Tender disputesAdministrative law - Tender process - Duty to exhaust internal remedies


In DPP Valuers (Pty) Ltd v Madibeng Local Municipality (233/2015) [2015] ZASCA 146, the Supreme Court of Appeal addressed the question of whether the dispute resolution mechanism in the Municipal Supply Chain Management Regulations constituted an internal remedy under the Promotion of Administrative Justice Act 3 of 2000 (PAJA).

The Municipality had advertised a tender for the compilation of a general and supplementary valuation roll. The contract was awarded to Dijalo Property Valuers. An unsuccessful bidder, DPP Valuers, lodged an objection in terms of regulation 49 and requested the Municipality to appoint an independent and impartial person under regulation 50 to assist in resolving the dispute.


No response was received to the request and DPP Valuers launched a review application in the High Court. To this, the Municipality and Dijalo Property Valuers argued that DPP Valuers had failed to exhaust all internal remedies before approaching the High Court, as required by section 7(2) of PAJA. The parties stated that regulation 50 was an internal remedy. The High Court agreed and dismissed the application.

On appeal, the SCA disagreed. It held that regulation 50 was not an internal remedy but a non-binding dispute resolution mechanism. Furthermore, the SCA held that section 62 of the Local Government: Municipal Systems Act 32 of 2000 (MSA) would have been an internal remedy, as required by section 7(2) of PAJA. However, this was only applicable where rights had not yet accrued; this was not the case, here, because the Municipality and Dijalo Property Valuers had already concluded a Service Level Agreement.

Consequently, the SCA decided that DPP Valuers was correct in having approached the High Court. The appeal was upheld with costs.

our services

Commercial Law

The firm advises businesses on how to work effectively in a financial environment that is heavily regulated. We help businesses to deal with the many requirements of the law.

read more
Public Law

We advise public entities on how to manage the obligations arising from public law. The firm helps clients within the public sector to meet the demands of a complex legal framework.

read more

Conveyancing and general property advice, legal assistance in land matters, agricultural and rural development, evictions, expropriations, land disputes

read more
Labour Law

The firm advises on all aspects of labour law, including interpreting and applying legislation, to preparing and implementing employment contracts, to court proceedings and more.

read more

Estate planning and administration of estates, preparation of wills, structuring and registration of trusts, advice on tax implications, winding up of estates.

read more
Further Services

We offer an array of services, that include Company Secretarial services, Family Law services and Litigation services.

read more