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VOLUME 9:
INFRASTRUCTURE AND CONSTRUCTION
PROCUREMENT
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48. ALIGNMENT WITH SCM FOR GENERAL GOODS AND SERVICES
The SCM System provides for two parts addressing General Goods and Services and Infrastructure and Construction
Procurement. The latter has be read and applied together with the Standard for Construction Procurement and the Standard for
Infrastructure Procurement.
When applying the SCM System in relation to infrastructure and construction, this Module will have to be applied and aligned with
other parts of the SCM System as follows:
Terminology
Legislative Environment.
Overall Objectives.
Procurement principles.
Planning
SCM functions, unit ad capacity building
Authority to execute.
Roles and responsibilities.
SCM Governance.
Establishment and management of Bid Committees.
Needs analysis.
Database of suppliers.
Deviations.
Emergency procurement.
Organs of State.
Unsolicited bids.
Grants.
Contract management.
Asset Management.
Disposal Management.
Risk Management.
SCM Performance Review
Reporting of Supply Chain Management Information.
Safeguarding of SCM Information.
49. CIDB
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Construction Industry Development Board Act (CIDBA), 2000 (Act 38 of 2000)
According to section 22 of the Bill of Rights in the Constitution, 1996, every citizen has the right to choose their trade,
occupation or profession freely.
Certain government Departments, for example the provincial Department of Transport and Public Works, are mandated to
deliver economic and social infrastructure, such as roads, school buildings, hospital buildings and general office buildings and
to maintain these immoveable assets. In the execution of its mandate such a government Department contracts with services
providers from the construction industry.
Although access to contract opportunities has been widely promoted by government, the sustainability of small contractors is
perceived to be jeopardised by, inter alia: some public sector employees that are not committed to procurement reform;
complicated tender documentation; lack of standardisation within the public sector and the awarding of contracts to the lowest
bidder that affects the sustainability of real contractors.
The Construction Industry Development Board (CIDB), a national body established by the CIDBA, 2000 is, inter alia,
responsible for developing the industry for the improved delivery of infrastructure to the South African public; working with all
stakeholders for the sustainable growth of construction enterprises and the best practice of employers, contractors and the
professions; identifying best practice and setting national standards; and promoting common and ethical standards for
construction delivery and contracts.
Taking a closer view at the powers, functions and duties of the CIDB in relation to SCM matters, one comes to the realisation
that this body affects the procurement processes of applicable government Departments significantly. The powers, functions
and duties include, inter alia, the following:
a. To provide strategic leadership, the CIDB must promote and implement policies, programmes and projects aimed
at, amongst others, procurement reform, standardisation and uniformity in procurement documentation, practices
and procedures.
b. To advance the uniform application of policy with regard to the construction industry, the CIDB must within the
framework of the procurement policy of government promote the standardisation of the procurement process with
regard to the construction industry.
c. To promote uniform and ethical standards within the construction industry, the CIDB must publish a code of
conduct for all construction related procurement and all participants involved in the procurement process.
Furthermore, the CIDB may in this context initiate, promote and implement national programmes and projects
aimed at the standardisation of procurement documentation, practices and procedures.
d. To promote sustainable growth of the construction industry and the participation of the emerging sector therein,
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the CIDB may monitor national programmes aimed at amongst other procurement reform and standardisation
and uniformity in procurement documentation, practices and procedures.
Furthermore, the CIDBA, 2000 requires that the national Minister responsible for Public Works must prescribe the manner in
which public sector construction contracts may be invited, awarded and managed within the framework of the Register of
Contractors and within the framework of the policy on procurement. It also requires that every government Department, must,
subject to the policy on procurement, apply the Register of Contractors to its procurement process.
From the above it is clear that SCM is regulated by two main authorities, namely the National Treasury for general goods and
services and the Construction Industry Development Board for infrastructure procurement.
The CIDB also maintain its own website which provides for a:
a. Compendium of relevant Legislation
b. Application of the Construction Register
c. Compendium of relevant CIDB practice notes
Table 25-CIDB Compendium of Legislation
Act Name Act Number & Year Responsible Ministry Category
Abolition of Certain Title Conditions Act, 1999 Act 43 of 1999
Housing Specific to the Construction Industry
Adult Basic Education and Training Act, 2000 Act 52 of 2000
Education Other Relevant Legislation
Arbitration Act, 1965 Act 42 of 1965
Justice Other Relevant Legislation
Architectural Profession Act, 2000 Act 44 of 2000
Public Works Specific to the Construction Industry
Atmospheric Pollution Prevention Act, 1965 Act 45 of 1965
Environmental Affairs and Tourism Indirectly Impacting the Construction
Industry
Basic Conditions of Employment Act, 1997 Act 75 of 1997
Labour Directly Impacting the Construction Industry
Bill of Rights - Constitution of the Republic of South Africa (Chapter 2), 1996 Act 108 of 1996
Justice
Other Relevant Legislation
Board on Tarriffs and Trade Act, 1986 Act 107 of 1986
Trade and Industry Other Relevant Legislation
Broad-Based Black Economic Empowerment Act, 2003 Act 53 of 2003
Trade and Industry Directly Impacting the Construction Industry
Business Act, 1991 Act 71 of 1991
Trade and Industry Indirectly Impacting the Construction
Industry
Business Names Act, 1960 Act 27 of 1960
Trade and Industry Other Relevant Legislation
Close Corporations Act, 1984 Act 69 of 1984
Finance Indirectly Impacting the Construction
Industry
Communal Land Rights Act, 2004 Act 11 of 2004
Land Affairs Directly Impacting the Construction Industry
Communal Property Associations Act, 1996 Act 28 of 1996
Land Affairs Directly Impacting the Construction Industry
Companies Act, 1973 Act 61 of 1973
Finance Indirectly Impacting the Construction
Industry
Compensation for Occupational Injuries and Diseases Act, 1993 Act 130 of 1993
Labour Directly Impacting the Construction Industry
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Act Name Act Number & Year Responsible Ministry Category
Competition Act, 1998 Act 89 of 1998
Trade and Industry Directly Impacting the Construction Industry
Constitution of the Republic of South Africa, 1996 Act 108 of 1996
Justice Other Relevant Legislation
Construction Industry Development Board Act, 2000 Act 38 of 2000
Public Works Specific to the Construction Industry
Consumer Affairs (Unfair Business Practices) Act, 1988 Act 71 of 1988
Trade and Industry Indirectly Impacting the Construction
Industry
Convention on Agency in the International Sale of Goods Act, 1986 Act 4 of 1986
Trade and Industry Other Relevant Legislation
Conventional Penalties Act, 1962 Act 15 of 1962
Justice Other Relevant Legislation
Conversion of SASRIA Act, 1998 Act 134 of 1998
Justice Indirectly Impacting the Construction
Industry
Copyright Act, 1978 Act 98 of 1978
Trade and Industry Other Relevant Legislation
Council for the Built Environment Act, 2000 Act 43 of 2000
Public Works Specific to the Construction Industry
Counterfeit Goods Act, 1997 Act 37 of 1997
Trade and Industry Other Relevant Legislation
Credit Agreements Act, 1980 Act 75 of 1980
Trade and Industry Indirectly Impacting the Construction
Industry
Customs and Excise Act, 1964 Act 91 of 1964
Customs and Excise Other Relevant Legislation
Deeds Registries Act, 1937 Act 47 of 1937
Land Affairs Directly Impacting the Construction Industry
Designs Act, 1993 Act 195 of 1993
Trade and Industry Indirectly Impacting the Construction
Industry
Development Facilitation Act, 1995 Act 67 of 1995
Trade and Industry Specific to the Construction Industry
Employment Equity Act, 1998 Act 55 of 1998
Labour Directly Impacting the Construction Industry
Engineering Profession Act, 2000 Act 46 of 2000
Public Works Specific to the Construction Industry
Environment Conservation Act, 1989 Act 73 of 1989
Environmental Affairs and Tourism Directly Impacting the Construction Industry
Estate Agency Affairs Act, 1976 Act 112 of 1976
Housing Specific to the Construction Industry
Explosives Act, 2003 Act 15 of 2003
Safety and Security Directly Impacting the Construction Industry
Export Credit and Foreign Investments Insurance Act, 1957 Act 78 of 1957
Customs and Excise Other Relevant Legislation
Expropriation Act, 1975 Act 63 of 1975
Trade and Industry Indirectly Impacting the Construction
Industry
Extension of Security of Tenure Act, 1997 Act 62 of 1997
Land Affairs Directly Impacting the Construction Industry
Fencing Act, 1963 Act 31 of 1963
Land Affairs Directly Impacting the Construction Industry
Further Education and Training Act, 1998 Act 98 of 1998
Education Other Relevant Legislation
General and Further Education and Training Quality Assurance Act, 2001 Act 58 of 2001
Education
Other Relevant Legislation
Harbour Construction Act, 1972 Act 28 of 1972
Transport Specific to the Construction Industry
Hazardous Substances Act, 1973 Act 15 of 1973
Environmental Affairs and Tourism Indirectly Impacting the Construction
Industry
Higher Education Act,1997 Act 101 of 1997
Education Other Relevant Legislation
Housing Act, 1997 Act 107 of 1997
Housing Specific to the Construction Industry
