HT Pelatona Projects (Pty) Ltd v Tswelopele Local Municipality and Others (A62/2022) [2022] ZAFSHC 254 (13 October 2022)

HT Pelatona Projects (Pty) Ltd v Tswelopele Local Municipality and Others (A62/2022) [2022] ZAFSHC 254 (13 October 2022)

The court found that the procurement process substantially complied with the mandatory requirements. The joint venture's failure to submit certain documents was not fatal, as the second respondent provided the necessary bank rating certificate and the company profile was not essential for evaluation. The confusion regarding CIDB grading requirements was resolved in favour of the respondents, as only one grading in either CE or ME was required. The awarded contract amount was less than R10 million according to the letter of appointment, and the discrepancy with the agreement was not material to the review. Given that 78% of the works had already been completed, invalidating the contract...

Citation
[2022] ZAFSHC 254
Parties
Applicant: HT Pelatona Projects (Pty) Ltd; Respondent: Tswelopele Local Municipality; Respondent: NSM Professional Services and General Projects (Pty) Ltd; Respondent: Tamane Civil Construction (Pty) Ltd
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
13 October 2022
Case Number
A62/2022
Procedural Posture
Review Application / Final Judgment on Review
Outcome
Application for review dismissed with costs, including reserved costs of 23 May 2022.
Judges
Mathebula, Molitsoane
Legal Topics
Municipal Procurement, Promotion of Administrative Justice Act, Bid Evaluation, Cidb Grading Requirements, Returnable Documents, Just and Equitable Remedy
Administrative Law Civil Procedure Municipal Procurement Promotion of Administrative Justice Act Bid Evaluation Cidb Grading Requirements Returnable Documents Just and Equitable Remedy

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Parties

HT Pelatona Projects (Pty) Ltd

Applicant

Tswelopele Local Municipality

Respondent

NSM Professional Services and General Projects (Pty) Ltd

Respondent

Tamane Civil Construction (Pty) Ltd

Respondent

Procedural Posture

Review Application / Final Judgment on Review

Legal Issues

  1. 1 Whether the first respondent's award of the contract complied with mandatory procurement requirements.
  2. 2 Whether the joint venture between the second and third respondents met the CIDB grading and returnable document requirements.
  3. 3 Whether the awarded bid amount exceeding the budget invalidates the contract.

Ratio Decidendi

The court found that the procurement process substantially complied with the mandatory requirements. The joint venture's failure to submit certain documents was not fatal, as the second respondent provided the necessary bank rating certificate and the company profile was not essential for evaluation. The confusion regarding CIDB grading requirements was resolved in favour of the respondents, as only one grading in either CE or ME was required. The awarded contract amount was less than R10 million according to the letter of appointment, and the discrepancy with the agreement was not material to the review. Given that 78% of the works had already been completed, invalidating the contract...

Court Disposition

Application for review dismissed with costs, including reserved costs of 23 May 2022.

Orders

  • The application for review is dismissed with costs, which includes the reserved costs of 23 May 2022.