracts, that either the 80/20 or 90/10

preference point system will apply and that the highest acceptable tender will be used

to determine the applicable preference point system; or

(b) any other invitation for tender, that either the 80/20 or 90/10 preference point system

will apply and that the lowest acceptable tender will be used to determine the

applicable preference point system,

then the organ of state must indicate the points allocated for specific goals for both the 90/10 and

80/20 preference point system.

Table 1: Specific goals for the tender and points claimed are indicated per the table below.

(Note to organs of state: Where either the 90/10 or 80/20 preference point system is applicable,

corresponding points must also be indicated as such.

Note to tenderers: The tenderer must indicate how they claim points for each preference point

system.)

Number of points Number of points

claimed (80/20 allocated

The specific goals allocated points in terms of system)

(80/20 system) this tender (To be completed by

(To be completed by the tenderer)

the organ of state)

A. Locality of Supplier- The most points that can be 10

claimed based on support is 10 Points

Within the boundaries of Moqhaka Local Municipality – 10 10

Points

Outside the boundaries of Moqhaka Local Municipality – 0 0

Points

B. B-BBEE Status Level of Contributor - The most points 10

than can be claimed based on support is 10 Points

Level 1 10

Level 2 6

Level 3 4

Level 4 2

Non-compliant contributor 0

Total points 20

Notes to complete table for specific goals:

The following documents must be attached as proof of the points claimed.

A: Locality of supplier. Tenderers should complete one relevant row for points claimed.

• The municipal rates and taxes statement, which is in the name of the company, not older than

three (3) months; or

• The Clearance Certificate issued by the bidding companies’ local municipality, which is in the

name of the company, not older than three (3) months; or

• The completed Municipal Form with either the stamp of the municipality or the landlord, which is

in the name of the company, not older than three (3) months or

• An official letter which is in the name of the company from the local tribal authority, not older than

three (3) months; or

• A valid signed lease agreement which is in the name of the company, that clearly shows the

business address (not expired at closing date), accompanied by tax invoice/statement of

account/municipal rates and taxes statement from the estate agent / landlord not older than

three (3) months); or

Municipality in the bid evaluation, bid comparison or contract award decisions may result in the

1.2.16 Evaluation of RFQ

RFQ will be evaluated according to the 80/20 preferential points system.

a contract to the bidder scoring the highest number of points.

lowest RFQ or the RFQ scoring the highest points.

claim form for preference points for specific goals.

1.1 The following preference point systems are applicable to invitations to tender

the 80/20 system for requirements with a Rand value of up to R50 000 000 (all applicable

the 90/10 system for requirements with a Rand value above R50 000 000 (all applicable

a) The applicable preference point system for this tender is the 80/20 preference point

1.3 Points for this tender (even in the case of a tender for income-generating contracts) shall be

(b) Specific Goals.

The maximum points for this tender are allocated as follows

Specific goals 20

Total points for Price and SPECIFIC GOALS 100

to claim points for specific goals with the tender, will be interpreted to mean that preference

points for specific goals are not claimed.

or at any time subsequently, to substantiate any claim in regard to preferences, in any manner

MBD6.1 (Preference Points claim form in terms of the Preferential Procurement Regulations 2022).

Failure to comply will result in no preference points being awarded.

without cancelling the contract, be entitled to purchase goods of a similar quality and up to the same

• **A maximum of 20 points (80/20 preference points system), will be allocated for specific goals. The

maximum points for these goals are as follows

• Locality of Supplier – 10 Points
• B-BBEE status level of contributor - 10 Points

15.1 The supplier warrants that the goods supplied under the contract are new, unused, of the most

recent or current models, and that they incorporate all recent improvements in design and materials

unless provided otherwise in the contract. The supplier further warrants that all goods supplied

under this contract shall have no defect, arising from design, materials, or workmanship (except

when the design and/or material is required by the purchaser’s specifications) or from any act or

omission of the supplier, that may develop under normal use of the supplied goods in the conditions

prevailing in the country of final destination.

15.2 This warranty shall remain valid for twelve (12) months after the goods, or any portion thereof as the

case may be, have been delivered to and accepted at the final destination indicated in the contract,

or for eighteen (18) months after the date of shipment from the port or place of loading in the source

country, whichever period concludes earlier, unless specified otherwise.

15.3 The purchaser shall promptly notify the supplier in writing of any claims arising under this warranty.

15.4 Upon receipt of such notice, the supplier shall, within the period specified and with all reasonable

speed, repair or replace the defective goods or parts thereof, without costs to the purchaser.

15.5 If the supplier, having been notified, fails to remedy the defect(s) within the period specified, the

purchaser may proceed to take such remedial action as may be necessary, at the supplier’s risk and

expense and without prejudice to any other rights which the purchaser may have against the supplier

under the contract.

16. Payment

16.1 The method and conditions of payment to be made to the supplier under this contract shall be

specified.

16.2 The supplier shall furnish the purchaser with an invoice accompanied by a copy of the delivery note

and upon fulfilment of other obligations stipulated in the contract.

16.3 Payments shall be made promptly by the purchaser, but in no case later than thirty (30) days after

submission of an invoice or claim by the supplier.

16.4 Payment will be made in Rand unless otherwise stipulated.

17. Prices

17.1 Prices charged by the supplier for goods delivered and services performed under the contract shall

not vary from the prices quoted by the supplier in his bid, with the exception of any price adjustments

authorized or in the purchaser’s request for bid validity extension, as the case may be.