Housing Consumers Protection Measures Act, 1998 Act 95 of 1998
Housing Specific to the Construction Industry
Housing Development Schemes for Retired Persons Act, 1988 Act 65 of 1988
Housing Specific to the Construction Industry
Identification Act, 1997 Act 68 of 1997
Home Affairs Other Relevant Legislation
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Act Name Act Number & Year Responsible Ministry Category
Immigration Act, 2002 Act 13 of 2002
Home Affairs Other Relevant Legislation
Import and Export Control Act, 1963 Act 45 of 1963
Customs and Excise Other Relevant Legislation
Income Tax Act, 1962 Act 58 of 1962
Finance Indirectly Impacting the Construction
Industry
Industrial Development Act, 1940 Act 22 of 1940
Trade and Industry Other Relevant Legislation
Insider Trading Act, 1998 (Repealed) Act 135 of 1998
Trade and Industry Indirectly Impacting the Construction
Industry
International Convention for Safe Containers Act, 1985 Act 11 of 1985
Trade and Industry Other Relevant Legislation
Labour Relations Act, 1995 Act 66 of 1995
Labour Directly Impacting the Construction Industry
Land Administration Act, 1995 Act 2 of 1995
Land Affairs Directly Impacting the Construction Industry
Land Affairs Act, 1987 Act 101 of 1987
Land Affairs Directly Impacting the Construction Industry
Land Survey Act, 1997 Act 8 of 1997
Land Affairs Directly Impacting the Construction Industry
Landscape Architectural Profession Act, 2000 Act 45 of 2000
Public Works Specific to the Construction Industry
Local Government Transitional Act, 1993 Act 209 of 1993
Provincial and Local Government Directly Impacting the Construction Industry
Manufacturing Development Act, 1993 Act 187 of 1993
Trade and Industry Other Relevant Legislation
Measuring Units and National Measuring Standards Act, 1973 Act 76 of 1973
Trade and Industry Other Relevant Legislation
Medical Schemes Act, 1998 Act 131 of 1998
Health Indirectly Impacting the Construction
Industry
Merchandise Marks Act, 1941 Act 17 of 1941
Trade and Industry Other Relevant Legislation
Mine Health and Safety Act, 1996 Act 29 of 1996
Minerals and Energy Indirectly Impacting the Construction
Industry
Mineral and Petroleum Resources Development Act, 2002 Act 28 of 2002
Minerals and Energy Directly Impacting the Construction Industry
Municipal Demarcation Act, 1998 Act 27 of 1998
Provincial and Local Government Directly Impacting the Construction Industry
Municipal Finance Mangement Act, 2003 Act 56 of 2003
Finance Indirectly Impacting the Construction
Industry
Municipal Property Rates Act, 2004 Act 6 of 2004
Provincial and Local Government Specific to the Construction Industry
Municipal Structures Act, 1998 Act 117 of 1998
Provincial and Local Government Specific to the Construction Industry
Municipal Systems Amendment Act, 2003 Act 44 of 2003
Provincial and Local Government Directly Impacting the Construction Industry
National Building Regulations and Building Standards Act, 1977 Act 103 of 1977
Trade and Industry Specific to the Construction Industry
National Education Policy Act, 1996 Act 27 of 1996
Education Other Relevant Legislation
National Empowerment Fund Act, 1998 Act 105 of 1998
Trade and Industry Other Relevant Legislation
National Environmental Management Act, 1998 Act 107 of 1998
Environmental Affairs and Tourism Directly Impacting the Construction Industry
National Health Act, 2003 Act 61 of 2003
Health Indirectly Impacting the Construction
Industry
National Heritage Resources Act, 1999 Act 25 of 1999
Arts Culture Science and
Technology Other Relevant Legislation
National Roads Act, 1971 Act 54 of 1971
Transport Directly Impacting the Construction Industry
National Small Enterprise Act, 1996 Act 102 of 1996
Trade and Industry Indirectly Impacting the Construction
Industry
National Water Act, 1998 Act 36 of 1998
Environmental Affairs and Tourism Indirectly Impacting the Construction
Industry
Occupational Health and Safety Act,1993 Act 85 of 1993 Directly Impacting the Construction Industry
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Act Name Act Number & Year Responsible Ministry Category
Labour
Patents Act, 1978 Act 57 of 1978
Trade and Industry Other Relevant Legislation
Physical Planning Act, 1991 Act 125 of 1991
Land Affairs Specific to the Construction Industry
Planning Profession Act, 2002 Act 36 of 2002
Land Affairs Directly Impacting the Construction Industry
Preferential Procurement Policy Framework Act, 2000 Act 5 of 2000
Finance Directly Impacting the Construction Industry
Prevention and Combatting of Corrupt Activities Act, 1994 Act 12 of 2004
Justice Indirectly Impacting the Construction
Industry
Prevention of Illegal Eviction from Unlawful Occupation of Land Act, 1998 Act 19 of 1998
Housing
Directly Impacting the Construction Industry
Professional and Technical Surveyors' Act, 1984 Act 40 of 1984
Land Affairs Directly Impacting the Construction Industry
Project and Construction Management Professions Act, 2000 Act 48 of 2000
Public Works Specific to the Construction Industry
Promotion of Access to Information Act, 2000 Act 2 of 2000
Justice Indirectly Impacting the Construction
Industry
Promotion of Administrative Justice Act, 2000 Act 3 of 2000
Justice Indirectly Impacting the Construction
Industry
Promotion of Equality and Prevention of Unfair Discrimination Act, 2000 Act 4 of 2000
Justice Indirectly Impacting the Construction
Industry
Property Time Sharing Control Act, 1983 Act 75 of 1983
Trade and Industry Specific to the Construction Industry
Property Valuers Profession Act, 2000 Act 47 of 2000
Public Works Specific to the Construction Industry
Protected Disclosures Act, 2000 Act 26 of 2000
Justice Other Relevant Legislation
Protection of Businesses Act, 1978 Act 99 of 1978
Trade and Industry Indirectly Impacting the Construction
Industry
Public Finance Management Act, 1999 Act 1 of 1999
Finance Directly Impacting the Construction Industry
Public Holidays Act, 1994 Act 36 of 1994
Home Affairs Other Relevant Legislation
Public Protector Act, 1994 Act 23 of 1994
Justice Indirectly Impacting the Construction
Industry
Quantity Surveying Profession Act, 2000 Act 49 of 2000
Public Works Specific to the Construction Industry
Reconstruction and Development Programme Fund Act, 1994 Act 7 of 1994
Without Portfolio Other Relevant Legislation
Regional Services Councils Act, 1985 Act 109 of 1985
Provincial and Local Government Directly Impacting the Construction Industry
Rental Housing Act, 1999 Act 50 of 1999
Housing Specific to the Construction Industry
Sales and Service Matters Act, 1964 Act 25 of 1964
Trade and Industry Other Relevant Legislation
Scientific Research Council Act, 1988 Act 46 of 1988
Arts Culture Science and
Technology Directly Impacting the Construction Industry
Sectional Titles Act, 1986 Act 95 of 1986
Housing Specific to the Construction Industry
Share Blocks Control Act, 1980 Act 59 of 1980
Trade and Industry Specific to the Construction Industry
Short Term Insurance Act, 1998 Act 53 of 1998
Finance Indirectly Impacting the Construction
Industry
Skills Development Act, 1998 Act 97 of 1998
Labour Directly Impacting the Construction Industry
Skills Development Levies Act, 1998 Act 9 of 1999
Labour Directly Impacting the Construction Industry
South African Citizenship Act, 1995 Act 88 of 1995
Home Affairs Other Relevant Legislation
South African National Roads Agency Limited Act, 1998 Act 7 of 1998
Transport Directly Impacting the Construction Industry
South African Qualifications Authority Act, 1995 Act 58 of 1995
Education Directly Impacting the Construction Industry
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Act Name Act Number & Year Responsible Ministry Category
South African Revenue Service Act, 1997 Act 34 of 1997
Finance Indirectly Impacting the Construction
Industry
Standards Act, 1993 Act 29 of 1993
Trade and Industry Other Relevant Legislation
State Land Disposal Act, 1961 Act 48 of 1961
Land Affairs Other Relevant Legislation
State Tender Board Act, 1968 Act 86 of 1968
Legislation that has been repealed Directly Impacting the Construction Industry
Town and Regional Planners Act, 1984 (Repealed) Act 19 of 1984
Legislation that has been repealed Specific to the Construction Industry
Trade Marks Act, 1993 Act 194 of 1993
Trade and Industry Other Relevant Legislation
Trade Metrology, 1973 Act 77 of 1973
Trade and Industry Other Relevant Legislation
Unemployment Insurance Act, 2001 Act 63 of 2001
Labour Directly Impacting the Construction Industry
Unemployment Insurance Contribution Act, 2002 Act 4 of 2002
Labour Directly Impacting the Construction Industry
Usury Act, 1968 Act 73 of 1968
Finance Other Relevant Legislation
Value Added Tax Act, 1991 Act 89 of 1991
Finance Indirectly Impacting the Construction
Industry
Water Services Act, 1997 Act 108 of 1997
Environmental Affairs and Tourism Indirectly Impacting the Construction
Industry
Construction Register
i-Tender is established by the Construction Industry Development Board (cidb) as part of the national Construction
Registers Service. It gives effect to the national Register of Projects and is electronically linked to the national Register of
Contractors.
iTender enables clients:
to advertise tenders on the ci b website automatically alerting contractors who are registered with cidb, by e-mail
and sms
to register projects by logging award of contracts on the same website
to comply easily with legislative requirements.
i-Tender is provided by the cidb to link supply and demand for the benefit of contractors and clients and to facilitate
construction procurement, client delivery and contractor development.
iTender is a fully electronic national information service.
The basic service is free to clients and registered contractors.
CIDB PRACTICE NOTES
Practice Note Name Description
Practice Note 1: Scaling up Delivery and Accelerating
Empowerment (version 1 - August 2006)
This Practice Note identifies systemic problems in scaling up delivery and accelerating empowerment, and
outlines fresh approaches in contracting strategies that increase the size and duration of contracts to
enable: 1. enhanced delivery and the efficient use of resources; 2. sustainable enterprise growth,
employment, workforce skills development and sustainable empowerment.
