10 Principles When Pricing Your Tender

We are often asked how to work out a tender price? But 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 to that of the supply of food for a government function. So to provide individual pricing techniques would be very difficult.

In general, there are ten points that must be considered when calculating price. These are:

The 3 Principles of Tenders in South Africa

By Werner van Rooyen

7 September 2015

www.how2tender.com

Tenders in South Africa are based on three principles:

  1. Functionality
  2. Price
  3. B-BBEE

Functionality

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.

Direct and Indirect Costs: 2 items that determine tender pricing

Article by Werner van Rooyen

www.how2tender.com

13 October 2014

Many bidders that respond to tenders struggle when it comes to calculating a price for a specific tender. One of the reasons for this is that a large number of small business owners are usually new to the tender process and therefore they lack the necessary experience to price their bids correctly.

Pages

Title Closing Date Tender No.
Supply and Delivery of One LDV 4X2 Double Cab. 2018-05-04 12:00 SCM/INFR34/2017/2018
Provision of Route Master Licencing & Maintenance Services. 2018-05-04 12:00 SCM/2019/03/FIN
Water Quality Monitoring 2018-05-09 10:00 ANDM/IDMS-WSA/87/10/04/18
Supply and Delivery of Office Furniture for a Period of Twelve (12) Months(Re-Advert). 2018-05-04 12:00 SCM/FS04/2017/2018
Supply and delivery of 15 note counter machines including a 12 month on-site warranty. 2018-05-07 11:00 PMO-CP-008-2017/2018
Maintenance of standby generators (3 years). 2018-05-07 11:00 RFQ E 1809 W
Provision of PMS Support and Web-Based Performance Management System. 2018-05-07 13:00 SCM/2018/194/MM
Provision of External Loans. 2018-05-07 13:00 SCM/2019/04/FIN
Provision of Events Services. 2018-05-07 13:00 SCM/2018/199/STRAT
Expression of Interest for Implementation of an Agri – Parks Development Programme 2018-05-10 12:00 ANDM/PED/LED/88/10/04/18
Removing of boiler water pump and replacement. 2018-05-07 23:00 OLT1104474
Operator and Manager Liabilities Training related to Managing risk when dealing with Transport. 2018-04-26 14:00 SQ11800228
Supply a 3x3 ablution unit. 2018-04-30 12:00 GD11801069
Refurbishment of Mbizana Oxidation Pond System. 2018-05-14 12:00 ANDM/IDMS-WSP/93/12/04/18
Supply Outdoor denier backpack 2018-04-30 12:00 GL11800736
Supply: 20 seater boardroom table 2018-04-30 12:00 GL11800737
Refurbishment of Mbizana Water Scheme 2018-05-14 10:00 ANDM/IDMS-WSP/92/12/04/18
Testing & inspection of lifting equipment (code of practice 29) - as & when required (24 months). 2018-05-08 12:00 OPS 18/19 - 010
Rack welding / grinding (railway track) - as & when required (12 months). 2018-05-08 12:00 OPS 18/19 - 011
Ntibane Water Supply Scheme Phase3 – Contract 3A Luthatheni Water Reticulation 2018-06-01 10:00 ANDM/IDMS-PMU/89/10/04/18

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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