REQUEST FOR PROPOSALS FOR DEVELOPMENT OF 121 RESIDENTIAL ERVEN IN

BUTTERWORTH TOWNSHIP EXTENSION NO. 15

Proposals are hereby invited from reputable Property Development Companies for the development of
121 Residential Erven in Butterworth Township Extension No 15.

1. DESCRIPTION OF ERVEN TO BE DEVELOPED

Mnquma Local Municipality is the registered owner of 121 undeveloped residential erven situated in
Butterworth Township Extension No. 15 in the vicinity of the area commonly known as Vuli Valley
Township and Vuli Valley High School. These erven can be describes as follows:

It is therefore the intention of the Mnquma Local Municipality to develop the erven for the purposes
stated above.
 Erven 5797 to 5806 =10
 Erven 5808 to 5814 = 7
 Erven 5816 to 5817 = 2
 Erven 5819 to 5844 = 26
 Erven 5847 to 5850 = 4
 Erven 5852 to 5853 = 2
 Erven 6008 to 6033 = 26
 Erven 6036 to 6067 = 32
121

The erven and their respective areas are clearly shown on the approved General Plan No 995 of the
said Butterworth Township Extension No. 15.

2. OBJECTIVES

The Mnquma Local Municipality wishes to advance private home ownership through offering
developers in the private sector the opportunity to service land and sell to individual owners affordable,
aesthetically accept The Mnquma Local Municipality intends to enter into an agreement with an
approved developer who will take possession of the land on a lease basis and provide suitable
services and housing according to an agreed development programme and the approved township
layout and general plan.

4. ENGINEERING SERVICES AND DEVELOPMENT REQUIREMENTS

4.1 All streets in the township are to be tarred with a chip and spray surface not less than 15 metres in
width, with formed foot paths, to link up with the existing roads network.

4.2 Storm water drainage is to be underground drains.

4.3 All erven are to be served by a water connection with an approved water meter. Details of the
existing water supply network in the adjacent Vulivalley residential township will be available from the
Directorate of Infrastructural Planning and Development and the Amathole District Municipality as the
designated water and sanitation authority.

4.4 All erven are to be served by waterborne sewerage to link up with the existing waterborne
sewerage system in the developed area, details of which can also be obtained from the Directorate of
Infrastructural Planning and Development and the Amathole District Municipality.
4.5 All erven are to be served by electricity from the existing supply network and overhead bundle
conductors may be used.

4.6 Street lighting is to be provided.

4.7 Vehicular access to each property is to be provided.

4.8 All street signs, road traffic signs and street markings are to be provided to the satisfaction of the
Mnquma Local Council.

5. ALTERNATIVE SERVICES STANDARDS

It is expected that the level of services to be provided to the 121 residential erven will not be
inferior to the standard of services that have been provided in the adjacent developments such as
Vulivalley Township. The developer may nonetheless make proposals in this regard.

6. HOUSING

The Mnquma Local Council requires that all the subject properties in the township first be
provided with services and further that the successful developer be afforded the opportunity to
provide houses to individual purchasers on all the residential erven.

The minimum value of the houses to be provided by the developer shall be Three
Hundred Thousand Rand (R300 000, 00).

7. NATURE OF PROPOSALS

Proposals must include the following information:-

7.1 Details of how the project will be executed.

7.2 The appraisal by the developer of the market demand and its affordability, leading to the
proposed marketing strategy.

7.3 Details of the proposed services to be provided and the standards and specifications to be
adopted.

7.4 A provisional programme which indicates the primary activities to be undertaken and the
duration involved for each stage.

7.5 Details of financial arrangements for the development of services and arrangements for
bond financing are to be provided, supported by an audited report of the company’s financial
position.

7.6 Developers are to indicate the nature of their experience in township development, previous
experience, current commitments and examples of housing types, standards and costs.

7.7 An indication is to be given of the selling price of housing and services in separate portions.

7.8 An offer by the developer concerning a lease on the township area to secure finance, the
length of time the lease should operate and the rental offered.

8. SUBMISSION OF PROPOSALS

The developer’s proposal must be submitted in a sealed envelope addressed to the deposited in the
Tender Box located in Room No. 16, Municipal Office Complex, Corner King and Sauer Streets,
Butterworth.

The proposal must be clearly marked “DEVELOPMENT PROPOSAL OF 121 ERVEN IN

BUTTERWORTH EXTENSION 15”.

Proposals received after this date 06 November 2017 and time 14H00 will not be considered.
SUPPLY CHAIN MANAGEMENT (SCM) REQUIREMENTS

In accordance with the Supply Chain Management Policy, the tender evaluation process shall be
carried out in two stages namely:

 Stage 1 : Compliance check of Returnable Documents

 Stage 2 : Functionality in terms of the set technical evaluation criteria

FUNCTIONALITY EVALUATION

CRITERIA WEIGHTING
1. Methodology 40
2. Experience 30
1 similar project =5
2 similar projects = 10
3-4 similar projects = 20
5 similar projects = 30

3. Personnel 30
GRAND TOTAL 100

Any bidder who scores below 70% on the functionality points will be regarded as non-responsive.

BIDDERS SHALL TAKE NOTE OF THE FOLLOWING BID CONDITIONS:

 The Mnquma Local Municipality Supply Chain Management policy shall apply
 Proposals are to hold good for a period of ninety (90) days
 Proposals that are late, incomplete, unsigned, submitted electronically or by facsimile will not
be accepted
 Proposals must be accompanied by a valid tax clearance certificate and company profile
 Misrepresentation of address of the business with the aim of scoring points will lead to
disqualification
 The Municipality reserves the right to disqualify any service provider who members and / or
shareholders owe rates to the Municipality.


Failure to submit the following returnable documents will render your tender disqualified
or declared non responsive:

 Certified copy of company registration/ CK documents

 Valid Original SARS Tax Clearance Certificate
 MBD4 form obtainable from the municipality or municipal website
 Certified ID Copies of Shareholders
 Latest Annual Financial Statements signed by company’s Auditors.

Once the successful bidder has been chosen, the terms and conditions of a Development Agreement
to be entered into by the parties will be negotiated and concluded before the Development can
commence.

Enquires should be directed to Mr K. Clock Director Infrastructural Planning & Development (047) 401
2400 during office hours, i.e. from 08H00 to 17H00.