Practice Note 2: Correcting Arithmetical Errors in Tenders
(Version 3 – February 2008)
This Practice Note sets out the manner in which arithmetical corrections are to be made in the evaluation of
tenders in accordance with the cidb Standard Conditions of Tender.
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Practice Note Name Description
Practice Note 3: Applying the Register of Contractors in
Construction Works Contracts (Version 2 -
February 2008)
This Practice Note identifies which contractors need to register, describes the categories of registration, the
contractor grading designations and establishes a step by step procedure to satisfy the requirements of the
regulations (as amended up to 23 November 2007) in relation to quotations, tenders and expressions of
interest.
Practice Note 4: Procuring Best Value in Construction Works
(Version 2 – February 2008)
This Practice Note describes the process that should be followed when seeking to optimise choices that are
made in order to obtain best value. It also outlines the range of options that are available to optimise
procurement outcomes.
Practice Note 5: Evaluating Tender Offers (Version 2 –
February 2008)
This Practice Note sets out the manner in which tender offers are to be evaluated in accordance with
Standard Conditions of Tender when using a competitive selection procedure
Practice Note 6: Competitive Selection of Professional
Service Providers (Version 2 – February
2008)
This Practice Note identifies the fundamental reasons for procuring professional services and the key
considerations in engaging professional service providers. It discusses professional registration with a
statutory body and identifies a number of differentiators between professionals and professional service
providers that form the cornerstone of any competitive selection process.
Practice Note 7: Subcontracting Arrangements (Version 1 -
May 2007)
This Practice Note examines the different types of subcontractors that are encountered in construction
works, namely nominated, selected and domestic. It presents an overview of the subcontracting provision of
the FIDIC, GCC 2004, JBCC Series 2000 and NEC3 standard forms of contract as well as the cidb
registration requirements and other public sector requirements
Practice Note 8: Consultation for Remuneration (Version 1 -
November 2007)
The practice note presents an overview of the different methods that are used to remunerate professional
service providers and indicates, where relevant, how such methods may be reduced to a comparative offer
to enable tenders to be compared.
Practice Note 9: Evaluation of Quality in Tender Submission
(Version 1 - November 2007)
This practice note provides an overview of the manner in which quality may be evaluated in tender
submissions, identifies the circumstances under which quality should be evaluated and provides a practical
procedure to do so.
Practice Note 10: Attaining Social and Economic Deliverables
(Version 1 - February 2008)
This Practice Note discusses a number of targeted procurement procedures relating to the measurement
and quantification of the participation of target groups, the provision of incentives for attaining key
performance indicators in the performance of a contract and the creation of contractual obligations to
engage target groups in the performance of the contract. It also outlines the approach adopted in the cibd
Specification for Social and Economic Deliverables in Construction Works Contracts for the delivery of a
wide range of social and economic deliverables including the employment of local resources, employment
opportunities for labour intensive works, business opportunities, enterprise support and development
programmes and skills development.
Practice Note 11: Programme Management Approach to
Delivery (Version 1 – February 2008)
This Practice Note discusses a delivery model using a programme management approach that enables
allocated budgets to be spent in a manner that results in construction works of an acceptable quality in
response to prioritised needs, whilst contributing to the regional social and economic agenda including
employment and skills development.
Practice Note 12 Competitive Negotiation Procedure This practice note sets out the manner in which tender offers are to be evaluated in accordance with these
Standard Conditions of Tender when using a competitive negotiation procedure.
Practice Note 13: Identifying a Construction Works Contract
(Version 1 - February 2008)
This Practice Note provides guidance on establishing when the register of contractors is to be applied and
identifies which types of construction works contracts are exempted from the application of the Register of
Contractors
Practice Note 14: Selecting a Contractor on a Competitive
Basis (Version 2 - October 2008)
This Practice Note provides guidance on the selection of appropriate criteria for the evaluation of a tender
and the development of pre- qualification criteria to limit the number of submissions that are evaluated and
to minimise the risk that those tenderers who obtain the highest ranking or highest score in the evaluation
process are not qualified to perform the contract
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Practice Note Name Description
Practice Note 15: Framework Agreements (Version 2 –
October 2008)
This practice note outlines the nature and features of framework agreements, describes the essential
elements of and the selection procedures associated with and identifies the forms of contract that are best
suited to such contracts.
Practice Note 16: Advance Payment (Version 1 – November
2008)
Outlines the provisions for advance payment made in the JBCC Series 2000, FIDIC and NEC forms of
contracts and provides additional conditions of contract for inclusion in GCC 2004 to enable advance
payment to be made in terms of this form of contract.
Practice Note 17: Securing Supplies of Critical Plant and
Materials (Version 1 – November 2008)
This Practice Note identifies the risks to be managed and proposes a number of strategies to mitigate these
risks.
Practice note 18: Cancellation of Tenders (Version 1 - June
2009)
This Practice Note describes the circumstances under which cancelled tenders may be reissued
Practice Note 19: Streamlining Payment Processes (Version 1
- June 2009)
This practice note reviews the three phases of the payment cycle, namely certification, authorisation and
processing, and examines the flow of funds between the client Departments and the implementing agents.
It suggests how organs of state can streamline their certification, authorisation and payment processes to
effect payment to contractors within the stipulated time as per the contract
Practice Note 20: Applying the Register of Contractors to
Fencing (Version 1 - July 2010)
Fences and walls are required to enclose, protect or to divide a space or property. Such construction works
can fall into a number of classes of construction works. This practice notes provides practical guidance on
the identification of an appropriate class of construction works to apply the register of contractors to such
works.
Practice Note 21: Bills of Quantities (Version 1 - August 2010) Bills of Quantities (BoQ) are the most common form of pricing strategy used where the contractor
undertakes construction works on the basis of full designs issued by the employer. This practice note
outlines what a bill of quantities is and provides a recommended procedure for evaluating tenders where the
prices are based on a BoQ. The recommended procedure suggests that a priced BoQ is not included in the
tender submission and is only called for from the highest ranked or scoring tenderer during the tender
evaluation process so that the acceptability of the rates can be confirmed prior to the award of a contract
Practice Note 22a: cidb Infrastructure Gateway System - An
Overview (Version 1 - September 2010)
The cidb Infrastructure Gateway System provides a number of control points (gates) in the infrastructure life
cycle where a decision is required before proceeding from one stage to another. This practice note outlines
the case for and an overview of the gates and stages in the cidb Infrastructure Gateway System.
Practice Note 22b cidb Infrastructure Gateway System -
Stages (Version 1 - August 2010)
The delivery and maintenance of infrastructure needs to be managed and controlled in a logical, methodical
and auditable manner.This practice note outlines the cidb Infrastructure Gateway System which provides a
number of control points (gates) in the infrastructure life cycle where a decision is required before
proceeding from one stage to another. Such decisions need to be based on information that is provided and
if correctly done, provides assurance that a project involving the design and construction, refurbishment or
alteration of infrastructure, the rehabilitation of infrastructure, or the performance of preventative, corrective,
scheduled or routine maintenance remains within agreed mandates, aligns with the purpose for which it was
conceived and can progress successfully from one stage to the next.
Practice Note 23: Construction Procurement Strategy
(Version 1 - September 2010)
Construction procurement strategy is the combination of the delivery management strategy, contracting
arrangements and procurement arrangements for a particular procurement. It necessitates that a number of
choices be made from the available options. A construction procurement strategy can be developed for a
single project, a programme of projects or a portfolio of projects to identify the best way of achieving
objectives and value for money, whilst taking into account risks and constraints. This practice note outlines
a a methodology to develop construction procurement strategies at a portfolio, programme or project level.
Practice Note 24: Managing Construction Procurement
Process (Version 1 - September 2010)
This practice note highlights the legislative requirements for managing and controlling procurement
processes and suggests how construction procurement processes should be controlled. It also
recommends a number of procurement gates within the procurement process
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Practice Note Name Description
Practice Note 27: Practice Note 27: Contracting and Pricing
Strategies for Works (Version 1 - August
2011)
This practice note outlines the range of contracting and pricings strategies that are available and indicates
when it is appropriate to apply such strategies]
Practice Note 28: Practice Note 28: Objectives Linked to
Infrastructure Delivery (Version 1 -
December 2011)
This practicCDPs).e note indicates the nature of a number of objectives that are encountered in the CIDB
Infrastructure Gateway System and the development of a construction procurement strategy.
Practice Note 29 Allocating Sustainable Work Opportunities
to Contractor Development Programmes
(Version 1 – July 2012
This practice note aims to demystify perceptions around set ‘asides’ and ‘ringfencing’ which may hinder
provision of work opportunities to contractors enrolled within Contractor Development Programmes
Practice Note 30: Blacklisting of Contractors for Non-
Performance (May 2013)
This Practice Note discusses actions that organs of state can take against contractors for non-performance.
The Practice Note concludes that all issues of non-performance of contractors on contracts issued by
organs of state should first be dealt with in terms of the contractual procedures between the employer and
the contractor, and should thereafter be referred to the cidb in terms of a potential breach of the cidb Code
of Conduct and not as blacklisting of the contractor on the National Treasury database of restricted
suppliers in terms of Section 13 of the Preferential Procurement Regulations (June 2011).
50. IDMS AND CONSTRUCTION PROCUREMENT PROCESS
System
The Infrastructure Delivery Management System (IDMS) is a government management system for planning, budgeting,
procurement, delivery, maintenance, operation, monitoring and evaluation of infrastructure. It comprises a set of interrelating or
interacting elements that establish processes which transform inputs into outputs.
