The General Conditions of Contract (GCC) apply, covering definitions, application, standards, use of contract documents, patent rights, performance security, inspections, packing, delivery, insurance, transportation, incidental services, spare parts, warranty, payment, prices, contract amendments, assignment, subcontracts, delays, penalties, termination for default, force majeure, termination for insolvency, dispute resolution, limitation of liability, governing language, applicable law, notices, taxes, NIPP, and prohibition of restrictive practices.
Special Conditions of Contract (SCC) supplement the GCC; where there is conflict, SCC prevails.
Performance security: within 30 days of award, furnish security in the amount specified in SCC, in the form of a bank guarantee, irrevocable letter of credit, or cashier's/certified cheque.
Penalties: for delayed delivery or performance, the purchaser may deduct a penalty calculated using the current prime interest rate per day of delay.
Termination: the purchaser may terminate for default, insolvency, or corrupt/fraudulent practices; restriction from doing business with the public sector may be imposed for up to 10 years.
Disputes: parties attempt amicable resolution, then mediation, then South African courts.
Payment: within 30 days of invoice submission, in Rand.
Prices: fixed at bid prices unless price adjustments authorised in SCC.
Taxes: local supplier responsible for all taxes until delivery; no contract with a bidder whose tax matters are not in order.