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.
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