Municipal tender awards and internal appeals by unsuccessful bidders
Abstract
In recent years, bidders aggrieved by municipal tender awards are increasingly
resorting to Section 62 of the Local Government: Municipal Systems Act1 for relief.
The application of this provision to tender processes is however strictly confined, and
in most instances bidders find that they have no option but to approach the courts for
the judicial review of tender awards. In this article, the application of Section 62 to a
municipality’s tender processes and decisions is critically analysed in the light of
recent court judgments. Attention is also given to the relation between Section 62
and dispute resolution procedures in place under the Supply Chain Regulations,2
enacted under the Local Government: Municipal Finance Management Act.3 It is
argued that at present, internal appeal and dispute resolution processes do not
afford unsuccessful bidders adequate protection.