Review/ recovery and calculation of value added tax (VAT) apportionment – kouga municipality (3-year contract)

A Compulsory Virtual Clarification Session will be arranged for Tuesday, 22 September 2026 @10h00am. Prospective bidders can use the link below which is direct from this advert. No attendee arriving 10 minutes late or more will be allowed to attend. Join Teams Meeting: https://teams.microsoft.com/meet/358290214353399?p=QXILKTXML0EzrKcZoC, Meeting ID: 358 290 214 353 399, Passcode: SS6DK7va.

{"name":"Mr. S. Abrahams","email":"[email protected]","phone":"0214353399","department":"Supply Chain Office CONTACT PERSON Mr. S. Abrahams","address":"ocal Municipality"}

Tenderers must comply with the following mandatory requirements and must provide the

necessary supporting documentation to validate such requirements:

1. Company Audited Annual Financial Statements for the past YES NO

three years

2. Company Proof of SAICA / SAIT registration YES NO
3. Company Organogram YES NO

Failure to provide proof with the tender submission to support the requirements under the

mandatory requirements will result in the disqualification of the tender.

2. Functional assessment

All bidders scoring a total score of less than 70% will be disqualified.

Allocation

Functional assessment - point scoring functional of points /

Category and description weighting

Experience of the company 55

a) Complex VAT recovery assignments - Proof of Understatement

Penalties, Administrative Penalties and Interest successfully reversed for 30

an organ of state (Submit SARS Statements of Account as proof)

i) Between R15million – R30million successfully reversed (5 points)

ii) Between R30million – R40million successfully reversed (15 points)

iii) Above R40million successfully reversed (25 points)

iv) Active member of Proudly SA (5 points)

b) Company experience in conducting VAT Reviews 15

Bidders must submit oldest proof in the form of, but not limited to appointment

letters / reference letters/ signed contracts / purchase orders to prove years of

experience in conducting similar projects:

i) Between 5 - 10 years old

(1 point per submission – max 5 points)

ii) Between 11 - 15 years old

(2 points per submission – max 10 points)

iii) 16 years and older

(3 points per submission – max 15 points)

c) Points will be given for ISO 9001:2015 or equivalent quality

management system in place 10

i) Valid certificate of accreditation (10 points)

ii) No certificate of accreditation (0 points)

Capacity & skills transfer 30

e) Project Team must consist of permanently employed qualified 20

professionals

i) Project team consisting of Chartered Accountants and/or Professional

Accountants - Original signed Affidavits confirming employment, Membership

Certificates (1 point per employee – max 5 points)

ii) Project team consisting of employees with NQF8 Advanced Value-Added

Tax qualification - Original signed Affidavits confirming employment

Membership Certificates (5 points per employee – max 15 points)

(Proof of membership from controlling body must be attached for point

allocation)

f) The bidding company must be an Accredited CPD provider and must 10

submit a detailed skills transfer plan

i) Detailed skills transfer plan (>10 pages) with Certificate of

Accreditation (10 points)

ii) Detailed skills transfer plan (>10 pages) without Certificate of

Accreditation (7 points)

iii) Skills transfer plan (<10 pages) with Certificate of Accreditation (5

points)

iv) Skills transfer plan (<10 pages) without Certificate of Accreditation

(2 points)

Documents to be submitted: National Treasury Central Database Summary Report, Business Registration Documents/Formal Registration Documentation/JV Agreements/Consortia/Partnerships and Trusts, valid Tax Compliance Pin for all entities and all partners of Joint Venture, Certified ID copies, Latest Municipal Billing Clearance Certificate/Copy of Municipal Account/Rental Documentation, Audited Financial Statements for the last 3 financial years (if applicable), Project Implementation Plan (if applicable), any Special Conditions of Contract Documentation.

Evaluation phases include a points system for specific goals. For HDI ownership, points are awarded based on the percentage of HDI ownership: 0-10% = 0 points, 11-20% = 1 point, 21-30% = 2 points, 31-40% = 3 points, 41-50% = 4 points, 51-60% = 5 points, 61-70% = 6 points, 71-80% = 7 points, 81-90% = 8 points, 91-100% = 10 points. For location, 4 points are awarded for bidders within the Nelson Mandela Metro, 4 points for within the Eastern Cape, and 1 point for outside the Eastern Cape. The value of recovered monies (R500,000.00) will be used to quantify the commission percentage for evaluation.

