Issue Date: 
Monday, August 15, 2016

Cancelation of Government Tenders

Many who have responded to Government tenders have been disappointed when a tender is cancelled. Many days and nights’ worth of effort is wasted when the bad news is received.

The question is – do Government entities have the right to cancel tenders?

Government entities do have the authority to cancel a tender before it has been awarded. Regulation 12 stipulates that a tender can be cancelled –

  • Due to a change in circumstances – for example there is no longer a need for the goods or services specified in the tender invitation;
  • There are no funds available to cover the cost of the expenditure;
  • Or no acceptable tender offerings have been received.

The decision to cancel a tender must be published in the same manner in which the original tender invitation was advertised.

If an Organ of State wants to cancel a tender invitation for a second time, it must get prior approval for National Treasury.

To learn more about this and many other tender conditions please attend one of the How-to-Tender workshops.

Learn to earn

www.how2tender.co

When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the... Read More
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