| (1) | The presiding officer of a court, an arbitrator or, adjudicator, may, at the outcome of litigation, arbitration or adjudication and if that litigation, arbitration or adjudication has found a contractor to be in default in terms of the contract concerned— |
| (a) | place a restriction on a contractor or any principal of that contractor in submitting a tender offer to an organ of state for a construction works project; or |
| (b) | prohibit a contractor or any principal of that contractor to submit a tender offer to an organ of state for a construction works project, |
for a period not exceeding ten years.
| (2) | The presiding officer of a court, an arbitrator or adjudicator referred to in subregulation (1) may not take action in terms of that subregulation if the litigation or arbitration has not been finalised or the contractor concerned has not accepted the outcome of the adjudication, but if that contractor has not within a period of 21 working days after that finding filed any further legal action with the appropriate person or legal institution, that presiding officer of a court, an arbitrator or, adjudicator may proceed to act in terms of subregulation (1). |
| (3) | The presiding officer of a court, an arbitrator or adjudicator referred to in subregulation (1) who acts in terms of that subregulation, must on the approved form notify the Board of such restriction or prohibition and the reason therefore, as well as the period of such restriction or prohibition. |
| (4) | The Board must update the register of contractors indicating that a contractor or a principal of a contractor has been restricted in submitting tender offers or prohibited from submitting tender offers as contemplated in subregulation (1) and the register must reflect— |
| (a) | the name of the registered contractor concerned; |
| (b) | the period of such restriction or prohibition; |
| (c) | the reason for such restriction; and |
| (d) | the name of the organ of state that was party to the agreement in terms of which the contractor concerned was found to be in default. |
[Regulation 26 substituted by regulation 21 of Notice No. 1224 dated 14 November 2008]
