Johannesburg High Court invalidates water tender award to Builtpro and Nutinox
The Johannesburg High Court has declared Johannesburg Water’s tender to supply potable water to two companies invalid.
Image: Itumeleng English / Independent Newspapers
The Johannesburg High Court has declared Johannesburg Water’s tender to supply potable water to two companies invalid.
This follows a challenge by LTC Holding CC, an unsuccessful bidder. The tender had been awarded to Builtpro Construction (Pty) Ltd and Nutinox (Pty) Ltd.
LTC Holding CC argued that Johannesburg Water had no authority to make the award because the tender had already lapsed. The company said that the water utility failed to properly extend the tender period, did not get consent from all participating bidders, and only communicated the award more than a month after the validity period ended.
Johannesburg Water opposed the application, arguing that the tender had been validly extended to May 4 2024 and that it was lawfully awarded to Builtpro Construction and Nutinox on that date.
"The first respondent opposed the application on various grounds. Its central contention was that the tender had been validly extended to 4 May 2024 and was lawfully awarded to the second and third respondents on 4 May 2024. It is submitted that there were no valid grounds to review the award of the tender.
However, Judge EF Dippenaar found that the tender had already lapsed before the award was communicated.
“Once the tender validity period had expired, the tender process had been completed, albeit unsuccessfully. As at 5 May 2024… the process was not complete,” the judgment reads.
The court also rejected Johannesburg Water’s reliance on its internal Supply Chain Policy, saying that it was not part of the tender documents and could not justify the award.
“No cogent evidence was provided that the SCP policy was expressly incorporated by reference into the tender documents… A bald reference thereto in an extension letter is insufficient,” Judge Dippenaar said.
“Continuity of supply of the services… is of great importance to the public at large and specifically to the communities involved,” the judgment added.
mthobisi.nozulela@iol.co.za
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