Tender Agreement for South Africa

Tender Agreement Template for South Africa

A comprehensive legal document governed by South African law that establishes the framework for participation in a formal tender process. The agreement incorporates requirements under the Public Finance Management Act, Preferential Procurement Policy Framework Act, and B-BBEE legislation, setting out the terms and conditions for tender submission, evaluation criteria, and compliance requirements. It includes detailed specifications for the goods or services being procured, pricing structures, and mandatory statutory requirements specific to South African public procurement.

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What is a Tender Agreement?

The Tender Agreement serves as the primary contractual document in South African procurement processes, used when organizations, particularly government entities and state-owned enterprises, seek to procure goods or services through a competitive bidding process. This document type is essential for compliance with South African procurement legislation, including the Public Finance Management Act and the Preferential Procurement Policy Framework Act. It must incorporate specific elements such as B-BBEE requirements, local content provisions where applicable, and anti-corruption measures. The Tender Agreement typically includes detailed specifications, evaluation criteria, pricing schedules, and compliance requirements, ensuring a fair, transparent, and competitive procurement process as mandated by Section 217 of the South African Constitution.

What sections should be included in a Tender Agreement?

1. Parties: Identification of the tendering authority and the tenderer, including registration details and business addresses

2. Background: Context of the tender, including the tender reference number and brief description of the procurement need

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Scope of Tender: Detailed description of the goods/services being procured and tender requirements

5. Tender Submission Requirements: Format, content, and deadline requirements for tender submission

6. Evaluation Criteria: Detailed breakdown of evaluation methodology and scoring criteria

7. Price and Payment Terms: Pricing structure, payment terms, and related conditions

8. B-BBEE Requirements: Specific requirements regarding B-BBEE compliance and certification

9. Legal Compliance: Compliance with relevant laws, regulations, and procurement policies

10. Warranties and Representations: Standard warranties regarding capacity, authority, and accuracy of tender information

11. Confidentiality: Provisions regarding confidential information handling and disclosure

12. Anti-Corruption Provisions: Compliance with anti-corruption laws and ethical conduct requirements

13. Dispute Resolution: Procedures for handling disputes and specified jurisdiction

14. General Terms: Standard contractual provisions including notices, amendments, and severability

What sections are optional to include in a Tender Agreement?

1. Local Content Requirements: Required for tenders subject to local content designation requirements

2. Construction Industry Requirements: Required for construction-related tenders, including CIDB compliance

3. Environmental Compliance: Required for tenders with environmental impact considerations

4. Security Requirements: Required when bid security or performance bonds are needed

5. Subcontracting: Required when subcontracting is permitted or mandatory

6. Joint Venture Provisions: Required when joint ventures are permitted to tender

7. Insurance Requirements: Required for high-risk or high-value tenders

8. Intellectual Property: Required when IP rights are relevant to the tender

What schedules should be included in a Tender Agreement?

1. Schedule A - Scope of Work: Detailed specifications of required goods/services

2. Schedule B - Pricing Schedule: Detailed breakdown of pricing and cost components

3. Schedule C - Mandatory Documents: List of required statutory documents and certifications

4. Schedule D - B-BBEE Documentation: B-BBEE certificates and supporting documentation

5. Schedule E - Technical Requirements: Detailed technical specifications and requirements

6. Schedule F - Key Personnel: Details of key personnel and their qualifications

7. Schedule G - Time Frames: Project timelines and delivery schedules

8. Schedule H - Performance Standards: Specified performance metrics and service levels

9. Appendix 1 - Standard Forms: Standard forms required for tender submission

10. Appendix 2 - Declaration of Interest: Forms for declaring any conflicts of interest

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

South Africa

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Government and Public Sector

Construction and Infrastructure

Information Technology

Healthcare

Transportation and Logistics

Energy and Utilities

Mining and Resources

Manufacturing

Professional Services

Education

Telecommunications

Defense and Security

Relevant Teams

Legal

Procurement

Compliance

Finance

Operations

Risk Management

Supply Chain

Commercial

Project Management

Business Development

Bid Office

Corporate Affairs

Relevant Roles

Procurement Manager

Legal Counsel

Compliance Officer

Tender Specialist

Contract Manager

Commercial Director

Chief Financial Officer

Project Manager

Bid Manager

Supply Chain Manager

B-BBEE Consultant

Risk Manager

Operations Director

Chief Executive Officer

Industries
Constitution of South Africa (Act 108 of 1996): Section 217 specifically deals with procurement and requires that when an organ of state contracts for goods or services, it must do so in accordance with a system that is fair, equitable, transparent, competitive and cost-effective
Public Finance Management Act (Act 1 of 1999): Regulates financial management in national and provincial governments and ensures that all revenue, expenditure, assets and liabilities are managed efficiently and effectively
Preferential Procurement Policy Framework Act (Act 5 of 2000): Provides for the implementation of preferential procurement policies and the framework within which government departments must implement their procurement policies
Broad-Based Black Economic Empowerment Act (Act 53 of 2003): Establishes the legislative framework for the promotion of black economic empowerment and must be considered in government procurement processes
Prevention and Combating of Corrupt Activities Act (Act 12 of 2004): Provides for the strengthening of measures to prevent and combat corruption and corrupt activities in procurement processes
Competition Act (Act 89 of 1998): Promotes and maintains competition in South Africa and prevents anti-competitive behavior in tender processes
Municipal Finance Management Act (Act 56 of 2003): Regulates financial management in local government and includes specific provisions for municipal procurement processes
Construction Industry Development Board Act (Act 38 of 2000): Specifically relevant for construction-related tenders, providing the regulatory framework for construction procurement
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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