What are Incidentals in Tendering?

02-06-2020
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Gerrit Davids
Source

The General Conditions of Contract (GCCs), 2010 edition, as used by all organs of state allow for a supplier to deliver services under changed conditions of contract, if and when, it may be required.

After the award of a contract, in cases where the state realises that their precise needs for the goods or services, which were tendered for, have changed, it may request the supplier to “provide other” or “additional services”, if any, as specified by the Special Conditions of Contract (SCCs)”.

Bearing in mind, that the opening ambit of the GCCs are very clear, in that, if a specific tender has clearly stated, and where it was “compiled separately” to the GCCs, the SCCs will “supplement the GCCs”, if there is conflict between the two.

Meaning to say, the SCCs will always over rule the applicable or corresponding GCC in such a tender.

The aspect of incidentals is a highly unknown and unused form of variation, in that most bidders are not even aware of it, let alone using it, as a strategic tool to try and win a tender.

The specific clause in the GCCs, clause 13 is very clear in its instruction that an organ of state may request an existing supplier to render any or all of the following services, in addition, to the delivery specifications for, which it was initially appointed for.

These could include additional services, “if any, specified in SCC”-

(a) performance or supervision of on-site assembly and/or commissioning of the supplied goods;

(b) furnishing of tools required for assembly and/or maintenance of the supplied goods;

(c) furnishing of a detailed operations and maintenance manual for each appropriate unit of the supplied goods

(d) performance or supervision or maintenance and/or repair of the supplied goods, for a period of time agreed by the parties, provided that this service shall not relieve the supplier of any warranty obligations under this contract; and

(e) training of the purchaser’s personnel, at the supplier’s plant and/or on-site, in assembly, start-up, operation, maintenance, and/or repair of the supplied goods.

Further, the clause also directs, that the supplier will have to submit a quotation to the organ of state, if the prices were not initially included in its original pricing schedule and that an agreement on it, will have to be reached, before the supplier commences with the additional required services.

Also, that the pricing should be market related, meaning, “the exact same pricing it would charge others in the market” for the same services, and it should not be inflated at all costs.

In conclusion, one can conclude from the allowance afforded to organs of state in this specific delegation of authority, is that all tenders, as a given, has a component of budget, for such variation, both in terms of requirements and fees payable to the incumbent supplier.