Development and long-term lease of a shopping mall on erf 50, cala – RFP for sakhisizwe local municipality

Is the form duly completed and signed?

11. Form of Offer

Is the form duly completed and signed?

12. Declaration by Tenderer

Is the form duly completed and signed?

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2. INVITATION TO BID

BID INVITATION

Bids are hereby invited from suitable qualified service providers for the Sakhisizwe Local Municipality projects as per the following description:

Bid Number Bid Description Functionality Enquiries Closing Date

Bid No: REQUEST FOR Criteria Points Technical Queries: Mr 13 March 2026@12H00

SLM/SCM/44/202 PROPOSAL(S) (RFP) CAPACITY AND 35 S.Shazi, 047 877 5200, Email: 15 Maclear Road, Elliot

5/2026 FOR THE EXPERIENCE [email protected]

DEVELOPMENT AND DEVELOPMENT 30 om

LONG-TERM LEASE PROPOSAL

FOR SHOPPING MALL

INVESTMENT VALUE 15 SCM enquiries: Ms ON A PORTION OF

ERF 50 CALA FINANCIAL VIABILITY 20 S.Ntanjana: 045 931 1011

TOTAL 100 Email:

[email protected]

ov.za

Evaluation Criteria 90/10 Price=90 Specific Goals=10: Specific Goals: Black Owned Company 02 Points, Locality 04 points, Woman

Owned Company 03 points, People with Disability 01 Point (attach a full CSD report/statement of Municipal account/ proof of

residence)

The terms of reference are detailed in the Bid Document.

OBTAINING OF TENDER DOCUMENT: Tender documents are obtained from e-tender portal (www.etenders.gov.za) and Sakhisizwe

Website(www.slm.gov.za)

Completed sealed bids and supporting documents, addressed to the Municipal Manager and marked with “Description of the project

and the bid number” must be deposited in the Bid box situated at Budget office Sakhisizwe Municipal offices 15 Maclear Road, Elliot,

5460.

The following compulsory supporting documents shall accompany your submissions:

• Fully completed and signed Bid document (MBD 1 to 9)

• Latest Full CSD Report (Not older than 3 Months)

• Certified Copy of identity documents (not older than 6 months)

• Municipal billing clearance certificates or Statement (not older than 3 months)/ a lease agreement signed by both

parties lesser and lessee in the case of a tenancy or accompanied by municipal rates (not council proof of

residence)/services certificate/ statement indicating that the owner not the tenant is responsible and that no

dispute exists between such bidder and the municipality concerned in respect of any such arrear amounts.

Bidders who reside within the Sakhisizwe Local Municipality jurisdiction will be verified with Sakhisizwe Local

Municipality Revenue Section.

• If Joint venture, Joint venture Agreement must be attached.

• All alterations in prices/quotes must be signed for and failure to sign will result in tender deemed non-responsive,

use of tip-ex is prohibited, and the tender will be deemed non-responsive.

NB: Failure to meet the above conditions of the bid will lead to automatic disqualification.

The Bidders shall also take note of the following conditions of the bid:

• All prices shall be quoted in South African currency (R) Inclusive of VAT.

• The Sakhisizwe Local Municipality does not bind itself to accept the lowest tender or any other tender and

reserves the right to accept the whole or part of the tender thereof.

• Late, faxed, e-mailed and/or un-signed documents will not be considered.

• Bids submitted are to hold good for a period of 90 days.