The IDMS comprises the following systems:
a. an infrastructure planning system;
b. an infrastructure gateway systems (IGS);
c. a construction procurement system (CPS);
d. a programme and project management system;
e. an operations and maintenance system
Risks are managed within each of these systems.
The IDMS is designed to be linked to the Medium Term Expenditure Framework (MTEF). It has a strong focus on outcomes, value
for money and the effective and efficient functioning of the procurement and delivery management system in compliance with
relevant legislation. It includes a supply chain management system (SCM) and can be readily integrated into the various systems
that accounting officers and accounting authorities are required to implement.
Infrastructure and Construction procurement processes, methods and procedures:
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The following read with the relevant SANS, CIDBA prescripts and the relevant PTI’s and Standards describe processes,
methods and procedures for the establishment within the DEPARTMENT of a construction and infrastructure
procurement system that is fair, equitable, transparent, competitive and cost- effective and:
describes generic procurement processes around which an organization may develop its procurement system;
establishes minimum requirements for the conduct of an organization's employees, agents, board members and office
bearers when engaging in procurement;
establishes the framework for the development of an organization's procurement policy including any preferential
procurement policy;
establishes generic methods and procedures for procurements including those pertaining to disposals; and
provides standard conditions of tender and conditions for the calling for expressions of interest.
Normative references
The following standards contain provisions which, through reference in this text, constitute provisions for infrastructure and
construction procurement. All standards are subject to revision and, since any reference to a standard is deemed to be a
reference to the latest edition of that standard, parties to agreements based on this standard are encouraged to take steps to
ensure the use of the most recent editions of the standards indicated below. Information on currently valid national and
international standards can be obtained from Standards South Africa.
SANS 1914-1, Targeted construction procurement - Part 1: Participation of targeted enterprises.
SANS 1914-2, Targeted construction procurement - Part 2: Participation of targeted partners in joint ventures.
SANS 1914-3, Targeted construction procurement - Part 3: Participation of targeted enterprises and targeted partners in joint ventures.
SANS 1914-4, Targeted construction procurement - Part 4: Participation of targeted enterprises and targeted labor (local resources).
SANS 1914-5, Targeted construction procurement - Part 5: Participation of targeted labor.
SANS 1914-6, Targeted construction procurement - Part 6: Participation of targeted enterprises in concession contracts.
SANS 10396, Implementing preferential construction procurement policies using targeted procurement procedures.
SANS 10403, Formatting and compilation of construction procurement documents.
AS WELL AS THE FOLLOWING BEST PRACTICE LIBRARY REFERENCES FROM THE CIDBA: Best practice guidelines - Procurement policies, procedures and practices
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Practice Guide A1 (1001): The Procurement Cycle (Second edition - September 2005)
Practice Guide A2 (1002): Applying the procurement prescripts of the CIDB in the Public Sector (Fourth edition -
September 2005)
Practice Guide A3 (1003): Evaluating Tenders Offers (Second edition - September 2005)
Practice Guide A4 (1004): Evaluating Quality in Tender Submissions (Second edition - August 2006)
Practice Guide A5 (1005): Managing Construction Procurement Risks (First edition - March 2004)
Practice Guide A6 (1006): Applying the Registers to Construction Procurement (Third edition 2006)
Practice Guide A7 (1035): The procurement of professional services (First edition - September 2005)
Practice Guide A8 (1036): Procurement Measures to Develop Registered Contractors (First edition - September 2005)
Preferencing
Practice Guide B1 (1007): Formulating and Implementing Preferential Procurement Policies (First edition - March 2004)
Practice Guide B2 (1008): Methods and Procedures for Implementing Preferential Procurement Policies (First edition -
March 2004)
Procurement documentation
Practice Guide C1 (1009): Preparing Procurement Documents (Second edition - September 2005)
Practice Guide C2 (1010): Choosing an appropriate Form of Contract for Engineering and Construction Works (Second
edition - September 2005)
Practice Guide C3 (1011): Adjudication (Second edition - September 2005)
Joint venture and subcontracting arrangements
Practice Guide D1 (1012): Subcontracting Arrangements (First edition - March 2004)
Practice guide D2 (1013): Joint Venture Arrangements (First edition - March 2004)
a. The following table details the different procurement processes relevant for infrastructure and construction
procurement:
Table 26 - Standard procurement procedures
Designation Description
Negotiated procedure Tender offers are solicited from a single tenderer.
Nominated procedure Tenderers that satisfy prescribed criteria are entered into an electronic database. Tenderers are invited to submit tender offers based on search criteria and their position in the database. Tenderers are repositioned in the database upon appointment or upon submission of a tender offer.
Open procedure Tenderers may submit tender offers in response to an advertisement by the organization.
Qualified procedure A call for expressions of interest is advertised and thereafter only those tenderers who have expressed interest, satisfy objective criteria and who are selected to submit tender offers, are invited to do so.
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Designation Description
Quotation procedure Tender offers are solicited from not less than three tenderers in any manner the organization chooses, subject to the procedures being fair, equitable, transparent, competitive and cost-effective.
Proposal procedure using the two-envelope system
Tenderers submit technical and financial proposals in two envelopes. The financial proposal is only opened should the technical proposal be found to be acceptable.
Proposal procedure using the two-stage system
Non-financial proposals are called for. Tender offers are then invited from those tenderers that submit acceptable proposals based on revised procurement documents. Alternatively, a contract is negotiated with the tenderer scoring the highest number of evaluation points.
Shopping procedure Written or verbal offers are solicited in respect of readily available supplies obtained from three sources. The supplies are purchased from the source providing the lowest price once it is confirmed in writing.
Preparing for procurement
Each time the DEPARTMENT undertakes a procurement, it shall commence by establishing a) the broad scope of work
associated with the procurement,
i. the need and justification for the procurement,
ii. the estimated market-related costs and benefits of the procurement,
iii. the resources and expertise available for the management, administration and supervision of the procurement,
iv. the risks associated with the procurement,
v. the public authorities, if any, which need to be consulted in connection with the procurement, g) the preferential
procurement policies, if any, which shall apply to the contract, or project,
vi. the appropriate contract and pricing strategy,
vii. the appropriate targeting strategy,
viii. the appropriate procurement procedure(s), and
ix. the funding source for the contract or project
Tender offers may not be solicited unless and until:
i. the necessary resources to administer the contract or project have been obtained or put in place,
ii. all the necessary organizational approvals for the project or contract have been obtained,
iii. appropriate approval has been obtained for the selected contract and pricing strategy, for the procurement
procedure, and where a preferential procurement policy is to be pursued, for the targeting strategy,
iv. all necessary feasibility studies and preliminary investigations, commensurate with the selected contract strategy
have been completed,
v. all the necessary and appropriate procurement documents have been prepared,
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vi. the need for the procurement, the financial and technical viability of the proposed procurement, and the
DEPARTMENT’s firm intention of proceeding with the procurement is confirmed, and
vii. the funding for or the arrangements for the financing of the contract or project are in place.
Line function officials shall keep written records of all decisions and determinations made as well as the reasons and details
relating thereto.
General rules:
a. As a general rule, consultants that are commissioned to prepare a scope of work for a particular procurement shall be
precluded from submitting tender offers for that procurement.
b. Tenderers may submit tenders as a joint venture, provided that, before the contract is awarded to the joint venture,
all the partners enter into a joint venture agreement which jointly and severally binds the partners to perform the
contract. However, where the qualified procedure is used, short-listed respondents who elect to enter joint ventures
after the short-listing stage shall, if required in terms of the tender data, obtain the organization's permission to do so.
c. In the event that a tender is not awarded for reasons other than that all non-financial proposals solicited in the
proposal procedure fail to comply with the requirements, the DEPARTMENT shall not call for fresh tenders covering
substantially the same scope of work within six months of the closing date of the original tender.
d. Any negotiations or discussions with respondents or tenderers shall be conducted in an open, competitive,
transparent and fair manner.
e. The DEPARTMENT shall be justified in rejecting all tender submissions only if such submissions are non-responsive
and are unsuitable either because they do not fully comply with requirements or involve costs substantially higher than
the budget.
Procurement documentation
a. Procurement documents shall be prepared in accordance with the DEPARTMENT's SCM System and the provisions of
the CIDBA.
b. Any eligibility criteria introduced into the tender data shall not introduce criteria additional to those prescribed by the
CIDBA and shall generally be based on the demonstration of the following, as necessary:
i. professional and technical qualifications;
ii. professional and technical competence;
iii. financial resources;
iv. equipment and other physical facilities;
v. managerial capacity, reliability, experience; and
vi. reputation.
