Metro Projects CC and Another v Klerksdorp Local Municipality and Others
Jurisdiction | South Africa |
Judge | Zulman JA, Farlam JA, Nugent JA, Conradie JA and Heher AJA |
Judgment Date | 22 September 2003 |
Citation | 2004 (1) SA 16 (SCA) |
Docket Number | 602/2002 |
Hearing Date | 05 September 2003 |
Counsel | J G Bergenthuin SC for the appellants. Q Pelser SC for the first respondent. No appearance for the second to 12th respondents. |
Court | Supreme Court of Appeal |
Conradie JA:
[1] The appellants and the second to 12th respondents tendered for the development of 1 333 stands in a township known as F Jouberton extension 10 which lies within the jurisdiction of the first respondent, a local municipality established under the Local Government Municipal Structures Act 117 of 1998. On review the Court a quo declined to uphold a contention by the appellants that G the award of the tender to the ninth respondent ought to be set aside but granted them leave to appeal to this Court against the dismissal of their application. The appellants (associates in a joint venture) and the first respondent are the only parties before us.
[2] The first respondent had been given a grant amounting to R18 400 by the Provincial Government of the North West Province for H the development of each of the stands. In the invitation to tender prospective offerors were told that, apart from providing certain developmental services, they were expected to attend to the construction and handover of a top-structure (a house) on each of the stands. Each tenderer was required to furnish a price breakdown and description of the products and services to be provided by it. I Accordingly each of the tenderers included in its tender a plan stating the floor area of the house it proposed to build.
[3] The city civil engineer employed by the first respondent, Mr Nicolas Els, analysed the tenders. He submitted to the committee charged with J
Conradie JA
deciding on them a recommendation in tabular form. It consisted of three columns, each divided into two sections to A cater for two types of stand. The three columns are headed 'Tendered indirect cost', 'Amount available for top-structure' and 'Building area of top-structure'. These, quite clearly, were important features of each tender. After indirect costs had been taken into account, it was possible to determine how much of the R18 400 remained for the construction of the top-structure. That figure was inserted in the B second column. In the third column was inserted the floor area of the top-structure which each tenderer offered to build with the money available to it after the other developmental expenses had been met.
[4] Among the tenderers that indicated the size of the structure they offered to build was the ninth respondent. The plan submitted C with its tender indicated that it proposed building a structure of 30,2 sq m. This compared poorly with the other tenderers. Four of them, including the appellants, proposed a house of 37 sq m or larger. Except for one other tenderer none proposed a house as small as that of the ninth respondent. Nevertheless, Els recommended that the ninth respondent's tender be accepted. In the column dedicated to the D provision of the floor area he inserted the following comment: 'the house size and layout to be discussed with community'. This...
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