Common use of Supplier Development and Localisation Clause in Contracts

Supplier Development and Localisation. The contractor shall comply with the SD&L matrix that has been signed at the beginning of the contract. The contractor has committed in subcontracting thirty percent of the work to designated companies that have already been submitted to Eskom during the tender stage. The contractor has also committed in training developing skills during the contract period and such skills and the number are clarity stated in the SD&L matrix which is part of the contract. The contractor shall submit quarterly reports on the progress of SD&L commitments. Failure to meet SD&L matrix commitments will result in the implementation of the 2.5 percent penalty on the invoice; this shall be applicable based on progress report to Eskom.