Articles #government contracts

The article delves into the intricacies of cession agreements within public procurement frameworks, exemplified by the case Phuhlani Bafazi Construction v PRASA.

The Constitutional Court’s decision in Minister of Defence and Military Veterans v Zeal Health Innovations clarifies how “just and equitable” remedies under section 172(1)(b) should be applied when a public tender is declared invalid. The Court confirmed that an innocent contractor may be paid at the contractual rate-including the built-in profit margin-for services actually rendered in good faith, where the State received the benefit. However, it drew a firm line against extending contractual rights to periods of non-performance, warning that doing so would amount to an unjustified windfall and undermine accountability in public procurement.