MBD1

PART A
INVITATION TO BID
YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF THE MAKHADO LOCAL MUNICIPALITY
BID NUMBER: 27 / 2025 CLOSING DATE: 09 MAY 2025 CLOSING TIME: 12H00PM

APPOINTMENT FOR PANEL OF CIVIL CONTRACTORS FOR REHABILITATION AND REASEALING OF

DESCRIPTION ROAD EMERGENCY POTHOLES PATCHING WITHIN MAKHADO LOCAL MUNICIPALITY FOR THE PERIOD
OF THREE YEARS

THE SUCCESSFUL BIDDER WILL BE REQUIRED TO FILL IN AND SIGN A WRITTEN CONTRACT FORM (MBD7).
BID RESPONSE DOCUMENTS MAY BE DEPOSITED IN THE BID BOX
SITUATED AT (STREET ADDRESS
POSTAL ADDRESS:
PRIVATE BAG X 2596, MAKHADO, 0920
STREET ADDRESS
CIVIC CENTRE, 83 KROGH STREET, MAKHADO.0920
SUPPLIER INFORMATION
NAME OF BIDDER
POSTAL ADDRESS
STREET ADDRESS
TELEPHONE NUMBER CODE NUMBER
CELLPHONE NUMBER
FACSIMILE NUMBER CODE NUMBER
E-MAIL ADDRESS
VAT REGISTRATION NUMBER
TAX COMPLIANCE STATUS TCS PIN: OR CSD No:
B-BBEE STATUS LEVEL B-BBEE STATUS Yes
VERIFICATION CERTIFICATE Yes LEVEL SWORN
[TICK APPLICABLE BOX] No AFFIDAVIT No
[A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE/ SWORN AFFIDAVIT (FOR EMES & QSEs) MUST BE SUBMITTED IN ORDER
TO QUALIFY FOR PREFERENCE POINTS FOR B-BBEE]
ARE YOU A FOREIGN
ARE YOU THE ACCREDITED
Yes No BASED SUPPLIER FOR Yes No
REPRESENTATIVE IN SOUTH AFRICA
THE GOODS
FOR THE GOODS /SERVICES
[IF YES ENCLOSE PROOF] /SERVICES /WORKS [IF YES, ANSWER PART B:3 ]
/WORKS OFFERED?
OFFERED?

TOTAL NUMBER OF ITEMS OFFERED TOTAL BID PRICE R

SIGNATURE OF BIDDER ……………………………… DATE
CAPACITY UNDER WHICH THIS BID
IS SIGNED
BIDDING PROCEDURE ENQUIRIES MAY BE DIRECTED TO: TECHNICAL INFORMATION MAY BE DIRECTED TO:
DEPARTMENT BUDGET AND TREASURY CONTACT PERSON MR MG RALESHUKU
CONTACT PERSON MS P MUDAU TELEPHONE NUMBER 015 519 3000
TELEPHONE NUMBER 015 519 3044 FACSIMILE NUMBER 015 516 6145
FACSIMILE NUMBER 015 516 6145 E-MAIL ADDRESS [email protected]
E-MAIL ADDRESS [email protected]
 PART B
TERMS AND CONDITIONS FOR BIDDING

1. BID SUBMISSION:
1.1. BIDS MUST BE DELIVERED BY THE STIPULATED TIME TO THE CORRECT ADDRESS. LATE BIDS WILL NOT BE ACCEPTED
FOR CONSIDERATION.
1.2. ALL BIDS MUST BE SUBMITTED ON THE OFFICIAL FORMS PROVIDED–(NOT TO BE RE-TYPED) OR ONLINE
1.3. THIS BID IS SUBJECT TO THE PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT AND THE PREFERENTIAL
PROCUREMENT REGULATIONS, 2017, THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER
SPECIAL CONDITIONS OF CONTRACT.

2. TAX COMPLIANCE REQUIREMENTS

2.1 BIDDERS MUST ENSURE COMPLIANCE WITH THEIR TAX OBLIGATIONS.
2.2 BIDDERS ARE REQUIRED TO SUBMIT THEIR UNIQUE PERSONAL IDENTIFICATION NUMBER (PIN) ISSUED BY SARS TO
ENABLE THE ORGAN OF STATE TO VIEW THE TAXPAYER’S PROFILE AND TAX STATUS.
2.3 APPLICATION FOR THE TAX COMPLIANCE STATUS (TCS) CERTIFICATE OR PIN MAY ALSO BE MADE VIA E-FILING. IN
ORDER TO USE THIS PROVISION, TAXPAYERS WILL NEED TO REGISTER WITH SARS AS E-FILERS THROUGH THE WEBSITE
WWW.SARS.GOV.ZA.
2.4 FOREIGN SUPPLIERS MUST COMPLETE THE PRE-AWARD QUESTIONNAIRE IN PART B:3.
2.5 BIDDERS MAY ALSO SUBMIT A PRINTED TCS CERTIFICATE TOGETHER WITH THE BID.
2.6 IN BIDS WHERE CONSORTIA / JOINT VENTURES / SUB-CONTRACTORS ARE INVOLVED, EACH PARTY MUST SUBMIT A
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
NUMBER MUST BE PROVIDED.
3. QUESTIONNAIRE TO BIDDING FOREIGN SUPPLIERS

3.1. IS THE ENTITY A RESIDENT OF THE REPUBLIC OF SOUTH AFRICA (RSA)? YES NO
3.2. DOES THE ENTITY HAVE A BRANCH IN THE RSA? YES NO
3.3. DOES THE ENTITY HAVE A PERMANENT ESTABLISHMENT IN THE RSA? YES NO
3.4. DOES THE ENTITY HAVE ANY SOURCE OF INCOME IN THE RSA? YES NO
3.5. IS THE ENTITY LIABLE IN THE RSA FOR ANY FORM OF TAXATION? YES NO

IF THE ANSWER IS “NO” TO ALL OF THE ABOVE, THEN IT IS NOT A REQUIREMENT TO REGISTER FOR A TAX COMPLIANCE
STATUS SYSTEM PIN CODE FROM THE SOUTH AFRICAN REVENUE SERVICE (SARS) AND IF NOT REGISTER AS PER 2.3 ABOVE.