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

MR S.G. SOTSHONGAYE

MUNICIPAL MANAGER

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3. AUTHORITY TO SIGN A BID

1. COMPANIES

If a Bidder is a company, a certified copy of the resolution by the board of directors, duly signed, authorising the

person who signs this bid to do so, as well as to sign any contract resulting from this bid and any other documents

and correspondence in connection with this bid and/or contract on behalf of the company must be submitted with

this bid, that is, before the closing time and date of the bid

AUTHORITY BY BOARD OF DIRECTORS

By resolution passed by the Board of Directors on __________________ 20___, Mr/Mrs______________(whose

signature appears below) has been duly authorised to sign all documents in connection with this bid on behalf

of______________________________________

(Name of Company) in his/her capacity as _____________________________________________

Full name of Director Residential address Signature

SIGNED ON BEHALF OF DATE :

COMPANY:

PRINT NAME :

WITNESS 1: WITNESS 2:

2. SOLE PROPRIETOR (SINGLE OWNER BUSINESS)

I,________________________________, the undersigned, hereby confirm that I am the sole owner of the business

trading as_____________________________________________________________

SIGNATURE: DATE:

PRINT NAME:

WITNESS 1: WITNESS 2:

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3. PARTNERSHIP

We, the undersigned partners in the business trading as____________________________________

hereby authorize Mr/Ms____________________________ to sign this bid as well as any contract

resulting from the bid and any other documents and correspondence in connection with this bid and /or contract

for and on behalf of___________________________________________(name of firm).

The following particulars in respect of every partner must be furnished and signed by every partner:

Full name of partner Residential address Signature

SIGNED ON BEHALF OF DATE:

COMPANY:

PRINT NAME:

WITNESS 1: WITNESS 2:

4. CLOSE CORPORATION

In the case of a close corporation submitting a bid, a resolution by its members, authorizing a member or other

official of the corporation to sign the documents on their behalf, shall be included with the bid.

By resolution of members at a meeting on__________________________ 20__at___________________,

Mr/Ms____________________, whose signature appears below, has been authorized to sign all documents in

connection with this bid on behalf of

(Name of Close Corporation)_______________________________________________________

FULL NAME OF MEMBER RESIDENTIAL ADDRESS SIGNATURE

SIGNED ON BEHALF OF DATE:

CLOSE CORPORATION:

PRINT NAME:

IN HIS/HER CAPACITY AS:

WITNESS 1: WITNESS 2 :

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4. GENERAL CONDITIONS OF BID

CONTENTS

1. GENERAL CONDITIONS OF CONTRACT

2. BID FORM

3. COMPLETION OF BIDS

4. SUBMISSION OF BIDS

5. DATA TO BE FURNISHED AT BID STAGE

6. WITHDRAWAL OF BIDS

7. COSTS WHICH DEFAULTING BIDDERS MAY BE CALLED

UPON TO PAY

8. ACCEPTANCE OR REJECTION OF BIDS

9. SITE INSPECTION/BIDDERS MEETING

10. FAILURE TO RETURN BID DOCUMENTS

12. EVALUATION OF BIDS

13. BID VALIDITY PERIOD

14. ACCEPTANCE OF BID

15. PENALTIES

16. CONTRACT ADJUSTMENTS

17. CONTRACT PERIOD

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1. GENERAL CONDITIONS OF CONTRACT

The General Conditions of Contract for Supply Chain Management shall apply to this contract. These general

conditions shall be read in conjunction with the amendments and additions set out in the special conditions

of contract.

2. BID FORM

All bids shall be made on the bid forms incorporated in this document.

3. COMPLETION OF BIDS

THE BIDDER SHALL COMPLETE ALL FORMS IN BLACK INK.

Mistakes made by the Bidder in the completion of the forms shall not be erased. A line shall be drawn

through the incorrect entry and the correct entry shall be written above and the correction initialed by the

Bidder. Failure to observe this rule may lead to the bid being disqualified.

Bids shall be ineligible for consideration unless submitted on the forms bound in this document.

A bid shall not be considered if alterations have been made to the bid from, unless such alterations have

been duly authenticated by the Bidder, or of any particulars required therein have not been completed in

all respects.

No unauthorized amendment shall be made to the bid form or to any other part of the bid document. If

any such amendments are made, the bid may be rejected.

Bids submitted in accordance with this bid document shall not have any qualifications. Any point of difficulty

of interpretation shall be cleared with SAKHISIZWE Local Municipality as early as possible during the bid

period. Should any query be found to be of significance, SAKHISIZWE Municipality will inform all Bidders

accordingly as early as possible.

