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Tender Agency Agreement for South Africa

Tender Agency Agreement Template for South Africa

This document establishes a formal agency relationship for tender-related services in South Africa, governed by South African law. It outlines the appointment of a specialized tender agent to identify, prepare, and submit tenders on behalf of the principal company. The agreement incorporates crucial South African legislative requirements, including B-BBEE compliance, public procurement regulations, and anti-corruption measures. It details the scope of authority, responsibilities, compensation structure, and compliance obligations while ensuring alignment with the Public Finance Management Act and other relevant procurement legislation.

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What is a Tender Agency Agreement?

The Tender Agency Agreement is essential for businesses operating in South Africa that require specialized expertise in navigating complex tender processes. This document is particularly relevant in contexts where companies seek to participate in public or private sector tenders but lack internal expertise or resources. The agreement defines the relationship between a principal company and a tender agent, authorizing the agent to identify tender opportunities, prepare and submit tender documents, and manage the tender process on the principal's behalf. It incorporates crucial elements of South African legislation, including the Public Finance Management Act, B-BBEE requirements, and anti-corruption laws. The document is structured to ensure compliance with local procurement regulations while protecting both parties' interests through clear delineation of responsibilities, authority limits, and compensation terms.

What sections should be included in a Tender Agency Agreement?

1. Parties: Identification of the Principal and the Tender Agent, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the Principal's business and need for tender agency services

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Appointment and Scope: Formal appointment of the agent and detailed scope of agency services regarding tenders

5. Duration: Term of the agreement, including commencement date and termination provisions

6. Agent's Authority: Specific powers granted to the agent, including limitations and requirements for principal approval

7. Agent's Obligations: Detailed responsibilities including tender identification, preparation, submission, and follow-up

8. Principal's Obligations: Responsibilities of the principal including providing information, documentation, and timely responses

9. Fees and Payment: Fee structure, payment terms, and reimbursement of expenses

10. Compliance and Legal Requirements: Obligations regarding B-BBEE, anti-corruption laws, and procurement regulations

11. Confidentiality: Protection of confidential information exchanged during the tender process

12. Intellectual Property: Ownership and usage rights of tender documents and related materials

13. Limitation of Liability: Extent and limitations of agent's liability in performing services

14. Termination: Grounds for termination and consequences thereof

15. General Provisions: Standard clauses including notices, governing law, dispute resolution, and entire agreement

What sections are optional to include in a Tender Agency Agreement?

1. Performance Targets: Specific KPIs and performance measures, used when the principal wants to establish concrete metrics

2. Success Fee Structure: Additional compensation based on successful tender awards, included when performance-based compensation is desired

3. Sub-Agents: Terms governing the appointment of sub-agents, needed when sub-agents may be required

4. Industry-Specific Compliance: Additional compliance requirements for specific industries (e.g., mining, construction)

5. International Tenders: Special provisions for international tenders, included when cross-border work is anticipated

6. Digital Submission Protocols: Specific procedures for electronic tender submissions, needed for e-tender platforms

7. Consortium Arrangements: Provisions for handling consortium bids, included when consortium tenders are contemplated

What schedules should be included in a Tender Agency Agreement?

1. Schedule 1: Fee Structure: Detailed breakdown of fees, commissions, and payment calculations

2. Schedule 2: Authorized Representatives: List of authorized representatives from both parties who can make decisions

3. Schedule 3: Required Documentation: Checklist of standard documents required for tender submissions

4. Schedule 4: Compliance Checklist: List of regulatory requirements and compliance checks for tender submissions

5. Schedule 5: Service Level Agreement: Detailed service levels and response times for various activities

6. Appendix A: Power of Attorney: Standard power of attorney format for tender submissions

7. Appendix B: Tender Process Workflow: Detailed workflow diagram of the tender process and responsibilities

8. Appendix C: Document Templates: Standard templates for commonly required tender documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

South Africa

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions



































Clauses





































Relevant Industries

Construction

Infrastructure

Mining

Healthcare

Information Technology

Transportation

Energy

Defense

Telecommunications

Professional Services

Manufacturing

Public Sector Services

Engineering

Environmental Services

Relevant Teams

Legal

Procurement

Commercial

Business Development

Compliance

Finance

Operations

Risk Management

Project Management

Tender Office

Contract Administration

Relevant Roles

Procurement Manager

Tender Specialist

Business Development Director

Commercial Director

Legal Counsel

Compliance Officer

Contract Manager

Chief Financial Officer

Operations Director

Project Manager

Bid Manager

Risk Manager

Commercial Manager

Managing Director

Chief Executive Officer

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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