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c. Calls for expressions of interest shall be prepared in accordance with the provisions of the CIDBA and incorporate, by
reference, the standard conditions for the calling for expressions of interest as provided by the CIDBA as Best Practice
Guides. Where submissions are used to establish a tenderer's eligibility to submit a tender offer, respondents shall be
requested in such documents to demonstrate their qualifications in relation to the appropriate requirements as
prescribed.
d. Procurement documents shall be prepared in English, unless directed otherwise.
e. The form of offer and acceptance shall be incorporated into procurement documents with minimal contract-specific
amendments.
f. The schedule of deviations should only be provided where the DEPARTMENT requires an audit trail of the amendments
to the procurement document agreed to before the formation of a contract. NOTE: The form of offer and acceptance
becomes an agreement when accepted unconditionally by both parties.
g. The scope of work shall, wherever possible, be described in terms of performance rather than the design of descriptive
characteristics, and b) based on national or international standards, where such exist.
h. Contract requirements in the form of specifications, plans, drawings, designs, testing and test methods, packaging,
marking or labelling or conformity certification shall not create trade barriers. Reference to any particular trade mark,
name, patent, design, type, specific origin or producer shall not be made unless there is no other sufficiently precise or
intelligible way of describing the characteristics of the work. Such reference shall be accompanied by the words "or
equivalent".
i. The evaluation criteria, including the weightings attached to any points scoring system, shall be stated in the
procurement documents.
j. Procurement documents shall contain provisions for
i. price adjustments, should the contract period exceed one year, and
ii. interest, at the contractor's bank prime interest rate, on monies due to the contractor, which are not paid within 30 d
of being due, to deter late payment.
k. Contracts should preferably provide for the resolution of disputes by adjudication in accordance with the principles
prescribed.
l. Contracts involving reimbursements on the basis of time and costs or on the basis of cost plus a fee for profit and
overheads shall be structured such that:
i. expenditure can be readily audited,
ii. reimbursable costs are at market or competitively tendered prices,
iii. the end costs of the contract can be continuously tracked and reported on at regular intervals, and
iv. within a short time after the completion of the contract, the final contract amount is known and can be settled.
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m. Requirements for delivery periods that are incorporated into procurement documents shall be consistent with the
organization's reasonable needs and shall take into account factors such as the complexity of the intended procurement
and realistic time frames for completing the work.
Requirements relating to quality:
a. The manner in which quality is to be ensured shall be incorporated in procurement documents using one or
more of the following methods:
i. the full and unambiguous specification of requirements in the scope of work;
ii. taking cognizance of whole-life costing in the financial evaluation of tender offers;
iii. where exceptional quality is required, making use of the qualified procurement procedure and ensuring that
respondents who are invited to submit tender offers are, suitably qualified to do so;
iv. requiring tenderers to submit plans for monitoring and applying quality management principles in the
performance of their contracts;
v. introducing quality into the eligibility criteria;
vi. establishing a category of preference for quality in the evaluation of tenders; or
vii. evaluating selected quality criteria as an integral part of the tender offer
b. Quality may only be introduced into the evaluation of tender submissions where it is required to achieve policy
objectives in terms of the DEPARTMENT’s SCM Strategy or it is justifiable in terms of procurement outcomes.
c. Quality measures shall not promote captive markets and should result in quality that is appropriate to comply with
user requirements as opposed to the best quality available.
d. Quality should be based on one or more of the criteria listed in table 2, appropriate to the category of contract.
e. Social considerations, such as the composition of workforces in terms of race, gender or disability, shall not be
included in quality criteria.
Table 27- below depicts some generic quality criteria that may be applied:
Category of contract Description of quality criteria
Engineering and construction works
Quality control practices and procedures which ensure compliance with stated employer's requirements
Availability of resources
Capacity to mobilize own and subcontracting resources
Availability of skills to manage and perform the contract (assigned personnel) Quality achievements on previous contracts of a similar nature Previous works of a similar nature
Life-cycle costs
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Category of contract Description of quality criteria
Services (including professional services)
Response to (ability to relate to) the proposed scope of work/project design which establishes the manner in which the respondent or tenderer intends to perform the contract
Adequacy of proposed work plan and proposed methodology
Organization, logistics and support resources
Availability of resources
Managerial ability appropriate to the size and nature of work
Control procedures
Qualifications and competence of the key staff (assigned personnel) in relation to the scope of work
Demonstrated experience in comparable projects
Demonstrated experience with respect to specific aspects of the project
Experience (familiarity) in the region, or similar regions
Performance record in similar projects
Quality assurance systems which ensure compliance with stated employer's requirements
Communication/facilitation skills
Sound knowledge of the employer's policies or work procedures (or both) Transfer of knowledge
Supplies Attainment of quality standards e.g. quality marks
Quality assurance systems which ensure compliance with stated employer's requirements
Capacity to deliver
Periods for delivery
Availability of service and spare parts
Safety and environmental benefits
Solicitation of tender offers
a. Tender offers shall be solicited in accordance with the DEPARTMENT SCM System and the CIDBA prescripts.
b. Time frames associated with the procurement procedures may only be relaxed where they cannot be adhered to due
to the presence of, or the imminent risk of, an extreme or emergency situation arising from one or more of the
following:
i. human injury or death;
ii. human suffering or deprivation of human rights
iii. serious damage to property or financial loss;
iv. livestock or animal injury, suffering or death;
v. serious environmental damage or degradation; or
vi. interruption of essential services.
c. Where the time frames are relaxed, the reason for doing so shall be recorded for audit purposes.
Advertisements
Advertisements shall be published in English, unless directed otherwise, in a manner that enables a wide spectrum of suitably
qualified and eligible tenderers to access the opportunities that are presented.
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The notice and invitation to submit tender offers shall, as a minimum, contain the following information, as appropriate:
a) the tender, project or contract reference number;
b) the title of the proposed contract or project;
c) a brief description of the supplies, services or engineering and construction works which are required;
d) the closing date, place and time for submission of tenders;
e) the date and time of the compulsory site inspection or briefing session, if any; and f) the time and place for collecting
procurement documents.
The notice and invitation to submit expressions of interest shall include the following information:
a) the tender, project or contract reference number, if applicable;
b) the title of the proposed contract or the project;
c) a brief description of the supplies, services or engineering and construction works which are required;
d) the closing date, place and time for expressions of interest;
e) the objective selection criteria for short-listing firms to submit tender offers or entry to an electronic database;
f) the date and time of the compulsory briefing session, if any; and g) the time and place for collecting the procurement
documentation.
Tender procedures
a. Tender boxes should preferably be accessible 24 hours a day, 7 days a week.
b. Tenderers shall either be required to pay a non-refundable amount for procurement documents approximately
equivalent to the cost of reproducing such documents or be issued with documents free of charge. Where non-
refundable amounts for procurement documents are provided for, such documents shall be made available for
inspection by tenderers.
c. Those persons responsible for procuring on behalf of the DEPARTMENT shall, except in the negotiated or disposal
procedures, not contact individual tenderers who are submitting or likely to submit tender offers before the receipt of
tenders. Should it be necessary in exceptional circumstances to do so, it shall be done in a manner which does not
obligate the DEPARTMENT, compromise the competitive position of others or give any unfair advantage to those who
were contacted.
d. Persons responsible for soliciting tender offers shall respond to any request by a tenderer for clarification regarding
the procurement documents within a reasonable time before the deadline for the submission or extend the deadline in
order to do so.
e. If for any reason those responsible for soliciting tender submissions before the deadline for tender submissions,
determine to modify the procurement documents, they shall do so by issuing an addendum that shall be
communicated to all prospective tenderers that have drawn procurement documents only if such an addendum can be
communicated in advance of the closing date and tenderers can be given reasonable time to react to the contents of
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such an addendum. Should this not be possible, the addendum shall either not be issued, or the closing date for tender
offers or expressions of interest shall be postponed to enable the addendum to be issued.
f. Minutes of any briefing meeting that might be convened shall be taken, recording all requests for clarification received
and responses thereto, without identifying the sources of the requests. The minutes of such meetings shall be
promptly distributed to those attending the meetings and, if necessary, to all tenderers who draw procurement
documents.
g. Where bills of quantities are utilized, tenderers shall be required to tender a sum for their tender offer with or without
provision for price adjustment. The tendered sum shall not be adjusted for any arithmetical errors in computing
amounts or carrying forward summated amounts; rather rates or extensions shall be adjusted to arrive at the tendered
sum.
Table 28.: Identification of designated persons to undertake specific tender procedure activities:
Clause Action required of designated person Designated person
4.1 General requirements
4.1.3 Receive reports on irregular expenditure and fruitless and wasteful expenditure Chief Financial Officer
4.2 Conduct of those engaged in construction procurement processes or procedures
4.2.2.1 Receive disclosure of interest in any contract that is to be awarded Refer to SCM Delegations
4.2.2.4c) Grant permission for a person who prepares a procurement document or part thereof to submit a tender
for work associated with such documents
Construction Procurement Committee
4.2.5.6 Receive reports of any incidences of a person who directly or indirectly offers a gratification to improperly
influence in any way a procurement process, procedure or decision
Refer to SCM Delegations
4.2.6.1 Receive reports on any alleged irregular conduct including any alleged fraud or corruption. Refer to SCM Delegations
4.2.6.2 Report breaches of the CIDB code of conduct or alleged irregular conduct to the appropriate authority Refer to SCM Delegations
4.2.7 Preparation of report for placing a contractor under restrictions Refer to SCM Delegations
4.3.3a) Preparation of documents which have a value below the threshold for quotations Refer to SCM Delegations
4.3.3c) Invitation of quotations Refer to SCM Delegations
4.3.3d) Evaluation of quotations and the preparation of recommendations for award Refer to SCM Delegations
4.4 Roles and responsibilities in relation to the procurement processes, activities and controls
4.4.2.1 Appoint a Documentation Review Team Refer to SCM Delegations
4.4.2.2d)
4.4.2.3b)
Approve additional clauses or variations to the standard clauses in the conditions of contract, conditions
of tender or conditions for the calling for expressions of interest not provided for in the Institution approved
templates
Refer to SCM Delegations
4.4.2.6 Receive documentation from Documentation Review Panel for archiving Refer to SCM Delegations
4.4.3.1 Appoint an Evaluation Panel Refer to SCM Delegations
4.4.3.3 Communicate with tenderers and respondents during the procurement process. Refer to SCM Delegations
4.4.4.6 Receive from the Construction Procurement Committee a copy of the Construction Procurement
Committee’s decisions
Refer to SCM Delegations
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Clause Action required of designated person Designated person
4.4.4.7 Receive from the Construction Procurement Committee a decision for the use of the negotiated procedure
in an emergency.
