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


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.
Supply: 108 Cases - Swabs Abd Tape R/Op Sterile 370 X 450mm - 4ply ( 48 Pouches In A Case - 5 Pcs In A Pack ) 2017-10-04 11:00 290/ 17
Plumbing and carpetry material for Umlazi K Clinic U,L,Q,D,V Magabheni, Umnini,Danganya,Folweni and Umbumbulu. 2017-10-03 11:00 ZNQ 804/ 17/ 18
Supply and delivery of: 1. Electro Surgical Unit for Large Loop Excision of Transformation Zone (Lletz) Procedure H.T.S. No.E2 ( Electronics ) Umdns: 11490 2017-10-02 11:00 ZNQ525/ 2017- 2018
IG-541 Gas Fire Suppression 2017-10-17 11:00 NLSA.PTA.IG- 541GAS 08/ 2017
Wesselsbron SAPS: Repair and Maintenance. CIDB Grading 5GB or higher and 4GB PE 2017-10-17 11:00 BL17/ 009
Supply Granuflex E 20x20 Triple Hydrocolloid Dressing X 30 Boxes 2017-10-02 11:00 ZNQ 379/ 17/ 18
Provision of Office Accommodation: Elliot Satellite Office for a period of 5 years. (Leases ranging from seven to ten years will also be considered). Office space between 102m² and 157m² and 4 parking bays are required 2017-10-24 11:00 25/ 2017
Supply Brush Cutter 1.9kw,Weight 8.0kg.Fuel Capacity 0.67 =13 Each 2017-10-02 11:00 ZNQ 378/ 17/ 18
Purchase of building: Port Elizabeth Justice Centre Office space between 1187m² and 1262.40m² and 12 parking bays are required. 2017-10-24 11:00 23/ 2017
Supply Battery Operated Vehile E242 Hd =01 Each 2017-10-02 11:00 ZNQ 374/ 17/ 18
Provision of Office Accommodation: Verulam Justice Centre for a period of 5 years. (Leases ranging from seven to ten years will also be considered). Office space between 580m² and 661.20m² and 9 parking bays are required 2017-09-24 11:00 26/ 2017
Supply: Bacteria binding gauze with dacc coating 7x9cm 2017-10-03 11:00 ZNQ NO.2505/ 08/ 17
Provision of Office Accommodation: Secunda Satellite Office for a period of 5 years. (Leases ranging from seven to ten years will also be considered). Office space between 138.90m² and 142.80m² and 3 parking bays are required. 2017-10-24 11:00 24/ 2017
Supply: Sapphire orphthalmic blades:2.65mm clear corneal 60 degree blade -1box(6 units each) 2017-10-03 11:00 ZNQ NO.650/ 05/ 17
Pietermaritzburg: Department of Office of the Premier: Terry Street Parking and fencing project: CIDB grading 4 CE 2017-10-25 11:00 ZNTM00956W
Supply: Portable automatic body mass index scale stadiometer (as per spec). 2017-10-03 11:00 ZNQ NO.2264/ 08/ 17
Department of Co-operative Governance and Traditional Affairs: Repairsand Renovations to the remainder of Withby Lodge: CIDB grading: 4GB 2017-10-24 11:00 ZNTM00775W
Supply: Disposable surgeons gowns bacterial viral barrier gowns AAMI- level 4, size large 25-30units/case( as per spec). 2017-10-03 11:00 ZNQ NO.2212/ 08/ 17
Office of the Public Protector: Procurement of office accommodation comprising 731.21m² and 20 Parking Bays in Braamfontein/Parktown/ Aucklandpark for a period of five (5) years. 2017-10-25 11:00 JHB.17/ 27
Supply: Disposable surgeons gowns bacterial viral barrier gowns AAMI- level 4, size XXX large 25-30units/case( as per spec) 2017-10-03 11:00 ZNQ NO.2213/ 08/ 17


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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