Appointment of a Suitable Qualified Service Provider to Conduct Personnel Verification Checks (pvc), Security Background Checks and Pre-screening of Prefereed Candidates, Members and Security Service Providers for the Department of Economic Development Tourism and Environmental Affairs for a Period of 36 Months

B.: THIS FORM IS ONLY TO BE INCLUDED AND COMPLETED WHEN APPLICABLE TO THE BID.

Site/building/institution involved: Department of Economic Development, Tourism and Environmental Affairs

Bid No: Q 59 EDTEA 25/26

Service APPOINTMENT OF A SUITABLE QUALIFIED SERVICE PROVIDER TO CONDUCT PERSONNEL VERIFICATION

CHECKS (PVC), SECURITY BACKGROUND CHECKS AND PRE-SCREENING OF PREFEREED CANDIDATES, MEMBERS

AND SECURITY SERVICE PROVIDERS FOR THE DEPARTMENT OF ECONOMIC DEVELOPMENT TOURISM AND

ENVIRONMENTAL AFFAIRS FOR A PERIOD OF 36 MONTHS

Venue: Date: Time:

270 JABU NDLOVU STREET (LED BOARDROOM) 11 FEBRUARY 2026 10:00am

THIS IS TO CERTIFY THAT (NAME)...............................................................ON BEHALF OF.................................

ATTENDED THE OFFCIAL BRIEFING ON..................................... (DATE)AND IS THEREFORE FAMILIAR WITH THE

CIRCUMSTANCES AND THE SCOPE OF THE SERVICE TO BE RENDERED.

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

SIGNATURE OF BIDDER OR AUTHORISED REPRESENTATIVE

(PRINT NAME)

DATE: ....................................................

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

SIGNATURE OF DEPARTMENTAL REPRESENTATIVE

(PRINT NAME)

DEPARTMENTAL STAMP:

(OPTIONAL)

DATE: ....................................................

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SECTION M: SPECIAL CONDITIONS OF CONTRACT

This quotation is subject to the Preferential Procurement Policy Framework Act and the Preferential Procurement Regulations, 2022; the General

Conditions of Contract (GCC) and the following applicable other Special Conditions of Contract.

The offers must remain valid for a period of 60 days from the closing date of the submission of quotations.

CONTRACT PERIOD

1.1 36 months from signing of Service Level Agreement

EVALUATION CRITERIA

There are Four (4) main stages in the selection process, namely, ensuring that quotations comply with administrative Compliance,

functionality, and price and preference points (Specific goals); and price negotiation.

2.1 Step 1 - Administrative Compliance

Check and verify compliance with the submission and completion of compulsory quotation documents viz Part A & Part B, Sections

A to O. Failure to comply with any of the sections contained in the bid document that constitute step one will render the quotations

invalid.

The following documentation must be submitted:

CRITERIA YES NO REMARKS

SECTION A PART A INVITATION TO BID (SBD 1) X

PART B TERMS AND CONDITIONS FOR BIDDING X

(SBD 1)

SECTION B LIST OF RETURNABLE AND COMPULSORY X

DOCUMENTS

SECTION C SPECIAL INSTRUCTIONS REGARDING Read only

COMPLETION OF BID

SECTION D REGISTRATION ON CENTRAL SUPPLIERS X

DATABASE

SECTION E DECLARATION THAT INFORMATION ON X

CENTRAL SUPPLIERS

SECTION F PRICING SCHEDULE (SBD 3.1) X

SECTION G PRICING SCHEDULE (SBD 3.3) X

SECTION H BID OFFER

SECTION I BIDDER’S DISCLOSURE (SBD 4) X

SECTION J PREFERENCE POINTS CLAIM FORM (SBD X

6.1)

SECTION K QUESTIONNAIRES REPLIES X

SECTION L OFFICIAL BRIEFING SESSION/SITE X

INSPECTION CERTIFICATE

SECTION M SPECIAL CONDITIONS OF CONTRACT X Read only

SECTION N GENERAL CONDITIONS OF CONTRACT X Read only

SECTION O AUTHORITY TO SIGN THE BID X

SECTION P SCHEDULE VARIATION FROM GOODS OR If Applicable

SERVICES INFORMATION

2.2 Step 2- Functionality

This quotation will be evaluated on functionality. Bidders are to obtain a minimum qualifying score of 60% in order to proceed to

the next stage of evaluation

2.3 Step 3 - Preferential Point Evaluation

This quotation will be evaluated using the 80/20preference point system. (SBD 6.1 to be completed in order to claim preference

points as per specific goals stipulated. In order to claim points, required proof for each specific goa indicated below should be

attached together with this quotation. Failure to provide documents will results in non-allocation of preference points.

