Issue Date: 
Monday, March 17, 2014

Tenders and Pricing

By Werner van Rooyen

www.how2tender.com

17 March 2014

One of the most important parts of any tender is pricing.

All tender documents will tell you that it is not necessarily the lowest bid that will win the tender and that there are also other factors that influence the final decision. This might be true but be assured that you will lose more tenders than you will win if you have the highest price. Make sure you price your tender correct.

Dealing with the Standard Bidding Document 3 (SBD 3.1, 3.2 and 3.3), which is the pricing document, can be hair-raising. In these documents they talk about firm prices, non-firm prices, professional service providers, exchange rates and lots more confusing matters. There are three SBD 3 documents namely the:

  • SBD 3.1 for firm prices
  • SBD 3.2 for non-frim prices
  • SBD 3.3 for professional service providers.

Many people ask the question - how must we work out our tender price? There is no straight answer because every tender is different. The fact is that a tender for the supply of furniture will have a different pricing structure than a tender for the supply of food for a government function. So to provide individual pricing techniques would be very difficult.

In general there are a couple of points that must be dealt with when you calculate your price. These include:

  • Be precise; when your product that you supply is R10-26 then state it in the tender document as R10-26 and not as R10-00 or even R11-00. Small differences like these can amount to large amounts that can be lost, depending on the size of the tender.
  • Ensure that you take all your costs into consideration; double check your pricing - something small left out can come back and bite you later on.
  • Always remember to add Value Added Tax (VAT) at 14% to your price. The tender committees want to see the final price. They do not want to sit with a calculator and calculate what your price is supposed to be. Most tenders state that the price must include VAT.
  • Try and quote firm prices, even if the tender duration in more than 12 months. Tender committees are hesitant for non-firm prices.

If you apply these points above, your pricing will be less of a challenge.

Another peace of advice is to draw-up your own pricing schedule and to refer on the SBD 3 document back to your own pricing schedule. The reason being: every supply is unique and to try and fit your pricing into the SBD 3 forms is usually undoable. You will find that almost all bidders do this. Your tender would not be judged as non-responsive by using a separate pricing schedule.

If you want to learn more about the tender process and how to complete a tender correctly and hopefully successfully, please visit our website at www.how2tender.com to find out more.

Until the next time - happy tendering.

Don’t delay, get educated today!

Title Closing Date Tender No.
Tenders are invited to provide Lumion Essentials Training 2017-12-04 11:00 CSQ11171189
Supply: Gloves 2017-11-29 10:00 GA1180192A
Tenders are invited to provide Revit Advanced Training 2017-12-04 11:00 CSQ11171189
Tenders are invited to provide Revit Intermediate Training 2017-12-04 11:00 CSQ11171189
Supply 20 each x harness; weedeater 2017-11-28 10:00 GA1180193A
Tenders are invited to provide Revit Essentials Training 2017-12-04 11:00 CSQ11171189
Supply: Plants 2017-11-28 16:00 GC11800356
Bidders are invited to provide training for Intermediate Leadership Programme 2017-12-04 11:00 CSQ11171187
Bidders are invited to Repair Scrubber Machine for Fresh produce market Scope of Work 2017-12-04 11:00 CSQ11171187
Supply Klorman Cartridges for Water Purifying 2017-11-28 16:00 GC11800357
Manufacture, Supply and Commissioning of an Inkjet Printing System to Upgrade an Existing Wide Web Printing Press at the Government Printing Works. 2018-01-15 11:00 GPW- M 361
Appointment of a service provider to render hygiene services for the Department of Rural Development and Land Reform: Office of the Chief Registrar of Deeds, Deeds Registry Pretoria, Chief Surveyor General and Surveyor General for a period of 36 months 2017-12-15 11:00 DRDLR (CRD- 08) 2017/ 18
Supply and print ambulance return books x 600 units 2017-12-01 11:00 ZNQ 459/ 17/ 18
Supply and Deliver Bark Chips to City Parks Depot , Sacks Circle Drive Bellville South. 2017-11-28 16:00 GC11800358
Stationery items 2017-12-01 11:00 ZNQ 130 / 2017/ 2018
Appointment of a service provider to render Security Services in Klerksdorp Regional Office for a period of 24 months 2018-01-05 11:00 DMR/ 018/ 2017/ 18
Appointment of three service providers to supply and deliver fresh fruit as and when required over a period of twenty four months (24) . 2017-12-15 11:00 NRFNZG- 027- 2017/ 18
Supply carbolic soap 2017-11-28 16:00 GC11800360
Appointment of a service provider to render Security Services in Rustenburg Regional Office for a period of 24 months 2018-01-05 11:00 DMR/ 019/ 2017/ 18
Appointment of two service providers to supply and deliver fresh and processed vegetables as and when required over a period of one (1) year 2017-12-15 11:00 NRFNZG- 028- 2017/ 18

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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