Appointment of auctioneer for municipal immovable property disposal – tender in kwazulu-natal

Closing date: 5 November 2026 at 12:00 (12h00).

• No briefing session.
• Tender documents available from 26 October 2026 to 3 November 2026 (weekdays 08:30–14:30).
• Payment for documents (R1000) due by 16:00 on 3 November 2026.

Technical queries:

• Name: Mr Sihawu Sithole
• Telephone: +27 35 473 3300 (ext 3512)
• Email: [email protected]

SCM queries:

• Name: Sanele Duma
• Telephone: +27 35 473 3300 (ext 3457)
• Email: [email protected]

SCM unit (general): 035 473 3300 (ext 3445)

Submission address:

uMlalazi Municipality, SCM Offices, KV Challenor Street (Industrial Area), Eshowe, 3815

Postal address:

P O Box 37, Eshowe, 3815

Municipal offices for document collection:

Financial Services Revenue Section, Hutchinson Street, Eshowe

Submission method: sealed tender, hand delivered and placed in the Tender Box at the SCM offices, KV Challenor Street (Industrial Area), Eshowe, before 12:00 on 5 November 2026.

• Endorse the envelope with the tender number and description.
• Envelope must be marked: "APPOINTMENT OF A QUALIFIED AUCTIONEER FOR THE ONCE-OFF DISPOSAL OF IDENTIFIED MUNICIPAL IMMOVABLE PROPERTIES THROUGH PUBLIC AUCTION".
• Late, emailed, faxed, electronically submitted, or computer-edited/altered bids are rejected.
• All pages of returnable documents must be completed, signed, and initialled where required.
• Authority to sign (Certificate of Authority) must accompany the bid.
• Joint ventures must submit a Joint Venture Agreement and Power of Attorney.

Returnable documents (all must be submitted):

• Proof of purchase of tender document (only if purchased directly from municipality).
• Original valid tax clearance certificate (valid at closing date).
• Company/CC/Trust/Partnership registration certificate and certified ID copies of all directors/owners/members/shareholders.
• Proof of CSD registration.
• Rates and Municipal Services Clearance Certificate.
• Proof of Workmen's Compensation registration.
• Audited annual financial statements (if offer above R10 million).
• Valid professional accreditation/proof of registration as an auctioneer (PPRA).
• Valid proof of professional indemnity/public liability insurance.
• Proof of compliance with Consumer Protection Act (CPA) obligations.
• MBD 6.1 Preference Points Claim form.
• Supporting documents for preferential procurement goals points.
• MBD 4 Declaration of Interest.
• MBD 8 Declaration of Bidder's Past SCM Practices.
• MBD 9 Certificate of Independent Bid Determination.
• MBD 5 Declaration for procurement above R10 million (if applicable).
• Agreement in terms of Section 37(2) of the OHS Act (for contract purposes).
• Record of addenda to tender documents.
• Certificate of Authority to Sign documents.
• Amendments or qualifications by tenderer (if any).

Evaluation stages: eligibility → completion compliance → compulsory returnables → functionality → price/preference points.

• Functionality weighting: previous experience 30, key personnel/expertise 20, nature of business 10, methodology 10 (total 70). No minimum qualifying score stated.
• Price and preference: 80/20 point system under Preferential Procurement Regulations 2022.
• Specific goals (maximum 20 preference points):
• Ownership (B-BBEE level): Level 1 (100% black) = 10 points; Level 2 (60%) = 6 points; Level 3 and below (20%) = 2 points.
• Reconstruction & Development: enterprise located in uMlalazi Municipality = 4 points; King Cetshwayo District = 2 points; KwaZulu-Natal Province = 1 point.
• SMME development (EME/QSE): 100% black-owned = 4 points; 51% black-owned = 2 points; 25–50% black-owned = 1 point.
• Combination: EME/QSE 100% black-owned (youth, women, disabled, military veterans) residing in uMlalazi = 2 points.

Key personnel obligations:

• Key personnel presented at bidding must remain unchanged for the contract duration unless written approval for substitution is obtained.
• Appointed bidder must maintain the quality standards presented during bidding.

Scope: Appointment of a qualified auctioneer for the once-off public disposal of identified municipal immovable properties.

• Properties include 11 vacant sites and 3 residential houses listed in the Schedule of Properties (extent 402 m² to 2077 m²; zoning light industry, residential 1/2/3).
• Locations: Eshowe (industrial area, Mpushini Park, town and suburb, Paul Street), Mtunzini (Mimosa Drive, Boekenhout Street), Gezinsila, KDS, Gingindlovu.
• Services to be provided:
• Develop and implement a comprehensive marketing and advertising strategy.
• Facilitate and manage the public auction process per applicable legislation.
• Ensure CPA and auction regulations compliance.
• Manage bidder registration, FICA compliance, and deposit requirements.
• Advise on optimal auction timing and conditions of sale.
• Submit a detailed post-auction report (attendance, bids, outcome).
• Liaise with conveyancers/attorneys for property transfer.
• Advise on unsold assets.
• Prepare sale agreements.
• Pre-auction: use own equipment (computers, printer, loud hailer, speakers, recording system); design and print auction catalogues; set up auction venue; verify asset details.
• Post-auction: obtain payment from buyers; record all monies; complete sale agreements; provide vendor roll, buyer details, and tax invoice (with municipality's VAT number) to municipality.
• Special conditions: auctioneer drafts and bears the cost of newspaper advertisement; draft must be approved by municipality.
• Workings in South African Rand only.