18. Variation orders

18.1 In cases where the estimated value of the envisaged changes in purchase does not vary more than

15% of the total value of the original contract, the contractor may be instructed to deliver the goods

or render the services as such. In cases of measurable quantities, the contractor may be

approached to reduce the unit price, and such offers may be accepted provided that there is no

escalation in price.

19. Assignment

19.1 The supplier shall not assign, in whole or in part, its obligations to perform under the contract, except

with the purchaser’s prior written consent.

20. Subcontracts

20.1 The supplier shall notify the purchaser in writing of all subcontracts awarded under this contract if

not already specified in the bid. Such notification, in the original bid or later, shall not relieve the

supplier from any liability or obligation under the contract.

21. Delays in the supplier’s performance

21.1 Delivery of the goods and performance of services shall be made by the supplier in accordance with

the time schedule prescribed by the purchaser in the contract.

21.2 If at any time during performance of the contract, the supplier or its subcontractor(s) should

encounter conditions impeding timely delivery of the goods and performance of services, the

supplier shall promptly notify the purchaser in writing of the fact of the delay, its likely duration and

its cause(s). As soon as practicable after receipt of the supplier’s notice, the purchaser shall

evaluate the situation and may at his discretion extend the supplier’s time for performance, with or

without the imposition of penalties, in which case the extension shall be ratified by the parties by

amendment of contract.

21.3 The right is reserved to procure outside of the contract small quantities or to have minor essential

services executed if an emergency arises, the supplier’s point of supply is not situated at or near the

place where the goods are required, or the supplier’s services are not readily available.

21.4 Except as provided under GCC Clause 25, a delay by the supplier in the performance of its delivery

obligations shall render the supplier liable to the imposition of penalties, pursuant to GCC Clause

22, unless an extension of time is agreed upon pursuant to GCC Clause 22.2 without the application

of penalties.

21.5 Upon any delay beyond the delivery period in the case of a goods contract, the purchaser shall,

without cancelling the contract, be entitled to purchase goods of a similar quality and up to the same

quantity in substitution of the goods not supplied in conformity with the contract and to return any

goods delivered later at the supplier’s expense and risk, or to cancel the contract and buy such

goods as may be required to complete the contract and without prejudice to his other rights, be

entitled to claim damages from the supplier.

22. Penalties

22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the

services within the period(s) specified in the contract, the purchaser shall, without prejudice to its

other remedies under the contract, deduct from the contract price, as a penalty, a sum calculated

on the delivered price of the delayed goods or unperformed services using the current prime interest

rate calculated for each day of the delay until actual delivery or performance. The purchaser may

also consider termination of the contract pursuant to GCC Clause 23.

23. Termination for default

23.1 The purchaser, without prejudice to any other remedy for breach of contract, by written notice of

default sent to the supplier, may terminate this contract in whole or in part:

(a) if the supplier fails to deliver any or all of the goods within the period(s) specified in the contract,

or within any extension thereof granted by the purchaser pursuant to GCC Clause 21.2;

(b) if the supplier fails to perform any other obligation(s) under the contract; or

(c) if the supplier, in the judgement of the purchaser, has engaged in corrupt or fraudulent practices

in competing for or in executing the contract.

23.2 In the event the purchaser terminates the contract in whole or in part, the purchaser may procure,

upon such terms and in such manner, as it deems appropriate, goods, works or services similar to

those undelivered, and the supplier shall be liable to the purchaser for any excess costs for such

similar goods, works or services. However, the supplier shall continue performance of the contract

to the extent not terminated.

23.3 Where the purchaser terminates the contract in whole or in part, the purchaser may decide to

impose a restriction penalty on the supplier by prohibiting such supplier from doing business with

the public sector for a period not exceeding 10 years.

23.4 If a purchaser intends imposing a restriction on a supplier or any person associated with the

supplier, the supplier will be allowed a time period of not more than fourteen (14) days to provide

reasons why the envisaged restriction should not be imposed. Should the supplier fail to respond

within the stipulated fourteen (14) days the purchaser may regard the supplier as having no objection

and proceed with the restriction.

23.5 Any restriction imposed on any person by the purchaser will, at the discretion of the purchaser, also

be applicable to any other enterprise or any partner, manager, director or other person who wholly or

partly exercises or exercised or may exercise control over the enterprise of the first-mentioned

person, and with which enterprise or person the first-mentioned person, is or was in the opinion of

the purchaser actively associated.

23.6 If a restriction is imposed, the purchaser must, within five (5) working days of such imposition,

furnish the National Treasury, with the following information:

(i) the name and address of the supplier and / or person restricted by the purchaser;

(ii) (ii) the date of commencement of the restriction

(iii) the period of restriction; and

(iv) the reasons for the restriction. These details will be loaded in the National Treasury’s central

database of suppliers or persons prohibited from doing business with the public sector.

23.7 If a court of law convicts a person of an offence as contemplated in sections 12 or 13 of the

Prevention and Combating of Corrupt Activities Act, No. , the court may also rule that such

person’s name be endorsed on the Register for tender Defaulters. When a person’s name has been

endorsed on the Register, the person will be prohibited from doing business with the public sector

for a period not less than five years and not more than 10 years. The National Treasury is empowered

to determine the period of restriction and each case will be dealt with on its own merits. According to

section 32 of the Act the Register must be open to the public. The Register can be perused on the

National Treasury website.

