Appointment of professional service provider for electrical engineering services – kouga local municipality (notice NO. 215/2026)

{"closingDate":"12 OCTOBER 2026","closingTime":"12:00"}

A compulsory virtual clarification session will be held on Tuesday, 29 September 2026 at 10h00. Attendees arriving 10 minutes or more late will not be admitted. Meeting link and credentials provided.

{"name":null,"email":"[email protected]","phone":"042 200 2200","department":"SCM CONTACT PERSON Mandla Mangembe","address":", 12 OCTOBER 2026 AT 12H00"}

Returnable Documents: List of Returnable Documents Returnable Schedules These documents are deemed the “Returnable Documents” which must be returned to the Employer in terms of submitting a tender offer. 1.3 Communication and employer’s agent It should be noted that the employer has no agent acting on his behalf for the purposes of this tender. The employer’s representatives, for the purposes of any communication between the employer and tenderers, is: The Manager Project Management Unit: Mr. M. Mangembe Kouga Local Municipality 16 Woltemade Street Jeffreys Bay 6330 E-mail: [email protected] Attention is drawn to the fact that no verbal communication will be allowed prior to the close of tenders. Only information requested and issued formally in writing to tenderers will be regarded as amending the tender documents. SECTION 1: STANDARD CONDITIONS OF TENDER NATIONAL TREASURY – GENERAL CONDITIONS OF CONTRACT TABLE OF CLAUSES, Definitions, Application, Use of contract documents and information; inspection, Patent rights, Performance security, Inspections, tests and analysis, Delivery and documents, Transportation, Incidental services, Spare parts

An electronic copy of the completed tender document with returnable documents must be submitted on a flash drive, SD card, or CD. Failure to submit both an original hard copy and an electronic copy will render the bid non-responsive. The electronic format must contain the exact same information as the hard copy.

Two-stage evaluation: functionality (minimum 70%) and price. B-BBEE points may be claimed with supporting proof. The Council reserves the right to accept any tender or part thereof, appoint more than one contractor, and does not bind itself to accept the lowest or any tender.

The document which defines the Employer’s objectives and requirements and specifies the

Services which must, or may, be provided under the Contract.

Service Provider

The contracting party named in the Contract Data who is employed by the Employer to perform

the Services described in the Contract, and legal successors to the Service Provider and legally

permitted assignees.

Services

The work to be performed by the Service Provider pursuant to the Contract as described in the

Scope of Work.

Start date

The date on which the Services are to commence. as stated in the Contract Data

Subcontractor

A person or body corporate who enters into a subcontract with the Service Provider to perform

part of the Services.

a) INTERPRETATION

2.1 Unless inconsistent with the context, an expression which denotes:

a) any gender includes the other genders;

b) a natural person includes a juristic person and vice versa;

c) the singular includes the plural and vice versa.

2.2 If there is any conflict between the provisions of these General Conditions of Contract and the

Contract Data, the provisions of the Contract Data shall prevail.

2.3 The clause headings shall not limit, alter or affect the meaning of the Contract.

3. General

3.1 Governing law

Law governing the Contract shall be the law of the Republic of South Africa.

3.2 Change in legislation

If after the commencement of the Contract, the cost or duration of the Services is altered as a

result of changes in, or additions to, any statute, regulation or bye- law, or the requirements of

any authority having jurisdiction over any matter in respect of the Project, then the Contract

Price and time for completion shall be adjusted in order to reflect the impact of those changes,

provided that, within 14 Days of first having become aware of the change, the Service Provider

furnished the Employer with detailed justification for the adjustment to the Contract Price or

Period of Performance (or both).

3.3 Language

3.3.1 The language of the Contract and of all communications between the Parties shall be English.

3.3.2 All reports, recommendations and reports prepared by the Service Provider under the Contract

shall be in English.

3.4 Notices

3.4.1 Any notice, request, consent, approvals or other communication made between the Parties

pursuant to the Contract shall be in writing and forwarded to the address specified in the

Contract Data. Such communication shall be deemed to have been made when delivered in

person to an authorized representative of the Party to whom the communication is addressed,

or one week after having been sent by registered post, or unless otherwise indicated in the

Contract Data, when sent by e-mail or facsimile to such Party

3.4.2 A Party may change its address for receipt of communications by giving the other Party 30 Days

advance notice of such change.

3.5 Location

The Services shall be performed at such locations as are specified in the Contract Data, and

where the location of a particular task is not so specified, at such locations as the Employer

may approve.

3.6 Publicity and publication

Unless otherwise stated in the Contract Data, the Service Provider shall not release public or

media statements or publish material related to the Services or Project within two (2) years of

completion of the Services without the written approval of the Employer, which approval by the

Employer shall not be unreasonably withheld.

3.7 Confidentiality

Both parties shall keep all sensitive information obtained by them in the context of the Contract

confidential and shall not divulge it without the written approval of the other Party.

3.8 Variations

3.8.1 The Employer may, without changing the objectives or fundamental scope of the Contract, order

variations to the Services in writing or may request the Service Provider to submit proposals,

including the time and cost implications, for variations to the Services.

3.8.2 The reasonable cost of preparation and submission of such proposals and the incorporation

into the Contract of any variations to the Services ordered by the Employer, including any

change in the Contract Price, shall be agreed between the Service Provider and the Employer.

3.8.3 Where a variation is necessitated by default or breach of Contract by the Service Provider, any

additional cost attributable to such variation shall be borne by the Service Provider.

3.9 Changes to the Contract Price or Period of Performance

3.9.1 The Service Provider is entitled to apply to the Employer for a change in Contract Price or the

Period of Performance in the event that:

a) a change in legislation takes place in accordance with the provisions of Clause 3.2;

b) a variation to the Services is made in accordance with the provisions of Clause 3.8;

c) the Employer or Others do not perform an action, provide access to people, places or

things or perform work in accordance with the programme (see Clause 3.15);

d) the contract is suspended in accordance with the provisions of Clause 8.5;

e) the contract is restarted following a suspension; or

f) an event occurs which neither Party could prevent and which prevents the Service

Provider from completing the Services or a part thereof

3.9.2 The Service Provider shall submit proposals to change the Contract Price or the Period for

Completion (or both) to the Employer within 6 weeks of becoming aware of an event described

in 3.9.1 occurring, failing which, the Service Provider shall not be entitled to a change in the

Contract Price or Period of Performance.