4. SUBMISSION OF BIDS

Each Bidder is required to return the complete set of bid documents with all the required information and

complete in all respects.

Bidders shall not tamper with the bid documents which shall be submitted as issued. Any bid documents

found to have been unbound and rebound could be deemed to be unacceptable.

Bids, in sealed envelopes clearly marked.

“Bid No: SLM/SCM/44/2025/2026: REQUEST FOR PROPOSAL(S) (RFP) FOR THE DEVELOPMENT AND

LONG-TERM LEASE FOR SHOPPING MALL ON A PORTION OF ERF 50 CALA

and the Bidder’s name and address, shall be delivered to SAKHISIZWE Local Municipality, Budget Office 15

Maclear Road Elliot 5460 not later than 12:00 on 13 March 2026. Bids may not be faxed or e-mailed. Bids

shall be opened in public shortly thereafter. Late bids will be rejected.

5. DATA TO BE FURNISHED AT BID STAGE

Bidders shall submit with their bids the information that is applicable and as may be required in terms of the

specifications. The Employer reserves the right, in the event of such details being insufficient, to call for

further information. The Bidder shall furnish such additional information within seven (7) days of being called

upon to do so.

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6. WITHDRAWAL OF BIDS

A Bidder may, without incurring any liability, withdraw his bid. This will be a written advice and received

before the date and time of closure of this bid. The notice must be received by SAKHISIZWE Local Municipality

before the closure of this bid.

7. COSTS WHICH DEFAULTING BIDDERS MAY BE CALLED UPON TO PAY

Should the Service Provider, after he has been notified of the acceptance of his bid, fail to enter into a contract

when called upon to do so, within the period stipulated in the conditions of bid or within such extended

period as the Employer may allow, the Service Provider holds himself liable for any additional expense which

may incur in having to call for bids afresh and/or in having to accept any less favorable bid and that if he

purports to withdraw his bid within the period for which he has agreed that it shall remain open for

acceptance.

The Service Provider shall indemnify the specified from any claim capable of being made against him either

under the statute of common law in respect of any damage to any person or property arising out of the

execution of this contract.

8. ACCEPTANCE OR REJECTION OF BIDS

Bids may be rejected if they show any additional items not originally included in the bid document.

Conditional or incomplete offers, irregularities of any kind in the bid forms, or if the bid rates and amounts

are obviously unbalanced and the Bidder, after having been called upon to adjust same in a reasonable

manner, fails to do so within a period of seven(7) days having received notification to that effect.

The Employer does not bind itself to accept the lowest or any bid and reserves the right to accept the whole

or any part of a bid as it may deem expedient, nor will it assign any reason for the acceptance or rejection

of any bid, be it the whole or part of a bid.

9. SITE INSPECTION/BIDDERS MEETING

THERE IS NO BRIEFING SESSION

10. FAILURE TO RETURN BID DOCUMENTS

A Bidder who does not submit a bid does not have to return the bid documents after the closing date for

the receipt of bids.

11. TAXES AND LEVIES

Bidders shall include Value Added tax (VAT) in their bid rates.

12. EVALUATION OF BIDS (BASED ON PREFERENTIAL PROCUREMENT REGULATIONS 2022)

Bids will be evaluated based on the 80/20 preference point system in terms of the Preferential Procurement

Regulations 2022 and Regulations thereto. These points will be allocated as follows:

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Price

90 points will be awarded to the bidder submitting to the lowest bid.

Preference

10 points will be awarded to the bidder submitting required documents for Specific Goals.

Functionality

PREFERENTIAL PROCUREMENT REGULATIONS POINTS WILL BE AWARDED ACCORDING TO 80/20 SYSTEM

Price - 90 Points

Specific Goals - 10 Points

FUNCTIONAL CRITERIA Points Returnable documents to be

used in evaluation

1. CAPACITY AND EXPERIENCE OF BIDDER 35

AND BIDDER’S PROFESSIONAL TEAM points

1.1 Development Experience of the bidding entity Bidder to submit portfolio of evidence (POE)

in delivering projects of a similar nature indicating the following:

The bidder must demonstrate experience in • Development name(s), description and

delivering large scale development projects. The location;

value of the projects must be clearly stated. • Development cost;

• Pictures and completion certificate;

Scoring will be based on the total value of • The funding approval from Funding

development projects successfully completed. Institutions received for project(s) completed.