24. Antidumping and countervailing duties and rights

24.1 When, after the date of bid, provisional payments are required, or anti-dumping or countervailing

duties are imposed, or the amount of a provisional payment or anti-dumping or countervailing right is

increased in respect of any dumped or subsidized import, the State is not liable for any amount so

required or imposed, or for the amount of any such increase. When, after the said date, such a

provisional payment is no longer required or any such anti-dumping or countervailing right is

abolished, or where the amount of such provisional payment or any such right is reduced, any such

favourable difference shall on demand be paid forthwith by the supplier to the purchaser or the

purchaser may deduct such amounts from moneys (if any) which may otherwise be due to the

supplier in regard to goods or services which he delivered or rendered, or is to deliver or render in

terms of the contract or any other contract or any other amount which may be due to him.

25. Force Majeure

25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the supplier shall not be liable for

forfeiture of its performance security, damages, or termination for default if and to the extent that his

delay in performance or other failure to perform his obligations under the contract is the result of an

event of force majeure. 25.2 If a force majeure situation arises, the supplier shall promptly notify the

purchaser in writing of such condition and the cause thereof. Unless otherwise directed by the

purchaser in writing, the supplier shall continue to perform its obligations under the contract as far

as is reasonably practical and shall seek all reasonable alternative means for performance not

prevented by the force majeure event.

26. Termination for insolvency

26.1 The purchaser may at any time terminate the contract by giving written notice to the supplier if the

supplier becomes bankrupt or otherwise insolvent. In this event, termination will be without

compensation to the supplier, provided that such termination will not prejudice or affect any right of

action or remedy, which has accrued or will accrue thereafter to the purchaser.

27. Settlement of Disputes

27.1 If any dispute or difference of any kind whatsoever arises between the purchaser and the supplier in

connection with or arising out of the contract, the parties shall make every effort to resolve amicably

such dispute or difference by mutual consultation.

27.2 If, after thirty (30) days, the parties have failed to resolve their dispute or difference by such mutual

consultation, then either the purchaser or the supplier may give notice to the other party of his

intention to commence with mediation. No mediation in respect of this matter may be commenced

unless such notice is given to the other party.

27.3 Should it not be possible to settle a dispute by means of mediation; it may be settled in a South

African court of law.

27.4 Notwithstanding any reference to mediation and/or court proceedings herein, (a) the parties shall

continue to perform their respective obligations under the contract unless they otherwise agree; and

(b) the purchaser shall pay the supplier any monies due the supplier for goods delivered and / or

services rendered according to the prescripts of the contract.

28. Limitation of Liability

28.1 Except in cases of criminal negligence or will full misconduct, and in the case of infringement

pursuant to Clause 6;

(a) the supplier shall not be liable to the purchaser, whether in contract, tort, or otherwise, for any

indirect or consequential loss or damage, loss of use, loss of production, or loss of profits or

interest costs, provided that this exclusion shall not apply to any obligation of the supplier to pay

penalties and/or damages to the purchaser; and

(b) the aggregate liability of the supplier to the purchaser, whether under the contract, in tort or

otherwise, shall not exceed the total contract price, provided that this limitation shall not apply

to the cost of repairing or replacing defective equipment.

29. Governing language

29.1 The contract shall be written in English. All correspondence and other documents pertaining to the

contract that is exchanged by the parties shall also be written in English.

30. Applicable law

30.1 The contract shall be interpreted in accordance with South African laws, unless otherwise specified.

31. Notices

31.1 Every written acceptance of a bid shall be posted to the supplier concerned by registered or certified

mail and any other notice to him shall be posted by ordinary mail to the address furnished in his bid

or to the address notified later by him in writing and such posting shall be deemed to be proper

service of such notice.

31.2 The time mentioned in the contract documents for performing any act after such aforesaid notice

has been given, shall be reckoned from the date of posting of such notice.

32. Taxes and duties

32.1 A foreign supplier shall be entirely responsible for all taxes, stamp duties, license fees, and other

such levies imposed outside the purchaser’s country.

32.2 A local supplier shall be entirely responsible for all taxes, duties, license fees, etc., incurred until

delivery of the contracted goods to the purchaser.

32.3 No contract shall be concluded with any bidder whose tax matters are not in order. Prior to the

award of a bid SARS must have certified that the tax matters of the preferred bidder are in order.

32.4 No contract shall be concluded with any bidder whose municipal rates and taxes and municipal

services charges are in arrears.

33. Transfer of contracts

33.1 The contractor shall not abandon, transfer, cede assign or sublet a contract or part thereof without

the written permission of the purchaser.

34. Amendment of contracts

34.1 No agreement to amend or vary a contract or order or the conditions, stipulations or provisions

thereof shall be valid and of any force unless such agreement to amend or vary is entered into in

writing and signed by the contracting parties. Any waiver of the requirement that the agreement to

amend or vary shall be in writing, shall also be in writing.

35. Prohibition of restrictive practices

35.1 In terms of section 4 (1) (b) (iii) of the Competition Act No. , as amended, an agreement

between, or concerted practice by, firms, or a decision by an association of firms, is prohibited if it is

between parties in a horizontal relationship and if a bidder(s) is / are or a contractor(s) was / were

involved in collusive bidding.