The scope of works entails a VAT review of the apportionment percentages calculations and general

ledger and VAT recovery for the current and previous five (5) years.

3. Detailed specification

3.1 VAT Review

(a) VAT is the only tax that has a direct impact on the financial affairs of a Municipality.

(b) The application of the Value Added Tax Act, Act No. , is a complex issue and not easy

to interpret and contains numerous exceptions and provision. Given the fact that the financial

implications of such actions can be detrimental to the Municipality and the prescription period of

this claim proviso (i) of section 17 of the VAT Act that limits the period in which a vendor may

claim an input deduction to five (5) years.

(c) Facilitate a VAT review, which includes a review of the current status of the treatment of VAT by

the Municipality’s accounting system to ensure appropriate application of the relevant provisions

of the VAT Act to ensure optimal claiming of the input tax and appropriate declaration of the

output tax timeously.

(d) Detail examination into the general ledger where VAT was potentially not claimed.

(e) Calculate the apportionment percentage based for the current and previous five (5) years.

(f) Apply the recalculated apportionment percentage to the mixed supply expenses and the amount

of under or over payment of input tax, if any.

3.2 VAT Recovery

(a) Review the VAT treatment of equitable shares and all other grants, conditional and unconditional,

to ensure that the treatment is correct from a VAT, as well as a grant condition point of view.

(b) A comprehensive written report must be submitted on the findings of the review/recovery

identifying risk areas, internal control weaknesses and recommendations for improvement;

(c) Working papers of all relevant calculations should be handed over to the Municipality.

The VAT review/recovery process should include for the following:

3.2.1 VAT Reconciliations

(a) Obtain input and output figures from the general ledger per tax period.

(b) Obtain copies of the VAT 201's submitted to SARS.

(c) Reconcile the input figures from the general ledger with the input figures reflected on the VAT

201's (Submit an electronic reconciliation of the input VAT as per the financial system of the

Municipality and compare the reconciliation with the figures as per the SARS system (VAT201)).

(d) Reconcile the output figures from the general ledger with the output figures reflected on the VAT

201's (Submit an electronic reconciliation of the output VAT as per the financial system of the

Municipality and compare the reconciliation with the figures as per the SARS system (VAT 201)).

(e) Reconcile the figures on the VAT 201 returns to the VAT report from the financial system.

(f) Investigate differences.

3.2.2 VAT Input Reconciliation

(a) Obtain detailed line-by-line general ledger transactions electronically from the system.

(b) Link the line-by-line detailed transactions of the general ledger VAT input account(s) to the

different lines of the different account transactions.

(c) Reconcile the above linked line-by-line transactions per the expense account to identify instances

where VAT registered was not accounted for in the VAT 201 - code these exceptions as; supplier

not VAT registered / require valid tax invoice from supplier / no VAT to be claimed / valid VAT saving

/ VAT charged but supplier not registered for VAT.

(d) Investigate expenses (general ledger entries) where no VAT as claimed by obtaining

invoices/supporting documentation.

(e) The Service Provider to have its own team of staff members to retrieve incorrect, lost, misfiled or

misplaced invoices from Municipal suppliers.

(f) Where VAT as charged by non-VAT vendors, the Service Provider is to recover the VAT charged.

(g) Investigate journals.

3.2.3 VAT Output Reconciliation

(a) Obtain detailed line-by-line general ledger transactions electronically from the system.

(b) Link the line-by-line detailed transactions of the general ledger VAT output account(s) to the

different lines of the different income account transactions.

(c) Perform a detailed breakdown of the debtor’s sub-ledgers transactions to review the allocation

of VAT.

(d) Reconcile the VAT linked with the VAT per income stream to identify instances where VAT was

incorrectly accounted for in the VAT 201

(e) Investigate exceptions; Investigate journals.

(f) Verify income with bank statements/bank reconciliation.

3.3 The Detailed VAT Review Process

(a) The successful tenderer will be required to conduct a thorough and meticulous VAT review of

the Municipality’s general ledger control accounts in relation to VAT transactions to ensure that the

Municipality has correctly accounted for VAT on all the expenditure and revenue.