Refer to SCM Delegations
4.4.4.8 Submit a motivation for an urgent decision from the Construction Procurement Committee which cannot
be held over to the next meeting.
Refer to SCM Delegations
4.4.6.3.2 Submit a motivation for not conducting a competition amongst framework contractors Refer to SCM Delegations
4.4.6.3 Receive notification of an award of a contract through a negotiated procedure Refer to SCM Delegations
4.4.7.1.1 Prepare a procurement plan for submission to the Provincial Treasury Refer to SCM Delegations
4.4.7.1.2 Approval of procurement plan Accounting officer
4.4.7.2.1 Preparation of submission to the Provincial Treasury of particulars before advertising a tender above a
threshold
Refer to SCM Delegations
4.4.7.2.2 Audit tenders above a threshold Official from internal audit
4.4.7.2.3 Audit task, batch or package orders above a threshold Official from internal audit
4.4.7.2.4 Issue audit certificates Official from internal audit
4.4.7.3.2 Prepare and submit motivation to the Provincial Treasury for increase in contract or task, batch or
package order value above a threshold.
Refer to SCM Delegations
4.5 Complaints and challenges
4.5.1 Receive complaints regarding the construction procurement system Refer to SCM Delegations
4.5.2 Investigate all complaints regarding the procurement system Refer to SCM Delegations
4.5.3 Receive request to appoint a tender dispute adjudicator Refer to SCM Delegations
4.5.3b) Receive deposit for tender adjudicator’s fee Refer to SCM Delegations
4.7 Usage of standard procurement procedures
4.7.1.4 Motivate the reasons for pursuing the negotiation procedure or for approaching a confined market Refer to SCM Delegations
4.7.1.5 Pursue a negotiated procedure in an emergency without prior approval Refer to SCM Delegations
4.7.1.5 Describe the circumstances surrounding the extreme or emergency situation that gave rise to the use of the negotiation procedure and submit together with this report an explanation for acceptance by the Construction Procurement Committee
Refer to SCM Delegations
4.7.1.6 Motivate the reasons for pursuing the proposal procedure using the two-envelope system or the proposal procedure using the two-stage system for prior approval.
Refer to SCM Delegations
4.7.2.10 Approve conditionally or unconditionally a request from the accounting officer or accounting authority of an organ of state to make use of a framework contract entered into with the institution
Accounting officer upon the recommendation of the Construction Procurement Committee
4.7.2.11 Receive notification of the issuing by an organ of state of the award and completion of task, batch or
package orders together with the total of prices at the start and end of such orders.
Refer to SCM Delegations
4.7.2.12 Provide any organ of state that is granted permission to make use of the institution’s framework contract
with a copy of the contract and any templates for the issuing of quotations or task, batch, or package
order and any other relevant information pertaining to the use of the framework contract
Refer to SCM Delegations
4.7.5.1 Receive unsolicited proposals Refer to SCM Delegations
4.7.5.2 Receive report or recommendations on unsolicited proposals
Accounting officer
4.8 Procurement documents
4.8.1.5 Approve the amendment to a contract Accounting officer
4.8.2.4 Approve the inclusion of additional clauses or variations to the standard clauses in the contract data other Refer to SCM Delegations
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Clause Action required of designated person Designated person
than the standard clauses provided in the approved standardised documents.
4.8.6.3 Grant permission for the provision of advanced payments to contractors. Chief Financial Officer
4.8.10.2
4.8.10.3
4.8.10.5
Determine minimum levels of insurance if the default values are insufficient Chief Financial Officer
4.8.12 Waiving of the institution’s intellectual property rights Refer to SCM Delegations
4.8.13.1 Grant permission for the referral of a dispute to an adjudicator Refer to SCM Delegations
4.8.13.2 Provide advice on how to respond to a dispute raised by a contractor Refer to SCM Delegations
4.8.13.3 Provide advice on resolving a matter by arbitration Refer to SCM Delegations
4.9 Calls for expressions of interest and invitations to submit tender offers
4.9.2.1 Determine that a shorter period for advertising in the Government Tender Bulletin is warranted Accounting officer
4.9.3.2 Maintain a register of procurement documents not issued via a website Refer to SCM Delegations
4.9.5.2 Ensure that the procurement documents state the closing date and time for submissions and the physical
location of the tender box .
Refer to SCM Delegations
4.9.5.3 Ensure that all tenderers and respondents who obtained procurement documents are timeously advised
of any change in the closing time and date
Agent identified in submission data or tender data of procurement documents
4.9.5.5 Keep key for tender box and open box on stipulated closing date. Refer to SCM Delegations
4.9.6.1 Appoint an Opening Panel Refer to SCM Delegations
4.9.10.1 Provide written reasons for actions taken Refer to SCM Delegations
4.10.2.2 Ensure that supplier database forms are fully completed as soon as possible Refer to SCM Delegations
4.11 Administration of contracts
4.11.1.3 Obtain in accordance with the requirements of the contract, all performance bonds, insurance certificates
and the like, log and monitor the expiry date of each document and arrange for the originals to be stored
in a fire proof safe.
Refer to SCM Delegations
4.11.2.2.1 Directing that performance reports are required where contract values are different to the standard values. Refer to SCM Delegations
4.11.2.2.2 Develop a performance report Refer to SCM Delegations
4.11.2.2.3 Issue the contractor with the performance criteria, weightings and scores Refer to SCM Delegations
4.11.2.2.4 Evaluate a contractor’s performance Refer to SCM Delegations
4.11.2.2.6 Completion of an evaluation report Refer to SCM Delegations
4.11.2.2.7 Delegate an independent official to review a contractor’s score Refer to SCM Delegations
4.11.3.1 Prepare a motivation to authorise increases in the total of prices excluding price adjustment for inflation in
excess of the amounts stated
Refer to SCM Delegations
Receipt of tender submissions
Tender submissions, save for those solicited in terms of the quotation procedure, shall only be accepted for evaluation when they
are, in accordance with the procurement documents,
i. submitted in sealed envelopes,
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ii. annotated with the required particulars, and
iii. placed in the nominated tender box or delivered to the specified place for receipt of tender submissions.
a. Tender submissions in the quotation procedures should normally be in accordance with the provisions of the
DEPARTMENT SCM System.
b. Tender submissions shall be returned unopened (unless it is necessary to open a tender submission to obtain a
forwarding address) when:
i. the tender submission is received after the closing time for tenders,
ii. the tender submission is received by a method other than the method prescribed in the procurement
documents, or
iii. only one tender submission is received and the I BEC decides to call for fresh tender submissions.
Opening of tender submissions
a. All tender submissions shall, unless there are justifiable reasons not to do so, be opened in public, or in the presence
of those tenderers who made submissions or their representatives, immediately after the closing time for receipt of
tender submissions. Where this is impossible, arrangements shall be made to ensure that no fu rther submissions are
received and that such submissions are not tampered with in any way before their opening. Such tender submissions
should be opened not more than one week after the closing time for tenders, in the presence of not less than two
persons representing the DEPARTMENT and one other person who is independent of the organization, named in the
procurement documents.
b. All tender submissions shall each be given a mark of authenticity upon opening and on every page as proof that the
tender submission was received before the closing time.
c. After opening each tender submission the person responsible for overseeing the opening of tender submissions shall
record for each tender offer, including all alternative tender offers, as relevant:
i. the name of the tenderer,
ii. the total of prices,
iii. contract data that have a bearing on the tendered price e.g. time for completion, settlement discounts, price
adjustment, and
iv. preferences claimed (specific goals and evaluation points claimed).
d. Where contracts are not awarded in totality to a single tenderer, the recording of the total of prices is not required.
Where defined portions of contracts may be awarded to multiple tenderers and such portions can be readily totaled
in the tender submission, those totals should be recorded.
Evaluation of tender submissions – refer to Bid Committee Process in Volume 1
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a. Disqualification of tenderers
A tenderer (and his tender submission) may be disqualified where it is determined that there has been an effort by that
tenderer to influence the processing of tender submissions or if it is established that such tenderer engaged in corrupt
or fraudulent practices.
b. Test for responsiveness
The evaluation of tender submissions shall commence with a determination as to whether or not each tender submission
properly received is responsive. A responsive tender submission is one which:
i. complies with the requirements of the tender data;
ii. has been properly and fully completed and signed; and
iii. conforms to all the terms, conditions, and specifications of the procurement documents without material deviation or
qualification which, in the organization's opinion, would
detrimentally affect the scope, quality, or performance of the works, services or supply identified in the
scope of work,
change the employer's or the tenderer's risks and responsibilities under the contract, or
affect the competitive position of other tenderers presenting responsive tenders, if it were to be rectified.
Non-responsive tender submissions shall not be subsequently made responsive by correction or withdrawal of the
non-conforming deviation or reservation.
c. Arithmetical errors
Responsive tender offers shall be checked for arithmetical errors. Such errors shall be corrected in the following manner:
i. Where there is a discrepancy between the amounts in figures and in words, the amount in words shall govern.
ii. If a bill of quantities or schedule of prices applies and there is an error in the line item total resulting from the product of
the unit rate and the quantity, the line item total shall govern and the rate shall be corrected.
iii. Where there is an obviously gross misplacement of the decimal point in the unit rate, the line item total as quoted shall
govern, and the unit rate shall be corrected.
iv. Where there is an error in the total of the prices, either as a result of other corrections required by this checking
process or in the tenderer's addition of prices, the total of the prices shall govern and the tenderer will be asked to
revise selected item prices (and their rates if a bill of quantities applies) to achieve the tendered total of the prices.
d. Ranking and scoring of responsive tenderers
Tender submissions shall not be evaluated against any criteria that are not disclosed in the procurement documents.
