The Most Common Reasons Why Tender Awards Are Challenged in South Africa

When it comes to tenders, there are a few things that you can be sure of – firstly, that almost everyone is going to have an opinion on how the process should work, and secondly, that just about everyone will want to have their bid be successful. This is especially true in South Africa, where suppliers often challenge tender awards that they feel have not been awarded fairly. We look closely at some of the most common reasons why tenders are challenged in our country.

One of the most important regulations surrounding tenders in South Africa is the Preferential Procurement Policy Framework Act, which sets out guidelines for how tenders must be awarded. This includes stipulations that preference should be given to historically disadvantaged individuals and businesses and promoting fair competition among suppliers.

Another significant regulation is the Promotion of Access to Information Act, which gives any person the right to request information from a government department or public body – including tender documents. This ensures transparency in the tender process and helps prevent corrupt practices such as favouritism or bribery.

Finally, it's worth noting that there are also specific rules for tenders involving state-owned enterprises (SOEs), outlined in The Public Finance Management.

?One of the main reasons for challenging a tender award is if there has been improper conduct during the bidding process. This can include unequal treatment of competitors, bribery, or not following proper procedures. In such cases, it is often necessary to bring in an attorney to investigate and potentially take legal action against those involved in misconduct.

?Another reason for challenging a tender award is whether the evaluation criteria need to be clarified or fair. Suppliers may feel that they needed more information about what was being looked for in their bid, or that certain factors were given too much weight compared to others. Again, an attorney can help gather evidence and make arguments in court on behalf of the supplier.

Finally, tenders can also be challenged if the successful supplier does not have the necessary qualifications or experience to fulfil the tender's requirements. In these cases, it may not just be one dissatisfied supplier – the entire project could be at risk if the awarded contract is unable to be adequately carried out.

If you believe that your tender bid has been unfairly evaluated or awarded, it's essential to seek legal advice as soon as possible. An attorney can help gather evidence and determine the best course of action for challenging the outcome. Remember, in South Africa there are regulations in place to ensure fair competition and transparency in tenders – don't let yourself be disadvantaged by improper conduct.

For more information, visit Public Procurement | Dirk Kotze Attorneys (dkotze.co.za)

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