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

Tenders, B-BBEE and the new Preferential Procurement Regulations 2017

We have previously asked: How important is a good B-BBEE status level of contributor in the tender process?

The answer is still the same: VERY IMPORTANT!

In all tender documents, you will find the NEW Standard Bidding Document 6.2 which is used to claim your Preference Points for B-BBEE. The higher your B-BBEE status level of contributor, the more points you will score on the Preference Points System. Ultimately the bidder or bidders scoring the highest points will be awarded the tender.

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