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Q 59 EDTEA 25/26

Specific goals Documents required to determine specific goals

respectively

Preference Goal 1- HDI

Geographical Location Completed SBD 6.1, Completed ownership

(KZN Based) demographic form, Utility bill letter/letter from the ward

Councilor/ lease agreement/Account statement and

CIPC certificate

2.4 Step 4 - Price negotiation

Where applicable the department reserves the right to negotiate price with the recommended bidder.

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Q 59 EDTEA 25/26

SECTION N: GENERAL CONDITIONS OF CONTRACT

Definitions

The following terms shall be interpreted as indicated:

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

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

signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein.

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

obligations.

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

in the procurement process or in contract execution.

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

market its products internationally.

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

Goods are produced when, through manufacturing, processing or substantial and major assembly of components, a commercially

recognized new product results that is substantially different in basic characteristics or in purpose or utility from its components.

1.7 “Day” means calendar day.

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

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

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

in compliance with the conditions of the contract or order, the supplier bearing all risks and charges involved until the supplies are

so delivered and a valid receipt is obtained.

1.11 "Dumping" occurs when a private enterprise abroad market its goods on own initiative in the RSA at lower prices than that of the

country of origin and which have the potential to harm the local industries in the RSA.

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

foreseeable. Such events may include, but is not restricted to, acts of the purchaser in its sovereign capacity, wars or revolutions,

fires, floods, epidemics, quarantine restrictions and freight embargoes.

1.13 “Fraudulent practice” means a misrepresentation of facts in order to influence a procurement process or the execution of a contract

to the detriment of any bidder, and includes collusive practice among bidders (prior to or after bid submission) designed to establish

bid prices at artificial non-competitive levels and to deprive the bidder of the benefits of free and open competition.

1.14 “GCC” means the General Conditions of Contract.

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

under the contract.

1.16 “Imported content” means that portion of the bidding price represented by the cost of components, parts or materials which have

been or are still to be imported (whether by the supplier or his subcontractors) and which costs are inclusive of the costs abroad,

plus freight and other direct importation costs such as landing costs, dock dues, import duty, sales duty or other similar tax or duty

at the South African place of entry as well as transportation and handling charges to the factory in the Republic where the supplies

covered by the bid will be manufactured.

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

does take place.

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

other related value-adding activities.

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

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

1.21 “Purchaser” means the organization purchasing the goods.

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1.22 “Republic” means the Republic of South Africa.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means those functional services 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.

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.

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 non-refundable 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

Standards

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

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.

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.

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 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

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Q 59 EDTEA 25/26

vi) a cashier’s or certified cheque

vii) 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.

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 analyzed 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.

Packing

1.1 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.

1.2 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.

Delivery and documents

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.

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

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.

Transportation

Should a price other than an all-inclusive delivered price be required, this shall be specified in the SCC.

Incidental Services

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

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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.

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.

Spare parts

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.

The supplier warrants that the goods supplied under the contract are new, unused, of the most recent or current models, and

that they incorporate all recent improvements in design and materials unless provided otherwise in the contract. The supplier

further warrants that all goods supplied under this contract shall have no defect, arising from design, materials, or workmanship

(except when the design and/or material is required by the purchaser’s specifications) or from any act or omission of the supplier,

that may develop under normal use of the supplied goods in the conditions prevailing in the country of final destination.

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.

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

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.

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.

The method and conditions of payment to be made to the supplier under this contract shall be specified in SCC.

The supplier shall furnish the purchaser with an invoice accompanied by a copy of the delivery note and upon fulfillment of other

obligations stipulated in the contract.

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.

Payment will be made in Rand unless otherwise stipulated in SCC.

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 purchaser’s request for bid

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Q 59 EDTEA 25/26

validity extension, as the case may be.

Contract amendments

No variation in or modification of the terms of the contract shall be made except by written amendment signed by the parties

concerned.

The supplier shall not assign, in whole or in part, its obligations to perform under the contract, except with the purchaser’s prior

written consent.

Subcontracts

The supplier shall notify the purchaser in writing of all subcontracts awarded under this contracts 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.

Delays in the supplier’s performance

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.

If at any time during performance of the contract, the supplier or its subcontractor(s) should encounter conditions impeding timely

delivery of the goods and performance of services, the supplier shall promptly notify the purchaser in writing of the fact of the

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

the situation and may at his discretion extend the supplier’s time for performance, with or without the imposition of penalties, in

which case the extension shall be ratified by the parties by amendment of contract.

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.

The right is reserved to procure outside of the contract small quantities or to have minor essential services executed if an

emergency arises, the supplier’s point of supply is not situated at or near the place where the supplies are required, or the supplier’s

services are not readily available.

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

supplier liable to the imposition of penalties, pursuant to GCC Clause 22, unless an extension of time is agreed upon pursuant to

GCC Clause 21.2 without the application of penalties.