NB: FAILURE TO PROVIDE ANY OF THE ABOVE PARTICULARS MAY RENDER THE BID INVALID.
NO BIDS WILL BE CONSIDERED FROM PERSONS IN THE SERVICE OF THE STATE.

SIGNATURE OF BIDDER: ……………………………………………

CAPACITY UNDER WHICH THIS BID IS SIGNED: ……………………………………………

DATE: …………………………………………...
 TUESDAY, 1 APRIL 2025 Job MARKET 11

MECHANIC SHOWS
which they operate within,” Standard because she wants to uplift her business
Bank’s head of enterprise and supplier and buy wheel alignment equipment,
development for business and commercial branded overalls and a small car. “The car

THERE ARE NO LIMITS TO

banking Naledzani Mosomane said. and equipment will help have a quick
Molepo said she entered the awards turnaround time for my clients,” she said.

WHAT WOMEN CAN DO

Maruleng Local Municipality
65 SPRINGBOK STREET TEL: (015) 590 1650
P.O. BOX 627
HOEDSPRUIT, 1380

CORPORATE SERVICES
● Molepo now a finalist in The awards are set to honour dynamic
small, micro and medium-sized
Limpopo Business Awards enterprises (SMMEs) that are driving
Applications are invited from suitably qualified and experienced candidates to fill vacant positions:

innovation, creating jobs and uplifting Position Type Remuneration

By LINDILE SIFILE communities across the province. Internal Auditor: Compliance Permanent R350 453.63 per annum
They hope to shine a spotlight on Permanent R437 024.66 per annum plus 30% car allowance
Senior Risk Officer
Boitumelo Molepo ditched her accounting businesses that have demonstrated
career for overalls and fixing cars, a job resilience, longevity and a commitment to Technician: PMU Permanent R350 453.63 per annum plus 30% car allowance

AD2513037
that women are rarely seen doing. sustainable growth, celebrating excellence Chief Traffic Officer Permanent R437 024.66 per annum plus 30% car allowance
“I wanted to change the stereotype and across economic sectors such as Permanent R350 453.63 per annum
notion that women can only do fluffy agriculture, tourism, transport, mining and
Senior Licensing Officer
work, such as being nail technicians and others. Winners from the seven categories Disaster Management Officer Permanent R350 453.63 per annum

hairdressers. I wanted to show that there will each get R60,000. Management Rep Permanent R350 453.63 per annum
are no limits to what women can do and I “At Standard Bank, we aim to provide
Secretary Permanent R221 591.32 per annum
wanted to motivate other girls to pursue our clients with a holistic offering that
any career they want,” said the mother of goes beyond traditional banking solutions. Admin Clerk Permanent R188 368.43 per annum
two boys. We understand that SMMEs are the Accountant SCM Permanent R350 453.63 per annum
In 2018, she chased her dream and heartbeat of the economies in which they
Building Inspector Permanent R 315 751.50 per annum
borrowed R1m from her lawyer husband operate in and therefore platforms such as
to set up her Limpopo Auto and Welding the Limpopo Business Awards create an For more information (Requirements,responsibilities and details on how to apply) please go to: www.maruleng.gov.za, then
workshop in the Polokwane CBD. She also opportunity for us to showcase some of click “vacancies”.
went for training to learn to repair cars. the best SMMEs across the country and Closing date for applications is 22 April 2025 at 12H00.
Molepo opened her business in 2020. highlight how they are creating Direct your enquiries to Ms Ramohlola Kidibone or Ms Mahlo Mokhobedi @ 015 590 1650.
“It was tough in the beginning and I sustainable impact in the communities in
did not have customers for three years.
“Things started to change about two
years ago when I landed my first contract
with a bank and I would fix and maintain
their cars. I then got other contracts with
Eskom, the government and a courier
company as the official mechanic to
maintain their fleet. So far, the business is
doing well and I also import tyres.
“The process has taught me that
sometimes one has to go through many
challenges and obstacles before they get
their breakthrough.”
Her seven employees specialises in
engine repairs, minor and major services,
suspension, brake, clutch and gear repairs.
Molepo, 39, is one of more than 20
finalists in this year’s Limpopo Business
Awards taking place tomorrow in
Polokwane. The awards are sponsored by
Standard Bank and the Limpopo
government.

Boitumelo Molepo ditched her career in

accounting for fixing cars. /Supplied
SCOPE OF WORK: APPOINTMENT FOR PANEL OF CIVIL CONTRACTORS FOR REHABILITATION AND
REASEALING OF ROAD EMERGENCY POTHOLES PATCHING WITHIN MAKHADO LOCAL MUNICIPALITY FOR
THE PERIOD OF THREE YEARS

NO DESCRIPTION UNIT QTY 1ST Year 2ND Year 3RD Year TOTAL
rate rate rate
1 General Obligation Pro 1
Sum
2 Site Establishment Pro 1
Sum
3 Submission of the Pro 1
Health and Safety File Sum
4 Traffic accommodation Pro 1
Sum
5 Borrow Pit Material M3 1

6 Base Correction with M2 1

Cement
7 Application of a quick M2 1
dry Prime Coat
8 Cutting Existing M2 1
Surfacing
9 Cleaning and grubbing M2 1

10 Hot/ Cold mis asphalt M2 1

layer
11 Plant/ Machinery HOUR 1

12 Small Equipment HOUR 1

Roller, Compactor and
Tar Cutter
13 Crack Seal M2 1

14 Application of Slurry M2 1

15 Test Material Pro 1

sum
TOTAL
VAT @15% (ONLY IF APPLICABLE)
TOTAL BIDDING RATES

MBD 3.1
PRICING SCHEDULE – NON-FIRM PRICES
(PURCHASES)

1
NOTE: PRICE ADJUSTMENTS WILL BE ALLOWED AT THE PERIODS AND TIMES SPECIFIED IN THE BIDDING DOCUMENTS.

IN CASES WHERE DIFFERENT DELIVERY POINTS INFLUENCE THE PRICING, A SEPARATE PRICING SCHEDULE MUST BE SUBMITTED
FOR EACH DELIVERY POINT

Name of Bidder……………………………………… Bid ……………………………

number…………………………………

Closing Time ……………………… Closing Date …………………………………………

OFFER TO BE VALID FOR………DAYS FROM THE CLOSING DATE OF BID

----------------------------------------------------------------------------------------------------------------------------- ----------------------------

ITEM QUANTITY DESCRIPTION BID PRICE IN RSA CURRENCY

NO.
(INCLUDING VAT)
----------------------------------------------------------------------------------------------------------------------------- ----------------------------

- Required by: …………………………………………

- At: …….…..………………………………………….

