Issue Date: 
Thursday, January 31, 2019

Extension of validity period

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Those of you who are familiar with responding to tenders will know that it is common practice for procuring entities to extend the bid price validity period. We received the undermentioned queries regarding the extension of the validity period of the bid price.

The client stated that they are 3 companies bidding on an Organ of State tender. It is quite a complicated tender and the Organ of State asked for an extension of validity. The client thinks that there are other forces at play and wants to request that the tender must be cancelled. The question is: if they decline the extension of validity, is there any law forcing the Organ of State to cancel the tender?

We are not legal consultants or attorneys thus we cannot give a legal opinion. We can give advice on the tender processes. Here is our take on the scenario mentioned above:

  • Organs of State do have the authority to extend the validity period of a tender;
  • If you decline to meet the validity period your tender response will be marked as non-responsive and your tender response will not be considered for evaluation;
  • There is no law which we are aware of that a tender must be cancelled if one of the responders declines the validity extension;
  • According to Regulation 13 of the Preferential Procurement Regulations, 2017, a tender can be cancelled:
    • Due to a change in circumstances;
    • There are no funds available;
    • No acceptable tender offerings have been received;
    • There is a material irregularity in the tender process;

The best advice we can give is to be aware of any extensions of validity that might arise from the tender that you’re responding to. Remember to keep an eye on your fax machine – if you still have land-line fax machine – Organs of State likes to fax extensions of validity. Normally an email would be the preferred communication method.

If you do receive a request for extension of validity it is good practice to double check your cost prices from 3rd party suppliers to ensure that the prices are still in order. If the prices are in order then sign the extension of validity and sent it back before the deadline.

If you cannot extend the validity period and decline the extension of validity, your tender response will be marked as non-responsive and won’t be evaluated any more.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth and Cape Town. Book and pay online at www.howtotender.co.za. Please contact Estelle at Estelle@howtotender.co.za should you require more information.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Appointment of professional service provider to manage restoration and invasive plant projects for 4 months: March 2019 – June 2019 2019-02-26 12:00 334/2018/19
Appointment Of A Service Provider For Supply, Delivery And Off-Loading Of Fire Tunic For City Of Mbombela For A period Of 36 Months 2019-03-05 11:00 164/2018
Supply and delivery of electrical cables for a period of three years. 2019-03-20 12:00 51/2018/19
Procurement of accommodation to support the march 2019 grade 12 SSIP Camps 2019-03-01 12:00 CS/SCM/TDU/SSIP/R18-19/37
Appointment of Three (03) Service Providers to Print, Supply and Deliver Stationery for a period of three (03) years 2019-03-20 10:00 PM104/2018
Lambani Bridge 2019-03-20 11:00 47/2018/2019
Supply and delivery of stationery and office supplies for a period of one (1) year 2019-03-06 12:00 52/2018/19
Supply and delivery of cleaning and maintenance products (highly concentrated and concentrated) for a period of one (1) year 2019-03-06 12:00 53/2018/19
Construction of Gwangwatini to Ngalavhani low-level river crossing 2019-03-25 11:00 48/2018/2019
Supply, delivery and installation of 5MVA transformer with auxiliary items at SS5 substation 2019-03-08 14:00 SCM/BID14/2018/19
Appointment of a service provider: Intabazwe / Harrismith extension 3 new surfaced roads Phase 2 2019-03-22 14:00 SCM/BID13/2018/19
Appointment of a service provider: Construction of sewer reticulation network in Namahadi 2019-03-22 14:00 SCM/BID12/2018/19
Appointment of a service provider: Upgrade of Motebang Street in Qwaqwa: 1km – Phase 1 2019-03-22 14:00 SCM/BID11/2018/19
Request for proposal to develop a market development plan for South African manufactured chemicals 2019-03-12 12:00 T03/02/19
Request for sector development and implementation plan to support sustainable veterinary pharmaceutical industry development in South Africa 2019-03-11 12:00 T02/02/19
Department of Science and Technology: Appointment of a service provider to pilot Bio-cultural Community Protocol in Mpumalanga Province 2019-03-04 13:00 RFQ-0000063
Invitation for project tenders (Phase 1): The Uniting Reformed Church Atteridgeville - Alterations and additions to existing church buildings on Erf 1088 no. 19 Matseke Street 2019-03-12 12:00 No reference supplied
Insurance for Msukaligwa Local Municipality for a period of three (3) years. 2019-03-18 11:00 8/3 27/2018
Maintenance of highmast lights: as and when required for the period ending 30 June 2019. 2019-03-18 11:00 8/3 26/2018
Repairing of open kiosk/mini-sub/ pole mounted transformers: as and when required for the period ending 30 June 2019. 2019-03-18 11:00 8/3 25/2018

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8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures.

There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or... Read More

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