pricing | Page 2 |

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.
Minor upgrade to the buildings at Somerset West. 2018-05-30 09:00 SP11800168
Tickets Sales for Thulamela Municipality Annual Show (2018/2019 Financial Year) 2018-06-08 11:00 01/2018/2019
Supply Medical supplies 2018-05-25 15:00 GF11800891
General building maintenance Kraaifontein. 2018-05-31 09:00 SP11800174
Supply: Printer consumable 2018-05-25 11:00 GM11800763
Electricity repairs at Kraaifontein depot. 2018-05-31 09:00 SP11800175
Supply, delivery and offloading of fuse link combination units suitable for surface mounting designed for use with the fuse sizes below, as and when required: three year period 2018-06-11 10:00 USD EE 04-2017/18
Supply: Medical supplies 2018-05-25 15:00 GF11800892
Supply Upright Bike and Treadmill. 2018-05-25 12:00 GG11801207
Plumstead Cemetery – Construction of Niche walls. 2018-05-30 09:00 SN11800693
Maitland Mausoleum –Upgrade Courtyard Construction. 2018-05-30 09:00 SN11800694
Bore Hole Pump Controller 2018-05-24 12:00 REQ05082
Supply Heavy duty vertical drill machine 40mm 3. 2018-05-28 12:00 GD11801232
Supply: Pressure kit 2018-05-28 12:00 GD11801233
Pump Repairs 2018-05-24 12:00 REQ04682
Supply Stanley lazy tong riveter (69-800sa) 2018-05-28 12:00 GD11801234
Supply and Delivery of Fire Fighting Vehicles. 2018-06-01 12:00 12/2018
Hardware Supplies 2018-05-24 12:00 REQ05046
Beautification of Morebeng Town. 2018-06-04 11:00 MLM/COMM/06/2017/18
Renovation and extension of Mogwadi Tennis Court: (Phase two) 2018-06-04 11:00 MLM/COMM/05/2017/18


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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