(b) Review of the VAT report from the financial system to ensure that output tax was declared on all

receipts for taxable receipts from customers and input tax claimed for all payments made to VAT

vendors.

(c) An investigation of the accounting system including correct flagging/coding of all expenditure and

revenue votes to ensure all votes have been correctly set up for VAT.

(d) Establish the impact for the years under review if there is any over/under/claimed input and output

due to the general ledger being incorrectly set up for VAT.

(e) Address unresolved pertinent issues that have a direct influence on VAT; such as equitable share

and conditional grants.

(f) Calculate the required VAT adjustments resulting from the review, if any, inclusion on the relevant

VAT return.

(g) Transfer of skills to Municipal staff regarding all VAT facets should take place within the contract

period.

3.4 A Detailed Examination into the Municipality’s General Ledger, Journal Vouchers, Tax

Invoices to ascertain if VAT was claimed due to:

(a) The supplier being recorded as a non-VAT vendor on the system but there is proof otherwise.

(b) Incorrect classification of votes for VAT purposes e.g. classified exempt and VAT originally

claimed.

(c) The supplier does attract VAT, but this was omitted.

3.5 VAT Apportionment Percentage Review

(a) Analysis of computation of current apportionment ratio applied.

(b) Review and recalculate the apportionment ratio for the current and previous five (5) years as per

approved formula.

(c) Apply the recalculated apportionment percentage to determine:

(i) whether the VAT apportionment percentage has been correctly calculated;

(ii) whether the VAT apportionment percentage has been correctly applied; and

(iii) the amount of under or over paid input tax, if any.

(d) Create Excel models that will be used as a basis to calculate apportionment percentage for this

period.

(e) Calculate the required VAT adjustments resulting from the review, if any, inclusion on the relevant

VAT return.

(f) Provide detail workings for the calculation of the apportionment percentages/ adjustments in excel

for the Auditor General and SARS.

(g) Assist the Municipality in completing the VAT return(s), making declaration of liabilities/

receivables if any and completion of any necessary documentation that may be required to claim

from SARS.

(h) Liaise directly with SARS on all re-calculation workings and response to queries to obtain any

refunds due the Municipality.

3.6 The methodology and procedures applied during the verification process ensure that the savings

and exposures identified are 100% verifiable to any 3rd party, i.e. SARS or the Auditor General. The

procedures applied must comply with the VAT Act.

4. Price evaulation

Recovered monies with a value of R500 000.00 will be used to quantify the value of the

commission percentage which will be used in the evaluation process

Kouga local municipality

Notice no:211/2026

Review/ recovery and calculation of value added tax (VAT)

6. Audited financial Statements for the last 3 financial years (if applicable)
7. Project Implementation Plan to Be Submitted (if applicable)

(f) Provide detail workings for the calculation of the apportionment percentages/ adjustments in excel

for the Auditor General and SARS.

(g) Assist the Municipality in completing the VAT return(s), making declaration of liabilities/

receivables if any and completion of any necessary documentation that may be required to claim

from SARS.

(h) Liaise directly with SARS on all re-calculation workings and response to queries to obtain any

refunds due the Municipality.

3.6 The methodology and procedures applied during the verification process ensure that the savings

and exposures identified are 100% verifiable to any 3rd party, i.e. SARS or the Auditor General. The

procedures applied must comply with the VAT Act.

Functional assessment: Experience of the company. Points allocated for employees with SAICA/SAIT membership certificates (1 point per employee – max 5 points), project team consisting of employees with NQF8 Advanced Value-Added Tax certificates (5 points per employee – max 15 points), and being an Accredited CPD provider with a detailed skills transfer plan (10 points).

Inspections, tests and analyses: All pre-bidding testing will be for the account of the bidder. 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. If inspections show supplies to be in accordance with contract requirements, the cost shall be defrayed by the purchaser; if not, by the supplier. Supplies not complying may be rejected.

Note:

1. Only firm prices will be accepted. Non-firm prices will not be considered.
2. All delivery costs MUST be included in the bid price, for delivery at the prescribed destination.
3. Document MUST be completed in non-erasable black ink.
4. NO correction fluid/tape may be used.

a. In the event of a mistake having been made, it shall be crossed out in ink and be accompanied by an initial at each and

every alteration.