3.9.3 The Employer shall assess the changes to the Contract Price on the effect of the event on the

Services based on time-based fees.

3.9.4 The Employer shall assess the changes to the Period of Performance on the basis of the time

that planned completion as shown on the latest approved programme is delayed.

3.10 Sole agreement

The Contract constitutes the sole agreement between the Parties for the performance of the

Services and any representation not contained therein shall not be of any force or effect. No

amendments will be of any force or effect unless reduced to writing and signed by both Parties.

3.11 Indemnification

The Service Provider shall, at his own expense, indemnify, protect and defend the Employer,

its agents and employees, from and against all actions, claims, losses and damage arising from

any negligent act or omission by the Service Provider in the performance of the Services,

including any violation of legal provisions, or rights of others, in respect of patents, trademarks

and other forms of intellectual property such as copyrights.

3.12 Penalty

3.12.1 If due to his negligence, or for reasons within his control, the Service Provider does not perform

the Services within the Period of Performance, the Employer shall without prejudice to his other

remedies under the Contract or in law, be entitled to levy a penalty for every Day or part thereof,

which shall elapse between the end of the period specified for performance, or an extended

Period of Performance, and the actual date of completion, at the rate and up to the maximum

amount stated in the Contract Data.

3.12.2 If the Employer has become entitled to the maximum penalty amount referred to in 3.12.1, he

may after giving notice to the Service Provider:

a) terminate the Contract

b) complete the Services at the Service Provider’s cost.

3.13 Equipment and materials furnished by the Employer

3.13.1 Equipment and materials made available to the Service Provider by the Employer, or purchased

by the Service Provider with funds provided by the Employer for the performance of the Services

shall be the property of the Employer and shall be marked accordingly. Upon termination or

expiration of the Contract, the Service Provider shall make available to the Employer an

inventory of such equipment and materials and shall dispose of them in accordance with the

Employer’s instructions.

3.13.2 The Service Provider shall, at his own expense, insure the equipment and materials referred to

in 3.13.1 for their full replacement value.

3.14 Illegal and impossible requirements

The Service Provider shall notify the Employer immediately, on becoming aware that the

Contract requires him to undertake anything which is illegal or impossible.

3.15 Programme

3.15.1 The Service Provider shall, within the time period set out in the Contract Data and whenever a

programme is amended or revised, submit for the Employer’s approval a programme for the

performance of the Services which shall, inter alia, include:

a) the order and timing of operations by the Service Provider and any actions, access to

people, places and things and work required of the Employer and Others;

b) the dates by which the Service Provider plans to complete work needed to allow the

Employer and Others to undertake work required of them;

c) provisions for float;

d) the planned completion of the Services or part thereof in relation to a Period of

Performance; and

e) other information as required in terms of the Scope of Work or Contract Data.

3.15.2 The Employer may, during the course of the Contract, request the Service Provider to amend the

programme. Where this is not practicable, the Service Provider shall advise the Employer

accordingly and advise him of alternative measures, if any, which might be taken.

3.15.3 A programme shall be deemed to be approved if the Employer fails to approve such programme

or give reasons for not approving a programme within three weeks of receipt of a request by the

Service Provider to approve a programme.

3.15.3 The Service Provider shall update the programme:

a) unless otherwise stated in the Contract Data, every three months to reflect actual

progress to date;

b) whenever a change in Period of Performance or Contract Price is applied for; and

c) whenever a change in the Period of Performance is changed by the Employer

and submit such revised programme to the Employer for approval.

3.16 Price adjustment to time-based fees for inflation

3.16.1 Time-based fees which are stated in the Pricing Data as a unique rate and are not calculated by

multiplying the total annual cost of employment contained, shall unless otherwise stated in the

Contract Data, be adjusted in terms of 3.16.2 on each anniversary of the Starting Date.

3.16.2 The adjustment to the time-based fees shall be equal to:

(CPIn - CPIs) / CPIs

where CPIs = the indices specified in the Contract Data during the month in which the start date

falls

CPIn = the latest indices specified in Contract Data during the month in which the

anniversary of the Start Date falls

4. Employer’s obligations

4.1Information

4.1.1 The Employer shall timeously provide to the Service Provider, free of cost, all available

information and data in the Employer’s possession which may be required for the performance

of the Services.

4.1.2 The Employer shall provide the Service Provider with reasonable assistance required in

obtaining other relevant information that the latter may require in order to perform the Services.

4.2 Decisions

The Employer shall, within a reasonable time, give his decision on any matter properly referred

to him in writing by the Service Provider so as not to delay the performance of Services.

4.3 Assistance

4.3.1 The Employer shall co-operate with the Service Provider and shall not interfere with or

obstruct the proper performance of the Services. The Employer shall as soon as practicable:

a) authorise the Service Provider to act as his agent insofar as may be necessary for the

performance of the Services;

b) provide all relevant data, information, reports, correspondence and the like, which

become available;

c) procure the Service Provider’s ready access to premises, or sites, necessary for the

performance of the Services;

d) assist in the obtaining of all approvals, licenses and permits from state, regional and

municipal authorities having jurisdiction over the Project, unless otherwise stated in the Contract Data;

4.3.2 Unless otherwise communicated, the authorised and designated person named in the Contract

Data has complete authority in giving instructions and receiving communications on the

Employer’s behalf and interpreting and defining the Employer’s policies and requirements in

regard to the Services.

4.4 Services of Others

The Employer shall, at his own cost, engage such Others as may be required for the execution

of work not included in the Services, but which is necessary for the completion of the Project.

4.5 Notification of material change or defect

The Employer shall immediately advise the Service Provider on becoming aware of:

a) any matter other than a change in legislation which will materially change, or has

changed the Services; or

b) a material defect or deficiency in the Services.

4.6 Issue of instructions

Where the Service Provider is required to administer the work or services of Others, or any

contract or agreement, on behalf of the Employer, then the Employer shall issue instructions

related to such work, services, contract or agreement only through the Service Provider.

4.7 Payment of Service Provider

The Employer shall pay the Service Provider the Contract Price in accordance with the

provisions of the Contract.

