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 

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.

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Title Closing Date Tender No.
Supply and Delivery of Self-Adhesive Pharmaceutical Labels to all Hospitals/Institutions under the control of the Department of Health, Western Cape Government for a period of three (3) years 2018-10-19 11:00 WCGHSC0168/ 2018
Installation of Speed humps and Rumble strips on P129. 2018-10-23 11:00 ZNT373T/ C237/ 12000/ S/ 13
Request for Proposals to assist the ARC with the travel, accommodation and conference services for all the ARC offices nationally 2018-10-22 11:00 ARC/ 11/ 09/ 18
Installation of Speed humps and Rumble strips on P1-8. 2018-10-23 11:00 ZNT373T/ C237/ 12000/ S/ 12
Refrigerated Cross-Border Transport and clearing of cargo; including payment of import Value Added Tax (VAT) for the import of the Foot-and-Mouth Disease (FMD) vaccines from Botswana via the Kopfontein Border Post 2018-10-29 11:00 ARC/
Installation of Speed humps and Rumble strips on P12-2.: Civil Engineering services: Tender must be registered as grade 2CE only with the CIDB register of contractors.Tender must be registered as Emerging Contractors in the Vukuzakhe Emerging Contractor Development Programme (as per database of Department of Transport) 2018-10-23 11:00 ZNT373T/ C237/ 12000/ S/ 11
Bontle Ke Botho (BKB) Greening Project 2018/19 2018-10-12 11:00 GT/ GDARD/ 130/ 2018
Betterment & Re-graveling of D88 in the Amajuba District. 2018-10-18 11:00 C253/ 1819/ BR/ 796
Betterment & Re-graveling of D88 in the Amajuba District. 2018-10-18 11:00 C253/ 1718/ BR/ 823
SANParks invite prospective bidders to submit offers for a Three (3) Year contract for Corrective Maintenance & Renovations on Infrastructure in Kgalagadi Transfrontier Park, Northern Cape Province. 2018-10-19 11:00 GNP- 017- 18
The RAF invites a suitable service provider to provide the Road Accident Fund (RAF) rented office space for the RAF East London Regional Branch. 2018-10-19 11:00 RAF/ 2018/ 00044
Appointment of a Construction Service Provider (SP) to Undertake the Maintenance and Repairs of Existing Facilities at Roodeplaat Dam Provincial Nature Reserve (RDNR). 2018-10-12 11:00 Gauteng: Agriculture and Rural Development: Agriculture
Provision of Office Accommodation: Empangeni Local Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 48/ 2018
Appointment of a Software Development Service Provider to Review, Design, Develop and Maintain the Integrated Management Information System (MIS) For The CETA. 2018-10-12 11:00 006– 2018/ 2019
Provision of Office Accommodation: Stanger Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 53/ 2018
Provision of Office Accommodation: Limpopo Mpumalanga Provincial Office for a leased period of 5 years. (Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 47/ 2018
Removal and Disposal of Printing Aluminium Lithographic Plates from Shore Base Naval Publication Unit, Simon’s Town as per Statement of Work 2018-11-14 11:00 SPSC- B- 046- 2018
Provision of Office Accommodation: Bochum Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 49/ 2018
Renovations and repairs of E-Block, Bluff Military Base Durban as per Statement of Work 2018-10-23 11:00 SPSC- B- 045- 2018
Provision of Office Accommodation: Kimberley Local Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 40/ 2018

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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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