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Each responsive tender offer shall be reduced to a comparative offer and shall be evaluated using the prescribed
procedure associated with the method nominated in the tender data. A record shall be kept of all the tender evaluation
points that are awarded to every tenderer making a tender submission.
Quality shall be scored for each of the criteria stated in the tender data. Each member of the evaluation panel shall score each
and every criterion independently. The scores shall thereafter be averaged and retained for auditing purposes.
Preferences shall be scored using a method prescribed by the PPPFA and its Regulations as stated in the tender data. The
scores shall thereafter be averaged and retained for auditing purposes.
Unrealistic financial offers (i.e., where it is not economically possible to perform the contract at that price) distort the scoring of
price. In cases where a tenderer has tendered a favourable unrealistic financial offer, the evaluator should ascertain whether or
not there is a valid reason for the tender price being unrealistic. This will necessitate that the tenderer be interviewed. If there is
no valid reason, the tender offer should be eliminated from further consideration.
Financial offers, preferences and quality, as relevant, shall be scored to two decimal places. Where two or more tender offers
score an equal number of tender evaluation points, the tenderer who is recommended for the award of the contract shall be the
tenderer with the highest number of a) preference points, and b) functionality points.
Risk assessment
Compliance with the provisions of the DEPARTMENT SCM System, Volume 8, shall be confirmed in respect of the highest
ranked tenderer or the tenderer scoring the highest number of tender evaluation points. In the event of non-compliance,
compliance shall be established in respect of the next highest ranked tenderer or tenderer scoring the next highest points. The
process shall be repeated until a tenderer who complies with such requirements is identified.
A risk analysis shall be performed on the tender submission of the highest ranked tenderer or tenderer who scores the highest
number of tender evaluation points to ascertain if any of the following, as relevant, present an unacceptable commercial risk
to the DEPARTMENT:
i. unduly high or unduly low tendered rates or amounts in the tender offer;
ii. contract data provided by the tenderer; or
iii. the content of tender returnables which are to be included in the contract.
The tenderer shall be approached to amend any part of his tender submission that might, in the opinion of the IBEC, present an
unacceptable commercial risk, provided that such negotiations do not affect the competitive position of the tenderer. Failure to
make unacceptable commercial risks acceptable to the organization might be sufficient grounds for the DEPARTMENT to reject
the tender.
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Clarifications shall be obtained from a tenderer on any matter that could give rise to ambiguity in a contract arising from the
tender offer.
The reasons for overlooking or rejecting a tender offer shall be recorded for audit purposes.
Negotiations with tenderers
Communication with tenderers shall only take place for the purpose of clarification and not for negotiation, save for that provided
for in the DEPARTMENT SCM System.
Tender evaluation report
A tender evaluation report shall be prepared for all procurement undertaken (except where not required in terms of the
organizations procurement policy) and shall, as a minimum, contain:
i. the contract number and description,
ii. an outline of the procurement strategy that was adopted, i.e. the targeting, contracting and pricing strategy
and the procurement procedure, as relevant,
iii. the tender validity expiry date and the tender closing date,
iv. the date of advertisement and the place where advertised,
v. the method of tender evaluation,
vi. the number of tenders received and the number of responsive tenders, and
vii. the name of the recommended tenderer and key aspects of the recommended tenderer's offer,
viii. the cost estimate (budget) prepared ahead of the tender,
ix. the parameters used for scoring tenderers and the score assigned to each tenderer in respect of each component of
the evaluation that is evaluated, and
x. the reasons for rejecting or overlooking a tenderer.
Table 28: Typical content of an evaluation report relating to the solicitation of tender offers
Section Typical content
1 Summary Provide an overview of the parameters associated with the solicitation of the tender, preferably in tabular form, including the following:
Contract / Project / Tender no.
Contract description
Contract duration
Purpose of tender
Contracting strategy
Pricing strategy
Form of contract
Targeting strategy
Procurement procedure
Method of tender evaluation
Tender validity expiry date
Alternative tenders (not permitted or state conditions under which permitted)
Media in which advertisement placed, if not a nominated or qualified competitive selection procedure or a restricted competitive negotiations procedure
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Section Typical content
Date of advertisement, if not a nominated or qualified competitive selection procedure or a restricted competitive negotiations procedure
Date from which documents were available
Details of clarification meeting including date and place, if any
Tender closing date
Number and title of addenda issued
Number of tenders received
Number of responsive tenders
Recommended tender(s)
Cost estimate (budget) or in the case of framework agreement, estimated value of all task , batch or package orders which are likely to be awarded during the term of the contract
Lowest responsive and realistic tender used for comparative purposes (tender price, specific goals etc.).
2 An overview of the
tender evaluation
process
Provide an overview of the procurement process indicating the eligibility criteria that was applied and the evaluation criteria. State specific
goals and points relating to preferences as well as any quality evaluation criteria, prompts for judgement and weightings relating thereto.
Reproduce the list of returnable documents.
Provide an overview as to how the quality aspects of the tender were scored.
Record that those involved in the evaluation of tenders have no conflicts of interest or have declared any conflict of interest that they may
have and the nature of such conflict.
3 Tender evaluation
process
3.1 Tender offers received
List the tender offers that were received.
Describe any noteworthy events regarding the opening of submissions e.g. the returning of late tenders and the declaring of submissions non-responsive on the grounds that they were not received in the prescribed manner. 3.2 Completeness of tenders received
Compare tender submissions received against list of returnable documents. State if any tender submissions received were incomplete and
indicate what was not complete. Indicate what steps were taken to make incomplete tenders complete only where this does not affect the
competitive position of the tenderer in question. List communications with tenderers.
Confirm if tenderers took into account addenda, if any, in their tender submission
3.3 Responsiveness of tenderers Identify which of the tenders received were non-responsive and provide clear reasons for declaring such tenders to be non-responsive. 3.4 Evaluation of tender offers Record the manner in which tenderers were reduced to a common basis. Record preferably in a tabular form:
the scores for each of the evaluation criteria.
the total score (excluding those who failed to score above a threshold).
the fee percentages applied Defined Cost that were tendered if applicable Provide reasons for not granting a preference or considering a financial offer to be unrealistically low. 3.5 Reasons for disqualification on the grounds of corrupt or fraudulent practice State reasons if applicable. 3.6 Compliance with legal requirements Confirm that tenderers are not barred from participation, tax matters are in order, is registered etc. 3.6 Acceptability of preferred tenderer State any reasons why the tenderer with the highest points should not be considered for the award of the tender e.g. commercial risk, restrictions, lack of capability and capacity, legal impediments, etc. Also state any arithmetical corrections that have been made.
4 Outcome
of the evaluation
Make a recommendation for the award of the tender and state any qualifications to such award.
5 Confirmation of
recommendations
Make provision for the recommendations for the award of the tender to be confirmed or amended by the Construction Procurement
Committee.
Award of contracts
A contract shall not be awarded to a tenderer who:
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i. is under restrictions, or has principals who are under restrictions, preventing him/them from participating in the
organization's procurement,
ii. cannot demonstrate that he possesses the necessary professional and technical qualifications, professional and
technical competence, financial resources, equipment and other physical facilities, managerial capability, reliability,
experience and reputation, and the personnel, to perform the contract,
iii. does not have the legal capacity to enter into the contract,
iv. is insolvent, in receivership, bankrupt or being wound up, has his affairs administered by a court or a judicial officer,
has suspended his business activities, or is subject to legal proceedings in respect of any of the foregoing,
v. does not comply with the legal requirements, if any, stated in the organization's procurement policy, and
vi. might not be able to perform the contract in the best interest of the organization owing to conflicts of interest.
A tender can be rejected on technical grounds (a), (c), (d) and (e) or for not having the capability and capacity to undertake the
work (b). There are no other grounds for declining a tender apart for (f) or for a breach of the standard conditions of tender.
The DEPARTMENT may decline to contract with tenderers who are not in good standing insofar as a piece of legislation is
concerned, e.g. their tax obligations.
Conflicts of interest can arise from prior or current obligations to other organizations. They might also arise where a contractor
provides supplies or engineering and construction works to a particular project and is then called upon to provide professional
services relating to that project.
Contracts shall be signed as soon as possible after the contract is awarded by the person authorized to do so in terms of the
organization's procurement policy. It is sufficient to merely sign the acceptance portion of the form of offer and acceptance, where
provided, to accept the tender offer. The initialling of each page is not required to give effect to the contract. This practice might,
however, assist in identifying the contract between the parties during the discovery phase of litigation proceedings.
The final draft contract shall be prepared and issued to the successful tenderer for acceptance as soon as possible after
the date of the employer's signing of the form of offer and acceptance, and where relevant, the signing of the schedule of
deviations.
The contract shall be compiled from the procurement documents issued to tenderers and the returnable documents in accordance
with the provisions of the DEPARTMENT SCM System and shall, as relevant, take account of:
i. addenda issued during the tender period, b) the content of returnable documents, and
ii. any revisions agreed between the employer and the successful tenderer.
Table 29- depicts the relevant contract forms available in the DEPARTMENT:
Form of contract Code Usage
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Form of contract Code Usage
CIDB
Standard professional service contract SPSC Professional services
FIDIC
Short Form of Contract Green
Book
Building or engineering works of relatively small capital value or for relatively simple or repetitive work or work of
short duration. Use for design by employer or contractor designed works.
Conditions of Contract for Construction
for Building and Engineering Works
designed by the Employer
Red
Book
Building or engineering works designed by the employer. (The works may include some elements of contractor
designed works)
Conditions of Contract for Plant and
Design-Build for Electrical and
Mechanical Plant and for Building and
Engineering Works, designed by the
Contractor
Yellow
Book
The provision of electrical or mechanical plant and the design and construction of building or engineering works.