R500 million and above = 10 points NB:

R400m – less than R500 million = 9 points Failure to provide a complete POE with the

R200m – less than R400m = 7 points requirements stipulated above, will result in the

R100m – less than R200m = 5 points bidder being allocated no points.

Below R80m = 2 points

1.2 Capacity and Experience of the Bidder’s 10 Bidder, to submit the Property Development

professional team in delivering projects of a Manager’s certified copies of qualifications

similar nature

Certified copy of degree in Built Environment =

Experienced Property Development Manager 2 points

points allocated as follows:

• Qualification in Built Environment = 2 points

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Signed Reference Letters (on the relevant

Demonstrate experience in the successful letterhead) for projects of a similar nature from

delivery of property development projects = 8 clients indicating the following :

points

• Name of project(s) and description

R500m – and above = 8 points • Value of project

R300m – less than R500 million = 7 points • Contactable Details

R100m – less than R300m = 5 points

R50m – less than R100m = 3 points NB: Failure to submit the abovementioned

Below R100m = 2 points Reference Letters, will result in the bidder

being allocated no points.

1.3. Architect with green building design expertise 5 Certified copy of degree in Architecture

points allocated as follows :

• Certified copy of valid registration with the

• Qualification in Architecture/Degree in South African Council for the Architectural

Architecture = 1 points Profession (SACAP)

Valid registration with the South African Council Reference Letters (on the relevant letterhead)

for the Architectural Profession (SACAP) = 2 For projects of a similar nature from clients

points indicating the following:

• Illustrate competencies of green building • Name of project(s) and description

experience = 2 points (1 point per Reference • Copy of certified Green Building Certificate of

Letter) the completed project(s)

NB: Failure to submit the abovementioned

Reference Letters, will result in the bidder

being allocated no points.

1.4. Experienced Leasing agent points allocated 6 Certified copy of registration with Professional

as follows Regulatory Body Certified copy of valid fidelity

fund certificate Signed Reference letter from

• Registration with Property Practitioners the Developer(s)/client (on the relevant

Regulatory Authority (PPRA)= 1 points letterhead) indicating the following:

• Valid fidelity fund certificate = 2 points

• Experience highlighting Listings completed, • Name of project(s); description and

development cost;

• Value of sales and leases concluded per

Mandates negotiated, total sales concluded development

/lease contracts concluded = 3 points

R150m and above = 3 points

R100m - less than R 150m = 2 points

Below R100m = 1 points

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1.5. Quantity Surveyor points allocated as follows 4 Certified copy of Quantity Surveying Degree

:

• Qualification in Quantity Surveying = 1 point Certified copy of Valid registration with the

• Registration with the South African Council of South African Council of Quantity Surveying

Quantity Surveying Profession (SACQSP) = 1 Profession (SACQSP)

point

• Project Experience highlighting projects of a Signed Letters of reference from the

similar nature = 2 points Developer specifying the following:

R200m and above = 2 points • Project name and value

R100m – less than R200m = 1 points • Contactable Details

Less than R50m = 0 points

NB: Failure to submit the abovementioned

Reference Letters, will result in the bidder

being allocated no points.

