Cancelation of Government Tenders
Many of you who have responded to Government tenders have been disappointed when a tender is cancelled. You have put in many days and nights' worth of effort just to receive the bad news the tender is cancelled.
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 13 of the Preferential Procurement Regulations, 2017 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;
- No acceptable tender offerings have been received;
- There is a material irregularity in the tender process.
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 our How-to-Tender workshops. For more information on the tender courses please email Werner at email@example.com.
This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.