35.2 If a bidder(s) or contractor(s) based on reasonable grounds or evidence obtained by the purchaser

has / have engaged in the restrictive practice referred to above, the purchaser may refer the matter

to the Competition Commission for investigation and possible imposition of administrative penalties

as contemplated in section 59 of the Competition Act No 89 0f 1998. 35.3 If a bidder(s) or

contractor(s) has / have been found guilty by the Competition Commission of the restrictive practice

referred to above, the purchaser may, in addition and without prejudice to any other remedy

provided for, invalidate the bid(s) for such item(s) offered, and / or terminate the contract in whole or

part, and / or restrict the bidder(s) or contractor(s) from conducting business with the public sector

for a period not exceeding ten (10) years and / or claim damages from the bidder(s) or contractor(s)

concerned.

Section 2.1 Specifications (scope of works)

1.1 “Closing time” means the date and hour specified in the bidding documents for the receipt of bids.

1.2 “Contract” means the written agreement entered into between the purchaser and the supplier, as

recorded in the contract form signed by the parties, including all attachments and appendices

thereto and all documents incorporated by reference therein.

1.3 “Contract price” means the price payable to the supplier under the contract for the full and proper

performance of his contractual obligations.

1.4 “Corrupt practice” means the offering, giving, receiving, or soliciting of anything of value to influence

the action of a public official in the procurement process or in contract execution.

1.5 "Countervailing duties" are imposed in cases where an enterprise abroad is subsidized by its

government and encouraged to market its products internationally.

1.6 “Country of origin” means the place where the goods were mined, grown or produced or from which

the services are supplied. Goods are produced when, through manufacturing, processing or

substantial and major assembly of components, a commercially recognized new product results

that is substantially different in basic characteristics or in purpose or utility from its components.

1.7 “Day” means calendar day.

1.8 “Delivery” means delivery in compliance of the conditions of the contract or order.

1.9 “Delivery ex stock” means immediate delivery directly from stock actually on hand.

1.10 “Delivery into consignees store or to his site” means delivered and unloaded in the specified store or

depot or on the specified site in compliance with the conditions of the contract or order, the supplier

bearing all risks and charges involved until the goods are so delivered and a valid receipt is obtained.

1.11 "Dumping" occurs when a private enterprise abroad market its goods on own initiative in the RSA at

lower prices than that of the country of origin and which have the potential to harm the local

industries in the RSA.

1.12 ” Force majeure” means an event beyond the control of the supplier and not involving the supplier’s

fault or negligence and not foreseeable. Such events may include, but is not restricted to, acts of the

purchaser in its sovereign capacity, wars or revolutions, fires, floods, epidemics, quarantine

restrictions and freight embargoes.

1.13 “Fraudulent practice” means a misrepresentation of facts in order to influence a procurement

process or the execution of a contract to the detriment of any bidder and includes collusive practice

among bidders (prior to or after bid submission) designed to establish bid prices at artificial non-

competitive levels and to deprive the bidder of the benefits of free and open competition.

1.14 “GCC” means the General Conditions of Contract.

1.15 “Goods” means all of the equipment, machinery, and/or other materials that the supplier is required

to supply to the purchaser under the contract.

1.16 “Imported content” means that portion of the bidding price represented by the cost of components,

parts or materials which have been or are still to be imported (whether by the supplier or his

subcontractors) and which costs are inclusive of the costs abroad, plus freight and other direct

importation costs such as landing costs, dock dues, import duty, sales duty or other similar tax or

duty at the South African place of entry as well as transportation and handling charges to the factory

in the Republic where the goods covered by the bid will be manufactured.

1.17 “Local content” means that portion of the bidding price, which is not included in the imported

content provided that local manufacture does take place.

1.18 “Manufacture” means the production of products in a factory using labour, materials, components

and machinery and includes other related value-adding activities.

1.19 “Order” means an official written order issued for the supply of goods or works or the rendering of a

service.

1.20 “Project site,” where applicable, means the place indicated in bidding documents.

1.21 “Purchaser” means the organization purchasing the goods.

1.22 “Republic” means the Republic of South Africa.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means those functional services ancillaries to the supply of the goods, such as

transportation and any other incidental services, such as installation, commissioning, provision of

technical assistance, training, catering, gardening, security, maintenance and other such obligations

of the supplier covered under the contract.

1.25 “Supplier” means the successful bidder who is awarded the contract to maintain and administer the

required and specified service(s) to the State.

1.26 “Tort” means in breach of contract.

1.27 “Turnkey” means a procurement process where one service provider assumes total responsibility for

all aspects of the project and delivers the full end product / service required by the contract.

1.28 “Written” or “in writing” means hand-written in ink or any form of electronic or mechanical writing.

6.1 The supplier shall indemnify the purchaser against all third-party claims of infringement of patent,

trademark, or industrial design rights arising from use of the goods or any part thereof by the

purchaser.

6.2 When a supplier developed documentation / projects for the municipality / municipal entity, the

intellectual, copy and patent rights or ownership of such documents or projects will vest in the

municipality / municipal entity.

7.1 Within thirty (30) days of receipt of the notification of contract award, the successful bidder shall

furnish to the purchaser the performance security of the amount specified in SCC.

7.2 The proceeds of the performance security shall be payable to the purchaser as compensation for

any loss resulting from the supplier’s failure to complete his obligations under the contract.

7.3 The performance security shall be denominated in the currency of the contract, or in a freely

convertible currency acceptable to the purchaser and shall be in one of the following forms: (a) a

bank guarantee or an irrevocable letter of credit issued by a reputable bank located in the

purchaser’s country or abroad, acceptable to the purchaser, in the form provided in the bidding

documents or another form acceptable to the purchaser; or (b) a cashier’s or certified cheque.