2. DEVELOPMENT PROPOSAL 30

points

Conformity of the Development Proposal to the 10 Bidder to submit a detailed development plan

vision for the property points allocated as follows: specifying the following:

2.1 Development Plan points to include the • Methodology and provide details of the

following : bidder’s vision of all the properties including

land use, open areas, roads and path

• The bidder’s vision of all the above mentioned networks;

site within the “precinct, land use types, open

areas, roads and path networks = 4 points • How the proposed development will

• How the bidder’s development proposal will incorporate the existing municipal uses

incorporate the existing municipal uses and (maximum of 8 pages).

integrate with future developments = 4 points

• Green building approach = 2 points

2.2. Concept Plan = Proposed buildings 10 Bidder to submit A3 size drawings and

indicating the following: diagrams which specify the following:

• The proposed site layout, extent of buildings in • Ratios of the different proposed land uses

square metres, height, elevations and floor plans • Indicative building footprints/ massing form,

= 2 points Paying attention to edges and interfaces

• Ratios of the different land uses proposed • Plans that are compatible to the character of

inclusive of Floor plans and elevations = 2 points the existing environment and provide

• Architectural aesthetic of the proposed enhancements that improve the nature of the

development inclusive of Sustainability (Green environment

Elements) = 2 points • Architectural aesthetic of the proposed

development

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• Plans to achieve EDGE/LEED certification = 2

points

• Urban Form = 2 points

2.3 Development Implementation Programme 10 Bidder to submit a detailed work breakdown

indicating key steps and milestones from the date (including timelines from signature of

of signature of the agreement to tenanting and agreement ) on the following:

Property Management

• Planning and designs,

Detailed Project Programme highlighting the • Marketing, achievement of EDGE

following: (Excellence in Design for Greater Efficiencies)

/LEED (Leadership in Energy and

• How Financial Closure will be achieved within Environmental Design) certification;

180 days = 5 points • Municipal approvals and/or any other

• How the building upgrade will be completed regulatory compliance required prior to

from signature of Development Lease Agreement development,

= 5 points • Financial closure,

• Procurement and construction,

• Property management and tenanting, (where

applicable provide a phasing programme).

3. INVESTMENT VALUE (BACKED BY 15

FINANCIAL FEASIBILITY AND points

SUSTAINABILITY)

3.1 A realistic monetary investment value pledged 5 Project Feasibility Model with projected 20

to the project backed by a QS Report year discounted cashflows, development

phasing reflecting commencement and

completion of various project milestones

3.2 Project Feasibility Model with projected 20- 10 Bidder to submit a project feasibility model with

year discounted cash flows, development phasing projected 20-year discounted cashflows

reflecting commencement and completion of backed by development Cost (Total

various project milestones = 10 points Investment Value), Projected Income,

Financial Ratios and Estimated Operating

Costs. The feasibility model must be prepared

in Ms Excel format.

4. FINANCIAL VIABILITY 20

Points

The bidder must be able to demonstrate proof of 20 The Bidder must submit the following :

availability/ access to the funding (debt and own

equity) required to execute the development.

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The bidder must provide a funding plan stating Copy of latest stamped bank statements from

the sources of funding required for the a registered financial institution showing

development. availability of funds/investments/shares

PROOF OF FUNDING AVAILABILITY AND/OR

Note: The Equity Contribution (A) and the Debt Signed letter of intent from registered funding

Contribution (B) must be equal to 100%. The institutions / investors indicating in principle

scoring of A and B below will be scored approval funding for project

interchangeably to achieve the total funding

combination of 100% between debt and own AND/OR

equity.

An original letter from a registered bank

A) bidder to provide proof of availability of 20% confirming the working capital available (not

equity funding for the project (in the form of bank older than three months on date of

statements or by way of a written undertaking of submission)

an equity funder

• Bidder provides proof of 20% or more own AND/OR

equity = 15 points

• Bidder provides proof of 10% own equity = 7 Proof of own equity funding in relation to equity

points contribution

• No proof of own equity = 0 points

AND /OR

B) Bidder to provide proof of availability of debt

funding from a financial institution Proof of sound equity partners and their

• Bidder provides proof of 80% or more debt financials if relying in equity funding. Equity

equity = 5 points Partner must provide the latest Bank

• Bidder provides proof of 40% or more debt Statement or confirmation of availability of

equity = 3 points funds.