5. Service provider’s obligations

5.1 General

5.1.1 The Service Provider shall perform the Services in accordance with the Scope of Work with all

reasonable care, diligence and skill in accordance with generally accepted professional

techniques and standards.

5.1.2 If the Service Provider is a joint venture or consortium of two or more persons, the Service

Provider shall designate one person to act as leader with authority to bind the joint venture or

consortium. Neither the composition nor the constitution of the joint venture or consortium shall

be altered without the prior consent in writing of the Employer, which shall not be unreasonably

withheld.

5.2 Exercise of authority

The Service Provider shall have no authority to relieve Others appointed by the Employer to

undertake work or services on the Project of any of their duties, obligations, or responsibilities

under their respective agreements or contracts, unless expressly authorised by the Employer

in response to an application by the Service Provider in writing to do so.

5.3 Designated representative

Unless otherwise communicated, the authorised and designated person named in the Contract

Data has complete authority to receive instructions from and give information to the Employer

on behalf of the Service Provider.

5.4 Insurances to be taken out by the Service Provider

5.4.1 The Service Provider shall as a minimum and at his own cost take out and maintain in force all

such insurances as are stipulated in the Contract Data.

5.4.2 The Service Provider shall, at the Employer’s request, provide evidence to the Employer

showing that the insurance required in terms of Clause 5.4.1 has been taken out and maintained

in force.

5.5 Service Provider’s actions requiring Employer’s prior approval

The Service Provider shall obtain the Employer’s prior approval in writing before taking, inter

alia, any of the following actions:

a) appointing Subcontractors for the performance of any part of the Services,

b) appointing Key Persons not listed by name in the Contract Data.

c) any other action that may be specified in the Contract Data.

5.6 Co-operation with Others

If the Service Provider is required to perform the Services in co-operation with Others he may

make recommendations to the Employer in respect of the appointment of such Others. The

Service Provider shall, however, only be responsible for his own performance and the

performance of Subcontractors unless otherwise provided for.

5.7 Notice of change by Service Provider

On becoming aware of any matter which will materially change or has changed the Services,

the Service Provider shall within 14 Days thereof give notice to the Employer.

6. Conflicts of interest

6.1 Service Provider not to benefit from commissions, discounts, etc.

The remuneration of the Service Provider under the Contract shall constitute the Service

Provider’s sole remuneration in connection with the Contract, or the Services, and the Service

Provider shall not accept for his own benefit any trade commission, discount, or similar payment

in connection with activities pursuant to the Contract, or in the discharge of his obligations under

the Contract, and shall use his best efforts to ensure that the Personnel, any Subcontractors,

and agents of either of them shall, similarly, not receive any additional remuneration.

6.2 Royalties and the like

The Service Provider shall not have the benefit, whether directly or indirectly, of any royalty or

of any gratuity or commission in respect of any patented or protected article or process used in

or for the purposes of the Contract, or Project, unless so agreed by the Employer in writing.

6.3 Independence

The Service Provider shall refrain from entering into any relationship which could be perceived as

compromising his independence of judgement, or that of Subcontractors or Personnel.

7. Service provider’s personnel

8. 1 General

7.1.1 The Service Provider shall employ and provide all qualified and experienced Personnel required

to perform the Services.

7.1.2 Where required in terms of the Contract, the Service Provider shall provide Key Persons as

listed in the Contract Data to perform specific duties. If at any time, a particular Key Person

cannot be made available, the Service Provider may engage a replacement who is equally or

better qualified to perform the stated duty, subject to the Employer’s approval, which approval

shall not be unreasonably withheld.

7.1.3 Where the fees for the Services are time- based, the fee payable for a person provided as a

replacement to a named Key Person shall not exceed that which would have been payable to

the person replaced.

7.1.4 The Service Provider shall bear all additional costs arising out of or incidental to replacement

of Personnel, except where such replacement is otherwise provided for in the Contract.

7.1.5 The Service Provider shall take all measures necessary and shall provide all materials and

equipment necessary to enable Personnel to perform their duties in an efficient manner.

7.2 Provision of Personnel in terms of a Personnel Schedule

7.2.1 The Service Provider shall, where required in terms of the Contract Data, provide appropriate

Personnel for such time periods as required in terms of the Contract and enter all data pertaining

to Personnel including titles, job descriptions, qualifications and estimated periods of

engagement on the performance of the Services in the Personnel Schedule.

7.2.2 Where the Service Provider proposes to utilise a person not named in the Personnel Schedule,

he shall submit the name, relevant qualifications and experience of the proposed replacement

person to the Employer for approval. Should the Employer not object in writing within 10 Days

of receipt of such notification, the replacement shall be deemed to have been approved by the

Employer.

7.2.3 The Services shall be performed by the Personnel listed in the Personnel Schedule for the

periods of time indicated therein. The Service Provider may, subject to the approval of the

Employer, make such adjustments to the data provided in terms of Clause 7.2.1 above as may

be appropriate to ensure the efficient performance of the Services, provided that the

adjustments will not cause payments to exceed any limit placed on the Contract Price.

7.2.4 The Service Provider shall, if required in terms of Clause 7.2.1:

a) forward to the Employer for approval, within 15 Days of the award of the Contract, the

Personnel Schedule and a timetable for the placement of Personnel.

b) inform the Employer of the date of commencement and departure of each member of

Personnel during the course of the Project.

c) submit to the Employer for his approval a timely request for any proposed change to

Personnel, or timetables.

8. Commencement, completion, modification, suspension and termination

8.1 Commencement of Services

The Service Provider shall commence the performance of the Services within the period

stated in the Contract Data.

8.2 Completion

8.2.1 Unless terminated in terms of the Contract, or otherwise specified in the Contract Data, the

Contract shall be concluded when the Service Provider has completed all Deliverables in

accordance with the Scope of Work.

8.2.2 The Service Provider may request an extension to the Period of Performance if he is or will be

delayed in completing the Contract by any of the following causes:

a) additional Services ordered by the Employer;

b) failure of the Employer to fulfil his obligations under the Contract;

c) any delay in the performance of the Services which is not due to the Service

Provider’s default;

d) Force Majeure; or

e) suspension.