7.4 The performance security will be discharged by the purchaser and returned to the supplier not later

than thirty (30) days following the date of completion of the supplier’s performance obligations

under the contract, including any warranty obligations, unless otherwise specified.

supplier fail to provide the substitute goods forth with, the purchaser may, without giving the supplier

further opportunity to substitute the rejected goods, purchase such goods as may be necessary at

the expense of the supplier.

8.8 The provisions of clauses 8.4 to 8.7 shall not prejudice the right of the purchaser to cancel the

contract on account of a breach of the conditions thereof, or to act in terms of Clause 22 of GCC.

13.1 The supplier may be required to provide any or all of the following services, including additional

services, if any:

(a) performance or supervision of on-site assembly and/or commissioning of the supplied goods;

(b) furnishing of tools required for assembly and/or maintenance of the supplied goods;

(c) furnishing of a detailed operations and maintenance manual for each appropriate unit of the

supplied goods;

(d) performance or supervision or maintenance and/or repair of the supplied goods, for a period of

time agreed by the parties, provided that this service shall not relieve the supplier of any warranty

obligations under this contract; and

(e) training of the purchaser’s personnel, at the supplier’s plant and/or on-site, in assembly, start-

up, operation, maintenance, and/or repair of the supplied goods.

13.2 Prices charged by the supplier for incidental services, if not included in the contract price for the

goods, shall be agreed upon in advance by the parties and shall not exceed the prevailing rates

charged to other parties by the supplier for similar services.

14.1 As specified, the supplier may be required to provide any or all of the following materials,

notifications, and information pertaining to spare parts manufactured or distributed by the supplier:

(a) such spare parts as the purchaser may elect to purchase from the supplier, provided that this

election shall not relieve the supplier of any warranty obligations under the contract; and;

(b) in the event of termination of production of the spare parts:

(i) advance notification to the purchaser of the pending termination, in sufficient time to permit

the purchaser to procure needed requirements; and

(ii) following such termination, furnishing at no cost to the purchaser, the blueprints, drawings,

and specifications of the spare parts, if requested.

15. Warranty

15.1 The supplier warrants that the goods supplied under the contract are new, unused, of the most

recent or current models, and that they incorporate all recent improvements in design and materials

unless provided otherwise in the contract. The supplier further warrants that all goods supplied

under this contract shall have no defect, arising from design, materials, or workmanship (except

when the design and/or material is required by the purchaser’s specifications) or from any act or

omission of the supplier, that may develop under normal use of the supplied goods in the conditions

prevailing in the country of final destination.

15.2 This warranty shall remain valid for twelve (12) months after the goods, or any portion thereof as the

case may be, have been delivered to and accepted at the final destination indicated in the contract,

or for eighteen (18) months after the date of shipment from the port or place of loading in the source

country, whichever period concludes earlier, unless specified otherwise.

15.3 The purchaser shall promptly notify the supplier in writing of any claims arising under this warranty.

15.4 Upon receipt of such notice, the supplier shall, within the period specified and with all reasonable

speed, repair or replace the defective goods or parts thereof, without costs to the purchaser.

15.5 If the supplier, having been notified, fails to remedy the defect(s) within the period specified, the

purchaser may proceed to take such remedial action as may be necessary, at the supplier’s risk and

expense and without prejudice to any other rights which the purchaser may have against the supplier

under the contract.

20.1 The supplier shall notify the purchaser in writing of all subcontracts awarded under this contract if

not already specified in the bid. Such notification, in the original bid or later, shall not relieve the

supplier from any liability or obligation under the contract.

21. Delays in the supplier’s performance

21.1 Delivery of the goods and performance of services shall be made by the supplier in accordance with

the time schedule prescribed by the purchaser in the contract.

21.2 If at any time during performance of the contract, the supplier or its subcontractor(s) should

encounter conditions impeding timely delivery of the goods and performance of services, the

supplier shall promptly notify the purchaser in writing of the fact of the delay, its likely duration and

its cause(s). As soon as practicable after receipt of the supplier’s notice, the purchaser shall

evaluate the situation and may at his discretion extend the supplier’s time for performance, with or

without the imposition of penalties, in which case the extension shall be ratified by the parties by

amendment of contract.

21.3 The right is reserved to procure outside of the contract small quantities or to have minor essential

services executed if an emergency arises, the supplier’s point of supply is not situated at or near the

place where the goods are required, or the supplier’s services are not readily available.

21.4 Except as provided under GCC Clause 25, a delay by the supplier in the performance of its delivery

obligations shall render the supplier liable to the imposition of penalties, pursuant to GCC Clause

22, unless an extension of time is agreed upon pursuant to GCC Clause 22.2 without the application

of penalties.

21.5 Upon any delay beyond the delivery period in the case of a goods contract, the purchaser shall,

without cancelling the contract, be entitled to purchase goods of a similar quality and up to the same

quantity in substitution of the goods not supplied in conformity with the contract and to return any

goods delivered later at the supplier’s expense and risk, or to cancel the contract and buy such

goods as may be required to complete the contract and without prejudice to his other rights, be

entitled to claim damages from the supplier.

22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the

services within the period(s) specified in the contract, the purchaser shall, without prejudice to its

other remedies under the contract, deduct from the contract price, as a penalty, a sum calculated

on the delivered price of the delayed goods or unperformed services using the current prime interest

rate calculated for each day of the delay until actual delivery or performance. The purchaser may

also consider termination of the contract pursuant to GCC Clause 23.

