Mpumalanga Tender Bulletin November Edition

The Mpumalanga Tender Bulletin is a vital source of information for contractors and suppliers looking to engage in business with the Mpumalanga Provincial Government in South Africa. This bulletin serves as a comprehensive guide, outlining the procedures, requirements, and opportunities available for those interested in bidding on government contracts. In this article, we will delve into the details of the Mpumalanga Tender Bulletin for November, examining key aspects such as performance guarantees, retention policies, and the application process for tax clearance certificates.

mpumalanga tender bulletin

Overview of the Mpumalanga Tender Bulletin

The Mpumalanga Tender Bulletin for November is a document that provides essential information for prospective bidders. It serves as a means of communication between the government and potential contractors or suppliers, ensuring transparency and fairness in the procurement process. This bulletin is crucial for businesses seeking opportunities to work on various projects and contracts under the Mpumalanga Provincial Government.

Performance Guarantee Requirement

One of the critical aspects outlined in the November edition of the Mpumalanga Tender Bulletin is the requirement for a performance guarantee. However, there is a notable exception in this edition. The Mpumalanga Provincial Government has decided to waive the performance guarantee requirement for projects or contracts with monetary values ranging from R0.1 million up to R5.0 million. This decision aims to facilitate easier access for smaller businesses and promote economic growth in the region.

For projects or construction contracts exceeding R5.0 million, an upfront payment of a performance guarantee is still mandatory. The bulletin provides a clear breakdown of the percentage of the guarantee value required based on the contract’s total value. This policy ensures that larger contracts maintain a level of security while simplifying the process for smaller projects.

Retention Policies

The Mpumalanga Provincial Government has also established retention policies for contracts. Retention is the practice of withholding a portion of a contractor’s payment as a security measure against potential issues such as poor workmanship or defaults. The bulletin outlines different retention policies for building contracts and engineering contracts:

3.1 Building Contracts

  • 10% retention will be deducted on any progress payment certificate.
  • The total deducted retention value will equal 5% of the total contract or project value.
  • The retained money will be released at the end of the retention period, typically a three-month period.

3.2 Engineering Contracts

  • 10% retention will be deducted on any progress payment certificate.
  • The total retention value will equal 10% of the total contract or project value.
  • 5% of the retention money will be released immediately after practical completion of the project, with the remaining 5% released as soon as feasible, depending on the nature of the project.

These retention policies aim to ensure the quality of work while safeguarding the interests of both the government and contractors.

Application for Tax Clearance Certificate

Another crucial aspect emphasized in the November edition of the Mpumalanga Tender Bulletin is the requirement for a tax clearance certificate. It is a condition of bidding that the taxes of the successful bidder must be in order or that suitable arrangements have been made with the South African Receiver of Revenue to satisfy them.

To obtain a tax clearance certificate, bidders must complete the SBD.2 form, Application for Tax Clearance Certificate (in respect of bids), in full and submit it to the Receiver of Revenue where they are registered for income tax purposes. The Tax Clearance Certificate issued will be valid for 12 months from the date of issue and must be submitted with the original bid before the closing date. Failure to provide a valid Tax Clearance Certificate may result in the invalidation of the bid.

This requirement ensures that bidders are tax-compliant, promoting transparency and responsible financial practices.

Reading Out of Bid Prices

The November edition of the Mpumalanga Tender Bulletin introduces changes in the way bid prices are disclosed. Henceforth, only the prices of bids in the building, civil, mechanical, and electrical works categories will be disclosed on request at the time of opening bids. This change aims to streamline the bid opening process while maintaining transparency.

The bulletin emphasizes that tender submission results are read out to the public immediately after closure. However, no submission results will be faxed, emailed, or made available telephonically. Interested parties can access this information over the internet via the official government website.

Levy Payment

Bidders are advised that the Mpumalanga Provincial Government will only accept payment for the bid levy in the form of bank-guaranteed cheques, cash, or postal orders. Bidders are urged not to discard their receipts for purchased bid documents, as no exchanges can be made without the original receipt. This policy ensures that the government receives valid and secure payments for bid documents.

Empowerment Efforts and Plans

The November edition of the Mpumalanga Tender Bulletin places a significant emphasis on empowerment efforts and plans by bidders. Businesses submitting bids are required to provide details regarding their empowerment initiatives in various key areas. These areas include:

7.1 Directors/Partners/Members/Owners

  • The number, role (executive/non-executive), and influence of Directors.

7.2 Management

  • The profile of the management structure, with percentages of black participation across different levels.

7.3 Training and Development

  • Efforts in skills development for workers and management, with a focus on training expenditure as a percentage of payroll costs.

7.4 Joint Ventures

  • Details of any joint ventures with Black-owned businesses, including proof of their genuineness.

7.5 Outsourcing

  • Indication of which business activities are provided by Black businesses.

7.6 Sub-Contracting

  • Information on which parts of the contract will be performed by Black businesses.

7.7 Equity Participation

  • Information on the status of Black ownership in the bidder’s company.

7.8 Other Empowerment Activities

  • The opportunity for bidders to provide additional relevant empowerment details that may not fall within the specified framework.

These requirements demonstrate the Mpumalanga Provincial Government’s commitment to promoting economic empowerment, transformation, and inclusivity in its procurement processes.

Industrial Relations Climate

Sound industrial relations are highlighted as a measure of employee acceptance of the workplace environment and empowerment. The bulletin encourages the involvement of employees or their representatives in key organizational processes, fostering a positive climate.

Conclusion

The Mpumalanga Tender Bulletin for November is a comprehensive document that provides crucial information for contractors and suppliers seeking opportunities with the Mpumalanga Provincial Government. Key aspects such as performance guarantees, retention policies, tax clearance certificates, and empowerment efforts have been discussed in this article. It is essential for businesses to adhere to these requirements and guidelines to participate in government projects and contracts while contributing to economic growth and transformation in Mpumalanga.

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