5. The Bidder MUST indicate whether he/she/the entity is a registered VAT Vendor or not.
6. In the case of the Bidder not being a registered VAT Vendor, both columns (amount/rate excluding AND including

VAT) must reflect the same amount.

7. Rates inserted should be applicable from date of appointment. The applicable measure for escalation shall apply.

Proof to be provided for any request for increase, please see tender conditions point 1.

NB: Bidders should note that, one service provider will be appointed.

Period of tender

Pricing Schedule A (as per scope of works/

36 months (commission

specifications)

percentage)

Pricing is based on a percentage based on

monies recovered on behalf of the municipality %

and must be inclusive of all relevant overheads

including planning, travel costs, accommodation

and other costs inclusive of VAT

This percentage will remain fixed for the duration

of the contract.

Please note that Council will use pricing schedule A above for evaluation purposes. Pricing Schedule

B below, will only be used for contractual purposes as and when required.

Pricing Schedule B: Ad

Rate per hour Excl Vat Vat Rate per hour Incl Vat

hoc assignments

Rate per hour must be

inclusive of all relevant

overheads including

planning, travel costs,

accommodation and

other costs inclusive of

VAT

Name of tenderer: _____________________________________________

Authorized signature: _________________________ date: ___________________

Company representative: _____________________________________________

List of documents to hand in 3

Personal details of bidder / ownership 4

General condition of contract 7

Advert 20

Conditions of tender 21

Specifications and special condition of contract 24

Pricing schedule / bill of quantities 30

Agreement contract (form of offer & acceptance) 32

Declaration of interest 34

Preference points claim form 38

Declaration of bidder’s past supply chain 44

o All prices tendered shall be VAT included (if the tenderer is a VET vendor.

o Rates inserted should be applicable from date of appointment. The applicable

measure for escalation shall apply. Proof to be provided for any request for

increase.

the tender documents, local requirements and the laws prior to pricing and submission of

tender.

Notice no:211/2026

Review/ recovery and calculation of value added tax (VAT)

Pricing schedule

Note:

Pricing Schedule A (as per scope of works/

36 months (commission

specifications)

percentage)

Pricing Schedule B: Ad

Tax compliance will be

Tax Compliance Pin for all entities and all partners of Joint

TAX COMPLIANCE STATUS TCS PIN: OR CSD No

Tax compliance requirements

Tax compliance status (tcs) certificate or pin may also be made via e-filing

Tax compliance

tax compliance pin certificate,

Tax compliance Status pin must be submitted

TCS PIN: OR CSD No

Csd number

Csd number must be provided

Central supplier database (csd), a csd

Central Supplier Database Summary report must be submitted

appointment letters / reference letters/ signed contracts / purchase orders to prove years of

sections. Please read through all the

and please take note of the conditions of tender and the list of required documents to

• Please read through carefully the Conditions of Tender, which deals with submission of

Supplier Database No.: CSD No.

bidders can use link below which is direct from this advert to access the meeting. Please take note that no attendee

2. Tax compliance requirements

2.3 Application for the tax compliance status (tcs) certificate or pin may also be made via e-filing. In

Separate tcs certificate / pin / csd number.

2.7 Where NO tcs is available but the bidder is registered on the central supplier database (csd), a csd

If the answer is “NO” to all of the above, then IT is not a requirement to register for a tax compliance

Tax qualification - Original signed Affidavits confirming employment

• Please be advised that a copy of a certified copy does not

Made, please draw a line through IT and initial next to IT.

3. A copy of a valid Tax Compliance Pin for all entities and all partners of Joint

Please provide the following details

B-BBEE Details: Refer to new legislation, circulars, and codes regarding B-BBEE.

12. Correspondence

An active email address must be provided. All correspondence and request for information

with bidder will be sent to this email address as provided. If not submitted within the

specified timeframe of the request for information, the bid may be declared non-responsive.

13. Contract period

For a period of 3 years after the date of appointment.

Signed Date Name (block letters) Capacity in firm

Kouga local municipality

Notice NO: 211/2026

Review/ recovery and calculation of value added tax (VAT)

B-BBEE Status Level Contributor: 10 points. Bidders must submit a valid B-BBEE sworn affidavit/certificate to claim points for specific goals.

