Disposal of municipal land for high-density accommodation development: remainder of erf 1, ladysmith

Compulsory briefing session

• Date: Friday 13 November 2026.
• Time: 10:00.
• Venue: Legal Services Boardroom, Lister Clarence Building, 221 Murchison Street, Ladysmith.
• Attendance is compulsory; failure to attend invalidates the bid.

Closing and opening

• Date: Monday 23 November 2026.
• Time: 11:00.
• Venue: Room 206, Lister Clarence Building, 221 Murchison Street, Ladysmith.

Bid validity

• Bids remain open for acceptance for 120 days from the closing date.

Document availability

• Bid documents are obtainable from Thursday 5 November 2026 on the National Treasury e-Tender Portal at www.etenders.gov.za.

Bid enquiries

• Name: Ms N F Godo
• Telephone: (036) 637 2231, extension 0711

Department

• Department Development, Planning and Human Settlements
• Address: P O Box 29, Ladysmith, 3370
• Telephone: 036 637 2231

Submission address

• Bid box, Public Entrance Door, Ground Floor, Lister Clarence Building, 221 Murchison Street, Ladysmith

Opening venue

• Room 206, Lister Clarence Building, 221 Murchison Street, Ladysmith

Submission method

• Sealed bid deposited in the bid box at the Public Entrance Door, Ground Floor, Lister Clarence Building, 221 Murchison Street, Ladysmith.
• The envelope must show the contract number and description, and the bidder's details.
• Fax and email submissions are not accepted.
• Only the original Alfred Duma Local Municipality bid document, completed and signed, is accepted.
• Late bids and bids not marked as prescribed will not be considered.

Returnable documents

• Original bid document completed in black ink, all pages and annexures initialled or signed.
• Form of Bid (MBD 1 equivalent): signed offer.
• Tax Clearance Certificate or valid SARS Tax Compliance Status PIN.
• Declaration of Interest (MBD 4): discloses any director or shareholder employed by the state or connected to the municipality.
• Preference Points Claim Form (MBD 6.1): claims B-BBEE preference points.
• Declaration of Bidder's Past Supply Chain Management Practices (MBD 8): discloses any past contract defaults or restrictive practices.
• Certificate of Independent Bid Determination (MBD 9): certifies the bid price was set independently without collusion.
• Particulars of Bidder and Enquiry Contact Details forms.
• Pricing Schedule completed.
• CSD registration report.
• B-BBEE certificate or sworn affidavit.
• Up-to-date municipal rates and service charges and water statements for the bidder's location.
• Joint Venture Agreement, if applicable, naming the authorised signatory.
• Company profile and detailed record of previous work.
• Certified copies of occupation certificates for completed projects.
• Bank statements in the director's or company's name as proof of financial capacity.
• Development proposal with financials and timeframes.
• Proof of shareholding and funding commitment.
• Certificate from the Medical Board, where applicable.

Disqualification risks

• Failure to attend the compulsory briefing session.
• Omission of any mandatory document or proof.
• Submission by fax or email.
• Use of a bid document not issued by the municipality.
• Corrections made with correcting fluid.
• Bids received after the closing time.

Preference point system

• 80/20 preferential points system.
• Price: 80 points.
• Ownership as a specific goal: 20 points, split as:
• Race (HDI) ownership: 5 points.
• RDP goals (locality in Alfred Duma Local Municipality): 15 points.
• Ownership verification uses the Central Supplier Database and B-BBEE scorecard attributes.

Functionality evaluation (100 points)

• Verifiable profile of previously completed projects of a similar nature: 10 points per project, with certified copies of occupation certificates.
• Proof of financial capacity to undertake the development:
• R5 million and above: 40 points.
• R3 000 000 to R4 999 999: 30 points.
• R2 000 000 to R2 999 999: 20 points.
• R1 999 999 and below: 10 points.
• Bank statement in the director's or company's name required.
• Methodology: 20 points, covering:
• Development concept.
• Infrastructure and engineering services.
• Development costs and financial viability.
• Implementation programme.
• Statutory compliance.
• Risk management and property management.

Minimum qualifying score

• Bidders must score at least 80% on functionality to proceed to the second round of evaluation.

Evaluation stages

• Stage 1: administrative compliance and mandatory documents.
• Stage 2: functionality, minimum 80/100.
• Stage 3: price and preference points under the 80/20 system.