- Brand and model ……..………………………………………

- Country of origin……...…………………………………………

- Does offer comply with specification? *YES/NO

- If not to specification, indicate deviation(s) ………………………………………….

- Period required for delivery ………………………………………….

- Delivery: *Firm/not firm

*Delete if not applicable

2
 MBD 3.2
PRICE ADJUSTMENTS

A NON-FIRM PRICES SUBJECT TO ESCALATION

1. IN CASES OF CONTRACTS, NON FIRM PRICES WILL BE ADJUSTED (LOADED) WITH THE ASSESSED CONTRACT PRICE
ADJUSTMENTS IMPLICIT IN NON FIRM PRICES WHEN CALCULATING THE COMPARATIVE PRICES

2. IN THIS CATEGORY PRICE ESCALATIONS WILL ONLY BE CONSIDERED IN TERMS OF THE FOLLOWING FORMULA:

 D 4t 
Pa = (1 − V )Pt D1
R1t R 2t R3t
+ D2 + D3 + D4  + VPt
 R1o R 2o R3o D 4o 

Where:

Pa = The new escalated price to be calculated.

(1-V) Pt = 85% of the original bid price. Note that Pt must always be the original bid price and not an escalated
price.
D1, D2.. = Each factor of the bid price eg. labour, transport, clothing, footwear, etc. The total of the various factors
D1,D2…etc. must add up to 100%.
R1t, R2t…… = Index figure obtained from new index (depends on the number of factors used).
R1o, R2o = Index figure at time of bidding.
VPt = 15% of the original bid price. This portion of the bid price remains firm i.e. it is not subject to any price
escalations.

3. The following index/indices must be used to calculate your bid price:

Index………. Dated………. Index………. Dated………. Index………. Dated……….

Index………. Dated………. Index………. Dated………. Index………. Dated……….

4. FURNISH A BREAKDOWN OF YOUR PRICE IN TERMS OF ABOVE-MENTIONED FORMULA. THE TOTAL OF THE VARIOUS
FACTORS MUST ADD UP TO 100%.

FACTOR
P PERCENTAGE OF BID PRICE
(D1, D2 etc. eg. Labour, transport etc.)

MBD 3.2

B PRICES SUBJECT TO RATE OF EXCHANGE VARIATIONS

1. Please furnish full particulars of your financial institution, state the currencies used in the conversion of the prices of the items to South
African currency, which portion of the price is subject to rate of exchange variations and the amounts remitted abroad.

AMOUNT IN
PORTION OF
FOREIGN
PARTICULARS OF PRICE
ITEM NO PRICE CURRENCY RATE CURRENCY
FINANCIAL INSTITUTION SUBJECT TO
REMITTED
ROE
ABROAD

3
 ZAR=

ZAR=

ZAR=

ZAR=

ZAR=

ZAR=

2. Adjustments for rate of exchange variations during the contract period will be calculated by using the average monthly exchange rates
as issued by your commercial bank for the periods indicated hereunder: (Proof from bank required)

DATE DATE FROM WHICH

DATE UNTIL WHICH NEW
AVERAGE MONTHLY EXCHANGE RATES DOCUMENTATION NEW CALCULATED
CALCULATED PRICE WILL
FOR THE PERIOD: MUST BE SUBMITTED PRICES WILL BECOME
BE EFFECTIVE
TO THIS OFFICE EFFECTIVE

4
 MBD 4

DECLARATION OF INTEREST

1. No bid will be accepted from persons in the service of the state¹.

2. Any person, having a kinship with persons in the service of the state, including a blood relationship,
may make an offer or offers in terms of this invitation to bid. In view of possible allegations of
favouritism, should the resulting bid, or part thereof, be awarded to persons connected with or related
to persons in service of the state, it is required that the bidder or their authorised representative declare
their position in relation to the evaluating/adjudicating authority.

3 In order to give effect to the above, the following questionnaire must be completed and submitted with
the bid.

3.1 Full Name of bidder or his or her representative:……………………………………………..

3.2 Identity Number: ………………………………………………………………………………….

3.3 Position occupied in the Company (director, trustee, hareholder²):………………………..

3.4 Company Registration Number: ……………………………………………………………….

3.5 Tax Reference Number:…………………………………………………………………………

3.6 VAT Registration Number: ……………………………………………………………………

3.7 The names of all directors / trustees / shareholders members, their individual identity
numbers and state employee numbers must be indicated in paragraph 4 below.

3.8 Are you presently in the service of the state? YES / NO

3.8.1 If yes, furnish particulars. ….……………………………………………………………

……………………………………………………………………………………………..

¹MSCM Regulations: “in the service of the state” means to be –

(a) a member of –
(i) any municipal council;
(ii) any provincial legislature; or
(iii) the national Assembly or the national Council of provinces;

(b) a member of the board of directors of any municipal entity;

(c) an official of any municipality or municipal entity;
(d) an employee of any national or provincial department, national or provincial public entity or
constitutional institution within the meaning of the Public Finance Management Act, 1999 (Act No.1 of
1999);
(e) a member of the accounting authority of any national or provincial public entity; or
(f) an employee of Parliament or a provincial legislature.

² Shareholder” means a person who owns shares in the company and is actively involved in the
management of the company or business and exercises control over the company.

3.9 Have you been in the service of the state for the past twelve months? ………YES / NO

3.9.1 If yes, furnish particulars.………………………...……………………………………..

…………………………………………………………………………………………….
3.10 Do you have any relationship (family, friend, other) with persons
5
 in the service of the state and who may be involved with
the evaluation and or adjudication of this bid? ………………………………… YES / NO

3.10.1 If yes, furnish particulars.

………………………………………………………………………………
………………………………………………………………………………

3.11 Are you, aware of any relationship (family, friend, other) between
any other bidder and any persons in the service of the state who
may be involved with the evaluation and or adjudication of this bid? YES / NO

3.11.1 If yes, furnish particulars

…………………………………………………………………………………
……………………………….……............................................................