16. Payment

17. Prices

18. Contract amendments

19. Assignment

20. Subcontracts

21. Delays in the suppliers performance

22. Penalties

23. Force Majeure

24. Termination for insolvency

25. Settlement of disputes

26. Limitation of liability

27. Governing language

28. Applicable law

29. Taxes and duties

30. Prohibition of restrictive practices

31. Restriction of Suppliers

General Conditions of Contract

1. Definitions

2. The following terms shall be interpreted as indicated:

1.1 ‘’Award’’ shall mean the acceptance of a bid or proposal.

1.2 “Collusion” means any agreement, arrangement, understanding, or coordinated conduct,

whether formal or informal, between two or more parties, including suppliers, officials, or third

parties, which is intended to improperly influence procurement outcomes, pricing, competition, or

decision-making processes, or to deceive or prejudice the Municipality.

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

bids.

1.4 “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.

1.5 ‘’Contract period’’ shall mean the duration of the contract as set out in the contract.

1.6 “Contract price” means the price payable to the supplier under the contract for the full and

proper performance of his contractual obligations.

1.7 “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.

1.8 "Countervailing duties" are imposed in cases where an enterprise abroad is subsidized by its

government and encouraged to market its products internationally.

1.9 “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.

1.10 “Days” means calendar day.

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

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

1.13 “Delivery into consignees store or to his site” means delivered an 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.

1.14 “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.

1.15 “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.

1.16 “GCC” means the General Conditions of Contract.

1.17 “Goods” means all of the equipment, machinery, and/or other materials that the supplier is

required to supply to the purchaser under the contract.

1.18 “Order” means an official written order issued for the supply of goods or works or the

rendering of a service.

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

1.20 “Purchaser” means the organization purchasing the goods.

1.21 “Republic” means the Republic of South Africa.

1.22 ‘’Blacklisting/restricting’’ shall mean the act of disqualifying a person or an entity from

participating in the procurement process of Kouga Local Municipality.

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.

2. 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.

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.

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 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.

6. 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.

7. 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) 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

(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. 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 analysed 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.

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.

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, startup, 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 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.

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 purchasers 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 otherwise 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 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 fulfilment of other obligations stipulated in the contract.

16.3 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.

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 purchasers 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, its obligations to perform under the contract,

except with the purchasers 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.

20.2 Subcontractors or local SMME’s shall be paid within 7 days after submitting their valid invoice

for works completed to the Contractor unless the bidder provides the payment arrangement within

their structure, however this may not exceed 14 calendar days, notwithstanding payment claims

received by the Municipality.

21. Delays in the supplier’s 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 suppliers 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.

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 suppliers point of supply is not situated at

or near the place where the supplies are required, or the suppliers services are not readily

available.

21.5 Except as provided under GCC Clause 23, 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 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 suppliers 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.

22. Penalties

22.1 Subject to GCC Clause 23, 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 31.

23. Force Majeure

23.1 Notwithstanding the provisions of GCC Clauses 22 and 31, 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.

23.2 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.

24. Termination for insolvency

24.1 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.

25. Settlement of Disputes

25.1 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.

25.2 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.

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

South African court of law.

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

in the SCC.

25.5 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.

26. Limitation of liability

26.1 Except in cases of criminal negligence or wilful 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.

27. Governing language

27.1 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.

28. Applicable law

28.1 The contract shall be interpreted in accordance with South African laws, unless otherwise

specified in SCC.

29. Taxes and duties

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

other such levies imposed outside the purchasers country.

29.2 A local supplier shall be entirely responsible for all taxes, duties, license fees, etc., incurred

until delivery of the contracted goods to the purchaser.

29.3 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 Valid tax compliance pin certificate,

submitted by the bidder. This certificate must be issued by the South African Revenue Services.

30. Prohibition of Restrictive practices

30.1 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).

30.2 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. .

30.3 If a bidder(s) or contractor(s), has / have been found guilty by the Competition Commission of

the restrictive practice referred to above, the purchaser may, in addition and without prejudice to

any other remedy provided for, invalidate the bid(s) for such item(s) offered, and / or terminate the

contract in whole or part, and / or restrict the bidder(s) or contractor(s) from conducting business

with the public sector for a period not exceeding ten (10) years and / or claim damages from the

bidder(s) or contractor(s) concerned.