23.1 The purchaser, without prejudice to any other remedy for breach of contract, by written notice of

default sent to the supplier, may terminate this contract in whole or in part:

(a) if the supplier fails to deliver any or all of the goods within the period(s) specified in the contract,

or within any extension thereof granted by the purchaser pursuant to GCC Clause 21.2;

(b) if the supplier fails to perform any other obligation(s) under the contract; or

(c) if the supplier, in the judgement of the purchaser, has engaged in corrupt or fraudulent practices

in competing for or in executing the contract.

23.2 In the event the purchaser terminates the contract in whole or in part, the purchaser may procure,

upon such terms and in such manner, as it deems appropriate, goods, works or services similar to

those undelivered, and the supplier shall be liable to the purchaser for any excess costs for such

similar goods, works or services. However, the supplier shall continue performance of the contract

to the extent not terminated.

23.3 Where the purchaser terminates the contract in whole or in part, the purchaser may decide to

impose a restriction penalty on the supplier by prohibiting such supplier from doing business with

the public sector for a period not exceeding 10 years.

23.4 If a purchaser intends imposing a restriction on a supplier or any person associated with the

supplier, the supplier will be allowed a time period of not more than fourteen (14) days to provide

reasons why the envisaged restriction should not be imposed. Should the supplier fail to respond

within the stipulated fourteen (14) days the purchaser may regard the supplier as having no objection

and proceed with the restriction.

23.5 Any restriction imposed on any person by the purchaser will, at the discretion of the purchaser, also

be applicable to any other enterprise or any partner, manager, director or other person who wholly or

partly exercises or exercised or may exercise control over the enterprise of the first-mentioned

person, and with which enterprise or person the first-mentioned person, is or was in the opinion of

the purchaser actively associated.

23.6 If a restriction is imposed, the purchaser must, within five (5) working days of such imposition,

furnish the National Treasury, with the following information:

(i) the name and address of the supplier and / or person restricted by the purchaser;

(ii) (ii) the date of commencement of the restriction

(iii) the period of restriction; and

(iv) the reasons for the restriction. These details will be loaded in the National Treasury’s central

database of suppliers or persons prohibited from doing business with the public sector.

23.7 If a court of law convicts a person of an offence as contemplated in sections 12 or 13 of the

25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the supplier shall not be liable for

forfeiture of its performance security, damages, or termination for default if and to the extent that his

delay in performance or other failure to perform his obligations under the contract is the result of an

event of force majeure. 25.2 If a force majeure situation arises, the supplier shall promptly notify the

purchaser in writing of such condition and the cause thereof. Unless otherwise directed by the

purchaser in writing, the supplier shall continue to perform its obligations under the contract as far

as is reasonably practical and shall seek all reasonable alternative means for performance not

prevented by the force majeure event.

26.1 The purchaser may at any time terminate the contract by giving written notice to the supplier if the

supplier becomes bankrupt or otherwise insolvent. In this event, termination will be without

compensation to the supplier, provided that such termination will not prejudice or affect any right of

action or remedy, which has accrued or will accrue thereafter to the purchaser.

27.1 If any dispute or difference of any kind whatsoever arises between the purchaser and the supplier in

connection with or arising out of the contract, the parties shall make every effort to resolve amicably

such dispute or difference by mutual consultation.

27.2 If, after thirty (30) days, the parties have failed to resolve their dispute or difference by such mutual

consultation, then either the purchaser or the supplier may give notice to the other party of his

intention to commence with mediation. No mediation in respect of this matter may be commenced

unless such notice is given to the other party.

27.3 Should it not be possible to settle a dispute by means of mediation; it may be settled in a South

28.1 Except in cases of criminal negligence or will full misconduct, and in the case of infringement

pursuant to Clause 6;

(a) the supplier shall not be liable to the purchaser, whether in contract, tort, or otherwise, for any

indirect or consequential loss or damage, loss of use, loss of production, or loss of profits or

interest costs, provided that this exclusion shall not apply to any obligation of the supplier to pay

penalties and/or damages to the purchaser; and

(b) the aggregate liability of the supplier to the purchaser, whether under the contract, in tort or

otherwise, shall not exceed the total contract price, provided that this limitation shall not apply

to the cost of repairing or replacing defective equipment.

• Loss rate development based on Nkandla Municipality’s historical loss experience.
• Incorporation of quantitative and qualitative credit indicators such as arrears trends, covenant

breaches, restructurings, and observable credit risk signals.

• Reasonable and supportable forward-looking adjustments based on documented judgement and

observable economic indicators.

• Clear and operationally simple staging criteria for 12-month (Stage 1) and lifetime (Stage 2&3) ECL.

2.3 Calculation Tool and Model Implementation

rejection of the bid.

1.2.15 Opening, Recording and Publications of RFQs Received

(a) RFQs will be opened on the closing date immediately after the closing time specified in the RFQ

documents. If requested by any bidder present, the names of the bidders, and if practical, the

total amount of each bid and of any alternative bids will be read out aloud.

(b) Details of tenders received in time will be recorded in a closing register which is open to public

inspection.

1.2.16 Evaluation of RFQ

8.1 All pre-bidding testing will be for the account of the bidder.

8.2 If it is a bid condition that goods to be produced or services to be rendered should at any stage be

subject to inspections, tests and analyses, the bidder or contractor’s premises shall be open, at all

reasonable hours, for inspection by a representative of the purchaser or organization acting on

behalf of the purchaser.

