Trencon Construction, one of South Africa’s largest construction firms, has failed in its attempt to reverse a multimillion-rand contract given by the Public Investment Corporation (PIC) to GVK-Siya Zama Contractors (GVK) after the Pretoria High Court rejected the case with costs. In 2019, the PIC, Africa’s largest asset management, launched bidding for the major building contractor for the anticipated renovation of Pretoria’s Ga-Rankuwa Shopping Centre.
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The project included a 22 000m2 addition and a restoration of the existing 37 000m2. The reconstruction of Ga-Rankuwa City Mall is planned to be finished in June 2022 and generate 54 723m2. Bidders were required to present proof of their company’s capacity to deliver works or services for projects that were not more than five years old and valued at R300 million or more.
GVK’s Preference for the Ga-Rankuwa Mall Over Trencon
According to the PIC, GVK’s application had an edge since the business had just completed an R450-million restoration and enlargement of a shopping mall. Trencon said that it has proved its capacity to complete large-scale renovation projects. Trencon requested that the tender granted to GVK be reversed and the contract be awarded to it or that the decision be remanded to the PIC for review. Brenda Neukircher, on the other hand, disputed Trencon’s claims, claiming that the PIC had fairly awarded the tender.
The court indicated in her decision that she believed both GVK and Trencon were given an equal opportunity to clarify their offers and that neither was given an advantage over the other. Although the altered score that resulted from this may have resulted in Trencon’s bid failing, this in and of itself does not render the process unfair, nor does it give any proof that there is a reasonable suspicion of bias. As a result, the contract will remain with GVK.