• Bidder provides proof of less than 40% debt

equity = 1 points

• No proof/confirmation of debt funding = 0 points

Total Points 100

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14. ACCEPTANCE OF BID

The Municipality does not bind itself to accept the lowest or any bid received and reserves the right to accept

the whole or part of the bid.

15. PENALTIES

In the event that the Service Provider fails to deliver as specified in Section 13 “Specifications, the Employer

may withhold 10% of the invoice amount.

16. CONTRACT ADJUSTMENT

No contract adjustment will be allowed during this period and the rates are fixed.

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5. GENERAL CONDITIONS OF CONTRACT-GOVERNMENT PROCUREMENT

TABLE OF CLAUSES

1. Definition

2. Application

3. General

4. Standards

5. Use of contract documents and information; inspection

6. Patent rights

7. Performance security

8. Inspections, tests and analysis

9. Packing

10. Delivery and documents

11. Insurance

12. Transportation

13. Incidental Services

14. Spare Parts

15. Warranty

16. Payment

17. Prices

18. Contract amendments

19. Assignment

20. Subcontracts

21. Delays in the supplier’s performance

22. Penalties

23. Termination for default

24. Dumping and countervailing duties

25. Force Majeure

26. Termination for insolvency

27. Settlement of disputes

28. Limitation of liability

29. Governing language

30. Applicable law

31. Notices

32. Taxes and duties

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General Conditions of Contract

1. Definition

1. 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 it’s government

and encouraged to market it’s product 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 5 5 results that is substantially

different in basic characteristics or in purpose or utility from it’s 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 of 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 markets it’s 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 it’s sovereign capacity, wars or

revolution, 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.

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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 sub-contractors)

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.

1.22 “Republic” means the Republic of South Africa.

1.23 “SCC” means 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 al 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 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

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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, 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 purchase 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

7.1 Within thirty(30) days of receipt of the notification of contract award, security 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 irrecoverable 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. Inspection, tests and an 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

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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 rights 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.

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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 relive the supplier of any warranty obligations under the contract;

and

(b) in the event of termination of production of 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 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.

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 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

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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 fulfillment of other obligations stipulated in the contract.

16.3 Payment 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 purchaser’s 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, it’s obligation to perform under the contract, except with

the purchaser’s 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.

21. Delays in the Suppliers 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 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.

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.

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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 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.

21.5 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.

21.6 Upon any delay beyond the delivery period in the case of a supplies contract, the purchaser shall without

canceling 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 t he supplier’s expense and risk, or to cancel the contract and buy such goods as may be requires 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 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.

23. Termination for default

23.1 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.

23.2 In the event the purchaser terminates the contract in whole or in part, the purchaser may procure, upon

such terms and in such 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.

24. Anti-dumping and countervailing

4.1 When, after the date of bid, provisional payments are required, or anti- dumping 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 favorable 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.

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25. Force Majeure

25.1 Notwithstanding the provisions of GCC Clause 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.

25.2 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.

26. Termination for insolvency

26.1 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.

27. Settlement of disputes

27.1 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.

27.2 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.

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

court of law.

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

27.5 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.

28. Limitation of liability

28.1 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.

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29. Governing language

29.1 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.

30. Applicable law

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

31. Notices

31.1 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.

31.2 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 such notice.

32. Taxes and Duties

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

levies imposed outside the purchaser’s country.

32.2 A local supplier shall be entirely responsible for all taxes, duties, license fees, etc, incurred until delivery of

the contract goods to the purchaser.

32.3 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 tax clearance certificate, submitted by the bidder.

This certificate must be an original issued by the South African Revenue Services.

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6. PAST EXPERIENCE

PAST EXPERIENCE 1

Service Providers must furnish hereunder details of similar projects/service, which they have satisfactorily

completed in the past. The information shall include a description, Contract value and name of Employer

with contactable references.

DURATION AND

NATURE OF VALUE OF EMPLOYER

EMPLOYER COMPLETION

WORK WORK CONTACT NO.

DATE

SIGNATURE: NAME (PRINT):

CAPACITY: DATE:

NAME OF FIRM:

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No specific requirements found