3.12 Are any of the company’s directors, trustees, managers,

principle shareholders or stakeholders in service of the state? YES / NO

3.12.1 If yes, furnish particulars.

……………………………………………………………………………….
……………………………………………………………………………….

3.13 Are any spouse, child or parent of the company’s directors

trustees, managers, principle shareholders or stakeholders
in service of the state? YES / NO

3.13.1 If yes, furnish particulars.

……………………………………………………………………………….
……………………………………………………………………………….

3.14 Do you or any of the directors, trustees, managers,

principle shareholders, or stakeholders of this company
have any interest in any other related companies or
business whether or not they are bidding for this contract. YES / NO

3.14.1 If yes, furnish particulars:

……………………………………………………………………………..
……………………………………………………………………………..

4. Full details of directors / trustees / members / shareholders.

Full Name Identity Number State Employee

Number

………………………………….. ……………………………………..
Signature Date

…………………………………. ………………………………………
Capacity Name of Bidder

6
 MBD 6.1

PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT

REGULATIONS 2022

This preference form must form part of all tenders invited. It contains general information and
serves as a claim form for preference points for specific goals.

NB: BEFORE COMPLETING THIS FORM, TENDERERS MUST STUDY THE GENERAL
CONDITIONS, DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF THE
TENDER AND PREFERENTIAL PROCUREMENT REGULATIONS, 2022

1. GENERAL CONDITIONS
1.1 The following preference point systems are applicable to invitations to tender:
- the 80/20 system for requirements with a Rand value of up to R50 000 000 (all
applicable taxes included); and
- the 90/10 system for requirements with a Rand value above R50 000 000 (all applicable
taxes included).

1.2 To be completed by the organ of state

(delete whichever is not applicable for this tender).
a) The applicable preference point system for this tender is the 90/10 preference point system.

b) The applicable preference point system for this tender is the 80/20 preference point system.

c) Either the 90/10 or 80/20 preference point system will be applicable in this tender. The lowest/
highest acceptable tender will be used to determine the accurate system once tenders are
received.

1.3 Points for this tender (even in the case of a tender for income-generating contracts) shall be awarded
for:
(a) Price; and
(b) Specific Goals.

1.4 To be completed by the organ of state:

The maximum points for this tender are allocated as follows:
POINTS
PRICE 80
SPECIFIC GOALS 20
Total points for Price and SPECIFIC GOALS 100

1.5 Failure on the part of a tenderer to submit proof or documentation required in terms of this
tender to claim points for specific goals with the tender, will be interpreted to mean that
preference points for specific goals are not claimed.

7
1.6 The organ of state reserves the right to require of a tenderer, either before a tender is
adjudicated or at any time subsequently, to substantiate any claim in regard to preferences,
in any manner required by the organ of state.

2. DEFINITIONS
(a) “tender” means a written offer in the form determined by an organ of state in response to
an invitation to provide goods or services through price quotations, competitive tendering
process or any other method envisaged in legislation;
(b) “price” means an amount of money tendered for goods or services, and includes all applicable
taxes less all unconditional discounts;
(c) “rand value” means the total estimated value of a contract in Rand, calculated at the time of bid
invitation, and includes all applicable taxes;
(d) “tender for income-generating contracts” means a written offer in the form determined by an organ
of state in response to an invitation for the origination of income-generating contracts through any
method envisaged in legislation that will result in a legal agreement between the organ of state and a
third party that produces revenue for the organ of state, and includes, but is not limited to, leasing and
disposal of assets and concession contracts, excluding direct sales and disposal of assets through
public auctions; and
(e) “the Act” means the Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000).

3. FORMULAE FOR PROCUREMENT OF GOODS AND SERVICES

3.1. POINTS AWARDED FOR PRICE

3.1.1 THE 80/20 OR 90/10 PREFERENCE POINT SYSTEMS

A maximum of 80 or 90 points is allocated for price on the following basis:

80/20 or 90/10

𝑷𝒕−𝑷 𝒎𝒊𝒏 𝑷𝒕−𝑷 𝒎𝒊𝒏

𝑷𝒔 = 𝟖𝟎 (𝟏 − ) or 𝑷𝒔 = 𝟗𝟎 (𝟏 − )
𝑷 𝒎𝒊𝒏 𝑷 𝒎𝒊𝒏
Where
Ps = Points scored for price of tender under consideration
Pt = Price of tender under consideration
Pmin = Price of lowest acceptable tender

3.2. FORMULAE FOR DISPOSAL OR LEASING OF STATE ASSETS AND INCOME GENERATING
PROCUREMENT

3.2.1. POINTS AWARDED FOR PRICE

A maximum of 80 or 90 points is allocated for price on the following basis:

80/20 or 90/10

𝑷𝒕−𝑷 𝒎𝒂𝒙 𝑷𝒕−𝑷 𝒎𝒂𝒙

𝑷𝒔 = 𝟖𝟎 (𝟏 + ) or 𝑷𝒔 = 𝟗𝟎 (𝟏 + )
𝑷 𝒎𝒂𝒙 𝑷𝒎𝒂𝒙
8
Where
Ps = Points scored for price of tender under consideration
Pt = Price of tender under consideration
Pmax = Price of highest acceptable tender

4. POINTS AWARDED FOR SPECIFIC GOALS

4.1. In terms of Regulation 4(2); 5(2); 6(2) and 7(2) of the Preferential Procurement Regulations,
preference points must be awarded for specific goals stated in the tender. For the purposes
of this tender the tenderer will be allocated points based on the goals stated in table 1 below
as may be supported by proof/ documentation stated in the conditions of this tender:
4.2. In cases where organs of state intend to use Regulation 3(2) of the Regulations, which states
that, if it is unclear whether the 80/20 or 90/10 preference point system applies, an organ of
state must, in the tender documents, stipulate in the case of—
(a) an invitation for tender for income-generating contracts, that either the 80/20 or 90/10
preference point system will apply and that the highest acceptable tender will be used to
determine the applicable preference point system; or

(b) any other invitation for tender, that either the 80/20 or 90/10 preference point system will
apply and that the lowest acceptable tender will be used to determine the applicable
preference point system,
then the organ of state must indicate the points allocated for specific goals for both the 90/10
and 80/20 preference point system.

