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Some useful guidance is to be had from a recent case as to what changes may be permissible to a tender after the tenders have been opened. The case also summarises the principles governing tenders in the public sector and more particularly in relation to local authorities. THE PRINCIPLES RESTATED In adjudicating and awarding tenders […]
A decision of the Johannesburg High Court last year has affirmed the precarious position of contractors who build homes without being registered in terms of the Housing Consumers Protection Measures Act, 95 of 1998 (“the Act”). The Act stipulates2: “No person shall – (a) carry on the business of a home builder; or (b) receive […]
In a previous Bulletin we dealt with the case of Grinaker-LTA Ltd v The Tender Board Mpumalanga in which the High Court set aside what was considered to be a tainted tender award. In another recent case , as yet unreported, the High Court has again had occasion to set aside an improperly awarded tender. […]
AGGRIEVED TENDERERS AND DAMAGES The Supreme Court of Appeal has held that it is not competent for an unsuccessful tenderer to claim damages for loss of profit arising from the non-award to him of a tender despite the tender award to the successful tenderer having been wrong. Whilst the case was decided before the promulgation […]
It frequently occurs that a contractor exercises a lien over construction works because of non-payment by an employer. The court has a discretion, if it considers that it is equitable to do so, to compel the contractor to deliver the works provided that the contractor’s rights are safeguarded by means of adequate security being provided […]
UNFAIR TENDERS CAN BE SET ASIDE The High Court of South Africa, Transvaal Provincial Division, recently set aside a tender award by the Mpumalanga Tender Board and awarded the tender to the tenderer that had achieved the most points. In March 2001 tenders were invited for the rehabilitation and construction of a road in the […]
Having regard to the reasoning applied in a recent English court decision, “pay when paid” clauses may not be quite the source of comfort to main contractors as previously thought. A “pay when paid” clause is the clause that is typically put into contracts between main contractors and subcontractors stipulating that the subcontractor will only […]
If an arbitrator unreasonably delays the issue of an award, he may, upon application to the High Court, be removed as arbitrator and forfeit his remuneration. To remove an arbitrator from office, a party is required to show good cause in terms of the Arbitration Act. The Act provides that good cause includes failure on […]