8.2.3 The Service Provider shall within 14 Days of becoming aware that a delay may occur or has

occurred, notify the Employer of his intention to make a request for the extension of the Period

of Performance to which he considers himself entitled and shall within 30 days after the delay

ceases deliver to the Employer full and detailed particulars of the request.

8.2.4 The Employer shall, within 30 Days of receipt of a detailed request, grant such extension to the

Period of Performance as may be justified, either prospectively or retrospectively, or

NO.

1 Tender Notice and Invitation to Tender 2

2 Section 1: Standard Conditions of Tender 4

3 Section 2: Standard Professional Services Contract 16

4 Section 3: Scope of Works 33

5 Section 4: Panel Implementation Information 39

6 Section 5: Pricing Data 40

7 Section 6: Pricing Schedule 42

8 Section 7: Forms of Offer 48

Section 8: Relevant Experience and Track Record of the

9 52

compromising his independence of judgement, or that of Subcontractors or Personnel.

7. Service provider’s personnel

8. 1 General

7.1.1 The Service Provider shall employ and provide all qualified and experienced Personnel required

to perform the Services.

7.1.2 Where required in terms of the Contract, the Service Provider shall provide Key Persons as

listed in the Contract Data to perform specific duties. If at any time, a particular Key Person

cannot be made available, the Service Provider may engage a replacement who is equally or

better qualified to perform the stated duty, subject to the Employer’s approval, which approval

shall not be unreasonably withheld.

7.1.3 Where the fees for the Services are time- based, the fee payable for a person provided as a

replacement to a named Key Person shall not exceed that which would have been payable to

the person replaced.

7.1.4 The Service Provider shall bear all additional costs arising out of or incidental to replacement

of Personnel, except where such replacement is otherwise provided for in the Contract.

7.1.5 The Service Provider shall take all measures necessary and shall provide all materials and

equipment necessary to enable Personnel to perform their duties in an efficient manner.

7.2 Provision of Personnel in terms of a Personnel Schedule

7.2.1 The Service Provider shall, where required in terms of the Contract Data, provide appropriate

to Personnel including titles, job descriptions, qualifications and estimated periods of

engagement on the performance of the Services in the Personnel Schedule.

7.2.2 Where the Service Provider proposes to utilise a person not named in the Personnel Schedule,

he shall submit the name, relevant qualifications and experience of the proposed replacement

person to the Employer for approval. Should the Employer not object in writing within 10 Days

of receipt of such notification, the replacement shall be deemed to have been approved by the

Pricing Instructions

Agreements

Form of Offer and Acceptance

Data that establishes the criteria and assumptions that were taken into account when

developing the Contract Price and the record of the components that make up the Contract

Price.

Project

The project named in the Contract Data for which the Services are to be provided.

Scope of work

Pricing Data

3.15.3 The Service Provider shall update the programme:

a) unless otherwise stated in the Contract Data, every three months to reflect actual

progress to date;

b) whenever a change in Period of Performance or Contract Price is applied for; and

c) whenever a change in the Period of Performance is changed by the Employer

and submit such revised programme to the Employer for approval.

3.16 Price adjustment to time-based fees for inflation

3.16.1 Time-based fees which are stated in the Pricing Data as a unique rate and are not calculated by

multiplying the total annual cost of employment contained, shall unless otherwise stated in the

Contract Data, be adjusted in terms of 3.16.2 on each anniversary of the Starting Date.

3.16.2 The adjustment to the time-based fees shall be equal to:

(CPIn - CPIs) / CPIs

where CPIs = the indices specified in the Contract Data during the month in which the start date

falls

CPIn = the latest indices specified in Contract Data during the month in which the

anniversary of the Start Date falls

4. Employer’s obligations

4.1Information

4.1.1 The Employer shall timeously provide to the Service Provider, free of cost, all available

information and data in the Employer’s possession which may be required for the performance

of the Services.

4.1.2 The Employer shall provide the Service Provider with reasonable assistance required in

obtaining other relevant information that the latter may require in order to perform the Services.

4.2 Decisions

TAX COMPLIANCE STATUS TCS PIN: OR CSD No

Tax compliance requirements

tax compliance status (tcs) certificate or pin may also be made via e-filing

Tax compliance status

Tax compliance Status pin must be submitted

tax compliance pin

TCS PIN: OR CSD No

Csd number

csd number must be provided

central supplier database (csd), a csd number must be provided

Central Supplier Database Summary report must be submitted

7 Section 6: Pricing Schedule 42

bidders can use link below which is direct from this advert to access the meeting. Please take note that no attendee

2. Tax compliance requirements

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

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.

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

VAT registration number

B-BBEE Details: losing Time: 12:00

Description: APPOINTMENT OF PANELS OF ELECTRICAL CONSULTANTS FOR A PERIOD OF THREE (3) YEARS

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

Bid Response Documents may be Deposited in the Bid Box in Room 122 situated at:

Woltemade building

16 woltemade street

Jeffreys bay

6330

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:

B-bbee status level verification b-bbee status

Yes YesCERTIFICATE LEVEL SWORN

[Tick applicable box] affidavit

No No

[A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE/ SWORN AFFIDAVIT (FOR EMES & QSEs) MUST BE SUBMITTED IN

Order to qualify for preference points for b-bbee]

2. Are you a foreign
3. Are you the accredited based supplier

REPRESENTATIVE IN SOUTH AFRICA Yes No FOR THE GOODS Yes No

For the goods /services /services /works

/Works offered? [If yes enclose proof] offered? [If yes, answer part b:3 ]

Category 1:

Category 2:

Category 3:

Category 4

Category 5:

3. Total number of items offered 4. Total bid price
4. Signature of bidder

.................................... 6. Date

7. Capacity under which this bid

Is signed

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

DEPARTMENT SCM CONTACT PERSON Mandla Mangembe

Contact person SCM telephone number 042 200 2200

Telephone number 042 200 2200 facsimile number n/a

FACSIMILE NUMBER N/A E-MAIL ADDRESS [email protected]

E-MAIL ADDRESS [email protected]

1. Bid submission:

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

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 nonrefundable fee for documents may be charged.

3.2 With certain exceptions, invitations to bid are only published in the Government Tender

10.1 Delivery of the goods shall be made by the supplier in accordance with the terms

specified in the contract. The details of shipping and/or other documents to be furnished by

the supplier are specified in SCC.