31. Restriction of Suppliers

31.1 Authority to Restrict Suppliers

31.1.1 The Municipality may, independently of the National Treasury restriction process,

restrict a supplier, contractor, service provider or any associated person from doing business with

the Municipality where such conduct undermines the integrity, fairness, transparency or

effectiveness of the supply chain management system.

31.1.2 This municipal restriction process shall function as an internal control and riskmanagement mechanism and shall not replace or contradict the National Treasury restriction

process.35.1.3 The Accounting Officer shall be the final authority for approving any restriction

imposed in terms of this policy.

31.2 Grounds for Restriction

A supplier must be restricted from doing business with the Municipality if the supplier has:

a) Failed to perform satisfactorily in terms of a municipal contract, including persistent poor

performance after written warnings;

b) Breached any material term or condition of a contract with the Municipality;

c) Submitted fraudulent, false or misleading information, including but not limited to:

• Fraudulent or falsified B-BBEE certificates or affidavits;
• Misrepresentation of experience, capacity, qualification, financial standing or

subcontracting arrangements;

d) Engaged in fraud, corruption, collusion, bribery or unethical conduct;

e) Attempted to improperly influence municipal officials, councillors or SCM role-players;

f) Failed to comply with applicable legislation where such non-compliance materially affects

performance;

g) Been convicted of an offence involving dishonesty, fraud, corruption or financial misconduct.

h) If found that the appointment of the bidder/vendor/service provider caused or poses a

reputational risk to the Municipality in line with the provisions of the Kouga Municipality Supply

Chain Management Policy.

i) is listed on the National Treasury or any other Governmental Restriction or blacklisting list.

31.3 Restriction Periods and Sanctions

31.3.1 Restriction periods shall be proportionate to the severity, intent and impact of the

offence.

31.3.2 Without limiting the Municipality’s discretion, the following guideline sanctions apply:

a) Fraudulent B-BBEE Submissions or other Documentation

• Restriction for up to five (5) years from doing business with the Municipality;
• Mandatory reporting to National Treasury for possible national restriction;
• Possible termination of existing contracts, subject to legal advice.

b) Fraud, Corruption, Collusion or Bribery

• Restriction for up to five (5) years;
• Reporting to National Treasury and law-enforcement agencies.

c) Poor Performance or Contractual Breach

• Restriction for one (1) year to five (5) years, depending on severity and recurrence.

d) Misrepresentation (excluding B-BBEE fraud) and Reputational Damage

• Restriction for one (1) to five (5) years.

Kouga local municipality (ec108)

Directorate: finance and economic development

Notice: 211/2026

Review/ recovery and calculation of value added tax (VAT)

Prospective Service Providers are hereby invited to submit tenders for the Appointment of a Service Provider for the

Review / Recovery and Calculation of Value Added Tax (Vat) Apportionment Percentage and Application Thereof for a

Contract Duration of Three (3) Years.

Tenders

An electronic copy of the tender document will be available on E-Tender portal www.etender.gov.za or the municipal

website www.kouga.gov.za as from Tuesday, 08 September 2026. After downloading the tender document from the

website each prospective bidder MUST ensure that all the pages of the tender document are printed.

A Compulsory Virtual Clarification Session will be arranged for Tuesday, 22 September 2026 @10h00am. Prospective

bidders can use link below which is direct from this advert to access the meeting. Please take note that no attendee

arriving 10 minutes late or more will be allowed to attend the clarification meeting.

Join Teams Meeting

https://teams.microsoft.com/meet/358290214353399?p=QXILKTXML0EzrKcZoC

Meeting ID: 358 290 214 353 399

Passcode: SS6DK7va

Please note:

• Telegraphic, telephonic, telex, facsimile, email, or late tenders will not be accepted.
• This contract will be evaluated on the 80/20-point system. 80 points for price and 20 points for specific goals. To claim

points for specific goals prospective bidders MUST submit proof/ required documents.