Table 1: Specific goals for the tender and points claimed are indicated per the table below.
(Note to organs of state: Where either the 90/10 or 80/20 preference point system is
applicable, corresponding points must also be indicated as such.
Note to tenderers: The tenderer must indicate how they claim points for each preference
point system.)

Number of Number of Number of Number of

points points points points claimed
allocated claimed (80/20 system)
allocated
The specific goals (90/10 system) (90/10 (To be
(80/20
allocated points in terms system) completed by
(To be system)
of this tender (To be the tenderer)
completed by (To be
the organ of completed by
completed by
state) the tenderer)
the organ of
state)
100% Black ownership N/A 10 N/A
(attach CSD detail report)
Woman Ownership (attach N/A 05 N/A
CSD detail report or
Certified copy of smart ID)
9
 Disability (Attach Disability N/A 05 N/A
letter from a Doctor)

DECLARATION WITH REGARD TO COMPANY/FIRM

4.3. Name of company/firm…………………………………………………………………….

4.4. Company registration number: …………………………………………………………...

4.5. TYPE OF COMPANY/ FIRM

 Partnership/Joint Venture / Consortium

 One-person business/sole propriety
 Close corporation
 Public Company
 Personal Liability Company
 (Pty) Limited
 Non-Profit Company
 State Owned Company
[TICK APPLICABLE BOX]

4.6. I, the undersigned, who is duly authorised to do so on behalf of the company/firm, certify
that the points claimed, based on the specific goals as advised in the tender, qualifies the
company/ firm for the preference(s) shown and I acknowledge that:

i) The information furnished is true and correct;

ii) The preference points claimed are in accordance with the General Conditions as
indicated in paragraph 1 of this form;
iii) In the event of a contract being awarded as a result of points claimed as shown in
paragraphs 1.4 and 4.2, the contractor may be required to furnish documentary proof to
the satisfaction of the organ of state that the claims are correct;
iv) If the specific goals have been claimed or obtained on a fraudulent basis or any of the
conditions of contract have not been fulfilled, the organ of state may, in addition to any
other remedy it may have –

(a) disqualify the person from the tendering process;

(b) recover costs, losses or damages it has incurred or suffered as a result of
that person’s conduct;
(c) cancel the contract and claim any damages which it has suffered as a
result of having to make less favourable arrangements due to such
cancellation;
(d) recommend that the tenderer or contractor, its shareholders and directors,
or only the shareholders and directors who acted on a fraudulent basis,
be restricted from obtaining business from any organ of state for a period
not exceeding 10 years, after the audi alteram partem (hear the other side)
rule has been applied; and
(e) forward the matter for criminal prosecution, if deemed necessary.

10
 ……………………………………….
SIGNATURE(S) OF TENDERER(S)

SURNAME AND NAME: ……………………………………………………….

DATE: ………………………………………………………
ADDRESS: ………………………………………………………
………………………………………………………
………………………………………………………
………………………………………………………

11
 MBD 7.2
CONTRACT FORM - RENDERING OF SERVICES

THIS FORM MUST BE FILLED IN DUPLICATE BY BOTH THE SERVICE PROVIDER (PART 1) AND THE
PURCHASER (PART 2). BOTH FORMS MUST BE SIGNED IN THE ORIGINAL SO THAT THE SERVICE
PROVIDER AND THE PURCHASER WOULD BE IN POSSESSION OF ORIGINALLY SIGNED
CONTRACTS FOR THEIR RESPECTIVE RECORDS.

PART 1 (TO BE FILLED IN BY THE SERVICE PROVIDER)

1. I hereby undertake to render services described in the attached bidding documents to

Makhado Municipality in accordance with the requirements and task directives / proposals
specifications stipulated Bid no 27 of 2025 at the price/s quoted. My offer/s remain binding
upon me and open for acceptance by the Purchaser during the validity period indicated and
calculated from the closing date of the bid.
2. The following documents shall be deemed to form and be read and construed as part of this
agreement:

(i) Bidding documents, viz

- Invitation to bid;
- Tax clearance certificate;
- Pricing schedule(s);
- Filled in task directive/proposal;
- Preference claims for Broad Based Black Economic Empowerment Status
Level of Contribution in terms of the Preferential Procurement Regulations
2011;
- Declaration of interest;
- Declaration of Bidder’s past SCM practices;
- Certificate of Independent Bid Determination;
- Special Conditions of Contract;
(ii) General Conditions of Contract; and
(iii) Other (specify)

3. I confirm that I have satisfied myself as to the correctness and validity of my bid; that the
price(s) and rate(s) quoted cover all the services specified in the bidding documents; that the
price(s) and rate(s) cover all my obligations and I accept that any mistakes regarding price(s)
and rate(s) and calculations will be at my own risk.

4. I accept full responsibility for the proper execution and fulfilment of all obligations and
conditions devolving on me under this agreement as the principal liable for the due fulfillment
of this contract.

5. I declare that I have no participation in any collusive practices with any bidder or any other
person regarding this or any other bid.
WITNESSES
6. I confirm that I am duly authorised to sign this contract.

NAME (PRINT) ……………………………. 1 …….…………………………….

CAPACITY ……………………………. 2 ……….………………………….

SIGNATURE ……………………………. DATE: ……………………………..

NAME OF FIRM …………………………….
DATE …………………………….
12
 MBD 7.2

CONTRACT FORM - RENDERING OF SERVICES

PART 2 (TO BE FILLED IN BY THE PURCHASER)

1. I KM NEMANAME in my capacity as Municipal Manager accept your bid under reference

number 8/3/2/2083 dated …………………..for the rendering of services indicated hereunder
and/or further specified in the annexure(s).

2. An official order indicating service delivery instructions is forthcoming.

3. I undertake to make payment for the services rendered in accordance with the terms and
conditions of the contract, within 30 (thirty) days after receipt of an invoice.

