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.
Replacement Contract: External maintenance and Landscape at L.A. Building, Ulundi 2017-10-20 11:00 ZNTU 02155 W
Supply: Lymphoedema intermittent pneumatic compression system (spec no. E41) 2017-10-03 11:00 ZNQ NO.1605/ 06/ 17
Supply: 100% sodium carboxymethylcellulose (NaCMC) Fibrous hydrocolloid dressing containing Ionic silver with surfactant(Benzethonium chloride) and chelating agent (EDTA) 20x30cm 2017-10-03 11:00 ZNQ NO.1683/ 07/ 17
JAN KEMPDORP: 93 AMMO DEPOT: Sealing of roofs at ammunition depot 2017-10-13 11:00 KM11/ 17
Supply: Portable spirometer handheld with built-in screen and thermal printer and pc software( as per spec). 2017-10-03 11:00 ZNQ NO.1657/ 06/ 17
KIMBERLEY SANDF: Repair and renovations to MP offices. 2017-10-13 11:00 KM12/ 17
Pretoria: Department of Defence: Joint Support Base (JSB) Garrisson Finance Office: Refurbishment 2017-10-17 11:00 Pt17/ 026
Supply: Heavy duty stainless steel tea trolley (as per spec) 2017-10-03 11:00 ZNQ NO.2513/ 08/ 17
Invitation to developers who own land to register on the department’s database of affordable residential developers to develop, at risk, fully bonded affordable houses, on their privately-owned suitably-located serviced land in various Urban areas of Kwa-Zulu Natal for qualifying beneficiaries of government’s finance linked individual subsidy program [FLISP], for a period not exceeding 36 months. 2017-10-20 11:00 ZNB15/ 2017/ 18HSE
Supply: C-mac stand (as per spec) 2017-10-03 11:00 ZNQ NO.2388/ 07/ 17
Supply: Adult/ Paediatric electronic platform scale with height measurement, capacity 150-200kg gradation 100G ( as per spec) 2017-10-03 11:00 ZNQ NO.2315/ 08/ 17
Strip, quote & repair heat pumps at the kitchen x 1 CIDB:1ME 2017-10-03 11:00 ZNQ 242/ 201718
Supply: Loop PDS polydioxanone - 1 loop 1/2 circle taper point ctx 48mm 240cm violet 2017-10-03 11:00 ZNQ NO.2380/ 08/ 17
Supply: Woundset foam port medium genadyne xlr8 plus wound vacuum system code GE5-EPFMO7/400 2017-10-03 11:00 ZNQ NO.2047/ 07/ 17
Supply: Non adhesive 3 layer foam dressing with outer polyurethane film and absorbant hydropholic core 20cm x 20cm 2017-10-03 11:00 ZNQ NO.2504/ 08/ 17
Supply: Thin hydrocolloid with gelatin, pectin and carboxymethycellulose for use with endotracheal tubes 5x20cm 2017-10-03 11:00 ZNQ NO.2043/ 07/ 17
Supply: Hyrodconductive wound dressing that can be layered 20x20cm Quantity: 20 boxes (10 per box) 2017-10-03 11:00 ZNQ NO.2040/ 07/ 17
Supply: Plumbing tools. N.b detailed specification is attached on the document. 2017-10-06 11:00 ZNQ 0182 2017/ 18
Supply: 10 units blender oxygen /medical air 2017-10-03 11:00 ZNQ 800/ 17/ 18
Supply: Plumbing material. N.b detailed specification is attached on the document. 2017-10-06 11:00 ZNQ 0181 2017/ 18

Pages

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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