• An electronic copy of the completed tender document with returnable documents must be submitted with tender

submission saved in a flash drive or SD Card/CD. Failure to submit AN ORIGINAL HARD COPY AND A COPY ON

EITHER USB or SD Card/CD will deem the bid non-responsive. Bidders are encouraged to submit USB’s and SD

Cards only. The submission of CDs in a condition that is capable of being handled i.e. device that is readable and

not broken is solely the responsibility of the bidder. Visibly broken CDs at tender opening stage will not be

accepted.

• Bidders must note that the Municipality may make use of additional vetting methods to further qualify capacity

of bidders to eliminate delays during project implementation.

• A minimum functional assessment score of 70% will apply to this contract.
• A valid Tax compliance Status pin must be submitted.
• Prospective Service Providers must register on Kouga Municipality’s Supplier database as per the registration

requirements.

• The National Treasury Central Supplier Database Summary report must be submitted.
• The Council reserves the right to accept any tender and, or part thereof, appoint more than one contractor, and does not

bind itself to accept the lowest or any tender. The Council reserves the right to appoint any contractor.

• The validity period for submission will be 90 days from the closing date.
• Tenders that are deposited in the incorrect box or delivered to any other venue will not be considered.

Any inquiries relating to this tender must be submitted in writing via e-mail to [email protected] and copied to

[email protected]

Completed documents in a sealed envelope endorsed “NOTICE NO: 211/2026: REVIEW/ RECOVERY AND

CALCULATION OF VALUE ADDED TAX (VAT” Must be placed in the Tender Box at 16 Woltemade Street (front

entrance), Jeffrey’s Bay, Room 122 on or before FRIDAY, 09 OCTOBER 2026 at 12:00.

C. Du plessis

P.O. Box 21

Municipal manager jeffreys bay

6330

For Placement: Herald/Municipal Website/ Municipal Notice Boards in all offices/areas – 08 September 2026

Conditions of tender

1. Prices

• All prices tendered and all deposits or payments made shall be in the currency of the

Republic of South Africa.

• Prices should remain fixed for the period of the Tender. Should the successful Tenderer

wish to alter any Tender price during the currency of the Tender period bidder can only do

so twelve months after award has been made and thereafter once annually, the

Municipality reserve the right to:

o Accept the amended price provided that one (1) month written notice was given to

the Municipality; or

o Call for new Tenders in respect of the particular items concerned or negotiate new

prices with alternative suppliers to the exclusion of the Tenderer.

o Tenderers shall state the time of delivery in days from date of the official order by

the Municipality and all tendered prices are to include VAT as well as costs of

delivery to the various localities in the Kouga Area as may be indicated by the

Kouga Local Municipality.

o All prices tendered shall be VAT included (if the tenderer is a VET vendor.

o Rates inserted should be applicable from date of appointment. The applicable

measure for escalation shall apply. Proof to be provided for any request for

increase.

2. Layout

This tender document is divided into several sections. Please read through all the

sections. In particular, the Conditions of Tender and table of clauses are most

important, as they contain several new clauses in the light of the procurement policy

and please take note of the conditions of tender and the list of required documents to

be handed in, seeing that nonadherence to these requirements can lead to non-

responsiveness of tender.

Certificate of independent bid determination 46

Authority of signature 49

Indemnity agreement 50

Joint venture declaration 51

Certificate for payment of municipal services 52

Schedule of previous work carried out by tenderer 54

1.1 ‘’Award’’ shall mean the acceptance of a bid or proposal.

1.2 “Collusion” means any agreement, arrangement, understanding, or coordinated conduct,

whether formal or informal, between two or more parties, including suppliers, officials, or third

parties, which is intended to improperly influence procurement outcomes, pricing, competition, or

decision-making processes, or to deceive or prejudice the Municipality.

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

bids.

1.4 “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.

1.5 ‘’Contract period’’ shall mean the duration of the contract as set out in the contract.

1.6 “Contract price” means the price payable to the supplier under the contract for the full and

proper performance of his contractual obligations.

1.7 “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.

1.8 "Countervailing duties" are imposed in cases where an enterprise abroad is subsidized by its

government and encouraged to market its products internationally.

1.9 “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.

1.10 “Days” means calendar day.

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

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

1.13 “Delivery into consignees store or to his site” means delivered an 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.

1.14 “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.

1.15 “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.