10.2 Documents to be submitted by the supplier are specified in SCC.

provided that, within 14 Days of first having become aware of the change, the Service Provider

furnished the Employer with detailed justification for the adjustment to the Contract Price or

Period of Performance (or both).

3.3 Language

3.3.1 The language of the Contract and of all communications between the Parties shall be English.

3.3.2 All reports, recommendations and reports prepared by the Service Provider under the Contract

shall be in English.

3.4 Notices

3.4.1 Any notice, request, consent, approvals or other communication made between the Parties

pursuant to the Contract shall be in writing and forwarded to the address specified in the

16. Payment

17. Prices

18. Contract amendments

19. Assignment

20. Subcontracts

21. Delays in the suppliers performance

22. Penalties

23. Force Majeure

24. Termination for insolvency

25. Settlement of disputes

26. Limitation of liability

27. Governing language

28. Applicable law

29. Taxes and duties

30. Prohibition of restrictive practices

31. Restriction of Suppliers

General Conditions of Contract

1. Definitions

2. The following terms shall be interpreted as indicated:

1.1 ‘’Award’’ shall mean the acceptance of a bid or proposal.

1.2 “Collusion” means any agreement, arrangement, understanding, or coordinated conduct,

whether formal or informal, between two or more parties, including suppliers, officials, or

third parties, which is intended to improperly influence procurement outcomes, pricing,

competition, or decision-making processes, or to deceive or prejudice the Municipality.

1.3 “Closing time” means the date and hour specified in the bidding documents for the

receipt of bids.

1.4 “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.

1.5 ‘’Contract period’’ shall mean the duration of the contract as set out in the contract.

1.6 “Contract price” means the price payable to the supplier under the contract for the full

and proper performance of his contractual obligations.

1.7 “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.

1.8 "Countervailing duties" are imposed in cases where an enterprise abroad is subsidized

by its government and encouraged to market its products internationally.

1.9 “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.

1.10 “Days” means calendar day.

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

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

1.13 “Delivery into consignees store or to his site” means delivered an 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 supplies are so

delivered and a valid receipt is obtained.

1.14 “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.

1.15 “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.

1.16 “GCC” means the General Conditions of Contract.

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

is required to supply to the purchaser under the contract.

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

rendering of a service.

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

1.20 “Purchaser” means the organization purchasing the goods.

1.21 “Republic” means the Republic of South Africa.

1.22 ‘’Blacklisting/restricting’’ shall mean the act of disqualifying a person or an entity from

participating in the procurement process of Kouga Local Municipality.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means those functional services ancillary 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 “Written” or “in writing” means handwritten in ink or any form of electronic or mechanical

writing.

2. Application

2.1 These general conditions are applicable to all bids, contracts and orders including bids

for functional and professional services, sales, hiring, letting and the granting or acquiring of

rights, but excluding immovable property, unless otherwise indicated in the bidding

documents.

2.2 Where applicable, special conditions of contract are also laid down to cover specific

supplies, services or works.

2.3 Where such special conditions of contract are in conflict with these general conditions,

the special conditions shall apply.

3. General

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 nonrefundable fee for documents may be charged.

3.2 With certain exceptions, invitations to bid are only published in the Government Tender

Bulletin. The Government Tender Bulletin may be obtained directly from the Government

Printer, Private Bag X85, Pretoria 0001, or accessed electronically from

www.treasury.gov.za.

4. Standards

4.1 The goods supplied shall conform to the standards mentioned in the bidding documents

and specifications.

5. Use of contract documents and information; inspection.

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.

6. Patent rights

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.

7. Performance security

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 in SCC.

8. Inspections, tests and analyses

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

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

any stage during production or execution or on completion be subject to inspection, the

premises of the bidder or contractor shall be open, at all reasonable hours, for inspection by

a representative of the Department or an organization acting on behalf of the Department.

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

supplies 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 supplies or services referred to in clauses 8.2 and 8.3 do not comply with the

contract requirements, irrespective of whether such supplies or services are accepted or not,

the cost in connection with these inspections, tests or analyses shall be defrayed by the

supplier.

8.6 Supplies 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 supplies 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

supplies 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 supplies which

do comply with the requirements of the contract. Failing such removal the rejected supplies

shall be returned at the suppliers cost and risk. Should the supplier fail to provide the

substitute supplies forthwith, the purchaser may, without giving the supplier further

opportunity to substitute the rejected supplies, purchase such supplies 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 23 of GCC.

9. Packing

9.1 The supplier shall provide such packing of the goods as is required to prevent their

damage or deterioration during transit to their final destination, as indicated in the contract.

The packing shall be sufficient to withstand, without limitation, rough handling during transit

and exposure to extreme temperatures, salt and precipitation during transit, and open

storage. Packing, case size and weights shall take into consideration, where appropriate, the

remoteness of the goods final destination and the absence of heavy handling facilities at all

points in transit.

9.2 The packing, marking, and documentation within and outside the packages shall comply

strictly with such special requirements as shall be expressly provided for in the contract,

including additional requirements, if any, specified in SCC, and in any subsequent

instructions ordered by the purchaser

10. Delivery and documents

10.1 Delivery of the goods shall be made by the supplier in accordance with the terms

specified in the contract. The details of shipping and/or other documents to be furnished by

the supplier are specified in SCC.

10.2 Documents to be submitted by the supplier are specified in SCC.

11. Insurance

11.1 The goods supplied under the contract shall be fully insured in a freely convertible

currency against loss or damage incidental to manufacture or acquisition, transportation,

storage and delivery in the manner specified in the SCC.

12. Transportation

12.1 Should a price other than an all-inclusive delivered price be required, this shall be

specified in the SCC.

13. Incidental services

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

additional services, if any, specified in SCC:

(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. Spare parts

14.1 As specified in SCC, 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.

15.1 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

purchasers 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 in SCC.

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 in SCC 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 in SCC, 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 in SCC.

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 in SCC.

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 in SCC or in the purchasers request for bid validity

extension, as the case may be.

18. Contract amendments

18.1 No variation in or modification of the terms of the contract shall be made except by

written amendment signed by the parties concerned.