B-BBEE
PRICE (ALL MINIMUM THRESHOLD
STATUS
DESCRIPTION OF APPLICABLE COMPLETI FOR LOCAL PRODUCTION
SERVICE LEVEL OF
TAXES ON DATE AND CONTENT (if
CONTRIBU
INCLUDED) applicable)
TION
PANEL OF CIVIL CONTRACTORS
N/A
FOR REHABILITATION AND N/A
REASEALING OF ROAD
EMERGENCY POTHOLES
PATCHING WITHIN MAKHADO
LOCAL MUNICIPALITY FOR THE
PERIOD OF THREE YEARS

4. I confirm that I am duly authorised to sign this contract.

SIGNED AT MAKHADO ON ………………………………..

NAME (PRINT) KM NEMANAME WITNESSES

SIGNATURE ………………………………………… 1 ….…………………………….

OFFICIAL STAMP 2 …..…………………………….

DATE: ……………………………..

13
 MBD 8

DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT PRACTICES

1 This Municipal Bidding Document must form part of all bids invited.

2 It serves as a declaration to be used by municipalities and municipal entities in ensuring that when goods and services are being
procured, all reasonable steps are taken to combat the abuse of the supply chain management system.

3 The bid of any bidder may be rejected if that bidder, or any of its directors have:

a. abused the municipality’s / municipal entity’s supply chain management system or committed any improper conduct in relation
to such system;

b. been convicted for fraud or corruption during the past five years;

c. willfully neglected, reneged on or failed to comply with any government, municipal or other public sector contract during the
past five years; or

d. been listed in the Register for Tender Defaulters in terms of section 29 of the Prevention and Combating of Corrupt Activities
Act (No 12 of 2004).

4 In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.

Item Question Yes No

4.1 Is the bidder or any of its directors listed on the National Treasury’s Database of Restricted Yes No
Suppliers as companies or persons prohibited from doing business with the public sector?
(Companies or persons who are listed on this Database were informed in writing of this

restriction by the Accounting Officer/Authority of the institution that imposed the restriction after

the audi alteram partem rule was applied).

The Database of Restricted Suppliers now resides on the National Treasury’s website

(www.treasury.gov.za) and can be accessed by clicking on its link at the bottom of the

home page.

4.1.1 If so, furnish particulars:

4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters in terms of Yes No
section 29 of the Prevention and Combating of Corrupt Activities Act (No 12 of 2004)?
The Register for Tender Defaulters can be accessed on the National Treasury’s website
(www.treasury.gov.za) by clicking on its link at the bottom of the home page.

4.2.1 If so, furnish particulars:

4.3 Was the bidder or any of its directors convicted by a court of law (including a court of law Yes No
outside the Republic of South Africa) for fraud or corruption during the past five years?

14
 4.3.1 If so, furnish particulars:

Item Question Yes No

4.4 Does the bidder or any of its directors owe any municipal rates and taxes or municipal charges Yes No
to the municipality / municipal entity, or to any other municipality / municipal entity, that is in
arrears for more than three months?

4.4.1 If so, furnish particulars:

4.5 Was any contract between the bidder and the municipality / municipal entity or any other organ Yes No
of state terminated during the past five years on account of failure to perform on or comply with
the contract?

4.7.1 If so, furnish particulars:

CERTIFICATION

I, THE UNDERSIGNED (FULL NAME) …………..……………………………. CERTIFY THAT THE INFORMATION FURNISHED ON THIS
DECLARATION FORM TRUE AND CORRECT

I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT, ACTION MAY BE TAKEN AGAINST ME SHOULD THIS
DECLARATION PROVE TO BE FALSE.

………………………………………... …………………………..
Signature Date

………………………………………. …………………………..
Position Name of Bidder

15
 MBD 9
CERTIFICATE OF INDEPENDENT BID DETERMINATION

1 This Municipal Bidding Document (MBD) must form part of all bids¹ invited.

2 Section 4 (1) (b) (iii) of the Competition Act No. 89 of 1998, as amended, prohibits an agreement between, or concerted practice by,
firms, or a decision by an association of firms, if it is between parties in a horizontal relationship and if it involves collusive bidding (or
bid rigging).² Collusive bidding is a per se prohibition meaning that it cannot be justified under any grounds.

3 Municipal Supply Regulation 38 (1) prescribes that a supply chain management policy must provide measures for the combating of
abuse of the supply chain management system, and must enable the accounting officer, among others, to:

a. take all reasonable steps to prevent such abuse;

b. reject the bid of any bidder if that bidder or any of its directors has abused the supply chain management system of the
municipality or municipal entity or has committed any improper conduct in relation to such system; and

c. cancel a contract awarded to a person if the person committed any corrupt or fraudulent act during the bidding process or the
execution of the contract.

4 This MBD serves as a certificate of declaration that would be used by institutions to ensure that, when bids are considered, reasonable
steps are taken to prevent any form of bid-rigging.

5 In order to give effect to the above, the attached Certificate of Bid Determination (MBD 9) must be completed and submitted with the
bid:

¹ Includes price quotations, advertised competitive bids, limited bids and proposals.

² Bid rigging (or collusive bidding) occurs when businesses, that would otherwise be expected to compete, secretly conspire to raise
prices or lower the quality of goods and / or services for purchasers who wish to acquire goods and / or services through a b idding
process. Bid rigging is, therefore, an agreement between competitors not to compete.

