Permanent disposal of residential erven in cala – development proposals

Closing date: 13 November 2026 at 12:00

No briefing session is scheduled.

SCM / Bidding procedure enquiries:

• Contact: Yandiswa Tofile
• Department: Budget and Treasury / Supply Chain Management
• Email: [email protected]
• Telephone: 045 931 1011
• Fax: 045 931 1361

Technical enquiries:

• Contact: Qamisa Mateta
• Department: IPED
• Email: [email protected]
• Telephone: 047 877 5200
• Fax: 047 877 0000
• Also listed as 045 931 1011

Submission address:

Sakhisizwe Local Municipality Budget Office

15 Maclear Road

Elliot, 5460

Submission method: sealed envelope deposited in the bid box at:

Sakhisizwe Municipality Budget Office

15 Maclear Road

Elliot, 5460

Closing time: 13 November 2026 at 12:00. Late bids will be rejected.

Bids must be addressed to the Municipal Manager and clearly marked with the bid number and description. Faxed or emailed bids will not be considered.

Bids must be submitted on the official forms bound in the document, completed in black ink, with no unauthorised alterations. Tippex corrections render the bid non-responsive.

Bids must remain valid for 90 days.

Returnable forms (all must be completed and signed):

• Authority to Sign a Bid, with a certified copy of the relevant resolution.
• General Conditions of Contract (signed).
• General Conditions of Tender (signed).
• SARS confirmation PIN.
• Declaration of Interest (discloses any state employment or relationship with evaluation personnel).
• MBD 6.1 Preference Points Claim Form for disposal of immovable property (80/20).
• Specifications (signed).
• Form of Offer (signed).
• Declaration by Tenderer (signed).

Compulsory supporting documents:

• Fully completed and signed bid document.
• Personal profile: identity document, marriage certificate, proof of residence.
• Design proposals: preliminary architectural design or site development plan.
• Project/development implementation plan: construction programme with clear timelines.
• Proof of funds/funding for purchase and development.

Risk of disqualification: any missing or unsigned returnable form, incomplete supplementary information, use of Tippex, or any condition not met.

Evaluation is in two stages:

1. Functionality (pre-qualification): minimum 70 points out of 100 required to proceed. Functionality points are not added to price and specific goals scores.

• Capacity and experience of bidder and professional team: 30 points. Based on written development proposal (max 5 pages) covering proposed residential development, alignment with zoning and surrounding character, and intention to develop within two years.
• Development proposal: 25 points. Based on concept site plan (property boundaries, building position, access, parking, building lines) and preliminary building concept (floor plans, elevations, size, bedrooms, materials). No site plan = 0.
• Implementation capacity: 20 points. Development programme, construction schedule, indicative budget, contractor/builder/architect details. No construction programme = 0.
• Funding availability: 25 points. Full funding secured = 25; more than 75% = 20; 50-75% = 15; less than 50% = 5; no proof = 0. Evidence: recent bank statement (not older than 3 months), approved home loan, mortgage pre-approval, or proof of cash investment.

2. Price and specific goals (80/20 system):

• Price: 80 points. For this disposal, the highest acceptable bid receives maximum points; others scored by formula in MBD 6.1.
• Specific goals: 20 points as follows:

• Youth-owned company (age 18-30): 4 points. Evidence: CSD report and certified IDs of directors.

• Locality: 10 points. Points by location: within Sakhisizwe LM = 10; within Chris Hani District = 6; within Eastern Cape = 5; outside EC = 4; outside SA or no info = 0. Evidence: CSD report, rate clearance, or proof of address.

• Women-owned company: 3 points. Evidence: CSD report and certified IDs of directors (or individual).

• People with disabilities: 3 points. Evidence: medical certificate.

The highest scoring acceptable bid will be recommended for award.

The municipality is seeking development proposals for the permanent disposal of residential erven in Cala: Erven 5597, 5598, 5599, 5600, 5601, 5602, 5603, 5604, 5605, 5606, 5607, 5608, 5609, 5610, 5611 and 5612.

All properties are zoned Residential Zone IIIB, with primary uses of dwelling-house and traditional dwelling. Each erf is vacant.

Common building restrictions: coverage 50%, height restriction 2 storeys, building lines: street 4.5m, side 2m, rear 2m.