8.3 If there are no inspection requirements indicated in the bidding documents and no mention is made

in the contract, but during the contract period it is decided that inspections shall be carried out, the

purchaser shall itself make the necessary arrangements, including payment arrangements with the

testing authority concerned.

8.4 If the inspections, tests and analyses referred to in clauses 8.2 and 8.3 show the goods to be in

accordance with the contract requirements, the cost of the inspections, tests and analyses shall be

defrayed by the purchaser.

8.5 Where the goods or services referred to in clauses 8.2 and 8.3 do not comply with the contract

requirements, irrespective of whether such goods or services are accepted or not, the cost in

connection with these inspections, tests or analyses shall be defrayed by the supplier.

8.6 Goods and services which are referred to in clauses 8.2 and 8.3 and which do not comply with the

contract requirements may be rejected.

8.7 Any contract goods may on or after delivery be inspected, tested or analysed and may be rejected if

found not to comply with the requirements of the contract. Such rejected goods shall be held at the

cost and risk of the supplier who shall, when called upon, remove them immediately at his own cost

and forthwith substitute them with goods, which do comply with the requirements of the contract.

1.2.8 Notices

a) Every written acceptance of a bid and any other notices shall be sent to the service provider

concerned by ordinary e-mail to the address furnished in his bid or to the address notified later

by him in writing and such e-mail shall be deemed to be proper service of such notice.

b) The time mentioned in the contract documents for performing any act after such aforesaid

notice has been given, shall be reckoned from the date of e-mailing of such notice.

1.2.9 Site / Information Meetings / Briefing session

bidding document and specifications.

1.2.24 Wrong Information Furnished

3.1 Unless otherwise indicated in the bidding documents, the purchaser shall not be liable for any

expense incurred in the preparation and submission of a bid. Where applicable a non-refundable fee

for documents may be charged.

3.2 Invitations to bid are usually published in locally distributed news media and on the

municipality/municipal entity website.

5.1 The supplier shall not, without the purchaser’s prior written consent, disclose the contract, or any

provision thereof, or any specification, plan, drawing, pattern, sample, or information furnished by or

on behalf of the purchaser in connection therewith, to any person other than a person employed by

the supplier in the performance of the contract. Disclosure to any such employed person shall be

made in confidence and shall extend only so far as may be necessary for purposes of such

performance.

5.2 The supplier shall not, without the purchaser’s prior written consent, make use of any document or

information mentioned in GCC clause 5.1 except for purposes of performing the contract.

5.3 Any document, other than the contract itself mentioned in GCC clause 5.1 shall remain the property

of the purchaser and shall be returned (all copies) to the purchaser on completion of the supplier’s

performance under the contract if so required by the purchaser.

5.4 The supplier shall permit the purchaser to inspect the supplier’s records relating to the performance

of the supplier and to have them audited by auditors appointed by the purchaser, if so required by

the purchaser.

24.1 When, after the date of bid, provisional payments are required, or anti-dumping or countervailing

duties are imposed, or the amount of a provisional payment or anti-dumping or countervailing right is

increased in respect of any dumped or subsidized import, the State is not liable for any amount so

required or imposed, or for the amount of any such increase. When, after the said date, such a

provisional payment is no longer required or any such anti-dumping or countervailing right is

abolished, or where the amount of such provisional payment or any such right is reduced, any such

favourable difference shall on demand be paid forthwith by the supplier to the purchaser or the

purchaser may deduct such amounts from moneys (if any) which may otherwise be due to the

supplier in regard to goods or services which he delivered or rendered, or is to deliver or render in

terms of the contract or any other contract or any other amount which may be due to him.

31.1 Every written acceptance of a bid shall be posted to the supplier concerned by registered or certified

mail and any other notice to him shall be posted by ordinary mail to the address furnished in his bid

or to the address notified later by him in writing and such posting shall be deemed to be proper

service of such notice.

31.2 The time mentioned in the contract documents for performing any act after such aforesaid notice

has been given, shall be reckoned from the date of posting of such notice.

• Benchmarking against comparable public-sector or development finance institutions.
• Review of model overrides and governance processes.

• Design of a formal model governance framework covering approvals, overrides, documentation

standards, and change control.

• Retrospective application of the methodology over at least three prior financial years to assess

impact.

• The service provider must prepare governance and documentation artifacts that are AGSA ready,

including audit trails, assumption registers, decision logs, and methodology documentation

sufficient for external audit scrutiny.

2.5 Impact Assessment and Transition Support

18.1 In cases where the estimated value of the envisaged changes in purchase does not vary more than

15% of the total value of the original contract, the contractor may be instructed to deliver the goods

or render the services as such. In cases of measurable quantities, the contractor may be

approached to reduce the unit price, and such offers may be accepted provided that there is no

escalation in price.

The service provider must design, develop, and implement a GRAP 104-compliant ECL framework,

including: A comprehensive review of Moqhaka’s existing impairment approach. Verification of all

assumptions, formulas, and calculation logic. Alignment with GRAP 104 principles. The ECL methodology

must be based on a simplified, judgement driven approach.

can assess feasibility as part of project initiation after appointment.

2.2 ECL Methodology Development

• A transparent, auditable, Excel-based impairment calculation tool.
• Clearly defined inputs, formulas, assumptions, and outputs.
• Built-in validation checks to identify missing or inconsistent data.
• Alignment between the calculation tool and the documented methodology.

