10 Principles When Pricing Your Tender

Many people ask the question "how must we work out our tender price?", but there is no simple answer, because every tender is different, e.g. 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 these ten points that must be dealt with when calculating price:

The 3 Principles of Tenders in South Africa

Tenders in South Africa are based on three principles:

1.    Functionality
2.    Price
3.    B-BBEE 


Tenders and Pricing

By Werner van Rooyen


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


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.


Title Closing Date Tender No.
Tender for the construction of a 1.38 km long 710mm diameter HDPE Gravity main to Pumpstation 2 at Emfuleni Local Municipality, Gauteng. 2019-01-12 12:00 RW01410/18
Testing of Lifting Equipment. 2019-01-28 10:30 JW OPS 030/18 RT
Cleaning of residential areas by means of small contractors in Albertinia and Gouritsmond 2018-11-27 12:00 61884
Hire of Mechanical Plant. 2019-01-28 08:45 JW OPS 044/17 RT
Painting the interior of the Albertinia library, bathroom and kitchen Erf 263 2018-12-03 12:00 62039
Supply and Fit of two 11kw Submersible Pumps with Cutters at the Klapmuts 2 Pumpstation 2018-12-05 11:00 FQ/SM: 71/19
Supply and delivery of ralumac and stone 2018-11-28 14:00 PNQ2
Alpha-Beta 1 & 2 and Beta-Hydra 765kV tower anchor refurbishment. 2019-01-29 10:00 MdB18/28
Hydra-Perseus 765kV tower anchor refurbishment. 2019-01-29 10:00 MdB18/29
Supply and Installation of Vulnerability Management & Threat Protection Solution with Training, Maintenance and Support for a Period Ending 30 June 2021 2018-12-21 12:00 B/SM 34/19
Supply and Installation of a Web Application Firewall Appliance for the Stellenbosch Municipality Web Services With 3 year warranty and Online Support. 2018-12-21 12:00 B/SM 31/19
Strengthening and New Installation of Eskom Telecommunications Radio Towers and Mast on an as and when required basis for a period of (3) three years. 2019-02-20 10:00 CORP4635
Drilling and Equipping of Borehole (S) Within Gert Sibande District Municipality 2018-12-04 12:00 GSDM 16/2018
Cluster 6 Water Backlog: Esingeni Phase 1 - Reticulation to the villages of Esingeni - B, Kumabunga, Haba, Kuhlaba & Elixeni 2019-01-11 12:00 16/2018-2019/MD(TN)
Provision of Cleaning Services at Port Elizabeth International Airport 2019-01-14 12:00 PLZ5735/2018/RFP
Supply and Delivery of Transformer Doors 2018-11-23 11:00 11118742
Quotation for the appointment of a service provider for the supply and delivery of illegal dumping sign boards in Tshwane. 2018-11-27 10:00 Q37-2018 19
Supply and Delivery Of Transformer Doors 2018-11-23 11:00 11093769
Tender for the once-off supply, delivery, offloading and installation of three(3) 11KW and 30KW compressor and pressure vessels testing at Tshwane Bus Services, C de Wet Depot. 2018-11-30 10:00 RTD 02-2018/19
Supply and Delivery of Transformer Doors 2018-11-23 11:00 11111490


Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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