Construction company Scribante has agreed, in an affidavit to the Port Elizabeth High Court, that the Coega Development Corporation can readjudicate the R91m contract it lost in the Coega Industrial Development Zone.

The withdrawal of Scribante's initial demand paves the way for the corporation - the operator of the development zone near Port Elizabeth - to readjudicate the disputed tender.

Corporation spokesman Vuyelwa Qinga Vika said Scribante's stance was "a far cry from their initial demand for the court to carry out the readjudication".

Scribante contracts manager Deon Smit said, after considering the corporation's answering affidavit, Scribante felt it was not appropriate for the court to decide on the corporation's "technical" arguments.

He said an "unbiased" corporation board should instead adjudicate the tender again - "but only if certain safeguards are put in place to avoid further bias against Scribante".

The safeguards included "among other things, corporation CEO Pepi Silinga recusing himself from the process entirely".

Scribante's other conditions were that it should be given an opportunity to make representations in a public hearing and that the adjudication process be recorded electronically, said Smit.

Qinga Vika said Scribante's demand, that Silinga not be part of the panel, was immaterial "as he does not even sit on the procurement committee".

Scribante is disputing a multimillion-rand contract in zone 2 of the development zone.

The corporation had awarded the contract to another company, Sakhisizwe Construction. Scribante said the decision to award the contract to Sakhisizwe had been motivated by bias. It said the corporation had introduced the "empowerment intent" requirement without prior notification.

The corporation, in terms of the requirement, wants tender beneficiaries who lack empowerment credentials to demonstrate "a visible intention to transform", according to Qinga Vika.

In an affidavit filed in court last month, Silinga admitted that the award of the contract to Sakhisizwe should be set aside, as the empowerment intent requirement had not been advertised.

The court postponed the case on Thursday last week to give the corporations lawyers enough time to study, and respond to, Scribantes affidavit.

Qinga Vika said a final decision regarding the process and the conditions of the readjudication would be finalised in court "in a week or so".