GENERAL CONDITIONS OF TENDER – ENQUIRY NUMBER P30112018

1. DETAILS CONFIDENTIAL
The Tenderer (whether his tender is accepted or not) shall treat all details in this Tender
document and his tender as private and confidential. Details of the Tenderer's proposals
will be treated as private and confidential and no information contained in a tender will be
disclosed to third parties.

2. PROPOSED CONTRACT PROGRAM

The agreement/s will commence on the Commencement Date and shall continue to be of
full force virtue and effect until –

(1) terminated by either party to the contract giving one months' notice in writing of such
termination.

or

(2) terminated at any stage under any of the provisions contained in the agreement.

3. ENTIRE TENDER

3.1 This document embodies the entire Tender between the parties and no alteration or
variation shall be of any force or effect unless it is recorded in writing by means of
modification and signed by the Manager Category and Capital Procurement.

3.2 No latitude, indulgence, consent or forbearance or any other similar act by either party in
enforcing any provisions of this Contract shall constitute a variation or novation of this
Contract or a waiver of or estoppels in respect of its rights in terms of this Contract.

4. PRICING

Tenderers shall tender on the following basis for the items:

4.1 Prices subject to adjustment- The Supplier shall:

4.1.1 Stipulate the date until which their tender prices are fixed.

4.1.2 State the frequency of price adjustments (i.e. annually, six monthly, quarterly etc).

4.1.3 Indicate the fixed portion amounting to at least 15% of the tender price(s).

4.1.4 Give a percentage breakdown of the cost elements of the tender price(s).

4.2 In this regard Tenderers have to note that any application for a price adjustment shall
state full particulars of the factors responsible for the cost changes, and the said
application shall also be accompanied by such documentary proof as may be required by
SIOC.

4.3 Prices will be reviewed based on an escalation formula, Tenderers shall, when submitting
their tenders, also indicate which indices (e.g. Seifsa index of actual/statutory labour costs,
indices of Central Statistical Services) will be used as a basis for calculation of price
adjustments, and have to note that the month in which the Tender closes will be used as
the base month for the calculation of price adjustments.

4.3.1 All applications for price adjustment must be on an official letterhead and must be
admitted two months before the commencement date of the price adjustment.

4.3.2 All tender prices must be exclusive of value added tax (VAT). Tax invoices submitted
for payment shall indicate the VAT separately.
4.3.3 All prices shall be quoted in the currency of the Republic of South Africa (ZAR).

4.4 SIOC will only pay the contract tariff per item and SIOC will not be responsible for any
other costs.
5. METRIC IN RESPECT OF CONTRACT PAYMENT

The metric for payment will be based as describe in scope of work.

6. TENDERER PERFORMANCE POINTS

The performance points against which the successful Tenderer will be measured
according to the contract are:
 On-time delivery ;
 Safety – conformance to SIOC standards; and
 Customer Service – quick response, regular feedback, and
 Reporting
 Quality of work
 Continuous Improvement initiatives

Should SIOC identify any non-conformances by the Tenderer, a Non- Conformance

Report (NCR) will be issued to the Tenderer.

7. CORRESPONDENCE

All correspondence between the Tenderer and SIOC must be in writing.

8. BLACK ECONOMIC EMPOWERMENT

The Tenderer is required to support and commit to the Black Economic

Empowerment (‘BEE’) requirements as defined in the Mining Charter, taking
cognisance of the Minister’s dispensation regarding the definition of “empowered”.

To this end, Tenderers are required to complete the Sustainable development and
Local Procurement Questionnaire in the tender. In the event that the Tenderer does
not currently possess an “Empowered” (>25% ≤50% Black Ownership) rating,
then a detailed plan should be attached stating the plans to be implemented to
attain this rating and the planned target dates. Failure to achieve this rating will be
viewed as grounds for termination of any resultant contract, subject to the
commercial terms and conditions which will be stated in any such contract.
9. CONFLICT OF INTEREST

“Tenderer’s shall clearly indicate in their tender any situation or relationship vis a vis any
SIOC official/s which may reasonably be construed as constituting a conflict of interest. SIOC
in its sole discretion shall then decide on a suitable course of action. Tenderer’s shall note
that in the absence of such an indication, which failure later proves to have been in bad faith,
SIOC reserves all its rights including but not limited to compensation for damages”. Please
complete the Conflict of Interest document in the Tender.

10. SUBMISSION OF TENDER

The tender, clearly endorsed with the ENQUIRY NUMBER P30112018, BUT WITHOUT
THE TENDERER'S NAME DISPLAYED ON IT AND THE WORDS "TENDER FOR THE
PROVISION OF SERVICES FOR PLANT MAINTENANCE ON SISHEN MINE", shall be:

 Deposited in the tender box at Sishen mine (located next to the Spoornet Gate);

or

 Emailed to :

Tenders@angloamerican.com

11. GENERAL

(a) The General Conditions of Contract is specified under the GCC’s within the tender.

(b) Tenders which omit any of the information requested may at the discretion of
SIOC be deemed to be invalidated.

(c) SIOC does not bind itself to accept the lowest or any tender and reserves the right
to accept a tender in whole or in part.

(d) No tender will be considered unless received by the closing time and date
stipulated above.

(e) There will be no extension in the closing date of this tender.

(f) Detailed conditions of contract will be negotiated with the successful Tenderer.
SIOC’s conditions of contract will be used in drafting the contract in consultation
with the successful Tenderer.
(g) SIOC in agreement with the successful Tenderer reserves the right to implement a
reward/penalty clause in the contract depending on the strategic importance of the
commodity.

(h) No tender shall be deemed to have been accepted, unless such acceptance has
been conveyed to the Tenderer by notice in writing.

(i) SIOC reserve the right to not award the Tender if the requirement arise after the
tender has been issued to the market.

(j) No tippex to be used on tender documents and tender pricing.