2.4 Governance, Validation and Benchmarking

• Training sessions for Finance and Credit teams.
• User guides and operational manuals.
• Full handover of tools, documentation, and methodology.
• Guidance on ongoing maintenance and annual review of the framework.

• **A maximum of 20 points (80/20 preference points system), will be allocated for specific goals. The

maximum points for these goals are as follows:

• Locality of Supplier – 10 Points
• B-BBEE status level of contributor - 10 Points

These goals are specified in MBD6.1 in terms of the PPR2022

Section 1

1.1 RFQ notice & invitation to bid 2

1.2 Special conditions of RFQ and general information 3

1.3 General conditions of contract 7

Section 2

2.1 Specifications (scope of works) / pricing schedule 16

Section 3

3.1 Mbd1: invitation to bid 19

3.2 Bank details 22

3.3 Mbd4: declaration of interest 23

3.4 Mbd6.1: Preference points claim form in terms of the preferential 26

Procurement regulations 2022

3.5 Mbd 7.1: Contract form - purchase of goods/services 32

3.6 Mbd8: declaration of bidder’s past supply chain management practices 35

3.7 Mbd9: certificate of independent bid determination 37

Section 4

4.1 Company registration document 40

4.2 Identity documents of all the directors 41

4.3 Valid tax clearance certificate or tcc pin 42

4.4 Municipal form 43

4.5 Municipal rates and taxes of company 44

4.6 Proof of csd (central supplier database) registration 45

4.7 A copy of a valid b-bbee certificate / sworn affidavit 46

4.8 Joint venture agreement (if applicable) 47

4.9 Pricing schedule 48

Section 1.1 Tender notice & invitation to tender

Moqhaka local municipality hereby invites you to tender for: appointment of a

c) If a bid is not supported by a valid original Tax Clearance Certificate or TCS Pin, either as an

attachment to the bid documents, the municipality reserves the right to obtain such document

after the closing date to verify that the bidder’s tax matters are in order. If no such document can

be obtained within a period as specified by the Municipality the tender will be disqualified.

1.2.7.2 Construction Industry Development Board (CIDB)

When applicable, a copy of the bidder’s registration and grading certificate with the CIDB must be

included with the tender. Failure to do so will result in the disqualification of the tender.

1.2.7.3 Municipal Rates, Taxes and Charges

a) The municipal rates and taxes statement, which is in the name of the company, not older

than three (3) months; or

b) The Clearance Certificate issued by the bidding companies’ local municipality, which is in the

name of the company, not older than three (3) months; or

c) The completed Municipal Form with either the stamp of the municipality or the landlord, which

is in the name of the company, not older than three (3) months or

d) An official letter which is in the name of the company from the local tribal authority, not older

than three (3) months; or

e) A valid signed lease agreement which is in the name of the company, that clearly shows the

business address (not expired at closing date), accompanied by tax invoice/statement of

account/municipal rates and taxes statement from the estate agent / landlord not older

than three (3) months); or

f) If the municipal rates and taxes statement is in the Landlord’s or Director’s name an

affidavit certified by the commissioner of oaths must be attached indicating that the

company/enterprise is operating from the stated addressed, accompanied by their municipal

rates and taxes statement (not older than three (3) months).

g) No contract shall be concluded with any bidder whose municipal rates and taxes and municipal

services charges are in arrears.

1.2.7.4 Identity Documents

ID (preferably certified) copies not older than six (6) months (180 days) of the company’s directors

must be attached. If no IDs are attached the bid will be disqualified.

1.2.7.5 Company Registration Document

The company’s registration documents (CIPC-CK) that reflect company name, registration number,

date of registration and active directors or members must be attached. If no proof is attached the

bid will be disqualified.

1.2.7.6 B-BBEE Certificate / Sworn B-BBEE Affidavit

32.1 A foreign supplier shall be entirely responsible for all taxes, stamp duties, license fees, and other

such levies imposed outside the purchaser’s country.

32.2 A local supplier shall be entirely responsible for all taxes, duties, license fees, etc., incurred until

delivery of the contracted goods to the purchaser.

32.3 No contract shall be concluded with any bidder whose tax matters are not in order. Prior to the

award of a bid SARS must have certified that the tax matters of the preferred bidder are in order.

32.4 No contract shall be concluded with any bidder whose municipal rates and taxes and municipal

services charges are in arrears.

2.1 The engagement must include:

Identification of all data inputs (loan balances, arrears, restructures, write-offs, recoveries, interest rates,

collateral, etc.).

• Are willing and able to keep their cast prices/ rates fixed for the maximum period of 120 days from

date of the RFQ closing- Shall be eligible to participation further on price and preferential points.

• Quotes in line with these pro ranges (R30 000.00 – R300 000.00) will be considered for further

evaluation.

• Bidders are requested to bind their documents in a presentable manner and not include loose

papers.

A: Locality of supplier. Tenderers should complete one relevant row for points claimed.

• The municipal rates and taxes statement, which is in the name of the company, not older than

three (3) months; or

• The Clearance Certificate issued by the bidding companies’ local municipality, which is in the

name of the company, not older than three (3) months; or

• The completed Municipal Form with either the stamp of the municipality or the landlord, which is

in the name of the company, not older than three (3) months or

• An official letter which is in the name of the company from the local tribal authority, not older than

three (3) months; or

• A valid signed lease agreement which is in the name of the company, that clearly shows the

business address (not expired at closing date), accompanied by tax invoice/statement of

account/municipal rates and taxes statement from the estate agent / landlord not older than

three (3) months); or