Property details:

• Erf 5597: 620 m²; boundaries N 24.04m, S 20.03m, W 15.03m, E 20.03m.
• Erf 5598: 479 m²; square 21.78m x 22m.
• Erf 5599: 479 m²; square 21.78m x 22m.
• Erf 5600: 479 m²; square 21.78m x 22m.
• Erf 5601: 479 m²; square 21.78m x 22m.
• Erf 5602: 479 m²; square 21.78m x 22m.
• Erf 5603: 479 m²; square 21.78m x 22m.
• Erf 5604: 479 m²; boundaries N 21.78m, S 21.78m, W 28.46m, E 28.46m.
• Erf 5605: 479 m²; boundaries N 21.78m, S 21.78m, W 28.26m, E 28.46m.
• Erf 5606: 479 m²; square 21.78m x 22m.
• Erf 5608: 479 m²; square 21.78m x 22m.
• Erf 5609: 479 m²; square 21.78m x 22m.
• Erf 5610: 479 m²; square 21.78m x 22m.

(Erven 5607, 5611, 5612 are listed in the tender scope; property details for these are not provided in the extracted text.)

No known servitudes; any unprotected municipal servitudes found must be relocated to the municipality's satisfaction.

Bidder and professional team capacity and experience account for 30 functionality points. Evidence required: a written development proposal (max 5 pages) describing the proposed residential development, intended use, estimated dwelling size, intended occupancy, and estimated construction commencement and completion dates.

Implementation capacity (20 points) requires a development programme, construction schedule, indicative budget, and details of the contractor, builder, architect, or other service providers (if available).

Pricing: bidders must include VAT in their bid rates. The bid form includes a total bid price field.

The disposal is evaluated under the 80/20 preference point system, with price points calculated on the highest acceptable bid.

No separate bill of quantities is provided; the price offered for the purchase of the land is the primary pricing element.

Pricing: bidders must include VAT in their bid rates. The bid is a disposal: the highest acceptable bid receives maximum price points.

Deposit and payment terms:

• 50% of the purchase price is payable before possession, together with a guarantee satisfactory to the municipality for the balance, interest, and pro-rata share of rates and assessments, within 21 days of signing the Deed of Sale.
• The balance is secured by guarantee and paid before registration of transfer.
• The purchaser bears the cost of issuing the guarantee.

Other costs: the buyer bears all transactional costs, including survey, advertisement, valuation, rezoning, relocation/ servitude registration, conveyancing, Deeds Office fees, transfer duty or VAT, service connections, and any other costs in the agreement.

No contract adjustments are allowed; rates are fixed.

Interest on breach: 18% per annum on amounts due if the sale is cancelled.

Tax compliance: bidders must be tax compliant and submit their SARS unique PIN (or tax compliance status certificate) to enable the municipality to view tax status. Failure to provide may invalidate the bid.

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

Declaration of Interest must be completed: discloses whether the bidder or connected persons are employed by the state or have relationships with evaluation/adjudication personnel.

MBD 6.1 preference points claim form: claims specific goals points (youth, women, disability, locality). Supporting documents required as per the specific goals table.

CSD registration: required for specific goals claims (CSD report).

No CIDB grading is specified.

No specific health and safety requirements are stated beyond the general obligation to complete the development in accordance with the approved proposal and applicable conditions.

The successful bidder must sign a written Agreement of Sale with the municipality within 60 days of written notification of award, otherwise the sale lapses (unless extended by Council).

Development obligations:

• Construction must commence within 12 months of transfer and be completed within 24 months thereafter; failure may lead to cancellation or repurchase.
• The property may only be used for the approved residential purpose per zoning; no alternative use without written municipal approval.
• The purchaser may not sell, cede, or alienate the property before completion of the approved development and before 5 years have elapsed.
• The municipality may register restrictive conditions on the title deed to secure development obligations.

Transfer conditions:

• Property sold voetstoots, subject to latent and patent defects, servitudes, and title conditions; no warranty as to extent.
• Ownership passes only upon registration of transfer in the Deeds Office, after full payment and fulfilment of all conditions.
• Risk passes on registration.

Breach:

• If the purchaser fails to remedy a breach within 10 days of written notice, the municipality may cancel the agreement, recover damages plus interest at 18% per annum, evict, repossess, or claim the full amount due.
• Failure to sign the Agreement of Sale allows cancellation and forfeiture of any deposit.

Additional evaluation detail: Bidders must score at least 70 points for functionality to proceed to price and specific goals evaluation. Functionality is scored on capacity and experience (30), development proposal (25), implementation capacity (20), and funding availability (25). Price points are allocated to the highest acceptable bid for disposals; specific goals points are awarded based on submitted evidence. The 80/20 system applies; the 90/10 column is not applicable.