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GENERAL CONDITIONS OF CONTRACT
writing of the fact of the delay, its likely duration and its cause(s). As soon as practicable after receipt of the supplier’
notice, the purchaser shall evaluate the situation and may at his discretion extend the supplier
’s time for performance,
with or without the imposition of penalties, in which case the extension shall be ratified by the parties by amendment
21.3. The right is reserved to procure outside of the contract small quantities or to have minor essential services executed if
an emergency arises, the supplier’s point of supply is not situated at or near the place where the supplies are required,
or the supplier’s services are not readily available.
21.4. Except as provided under GCC Clause 25, a delay by the supplier in the performance of its delivery obligations shall
render the supplier liable to the imposition of penalties, pursuant to GCC Clause 22, unless an extension of time is
agreed upon pursuant to GCC Clause 22 without the application of penalties.
21.5. Upon any delay beyond the delivery period in the case of a supplies contract, the purchaser shall, without cancelling
the contract, be entitled to purchase supplies of a similar quality and up to the same quantity in substitution of the
goods not supplied i
n conformity with the contract and to return any goods delivered later at the supplier’s expense
and risk, or to cancel the contract and buy such goods as may be required to complete the contract and without
prejudice to his other rights, be entitled to claim damages from the supplier.
22.1. Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the services within the
period(s) specified in the contract, the purchaser shall, without prejudice to its other remedies under the contract,
deduct from the contract price, as a penalty, a sum calculated on the delivered price of the delayed goods or
unperformed services using the current prime interest rate calculated for each day of the delay until actual delivery or
performance. The purchaser may also consider termination of the contract pursuant to GCC Clause 23.
23. Termination for default
23.1. The purchaser, without prejudice to any other remedy for breach of contract, by written notice of default sent to the
supplier, may terminate this contract in whole or in part:
23.1.1. if the supplier fails to deliver any or all of the goods within the period(s) specified in the contract, or within any
extension thereof granted by the purchaser pursuant to GCC Clause 21.2;
23.1.2. if the Supplier fails to perform any other obligation(s) under the contract; or
23.1.3. if the supplier, in the judgment of the purchaser, has engaged in corrupt or fraudulent practices in competing
for or in executing the contract.
23.2. In the event the purchaser terminates the contract in whole or in part, the purchaser may procure, upon such terms
and in such manner as it deems appropriate, goods, works or services similar to those undelivered, and the supplier
shall be liable to the purchaser for any excess costs for such similar goods, works or services. However, the supplier
shall continue performance of the contract to the extent not terminated.
23.3. Where the purchaser terminates the contract in whole or in part, the purchaser may decide to impose a restriction
penalty on the supplier by prohibiting such supplier from doing business with the public sector for a period not
exceeding 10 years.
23.4. If a purchaser intends imposing a restriction on a supplier or any person associated with the supplier, the supplier will
be allowed a time period of not more than fourteen (14) days to provide reasons why the envisaged restriction should
not be imposed. Should the supplier fail to respond within the stipulated fourteen (14) days the purchaser may regard
the supplier as having no objection and proceed with the restriction.
23.5. Any restriction imposed on any person by the purchaser will, at the discretion of the purchaser, also be applicable to
any other enterprise or any partner, manager, director or other person who wholly or partly exercises or exercised or
may exercise control over the enterprise of the first-mentioned person, and with which enterprise or person the first-
mentioned person, is or was in the opinion of the purchase actively associated.
23.6. If a restriction is imposed, the purchaser must, within five (5) working days of such imposition, furnish the National
Treasury, with the following information:
23.6.1. the name and address of the supplier and / or person restricted by the purchaser;
23.6.2. the date of commencement of the restriction
23.6.3. the period of restriction; and
23.6.4. the reasons for the restriction.
These details will be loaded in the National Treasury’s central database of suppliers or persons prohibited from doing
business with the public sector.
23.7. If a court of law convicts a person of an offence as contemplated in sections 12 or 13 of the Prevention and Combating
of Corrupt Activities Act, No. 12 of 2004, the court may also rule that such person’s name be endorsed on the Register
for Tender Defaulters. When a person’s name has been endorsed on th
e Register, the person will be prohibited from
doing business with the public sector for a period not less than five years and not more than 10 years. The National
Treasury is empowered to determine the period of restriction and each case will be dealt with on its own merits.
According to section 32 of the Act the Register must be open to the public. The Register can be perused on the National
24. Anti-dumping and countervailing duties and rights
24.1. When, after the date of bid, provisional payments are required, or antidumping or countervailing duties are imposed,
or the amount of a provisional payment or anti-dumping or countervailing right is increased in respect of any dumped