19. Assignment

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

contract, except with the purchasers 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.

20.2 Subcontractors or local SMME’s shall be paid within 7 days after submitting their valid

invoice for works completed to the Contractor unless the bidder provides the payment

arrangement within their structure, however this may not exceed 14 calendar days,

notwithstanding payment claims received by the Municipality.

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 suppliers notice,

the purchaser shall evaluate the situation and may at his discretion extend the suppliers 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 No provision in a contract shall be deemed to prohibit the obtaining of supplies or

services from a national department, provincial department, or a local authority.

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

essential services executed if an emergency arises, the suppliers point of supply is not

situated at or near the place where the supplies are required, or the suppliers services are

not readily available.

21.5 Except as provided under GCC Clause 23, 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 21.2 without the application of penalties.

21.6 Upon any delay beyond the delivery period in the case of a supplies contract, the

purchaser shall, without cancelling the contract, be entitled to purchase supplies 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 suppliers 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 23, 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 31.

23. Force Majeure

23.1 Notwithstanding the provisions of GCC Clauses 22 and 31, 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.

23.2 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.

24. Termination for insolvency

24.1 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.

25. Settlement of Disputes

25.1 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.

25.2 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.

25.3 Should it not be possible to settle a dispute by means of mediation, it may be settled in

a South African court of law.

25.4 Mediation proceedings shall be conducted in accordance with the rules of procedure

specified in the SCC.

25.5 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.

26. Limitation of liability

26.1 Except in cases of criminal negligence or wilful 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.

27. Governing language

27.1 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.

28. Applicable law

28.1 The contract shall be interpreted in accordance with South African laws, unless

otherwise specified in SCC.

29. Taxes and duties

29.1 A foreign supplier shall be entirely responsible for all taxes, stamp duties, license fees,

and other such levies imposed outside the purchasers country.

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

incurred until delivery of the contracted goods to the purchaser.

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

to the award of a bid the Department must be in possession of a Valid tax compliance pin

certificate, submitted by the bidder. This certificate must be issued by the South African

Revenue Services.

30. Prohibition of Restrictive practices

30.1 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 (or bid rigging).

30.2 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 the Competition Act No. .

30.3 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.

31. Restriction of Suppliers

31.1 Authority to Restrict Suppliers

31.1.1 The Municipality may, independently of the National Treasury restriction

process, restrict a supplier, contractor, service provider or any associated person from doing

business with the Municipality where such conduct undermines the integrity, fairness,

transparency or effectiveness of the supply chain management system.

31.1.2 This municipal restriction process shall function as an internal control and riskmanagement mechanism and shall not replace or contradict the National Treasury

restriction process.35.1.3 The Accounting Officer shall be the final authority for approving

any restriction imposed in terms of this policy.

31.2 Grounds for Restriction

A supplier must be restricted from doing business with the Municipality if the supplier has:

a) Failed to perform satisfactorily in terms of a municipal contract, including persistent poor

performance after written warnings;

b) Breached any material term or condition of a contract with the Municipality;

c) Submitted fraudulent, false or misleading information, including but not limited to:

• Fraudulent or falsified B-BBEE certificates or affidavits;
• Misrepresentation of experience, capacity, qualification, financial standing or

subcontracting arrangements;

d) Engaged in fraud, corruption, collusion, bribery or unethical conduct;

e) Attempted to improperly influence municipal officials, councillors or SCM role-players;

f) Failed to comply with applicable legislation where such non-compliance materially affects

performance;

g) Been convicted of an offence involving dishonesty, fraud, corruption or financial

misconduct.

h) If found that the appointment of the bidder/vendor/service provider caused or poses a

reputational risk to the Municipality in line with the provisions of the Kouga Municipality

Supply Chain Management Policy.

i) is listed on the National Treasury or any other Governmental Restriction or blacklisting list.

31.3 Restriction Periods and Sanctions

31.3.1 Restriction periods shall be proportionate to the severity, intent and impact of the

offence.

31.3.2 Without limiting the Municipality’s discretion, the following guideline sanctions apply:

a) Fraudulent B-BBEE Submissions or other Documentation

• Restriction for up to five (5) years from doing business with the Municipality;
• Mandatory reporting to National Treasury for possible national restriction;
• Possible termination of existing contracts, subject to legal advice.

b) Fraud, Corruption, Collusion or Bribery

• Restriction for up to five (5) years;
• Reporting to National Treasury and law-enforcement agencies.

c) Poor Performance or Contractual Breach

• Restriction for one (1) year to five (5) years, depending on severity and recurrence.

d) Misrepresentation (excluding B-BBEE fraud) and Reputational Damage

• Restriction for one (1) to five (5) years.

Section 2:

Standard professional services contract

Standard professional services contract

(As per latest legislative requirements)

1. Definitions

2. Interpretation

3. General

3.1 Governing law

3.2 Change in legislation

3.3 Language

3.4 Notices

3.5 Location

3.6 Publicity and publication

3.7 Confidentiality

3.8 Variations

3.9 Changes to the Contract Price or Period of Performance

3.10 Sole agreement

3.11 Indemnification

3.12 Penalty

3.13 Equipment and materials furnished by the Employer

3.14 Illegal and impossible requirements

3.15 Programme

3.16 Price adjustment to time–based fees for inflation

4. Employer’s Obligations

4.1 Information

4.2 Decisions

4.3 Assistance

4.4 Services of Others

4.5 Notification of material change or defect

4.6 Issue of instructions

4.7 Payment of Service Provider

5. Service Provider’s Obligations

5.1 General

5.2 Exercise of authority

5.3 Designated representative

5.4 Insurances to be taken out by the Service Provider

5.5 Service Provider’s actions requiring Employer’s prior approval

5.6 Co-operation with Others

5.7 Notice of change by Service Provider

6. Conflicts of Interest

6.1 Service Provider not to benefit from commissions, discounts, etc.

6.2 Royalties and the like

6.3 Independence

7. Service Provider’s Personnel

7.1 General

7.2 Provision of Personnel in terms of a Personnel Schedule

8. Commencement, Completion, Modification, Suspension and Termination

8.1 Commencement of Services

8.2 Completion

8.3 Force Majeure

8.4 Termination

8.5 Suspension

8.6 Rights and liabilities of the Parties

9. Ownership of Documents and Copyright

10. Succession and assignment

11. Subcontracting

12. Resolution of Disputes

12.1 Settlement

12.2 Mediation

12.3 Adjudication

12.3 Arbitration

13. Liability

13.1 Liability of the Service Provider

13.2 Liability of the Employer

13.3 Compensation

13.4 Duration of Liability

13.5 Limit of Compensation

13.6 Indemnity by the Employer

13.7 Exceptions

14. Remuneration and reimbursement of Service Provider

15 Amounts due to the Employer

Standard professional services contract

1. Definitions

In the Contract, the following words and expressions shall have the meanings indicated, except

where the context otherwise requires. Defined terms and words are signified in the text of the

Contract by the use of capital initial letters.