Bidders must be registered with the Property Practitioners Regulatory Authority (PPRA) as auctioneers.

• Functionality sub-criteria include: previous experience (30 points), key personnel expertise and competencies (20 points), nature of business (10 points), and methodology (10 points).
• Key personnel proposed must not be substituted without written municipal approval.

Service provider must maintain the quality levels presented during the bidding process for the contract duration.

• Inspections and tests may be conducted on premises, materials, workmanship, and project milestones.
• Compliance with project specifications and contract requirements.
• Pre-bidding testing costs are for the bidder.
• Municipality may introduce additional performance measures.

Pricing must be complete and inclusive of all costs.

• Pricing format: commission percentage on final sale price, plus fixed advertising/marketing costs, plus any additional disbursements.
• State whether fees are inclusive or exclusive of VAT.
• Evaluation uses provisional sum of R1,000,000: commission % × provisional sum + advertising/marketing.
• Price must be unconditional.
• Re-measurement contract: quantities are estimates; actual work measured.
• Purchase orders issued as required; no work without official purchase order.
• Non-VAT vendors treated as non-VAT.
• Municipality may negotiate price with lowest acceptable bidder.

Pricing structure:

• Commission percentage on final sale price must include all scope activities.
• Fixed costs (e.g., advertising/marketing) must be stated separately.
• State whether fees are inclusive or exclusive of VAT.
• No hidden costs or buyer charges without express written approval.
• Pricing schedule to be completed in full; incomplete schedule may render bid non-responsive.
• Price must be unconditional. No upward price amendments allowed.
• Bid evaluation uses a provisional sum of R1,000,000 (commission % × provisional sum + advertising/marketing amount).
• Re-measurement contract: scheduled quantities are estimates; actual work measured for payment.

Performance security:

• Successful bidder must furnish performance security equal to 10% of contract value within 30 days of award notification.

Payment conditions:

• Payment via electronic transfer upon delivery of service, subject to valid tax invoice and supporting documents.
• Monthly invoice due on last day of month; payment within 30 days.
• No payment for unauthorised work or incomplete services.
• Penalty: 5% of current invoice amount for delayed services.
• Municipality may negotiate with lowest acceptable bid on fee rates.

Eligibility:

• Must be registered with the Property Practitioners Regulatory Authority (PPRA) as an auctioneer.

CSD: Registration on Central Supplier Database is mandatory.

Tax: Valid tax clearance certificate (original) required at closing date; certified copies not accepted.

Municipal clearance: Bidders must not owe municipal rates or service charges for more than 3 months.

Arrangement: No municipal arrears at the time of award.

Past performance: Must not have failed to perform satisfactorily on a previous contract with any municipality or state organ in the last 5 years.

Insurance: Professional indemnity/public liability insurance required.

CPA: Compliance with Consumer Protection Act obligations required.

OHS: Submission of Agreement in terms of Section 37(2) of the OHS Act required for contract.

Workmen's Compensation: Proof of registration required.

B-BBEE: Preference points per specific goals (see evaluation). B-BBEE level 1 (100% black) = 10 points, level 2 (60%) = 6 points, level 3 and below (20%) = 2 points.

VAT: Non-VAT vendors will be treated accordingly; prices must be inclusive of VAT for VAT-registered bidders.

Service provider must adhere to all health and safety requirements in accordance with the Occupational Health and Safety Act.

• Submission of Agreement under Section 37(2) of the OHS Act required for contract purposes.
• Maintain good standing with COID (Workmen's Compensation) for the contract duration.

Contract duration: from date of appointment until auction and post-auction services complete.

• A Contract/Service Level Agreement must be signed with the municipality; the bid document terms form part of the contract.
• Termination for default, settlement, and dispute resolution clauses included.
• No assignment or subcontracting without written consent.
• Supplier must maintain performance quality presented at bidding.
• Municipality may inspect and audit service provider's records.
• No amendments upward of tendered price allowed; attempts will invalidate the bid.
• If a bidder withdraws after acceptance, costs of re-advertising are for bidder's account.
• Penalty: 5% of invoice amount for delayed services; possible termination for gross breach.
• Force majeure: supplier must report in writing with evidence.

Evaluation follows: eligibility, compliance with document completion, compulsory returnables, functionality, and price/preference.

• Functionality breakdown: experience 30, key personnel 20, nature of business 10, methodology 10.
• Price and preference: 80/20 system.
• Specific goal points: B-BBEE ownership (Level 1=10, Level 2=6, Level 3 and below=2); location (uMlalazi=4, district=2, province=1); SMME/EME (100% black=4, 51%=2, 25-50%=1); EME/QSE 100% owned by designated groups in uMlalazi=2.
• Key personnel must remain unchanged without written approval.