Procurement

• Disposal of municipal land for the development of high-density accommodation on a portion of the remainder of Erf 1, Ladysmith.
• The successful bidder plans, finances, designs, obtains statutory approvals, constructs and completes the development at its own cost and risk.

Scope of work

• Assess the site for suitability, development potential, constraints and appropriate density.
• Submit a development concept showing unit numbers and types, supporting facilities and layout.
• Prepare architectural and engineering designs for accommodation units, internal roads and access, parking, pedestrian movement, communal and recreational areas, landscaping, refuse and waste facilities, stormwater management, water and sanitation infrastructure, and electricity and other services.
• Undertake planning and statutory processes: rezoning, subdivision, consolidation, consent use, departures, environmental approvals, building-plan approvals and other approvals.
• Obtain all municipal and external statutory approvals before construction.
• Secure development funding for professional fees, statutory approvals, infrastructure, construction, project management and all other costs.
• Undertake bulk and internal infrastructure works to municipal and service authority specifications.
• Construct the development in accordance with approved designs, approvals and building standards.
• Achieve appropriate residential density and efficient use of the land while maintaining safety, accessibility, habitability and urban design standards.
• Provide supporting facilities: parking, access roads, pedestrian facilities, communal spaces, refuse areas, landscaping and recreational facilities.
• Implement environmental and sustainability measures: efficient water and energy use, stormwater management, waste management, landscaping and responsive construction practices.
• Implement the project according to an approved programme with commencement, construction and completion milestones.
• Appoint and manage qualified professional consultants and contractors.
• Manage and coordinate all development activities from commencement to completion.
• Comply with all applicable legislation, municipal policies, planning requirements, building regulations, health and safety requirements and other authority conditions.
• Complete and commission the development within the agreed period.
• Provide regular progress reports on planning, financing, construction, expenditure, statutory approvals and milestones.

Development obligation

• The bidder must take the development from conceptualisation through planning, financing, statutory approvals, design, infrastructure provision, construction and completion, resulting in a fully functional high-density accommodation development.

Completion period

• Commercial properties must be developed within 12 months, or 24 months where land formalities are still required.

Bidders must submit a methodology scoring 20 points, covering:

• Development concept.
• Infrastructure and engineering services.
• Development costs and financial viability.
• Implementation programme.
• Statutory compliance.
• Risk management and property management.

Variation orders

• Changes within 15% of the original contract value may be instructed without a new process; unit prices may be reduced without escalation.

Bidders must provide proof for each pre-qualification requirement, failing which the bid is invalid:

• Company profile and detailed exposition of previous work.
• Certificate from the Medical Board, where applicable.
• Funding commitment.
• Proof of shareholding.
• Development proposal with financials and timeframes.
• Certified copies of occupation certificates for previously completed projects of a similar nature.
• Reference letters for previously completed projects.

Inspections and testing

• Pre-bidding testing is for the bidder's account.
• The bidder's premises must be open at reasonable hours for inspection by the municipality or its representative.
• If inspections are required during the contract, the municipality arranges and pays for them unless the goods or services fail to comply, in which case the supplier bears the cost.
• Non-compliant goods or services may be rejected and must be replaced at the supplier's cost and risk.

Development standards

• The development must comply with approved designs, statutory approvals, building regulations and applicable standards.
• Infrastructure and buildings must be completed to the required technical and quality standards and be suitable for their intended purpose.

Pricing schedule

• The bid price is the purchase price offered for the land, exclusive of VAT.
• Bids below the upset price will not be considered.
• The pricing schedule in the bid document must be completed.

Payment

• Full purchase price or balance paid in cash into ABSA account number 407 175 608 8, branch code 632 005 (Public Sector Cheque Account), reference "Remainder of Erf 1, Ladysmith".
• Payment or approved bank guarantee due within 90 days after signature.
• Deposit slip to be furnished immediately as proof of payment.

Costs

• Transfer duty, VAT, conveyancing costs and other transfer-related costs are for the bidder's account.
• Water arrears and other amounts owing on the property are for the bidder's account.

Pricing

• Purchase price is the price bid by the successful bidder, exclusive of VAT.
• Bids lower than the upset price will not be considered.

