Issue Date: 
Thursday, October 31, 2019

What to consider when I do my tender pricing

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

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 but 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 to 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-firm prices
  • SBD 3.3 for professional service providers.

Many people ask the question - how must we work out our tender price?  There is no straightforward 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 thus providing individual pricing techniques would be exceedingly difficult.

In general, there are a couple of points that must be considered 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.  Depending on the size of the tender, these minor differences can amount to substantial amounts that can be lost or influence the success of your 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.
  • Always remember to add Value Added Tax (VAT) at 15% to your price.  The tender committees want to see the purchase price.  They do not want to sit with a calculator and calculate what your price is supposed to be when VAT is included.  Most tenders state that the price must include VAT.
  • Try and quote firm prices, even if the tender duration is 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 piece of advice is to draw up your own pricing schedule and to refer back to your own pricing schedule on the SBD 3 document, because every supply is unique and to try and fit your pricing into the SBD 3 forms is usually not possible.  You will find that almost all bidders do this.  Your tender would not be judged as non-responsive by using a separate pricing schedule.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Request for Proposal for appointment of service provider to source bulk media buying (space and airtime) for promotion and marketing of the Free State as a Destination. 2021-02-04 11:00 FSGLTA:01/2020/2021
Supply & delivery of protective clothing for public works staff 2021-01-21 12:00 PWBS-Q035/20/21
Supply and delivery of roads materials, equipment and tools 2021-02-02 12:00 T10/2020-2021
Supply and delivery of water and sewer materials, equipment and tools 2021-02-02 12:00 T11/2020-2021
Supply and delivery of electrical materials, equipment and tools 2021-02-02 12:00 T12/2020-2021
Training of 15 municipal employees 2021-02-02 12:00 T13/2020-2021
The replacement of the 120m MET tower cat ladders and landings 2021-01-28 10:00 KBG2013
Zoom Meetings Biz Host 1 year prepay 2021-01-18 11:00 RFQ20/21/104
Asset disposal: Subsea equipment in Port of Cape Town 2021-01-27 12:00 AD0058
Request for quotation: for the supply and delivery of food supplies for UNHCR’s Osire Refugee Settlement in Namibia 2021-01-20 23:45 RSA-2021-001
Supply and delivery of construction material 2021-01-20 12:00 SCM26/11/2020
Supply, delivery, install and service air conditioners 2021-01-20 12:00 SCM27/11/2020
Supply and delivery of the renewal of software licenses 2021-01-29 14:00 27/2021
Sale of vacant business zone I Erf: Erven 232 and 233: Merweville 2021-02-05 14:00 02/2021
Upgrading and Refurbishment of Electrical Networks (132/22/11/0.4KV) for the greater Beaufort West Municipality for the period ending June 2023. 2021-02-19 14:00 SCM 21/2021
Supply of licences for handhelds and meter reading software (re-advertisement) 2021-01-20 12:00 08/2/18/50
Supply and delivery of 3 layer fabric face masks 2021-01-27 12:00 BID 08/2/18/57
Notification of personal protective equipment (PPE) tender 2021-01-29 17:00 PH05012021- Notification of Panel PPE
Sale of scrap transformer oil at Phillipi SS - Western Cape 2021-01-19 10:00 OLT1238511
Provision of Estate Management Services 2021-01-28 12:00 NLM/EMS/2020/2021

Pages

Who is the bidder or his or her representative?

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.