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 supplier’s expense and risk, or to cancel the contract

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

damages from the supplier.

Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the services within the period(s)

specified in the contract, the purchaser shall, without prejudice to its other remedies under the contract, deduct from the contract

price, as a penalty, a sum calculated on the delivered price of the delayed goods or unperformed services using the current prime

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

of the contract pursuant to GCC Clause 23.

Termination for default

The purchaser, without prejudice to any other remedy for breach of contract, by written notice of default sent to the supplier, may

terminate this contract in whole or in part:

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

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

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

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

in executing the contract.

In the event the purchaser terminates the contract in whole or in part, the purchaser may procure, upon such terms and in such

28 INITIAL______

Q 59 EDTEA 25/26

manner as it deems appropriate, goods, works or services similar to those undelivered, and the supplier shall be liable to the

purchaser for any excess costs for such similar goods, works or services. However, the supplier shall continue performance of the

contract to the extent not terminated.

Where the purchaser terminates the contract in whole or in part, the purchaser may decide to impose a restriction penalty on the

supplier by prohibiting such supplier from doing business with the public sector for a period not exceeding 10 years.

If a purchaser intends imposing a restriction on a supplier or any person associated with the supplier, the supplier will be allowed

a time period of not more than fourteen (14) days to provide reasons why the envisaged restriction should not be imposed. Should

the supplier fail to respond within the stipulated fourteen (14) days the purchaser may regard the intended penalty as not objected

against and may impose it on the supplier.

Any restriction imposed on any person by the Accounting Officer / Authority will, at the discretion of the Accounting Officer /

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

exercises or exercised or may exercise control over the enterprise of the first-mentioned person, and with which enterprise or

person the first-mentioned person, is or was in the opinion of the Accounting Officer / Authority actively associated.

If a restriction is imposed, the purchaser must, within five (5) working days of such imposition, furnish the National Treasury, with

the following information:

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

(ii) the date of commencement of the restriction

(iii) the period of restriction; and

(iv) the reasons for the restriction.

(v) These details will be loaded in the National Treasury’s central database of suppliers or persons prohibited from

doing business with the public sector.

If a court of law convicts a person of an offence as contemplated in sections 12 or 13 of the Prevention and Combating of Corrupt

Activities Act, No. , the court may also rule that such person’s name be endorsed on the Register for Tender Defaulters.

When a person’s name has been endorsed on the Register, the person will be prohibited from doing business with the public

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

period of restriction and each case will be dealt with on its own merits. According to section 32 of the Act the Register must be

open to the public. The Register can be perused on the National Treasury website.

Anti-dumping and countervailing duties and rights

When, after the date of bid, provisional payments are required, or antidumping or countervailing duties are imposed, or the

amount of a provisional payment or anti-dumping or countervailing right is increased in respect of any dumped or subsidized

import, the State is not liable for any amount so required or imposed, or for the amount of any such increase. When, after the said

date, such a provisional payment is no longer required or any such anti-dumping or countervailing right is abolished, or where the

amount of such provisional payment or any such right is reduced, any such favourable difference shall on demand be paid forthwith

by the contractor to the State or the State may deduct such amounts from moneys (if any) which may otherwise be due to the

contractor in regard to supplies or services which he delivered or rendered, or is to deliver or render in terms of the contract or any

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

Force Majeure

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

security, damages, or termination for default if and to the extent that his delay in performance or other failure to perform his

obligations under the contract is the result of an event of force majeure.

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.

Termination for insolvency

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.

Settlement of Disputes

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.

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

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Q 59 EDTEA 25/26

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.

Should it not be possible to settle a dispute by means of mediation, it may be settled in a South African court of law.

Mediation proceedings shall be conducted in accordance with the rules of procedure specified in the SCC.

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.

Limitation of liability

Except in cases of criminal negligence or willful 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.

Governing language

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.

Applicable law

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

Every written acceptance of a bid shall be posted to the supplier concerned by registered or certified mail and any other notice to

him shall be posted by ordinary mail to the address furnished in his bid or to the address notified later by him in writing and such

posting shall be deemed to be proper service of such notice

The time mentioned in the contract documents for performing any act after such aforesaid notice has been given, shall be reckoned

from the date of posting of such notice.

Taxes and duties

A foreign supplier shall be entirely responsible for all taxes, stamp duties, license fees, and other such levies imposed outside

the purchaser’s country.

A local supplier shall be entirely responsible for all taxes, duties, license fees, etc., incurred until delivery of the contracted goods

to the purchaser.

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 tax clearance certificate, submitted by the bidder. This certificate must be an original issued by the

South African Revenue Services.

National Industrial Participation (NIP) Programme

The NIP Programme administered by the Department of Trade and Industry shall be applicable to all contracts that are subject to

the NIP obligation.

Prohibition of Restrictive practices

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).

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.

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