Cancelation of Government Tenders
By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.
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 unwelcome 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 way 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 attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town. Book and pay online at https://howtotender.co.za/tender-expert-form/
Contact us at wernervr@howtotender.co.za should you require more information.
You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender. It includes examples of completed SBD forms.