Contract

The Contract signed by the Parties and of which these General Conditions of Contract form

part.

Specific data, which together with these General Conditions of Contract, collectively describe

the risks, liabilities and obligations of the contracting Parties and the procedures for the

administration of the Contract.

Contract Price

The price to be paid for the performance of the Services in accordance with the Pricing Data.

Day

A calendar day.

Defect

A part of the Services, as performed, which does not comply with the requirements of the

Contract.

Deliverable

Any measurable, tangible, verifiable outcome, result or item that must be produced or

completed;

Employer

The contracting party named in the Contract who employs the Service Provider.

Force Majeure

An event which is beyond the reasonable control of a Party and which makes a Party’s

performance of its obligations under the Contract impossible or so impractical as to be

considered impossible under the circumstances.

Key Persons

Persons who are named as such in the Contract Data who will be engaged in the performance

of the Services.

Others

Persons or organisations who are not the Employer, the Service Provider or any employee,

Subcontractor, or supplier of the Service Provider.

Parties

The Employer and the Service Provider.

Period of Performance

The period within which the Services are to be performed and completed, commencing from

the Start Date.

Personnel

Persons hired by the Service Provider as employees and assigned to the performance of the

Services or any part thereof.

Personnel Schedule

A schedule naming all Personnel and Key Persons.

1.1 ‘’Award’’ shall mean the acceptance of a bid or proposal.

1.2 “Collusion” means any agreement, arrangement, understanding, or coordinated conduct,

whether formal or informal, between two or more parties, including suppliers, officials, or

third parties, which is intended to improperly influence procurement outcomes, pricing,

competition, or decision-making processes, or to deceive or prejudice the Municipality.

1.3 “Closing time” means the date and hour specified in the bidding documents for the

receipt of bids.

1.4 “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.

1.5 ‘’Contract period’’ shall mean the duration of the contract as set out in the contract.

1.6 “Contract price” means the price payable to the supplier under the contract for the full

and proper performance of his contractual obligations.

1.7 “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.

1.8 "Countervailing duties" are imposed in cases where an enterprise abroad is subsidized

by its government and encouraged to market its products internationally.

1.9 “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.

1.10 “Days” means calendar day.

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

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

1.13 “Delivery into consignees store or to his site” means delivered an 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 supplies are so

delivered and a valid receipt is obtained.

1.14 “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.

1.15 “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.

1.16 “GCC” means the General Conditions of Contract.

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

is required to supply to the purchaser under the contract.

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

rendering of a service.

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

1.20 “Purchaser” means the organization purchasing the goods.

1.21 “Republic” means the Republic of South Africa.

1.22 ‘’Blacklisting/restricting’’ shall mean the act of disqualifying a person or an entity from

participating in the procurement process of Kouga Local Municipality.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means those functional services ancillary 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 “Written” or “in writing” means handwritten 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.

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 in SCC.

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

additional services, if any, specified in SCC:

(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 in SCC, 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

purchasers 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 in SCC.

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 in SCC 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 in SCC, 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.

20.2 Subcontractors or local SMME’s shall be paid within 7 days after submitting their valid

invoice for works completed to the Contractor unless the bidder provides the payment

arrangement within their structure, however this may not exceed 14 calendar days,

notwithstanding payment claims received by the Municipality.

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 suppliers notice,

the purchaser shall evaluate the situation and may at his discretion extend the suppliers 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 No provision in a contract shall be deemed to prohibit the obtaining of supplies or

services from a national department, provincial department, or a local authority.

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

essential services executed if an emergency arises, the suppliers point of supply is not

situated at or near the place where the supplies are required, or the suppliers services are

not readily available.

21.5 Except as provided under GCC Clause 23, 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 21.2 without the application of penalties.

21.6 Upon any delay beyond the delivery period in the case of a supplies contract, the

purchaser shall, without cancelling the contract, be entitled to purchase supplies 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 suppliers 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 23, 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 31.

23.1 Notwithstanding the provisions of GCC Clauses 22 and 31, 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.

23.2 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.

24.1 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.

25.1 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.

25.2 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.

25.3 Should it not be possible to settle a dispute by means of mediation, it may be settled in

a South African court of law.

25.4 Mediation proceedings shall be conducted in accordance with the rules of procedure

specified in the SCC.

25.5 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.

26.1 Except in cases of criminal negligence or wilful 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.

a) Failed to perform satisfactorily in terms of a municipal contract, including persistent poor

performance after written warnings;

b) Breached any material term or condition of a contract with the Municipality;

c) Submitted fraudulent, false or misleading information, including but not limited to:

• Fraudulent or falsified B-BBEE certificates or affidavits;
• Misrepresentation of experience, capacity, qualification, financial standing or

subcontracting arrangements;

d) Engaged in fraud, corruption, collusion, bribery or unethical conduct;

e) Attempted to improperly influence municipal officials, councillors or SCM role-players;

f) Failed to comply with applicable legislation where such non-compliance materially affects

performance;

g) Been convicted of an offence involving dishonesty, fraud, corruption or financial

misconduct.

h) If found that the appointment of the bidder/vendor/service provider caused or poses a

reputational risk to the Municipality in line with the provisions of the Kouga Municipality

i) is listed on the National Treasury or any other Governmental Restriction or blacklisting list.

31.3 Restriction Periods and Sanctions

31.3.1 Restriction periods shall be proportionate to the severity, intent and impact of the

offence.