CERTIFICATE OF INDEPENDENT BID DETERMINATION

I, the undersigned, in submitting the accompanying bid:

________________________________________________________________________
(Bid Number and Description)
in response to the invitation for the bid made by:

______________________________________________________________________________
(Name of Municipality / Municipal Entity)

do hereby make the following statements that I certify to be true and complete in every respect:

I certify, on behalf of: _______________________________________________________that

(Name of Bidder)

1. I have read and I understand the contents of this Certificate;

16
 2. I understand that the accompanying bid will be disqualified if this Certificate is found not to be true and complete in every respect;
3. I am authorized by the bidder to sign this Certificate, and to submit the accompanying bid, on behalf of the bidder;
4. Each person whose signature appears on the accompanying bid has been authorized by the bidder to determine the terms of, and to
sign, the bid, on behalf of the bidder;
5. For the purposes of this Certificate and the accompanying bid, I understand that the word “competitor” shall include any individual or
organization, other than the bidder, whether or not affiliated with the bidder, who:

(a) has been requested to submit a bid in response to this bid invitation;
(b) could potentially submit a bid in response to this bid invitation, based on their qualifications, abilities or experience;
and
(c) provides the same goods and services as the bidder and/or is in the same line of business as the bidder

6. The bidder has arrived at the accompanying bid independently from, and without consultation, communication, agreement or
arrangement with any competitor. However communication between partners in a joint venture or consortium³ will not be construed as
collusive bidding.
7. In particular, without limiting the generality of paragraphs 6 above, there has been no consultation, communication, agreement or
arrangement with any competitor regarding:
(a) prices;
(b) geographical area where product or service will be rendered (market allocation)
(c) methods, factors or formulas used to calculate prices;
(d) the intention or decision to submit or not to submit, a bid;
(e) the submission of a bid which does not meet the specifications and conditions of the bid; or
(f) bidding with the intention not to win the bid.
8. In addition, there have been no consultations, communications, agreements or arrangements with any competitor regarding the quality,
quantity, specifications and conditions or delivery particulars of the products or services to which this bid invitation relates.
9. The terms of the accompanying bid have not been, and will not be, disclosed by the bidder, directly or indirectly, to any competitor, prior
to the date and time of the official bid opening or of the awarding of the contract
³ Joint venture or Consortium means an association of persons for the purpose of combining their expertise, property, capital, efforts,
skill and knowledge in an activity for the execution of a contract.

10. I am aware that, in addition and without prejudice to any other remedy provided to combat any restrictive practices related to bids and
contracts, bids that are suspicious will be reported to the Competition Commission for investigation and possible imposition of
administrative penalties in terms of section 59 of the Competition Act No 89 of 1998 and or may be reported to the National Prosecuting
Authority (NPA) for criminal investigation and or may be restricted from conducting business with the public sector for a period not
exceeding ten (10) years in terms of the Prevention and Combating of Corrupt Activities Act No 12 of 2004 or any other applicable
legislation.

………………………………………………… …………………………………
Signature Date

…………………………………………………. …………………………………
Position Name of Bidder
Js9141w 4

17
 THE NATIONAL TREASURY

Republic of South Africa

_____________________________________________________________________

GOVERNMENT PROCUREMENT:

GENERAL CONDITIONS OF CONTRACT

July 2010

1
 GOVERNMENT PROCUREMENT

GENERAL CONDITIONS OF CONTRACT

July 2010

NOTES

The purpose of this document is to:

(i) Draw special attention to certain general conditions

applicable to government bids, contracts and orders; and
(ii) To ensure that clients be familiar with regard to the rights
and obligations of all parties involved in doing business
with government.

In this document words in the singular also mean in the plural

and vice versa and words in the masculine also mean in the
feminine and neuter.

 The General Conditions of Contract will form part of

all bid documents and may not be amended.

 Special Conditions of Contract (SCC) relevant to a specific

bid, should be compiled separately for every bid (if
(applicable) and will supplement the General Conditions
of Contract. Whenever there is a conflict, the provisions
in the SCC shall prevail.

2
 TABLE OF CLAUSES

1. Definitions
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
33. National Industrial Participation Programme (NIPP)
34. Prohibition of restrictive practices

3
 General Conditions of Contract

1. Definitions 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 any thing of value to influence the action of a public official in the
procurement process or in contract execution.

1.5 "Countervailing duties" are imposed in cases where an enterprise

abroad is subsidized by its government and encouraged to market its
products internationally.

1.6 “Country of origin” means the place where the goods were mined,
grown or produced or from which the services are supplied. Goods are
produced when, through manufacturing, processing or substantial and
major assembly of components, a commercially recognized new
product results that is substantially different in basic characteristics or
in purpose or utility from its components.

1.7 “Day” means calendar day.

1.8 “Delivery” means delivery in compliance of the conditions of the

contract or order.

1.9 “Delivery ex stock” means immediate delivery directly from stock

actually on hand.

1.10 “Delivery into consignees store or to his site” means delivered and
unloaded in the specified store or depot or on the specified site in
compliance with the conditions of the contract or order, the supplier
bearing all risks and charges involved until the supplies are so
delivered and a valid receipt is obtained.

1.11 "Dumping" occurs when a private enterprise abroad market its goods
on own initiative in the RSA at lower prices than that of the country of
origin and which have the potential to harm the local industries in the

4
 RSA.

1.12 ”Force majeure” means an event beyond the control of the supplier and
not involving the supplier’s fault or negligence and not foreseeable.
Such events may include, but is not restricted to, acts of the purchaser
in its sovereign capacity, wars or revolutions, fires, floods, epidemics,
quarantine restrictions and freight embargoes.

1.13 “Fraudulent practice” means a misrepresentation of facts in order to

influence a procurement process or the execution of a contract to the
detriment of any bidder, and includes collusive practice among bidders
(prior to or after bid submission) designed to establish bid prices at
artificial non-competitive levels and to deprive the bidder of the
benefits of free and open competition.

1.14 “GCC” means the General Conditions of Contract.

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

1.16 “Imported content” means that portion of the bidding price represented
by the cost of components, parts or materials which have been or are
still to be imported (whether by the supplier or his subcontractors) and
which costs are inclusive of the costs abroad, plus freight and other
direct importation costs such as landing costs, dock dues, import duty,
sales duty or other similar tax or duty at the South African place of
entry as well as transportation and handling charges to the factory in
the Republic where the supplies covered by the bid will be
manufactured.

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

1.18 “Manufacture” means the production of products in a factory using

labour, materials, components and machinery and includes other
related value-adding activities.

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

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

1.21 “Purchaser” means the organization purchasing the goods.

1.22 “Republic” means the Republic of South Africa.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means those functional services ancillary to the supply of

the goods, such as transportation and any other incidental services,
such as installation, commissioning, provision of technical assistance,
training, catering, gardening, security, maintenance and other such

5
 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 5.1 The supplier shall not, without the purchaser’s prior written consent,
contract disclose the contract, or any provision thereof, or any specification,
documents plan, drawing, pattern, sample, or information furnished by or on
and behalf of the purchaser in connection therewith, to any person other
information;
than a person employed by the supplier in the performance of the
inspection.
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.