1.16 “GCC” means the General Conditions of Contract.

1.17 “Goods” means all of the equipment, machinery, and/or other materials that the supplier is

required to supply to the purchaser under the contract.

1.18 “Order” means an official written order issued for the supply of goods or works or the

rendering of a service.

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

1.20 “Purchaser” means the organization purchasing the goods.

1.21 “Republic” means the Republic of South Africa.

1.22 ‘’Blacklisting/restricting’’ shall mean the act of disqualifying a person or an entity from

participating in the procurement process of Kouga Local Municipality.

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.

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.

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) 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

(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.

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, startup, 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.

14.1 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 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.

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 purchasers 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 otherwise 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

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.

20.2 Subcontractors or local SMME’s shall be paid within 7 days after submitting their valid invoice

for works completed to the Contractor unless the bidder provides the payment arrangement within

their structure, however this may not exceed 14 calendar days, notwithstanding payment claims

received by the Municipality.

21. Delays in the supplier’s 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 suppliers 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.

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 suppliers point of supply is not situated at

or near the place where the supplies are required, or the suppliers services are not readily

available.

21.5 Except as provided under GCC Clause 23, 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 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 suppliers 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.

22.1 Subject to GCC Clause 23, 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 31.

23.1 Notwithstanding the provisions of GCC Clauses 22 and 31, 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.

23.2 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.

24.1 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.

25.1 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.

25.2 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.

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

26.1 Except in cases of criminal negligence or wilful 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.

a) Failed to perform satisfactorily in terms of a municipal contract, including persistent poor

performance after written warnings;

b) Breached any material term or condition of a contract with the Municipality;

c) Submitted fraudulent, false or misleading information, including but not limited to:

• Fraudulent or falsified B-BBEE certificates or affidavits;
• Misrepresentation of experience, capacity, qualification, financial standing or

subcontracting arrangements;

d) Engaged in fraud, corruption, collusion, bribery or unethical conduct;

e) Attempted to improperly influence municipal officials, councillors or SCM role-players;

f) Failed to comply with applicable legislation where such non-compliance materially affects

performance;

g) Been convicted of an offence involving dishonesty, fraud, corruption or financial misconduct.

h) If found that the appointment of the bidder/vendor/service provider caused or poses a

reputational risk to the Municipality in line with the provisions of the Kouga Municipality Supply

i) is listed on the National Treasury or any other Governmental Restriction or blacklisting list.

31.3 Restriction Periods and Sanctions

31.3.1 Restriction periods shall be proportionate to the severity, intent and impact of the

offence.

31.3.2 Without limiting the Municipality’s discretion, the following guideline sanctions apply:

a) Fraudulent B-BBEE Submissions or other Documentation

• Restriction for up to five (5) years from doing business with the Municipality;
• Mandatory reporting to National Treasury for possible national restriction;
• Possible termination of existing contracts, subject to legal advice.

b) Fraud, Corruption, Collusion or Bribery

• Restriction for up to five (5) years;
• Reporting to National Treasury and law-enforcement agencies.

c) Poor Performance or Contractual Breach

• Restriction for one (1) year to five (5) years, depending on severity and recurrence.

d) Misrepresentation (excluding B-BBEE fraud) and Reputational Damage

• Restriction for one (1) to five (5) years.

Kouga local municipality (ec108)

Directorate: finance and economic development

Notice: 211/2026

Review/ recovery and calculation of value added tax (VAT)

Special conditions: The successful bidder will be required to fill in and sign a written contract form (MBD7). The contract will be for a period of 3 years after the date of appointment. The validity period for submission will be 90 days from the closing date. The Council reserves the right to accept any tender and/or part thereof, appoint more than one contractor, and does not bind itself to accept the lowest or any tender. The Council reserves the right to appoint any contractor.

Mandatory requirements: Company Audited Annual Financial Statements for the past three years, Company Proof of SAICA / SAIT registration, Company Organogram. Failure to provide proof with the tender submission will result in disqualification.

Points for specific goals: HDI ownership points scale from 0 (0-10%) to 10 (91-100%). Location points: 4 for Nelson Mandela Metro, 4 for Eastern Cape, 1 for outside Eastern Cape. Commission percentage will be evaluated based on recovered monies value of R500,000.00.