GCC
General conditions of contract for
construction contracts (2010)
GCC Engineering and construction works, including any level of design responsibility.
JBCC Series 2000
JBCC Principal Building Agreement
(Edition 5)
PBA Buildings and related site works designed by the employer
JBCC Minor Works Agreement (Edition
4)
MWA Buildings and related site works of simple content designed by the employer
NEC3
NEC3 Engineering and Construction
Contract
ECC Engineering and construction works, including any level of design responsibility.
NEC3 Engineering and Construction
Short Contract
ECSC Engineering and construction works which do not require sophisticated management techniques, comprise
straightforward work and impose only low risks on both the employer and contractor.
NEC3 Professional Services Contract PSC Professional services, such as engineering, design or consultancy advice
NEC3 Term Service Contract TSC Manage and provide a service over a period of time
NEC3 Term Service Short Contract TSSC Manage and provide a service over a period of time or provide a service, which does not require sophisticated
management techniques, comprises straightforward work and imposes only low risks on both the employer and
contractor
NEC3 Supply Contract SC Local and international procurement of high value goods and related services including design
NEC3 Supply Short Contract SSC Local and international procurement of goods under a single order or on a batch order basis and is suitable for
use with contracts which do not require sophisticated management techniques and impose only low risks on both
the Purchaser and the Supplier.
After the successful tenderer has received the employer's notice of acceptance, all other tenderers shall be notified that their
tender offers have not been accepted by post, telefax or other electronic method, or by publication of the name of the successful
tenderer on a website or in an accessible publication, as appropriate.
The details of every contract awarded shall be recorded. This record shall include:
i. the contract reference number,
ii. a description of the work,
iii. the contract price,
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iv. preferences claimed,
v. tender evaluation points awarded,
vi. the price of the tender offer used for comparative purposes where preferences were applied in the evaluation of
tenders, and
vii. the name and address of the successful tenderer.
The following details of every contract that is awarded should be made known to interested parties upon request after the
successful tenderer has received the employer's notice of acceptance:
i. the contract reference number;
ii. a description of the procurement;
iii. the total contract price or price for a portion thereof, if relevant;
iv. tender evaluation points awarded, if any; and
v. e) the name of the successful tenderer.
If the tenderer is unable, unwilling or fails to enter into the contract, the contract shall be offered to the tenderer with the next
highest number of tender evaluation points if acceptable to the BEC and BAC, and so on until the contract is awarded;
provided, however, that the procurement remains cost-effective and such tender offers are still valid.
In situations where no contract is awarded, the DEPARTMENT shall review the procurement requirements and procurement
procedures and begin the procurement process again, unless there are compelling reasons not to do so.
Contract administration
Every tenderer awarded a contract shall complete that contract in accordance with its terms and requirements. In the event that
the organization determines that the contractor's performance is unsatisfactory due to circumstances within a contractor's
control, the organization may take whatever actions or impose whatever sanctions it deems appropriate in accordance
with the provisions of the contract and as directed by the DEPARTMENT SCM System, Volume 4.
The DEPARTMENT or its agents shall monitor the contractor's performance under the contract to ensure that the requisite
quality standards are attained and the requirements are satisfied, and shall certify compliance upon completion of the contract.
Where, through unforeseeable circumstances, it is necessary to increase the quantum of work or to perform additional work
within the broad scope of the contract, the contractor may be instructed to perform such work under the contract provided that
the final contract amount is not above the percentage contained in the organization's procurement policy, excluding any
provision for price adjustment, at the time that the contract is awarded. Work in excess of this limit shall not be undertaken
without the express permission of the organization's executive.
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If, at any point during the term of a contract, it is terminated or cancelled by either the contractor or the organization, a
record of the reasons for this cancellation/termination shall be made.
Upon completion of a contract, a record of the key performance indicators relating to time, cost and the attainment of goals
associated with a preferential procurement policy pertaining to that contract should be made.
Resolution of disputes arising from a contract
Disputes shall be resolved in accordance with the provisions of the contract. This shall not, however, preclude the parties from
settling their differences using alternative means such as expert determination, mediation and conciliation, failing which the
dispute shall be resolved in terms of the contract.
51. DEPARTURES
Departures may be made from the methods and procedures provided in the DEPARTMENT SCM System with the approval as
directed.
Table 30: Procurement processes
# Sub-Activity Designated person
Activity 1: Establish what is to be procured (Applies only to goods and services not addressed in a construction procurement strategy)
1.1 Prepare broad scope of work for procurement As per SCM Delegations
1.2 Estimate financial value of proposed procurement As per SCM Delegations
1.3 PG1 Obtain permission to start with the procurement process As per SCM Delegations
Activity 2A: Decide on procurement strategy (Applies only to goods or services not included in a construction procurement strategy)
2.1 Establish opportunities for promoting secondary procurement policies, if any As per SCM Delegations
2.2 Establish contracting and pricing strategy As per SCM Delegations
2.3 Establish targeting strategy As per SCM Delegations
2.4 Establish procurement procedure As per SCM Delegations
2.5 PG2 Obtain approval for procurement strategies that are to be adopted As per SCM Delegations
Activity 3: Solicit tender offers
3.1 Prepare procurement documents As per SCM Delegations
3.2 PG3 Obtain approval for procurement documents As per SCM Delegations
3.3 PG4 Confirm that budgets are in place As per SCM Delegations
3.4 Invite tenderers or
respondents to submit
tender offers or
expressions of interest
As per SCM Delegations To be determined by institution
As per SCM Delegations Assigned procurement leader
Communicate with tenderers or respondents up until closing time for submissions As per SCM Delegations
Advertise tenders or calls for expressions of interest on CIDB website As per SCM Delegations
3.5 Receive tender offers or expressions of interest To be determined by institution
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# Sub-Activity Designated person
3.6 Open and record expressions of interest received Opening Panel
3.7 Evaluate expressions of interest Evaluation Panel
3.8 Prepare evaluation report on short-listing process Evaluation Panel
3.9 PG5 Confirm shortlist Construction Procurement
Committee
3.10 Invite tender offers from short-
listed tenderers
Invite tender offers from shortlisted tenderers As per SCM Delegations
Communicate with tenderers up until closing time for submissions As per SCM Delegations
Activity 4: Evaluate tender offers
4.1 Open and record tender offers received Opening Panel
4.2 Determine whether or not tender offers are complete Evaluation Panel
4.3 Determine whether or not tender offers are responsive Evaluation Panel
4.4 Evaluate tender submissions Evaluation Panel
4.5 Perform a risk analysis Evaluation Panel
4.6 Prepare a tender evaluation report Evaluation Panel
4.7 PG 6 Confirm recommendation contained in the tender evaluation report where the transaction for a particular
procedure is greater than the thresholds contained in Table B4.
Construction Procurement
Committee
Activity 5: Award contract
5.1 Notify successful tenderer and unsuccessful tenderers of outcome As per SCM Delegations
5.2 Compile contract document As per SCM Delegations
5.3 Audit tender process Internal audit
5.4 PG7 Formally accept tender offer As per SCM Delegations
5.5 Capture contract award data As per SCM Delegations
5.6 Register on supplier database As per SCM Delegations
Activity 6: Administer contracts and confirm compliance with requirements
6.1 Administer contract in accordance with the terms and provisions of the contract As per SCM Delegations
6.2 Ensure compliance with requirements As per SCM Delegations
6.3 Capture contract completion/ termination data As per SCM Delegations
6.4 PG8A Obtain approval to waive penalties or
low performance damages.
As per SCM Delegations To be determined by institution
Approve waiver of penalties or low performance damages. Construction Procurement
Committee
6.5
PG8B
Obtain approval to notify and refer a
dispute to an adjudicator
Outline the essence of the dispute and the reasons for wishing to
refer the dispute to an adjudicator.
As per SCM Delegations
Approve referral for a dispute to an adjudicator. As per SCM Delegations
6.6
PG8C
Obtain approval for events which in
terms of the contract increase the total
of prices or the time for Completion by
more than 1%.
(NOTE: Designated person may
increase values in terms of the
contract up to 1% but not beyond this
Finalise submission for increases in the total of prices or time for
completion in terms of the contract
As per SCM Delegations
Grant permission to approve an increase in prices or time in terms
of the contract if the total of prices does not exceed the total of
prices at award by more than the amounts stated in Table B8 or
the time for completion at award by more than 20%,
As per SCM Delegations
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# Sub-Activity Designated person
value)
6.7
PG8D
Obtain approval to exceed the total of
prices at award by the amounts stated
in Annexure B or the time for
completion at award by more than
20%
Prepare motivation for exceeding the total of prices at award by
more than the amounts stated in Table B8 or the time for
completion at award by more than 20%, setting out the precise
reasons for the increase in the cost of goods, services or works.
As per SCM Delegations
Approve amount or time overruns. As per SCM Delegations
6.8
PG8E
Obtain approval to cancel or terminate
a contract
Prepare motivation to terminate or cancel a contract and obtain
advice as necessary from the Legal Advisor (National Mandates)
As per SCM Delegations
Approve termination or cancellation of contract As per SCM Delegations
# Sub-Activity Designated person
6.9
PG8F
Obtain approval to amend a contract Formulate proposed amendment to the contract and formulate a
motivation to do so
As per SCM Delegations
Approve proposed amendment to the contract As per SCM Delegations
6.9 Finalise contract As per SCM Delegations
6.10 Capture contract completion / termination data for construction works contracts. As per SCM Delegations
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