A 3-year contract to construct 1,250 rural housing superstructures and VIP toilets in KwaZulu-Natal, plus completion of Stage 1 planning and beneficiary administration. Bidders need CSD, NHBRC and professional council registrations. Bids close 9 December 2026.
The Okhahlamba Local Municipality, in KwaZulu-Natal, is seeking a qualified implementing agent to deliver the Nogaga A Rural Housing Project in Ward 9 over three years. The re-advertised tender covers the completion of the Stage 1 planning phase (P1.4 Declaration of Rural Area), beneficiary administration under Stage 2 (P4), and the construction of 1,250 superstructures and VIP toilets. The scope also includes rainwater harvesting, geotechnical and geophysical variation allowances for site-specific constraints, site security up to handover, and product design in line with departmental specifications. The successful bidder will sign a Tripartite Agreement between the municipality and the KZN Department of Human Settlements and must assemble a multidisciplinary professional team to determine implementation methodology and costs. The indicative contract value in the pricing schedule is R212,279,666.04 excluding VAT, with the final figure subject to the prevailing subsidy quantum and approved budgets.
The scope of work is broad and covers the full project cycle from planning to close-out. Required services include project scoping and risk management, business planning with defined operating procedures, stage packaging and subsidy applications, project management and construction management, and ongoing technical assistance. The implementing agent must also lead community facilitation, establish and chair the Project Steering Committee and monthly technical meetings, appoint a project engineer, and attend monthly Municipal Housing Forum meetings. Financial duties include managing the Project Specific Account, preparing monthly reconciliation reports, making subsidy payments to suppliers and wages as authorised, and disbursing funds against agreed milestones. Other obligations include NHBRC enrolment of all homes, training and capacity building on housing policy and consumer education, quality management systems, health and safety compliance, and a final close-out report with a full reconciliation of funds.
Evaluation is split into functionality and price. Bidders must score at least 70% on functionality, assessed on methodology, relevant experience with traceable references and completion certificates, stakeholder and resource capacity (including registered professionals such as SACPLAN town planners, ECSA engineers, SACQSP quantity surveyors, SACAP architects and SACPMP project managers), and financial capacity supported by a bank rating letter. Qualifying bidders then present. Price carries 90 points and specific goals 10 points, covering B-BBEE ownership, women, youth, disabled persons and local location, with preference for businesses in the uThukela district. A compulsory briefing session takes place on 17 November 2026 at 10:00 in the Municipal Council Chamber. Bids close on 9 December 2026 at 12:00, and must be lodged in the bid box or couriered at least two days early. Payment is due within 30 days of a valid invoice.
Established construction firms, housing implementing agents, and joint ventures or consortia with proven rural or low-income housing experience and the capacity to deliver 1,250 units over three years. Bidders should hold CSD registration, NHBRC registration, SAICE registration and a valid tax clearance, and have access to a multidisciplinary professional team registered with the relevant councils, including SACPLAN, ECSA, SACQSP, SACPMP and SACAP. Businesses should also have audited financial statements for the past three years, professional indemnity insurance of R5 million, and a bank rating letter, typically Category A or B. Firms that can meet the 70% functionality threshold, with references for similar projects, are best placed to compete. Black-owned, women-owned, youth-owned, disability-owned and uThukela-based enterprises may score additional specific-goal points. Smaller contractors may partner with larger firms through a joint venture, provided each party submits its own tax and CSD documentation.
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