6
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 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, 8.1 All pre-bidding testing will be for the account of the bidder.
tests and
analyses 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

7
 analyzed and may be rejected if found not to comply with the
requirements of the contract. Such rejected supplies shall be held at the
cost and risk of the supplier who shall, when called upon, remove them
immediately at his own cost and forthwith substitute them with
supplies which do comply with the requirements of the contract.
Failing such removal the rejected supplies shall be returned at the
suppliers cost and risk. Should the supplier fail to provide the
substitute supplies forthwith, the purchaser may, without giving the
supplier further opportunity to substitute the rejected supplies,
purchase such supplies as may be necessary at the expense of the
supplier.

8.8 The provisions of clauses 8.4 to 8.7 shall not prejudice the right of the
purchaser to cancel the contract on account of a breach of the
conditions thereof, or to act in terms of Clause 23 of GCC.

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 10.1 Delivery of the goods shall be made by the supplier in accordance with
and documents 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 13.1 The supplier may be required to provide any or all of the following
services 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;

8
 (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 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 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 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

9
 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 fulfillment 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 purchaser’s request for bid validity
extension, as the case may be.

18. Contract 18.1 No variation in or modification of the terms of the contract shall be
amendments 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 purchaser’s prior written
consent.

20. Subcontracts 20.1 The supplier shall notify the purchaser in writing of all subcontracts
awarded under this contracts if not already specified in the bid. Such
notification, in the original bid or later, shall not relieve the supplier
from any liability or obligation under the contract.

21. Delays in the 21.1 Delivery of the goods and performance of services shall be made by
supplier’s the supplier in accordance with the time schedule prescribed by the
performance 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
supplier’s notice, the purchaser shall evaluate the situation and may at
his discretion extend the supplier’s time for performance, with or
without the imposition of penalties, in which case the extension shall
be ratified by the parties by amendment of contract.

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

10
 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 the supplier’s expense and
risk, or to cancel the contract and buy such goods as may be required
to complete the contract and without prejudice to his other rights, be
entitled to claim damages from the supplier.

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 23.1 The purchaser, without prejudice to any other remedy for breach of
for default 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.

23.3 Where the purchaser terminates the contract in whole or in part, the
purchaser may decide to impose a restriction penalty on the supplier by
prohibiting such supplier from doing business with the public sector for a
period not exceeding 10 years.

23.4 If a purchaser intends imposing a restriction on a supplier or any

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 person associated with the supplier, the supplier will be allowed a time
period of not more than fourteen (14) days to provide reasons why the
envisaged restriction should not be imposed. Should the supplier fail to
respond within the stipulated fourteen (14) days the purchaser may regard
the intended penalty as not objected against and may impose it on the
supplier.

23.5 Any restriction imposed on any person by the Accounting Officer /

Authority will, at the discretion of the Accounting Officer / Authority,
also be applicable to any other enterprise or any partner, manager,
director or other person who wholly or partly exercises or exercised or
may exercise control over the enterprise of the first-mentioned person,
and with which enterprise or person the first-mentioned person, is or was
in the opinion of the Accounting Officer / Authority actively associated.

23.6 If a restriction is imposed, the purchaser must, within five (5) working
days of such imposition, furnish the National Treasury, with the
following information:
(i) the name and address of the supplier and / or person restricted by the
purchaser;
(ii) the date of commencement of the restriction
(iii) the period of restriction; and
(iv) the reasons for the restriction.

These details will be loaded in the National Treasury’s central database

of suppliers or persons prohibited from doing business with the public
sector.

23.7 If a court of law convicts a person of an offence as contemplated in

sections 12 or 13 of the Prevention and Combating of Corrupt Activities
Act, No. 12 of 2004, the court may also rule that such person’s name be
endorsed on the Register for Tender Defaulters. When a person’s name
has been endorsed on the Register, the person will be prohibited from
doing business with the public sector for a period not less than five years
and not more than 10 years. The National Treasury is empowered to
determine the period of restriction and each case will be dealt with on its
own merits. According to section 32 of the Act the Register must be
open to the public. The Register can be perused on the National Treasury
website.

24. Anti-dumping 24.1 When, after the date of bid, provisional payments are required, or anti-
and countervailing dumping or countervailing duties are imposed, or the amount of a
duties and rights provisional payment or anti-dumping or countervailing right is
increased in respect of any dumped or subsidized import, the State is
not liable for any amount so required or imposed, or for the amount of
any such increase. When, after the said date, such a provisional
payment is no longer required or any such anti-dumping or
countervailing right is abolished, or where the amount of such
provisional payment or any such right is reduced, any such favourable
difference shall on demand be paid forthwith by the contractor to the
State or the State may deduct such amounts from moneys (if any)
which may otherwise be due to the contractor in regard to supplies or
services which he delivered or rendered, or is to deliver or render in
terms of the contract or any other contract or any other amount which

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 may be due to him

25. Force 25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the
Majeure 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 26.1 The purchaser may at any time terminate the contract by giving written
for insolvency 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 27.1 If any dispute or difference of any kind whatsoever arises between the
Disputes 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
28.1 Except in cases of criminal negligence or willful misconduct, and in
liability
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

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 (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.
29. Governing 29.1 The contract shall be written in English. All correspondence and other
language documents pertaining to the contract that is exchanged by the parties
shall also be written in English.

30. Applicable 30.1 The contract shall be interpreted in accordance with South African
law 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 of such notice.

32. Taxes and 32.1 A foreign supplier shall be entirely responsible for all taxes, stamp
duties 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 contracted 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.

33. National 33.1 The NIP Programme administered by the Department of Trade and
Industrial Industry shall be applicable to all contracts that are subject to the
Participation (NIP) NIP obligation.
Programme

34 Prohibition of
Restrictive practices 34.1 In terms of section 4 (1) (b) (iii) of the Competition Act No. 89 of
1998, 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).

34.2 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. 89 of 1998.

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34.3 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.

Js General Conditions of Contract (revised July 2010)

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