Payment

• Full purchase price or balance paid in cash into ABSA account number 407 175 608 8, branch code 632 005 (Public Sector Cheque Account), reference "Remainder of Erf 1, Ladysmith".
• Payment or an approved bank guarantee must be received within 90 days after signature by the parties; failure cancels the contract.
• A deposit slip must be furnished immediately as proof of payment.

Financial capacity

• Bidders must prove financial ability to pay the full purchase price within the specified period.
• Bank statements in the director's or company's name are required.
• Funding commitment must be provided.

Costs for the bidder's account

• Transfer registration costs, transfer duty, VAT and certified copies of the holding title.
• Conveyancer appointed by the seller at the bidder's cost.
• Water arrears or other amounts owing on the property.
• Costs of studies, surveys, permits and licences.
• All development costs, including professional fees, statutory approvals, infrastructure and construction.

Penalties

• Penalty fees apply for non-compliance with stipulated timeframes.
• Penalties may be deducted from payments towards the purchase price, debited to the bidder's municipal account, or recovered by letter of demand.

Performance security

• Performance security is required within 30 days of contract award, in the amount stated in the special conditions, as a bank guarantee, irrevocable letter of credit or certified cheque.

Registration and status

• CSD registration is mandatory; only bidders registered on the Central Supplier Database will be considered.
• Tax matters must be in order and certified by SARS before award.
• Municipal rates, taxes and service charges must not be in arrears for more than three months.
• B-BBEE certificate or sworn affidavit required.
• Joint Venture Agreement required if applicable, naming the authorised signatory.

Mandatory documents

• CSD report.
• B-BBEE certificate or sworn affidavit.
• Up-to-date municipal rates and service charges and water statements.
• Company profile and detailed record of previous work.
• Certified copies of occupation certificates for completed projects.
• Bank statements in the director's or company's name.
• Development proposal with financials and timeframes.
• Proof of shareholding and funding commitment.
• Certificate from the Medical Board, where applicable.

Grounds for rejection

• Failure to pay municipal rates and taxes or service charges for more than three months.
• Unsatisfactory performance on a previous contract with Alfred Duma Local Municipality or any organ of state in the last five years.
• Abuse of the supply chain management system or improper conduct.
• Conviction for fraud or corruption in the past five years.
• Wilful neglect or failure to comply with a public sector contract in the past five years.
• Listing on the Register for Tender Defaulters or National Treasury's database of prohibited persons.
• Being a councillor or official of Alfred Duma Local Municipality.
• Corrupt or fraudulent acts during the procurement process or contract execution.

The successful bidder must maintain compliance with all applicable health and safety requirements and other conditions imposed by the relevant authorities throughout planning, construction and completion of the development.

The bidder must implement environmental and sustainability measures, including efficient water and energy use, stormwater management, waste management, landscaping and environmentally responsive construction practices. Environmental approvals must be obtained as part of the statutory approvals process.

Contract duration and milestones

• The development must be completed within the agreed period; commercial properties within 12 months, or 24 months where land formalities are required.
• Transfer must be taken within 90 days from receipt of payment.
• The appointment letter must be signed within 14 days, and the Deed of Sale concluded within 21 days after signing the acceptance letter.

Payment and penalties

• Payment of the purchase price or bank guarantee is due within 90 days after signature.
• Penalty fees apply for non-compliance with timeframes and may be deducted from amounts due, debited to the bidder's municipal account, or recovered by letter of demand.

Risk and ownership

• Possession and occupation pass on the date of transfer, from which date the bidder bears all municipal rates and taxes and the risk, profit or loss of the property.

Termination

• The municipality may cancel the contract for corrupt or fraudulent acts, insolvency, or failure to meet timeframes.

General conditions

• The General Conditions of Contract apply, covering performance security, inspections, penalties, termination, force majeure, dispute resolution and applicable law.
• Special conditions prevail over general conditions where they conflict.

Evaluation uses the 80/20 preference point system: 80 points for price and 20 points for ownership as a specific goal, split between race (HDI) ownership (5 points) and RDP goals (15 points for locality in Alfred Duma Local Municipality). Functionality is scored out of 100: similar completed projects (10 points per project), financial capacity (40 points for R5 million and above, 30 for R3 million to R4 999 999, 20 for R2 million to R2 999 999, 10 for R1 999 999 and below), and methodology (20 points). A minimum of 80% on functionality is required to proceed to the second round.