31.3.2 Without limiting the Municipality’s discretion, the following guideline sanctions apply:

a) Fraudulent B-BBEE Submissions or other Documentation

• Restriction for up to five (5) years from doing business with the Municipality;
• Mandatory reporting to National Treasury for possible national restriction;
• Possible termination of existing contracts, subject to legal advice.

b) Fraud, Corruption, Collusion or Bribery

• Restriction for up to five (5) years;
• Reporting to National Treasury and law-enforcement agencies.

c) Poor Performance or Contractual Breach

• Restriction for one (1) year to five (5) years, depending on severity and recurrence.

d) Misrepresentation (excluding B-BBEE fraud) and Reputational Damage

• Restriction for one (1) to five (5) years.

Section 2:

3.1 Governing law

3.2 Change in legislation

3.3 Language

3.4 Notices

3.5 Location

3.6 Publicity and publication

3.7 Confidentiality

3.8 Variations

3.9 Changes to the Contract Price or Period of Performance

3.10 Sole agreement

3.11 Indemnification

3.12 Penalty

3.13 Equipment and materials furnished by the Employer

3.14 Illegal and impossible requirements

3.15 Programme

3.16 Price adjustment to time–based fees for inflation

4. Employer’s Obligations

4.1 Information

4.2 Decisions

4.3 Assistance

4.4 Services of Others

4.5 Notification of material change or defect

4.6 Issue of instructions

4.7 Payment of Service Provider

5. Service Provider’s Obligations

5.1 General

5.2 Exercise of authority

5.3 Designated representative

5.4 Insurances to be taken out by the Service Provider

5.5 Service Provider’s actions requiring Employer’s prior approval

5.6 Co-operation with Others

5.7 Notice of change by Service Provider

8.1 Commencement of Services

8.2 Completion

8.3 Force Majeure

8.4 Termination

8.5 Suspension

8.6 Rights and liabilities of the Parties

13.1 Liability of the Service Provider

13.2 Liability of the Employer

13.3 Compensation

13.4 Duration of Liability

13.5 Limit of Compensation

13.6 Indemnity by the Employer

13.7 Exceptions

confidential and shall not divulge it without the written approval of the other Party.

3.8 Variations

3.8.1 The Employer may, without changing the objectives or fundamental scope of the Contract, order

variations to the Services in writing or may request the Service Provider to submit proposals,

including the time and cost implications, for variations to the Services.

3.8.2 The reasonable cost of preparation and submission of such proposals and the incorporation

into the Contract of any variations to the Services ordered by the Employer, including any

change in the Contract Price, shall be agreed between the Service Provider and the Employer.

3.8.3 Where a variation is necessitated by default or breach of Contract by the Service Provider, any

additional cost attributable to such variation shall be borne by the Service Provider.

3.9 Changes to the Contract Price or Period of Performance

3.9.1 The Service Provider is entitled to apply to the Employer for a change in Contract Price or the

its agents and employees, from and against all actions, claims, losses and damage arising from

any negligent act or omission by the Service Provider in the performance of the Services,

including any violation of legal provisions, or rights of others, in respect of patents, trademarks

and other forms of intellectual property such as copyrights.

3.12 Penalty

3.12.1 If due to his negligence, or for reasons within his control, the Service Provider does not perform

the Services within the Period of Performance, the Employer shall without prejudice to his other

remedies under the Contract or in law, be entitled to levy a penalty for every Day or part thereof,

which shall elapse between the end of the period specified for performance, or an extended

amount stated in the Contract Data.

3.12.2 If the Employer has become entitled to the maximum penalty amount referred to in 3.12.1, he

may after giving notice to the Service Provider:

a) terminate the Contract

b) complete the Services at the Service Provider’s cost.

3.13 Equipment and materials furnished by the Employer

3.13.1 Equipment and materials made available to the Service Provider by the Employer, or purchased

by the Service Provider with funds provided by the Employer for the performance of the Services

shall be the property of the Employer and shall be marked accordingly. Upon termination or

expiration of the Contract, the Service Provider shall make available to the Employer an

inventory of such equipment and materials and shall dispose of them in accordance with the

Employer’s instructions.

3.13.2 The Service Provider shall, at his own expense, insure the equipment and materials referred to

in 3.13.1 for their full replacement value.

3.14 Illegal and impossible requirements

on behalf of the Service Provider.

5.4 Insurances to be taken out by the Service Provider

5.4.1 The Service Provider shall as a minimum and at his own cost take out and maintain in force all

such insurances as are stipulated in the Contract Data.

5.4.2 The Service Provider shall, at the Employer’s request, provide evidence to the Employer

showing that the insurance required in terms of Clause 5.4.1 has been taken out and maintained

in force.

5.5 Service Provider’s actions requiring Employer’s prior approval

The Service Provider shall obtain the Employer’s prior approval in writing before taking, inter

alia, any of the following actions:

a) appointing Subcontractors for the performance of any part of the Services,

b) appointing Key Persons not listed by name in the Contract Data.

c) any other action that may be specified in the Contract Data.

5.6 Co-operation with Others

accordance with the Scope of Work.

8.2.2 The Service Provider may request an extension to the Period of Performance if he is or will be

delayed in completing the Contract by any of the following causes:

a) additional Services ordered by the Employer;

b) failure of the Employer to fulfil his obligations under the Contract;

c) any delay in the performance of the Services which is not due to the Service

Provider’s default;

d) Force Majeure; or

e) suspension.

8.2.3 The Service Provider shall within 14 Days of becoming aware that a delay may occur or has

occurred, notify the Employer of his intention to make a request for the extension of the Period

of Performance to which he considers himself entitled and shall within 30 days after the delay

ceases deliver to the Employer full and detailed particulars of the request.

8.2.4 The Employer shall, within 30 Days of receipt of a detailed request, grant such extension to the

Bidders must submit a valid Tax Compliance Status PIN, register on Kouga Municipality's Supplier database, and submit the National Treasury Central Supplier Database Summary report. The validity period for submission is 90 days from the closing date. The Municipality may use additional vetting methods to qualify bidder capacity.

Bidding procedure enquiries: SCM contact person, telephone 042 200 2200, email [email protected]. Technical information: Mandla Mangembe, telephone 042 200 2200, email [email protected]. Inquiries must be submitted in writing via email.