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.

2 items that determine tender pricing

Article by Werner van Rooyen

www.howtotender.co.za

31 January 2019

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.
The Appointment of a Science Communication Service Provider to Assist With The Development of Text and Design of Cartoon Based Posters for The Environmental Programmes of The Department of Environmental Affairs 2019-07-05 11:00 E1515
The Appointment of The Service Provider to Undertake an Assessment of The Socio-Economic Impacts of The Implementation of The Waste Classification and Management Regulations and The Associated Waste Norms and Standards 2019-07-05 11:00 E1516
The Appointment of a Service Provider to Develop the National Asbestos Management Strategy. 2019-07-05 11:00 National: Department of Environmental Affairs: CHEMICALS AND WASTE MANAGEMENT
The Appointment of a Service Provider to Undertake an Independent Review and Assessment of the work done by the Environmental Management Inspectorate (Emi) in Respect of Implementing The National Environmental Compliance and Enforcement Strategy, 2014 and to Develop a New Multi Term Strategy to Inform The Future Work of The EMI 2019-07-05 11:00 E1518
The Appointment of Skilled Financial Professionals to Constitute a Panel of Experts to Provide Financial Support to Identified Municipalities on Behalf of The Department of Cooperative Governance and Traditional Affairs, Including Financial Management Support to The Department 2019-07-15 11:00 ZNT 1962/ 2019 LG
Provision of Hygiene Services at Cogta Offices (14 Sites) for a Period of 3 Years 2019-07-15 12:00 ZNT 1963/ 2019 LG
Calcium chloride anhydrous – AR 500g (1x pk 100), Calcium chloride anhydrous – AR 500g (1x 500g), Ethidium Bromide solution 10 ML (1x 10ML), Distilled water 25L (1x 25L), PLSC16035 BAG ZIPLOC 150X180MM (Pk1000), X100 -1L Triton X -100 (1 x1L), 1L – ssc Buffer 20 x concentrate (1 x1L), Polystyrene bottles, corning, easy grip, round, storage bottles clear, sterile – 1000ML -PK 24 (1 x PK 24), Polystyrene bottles, corning, easy grip, round, storage bottles clear, sterile – 500ML – Pk 24 (1 x PK 24) 2019-06-21 11:00 RFQ 000333
MLBM196-A LAURYL TRYPTOSE BROTH 500GM (3x500g), MLBM051-A BRILLIANT GREEN BILE 2% BROTH 500G (3x500g), MLBM002 MACCONKEY AGAR WITHOUT SALT 500GM (3x500mg), MLBMMC005 –A TRYPTONE 500G (3x500g), MLBM030-A MACCONKEY AGAR WITH SALT 500GM (3x500g), P2TIP018Y-010200R TIPS N/FILTER YELLOW N/ST10-200UL (3x200UL) ,P2TIP018B-001000R TIPS N/FILTER BLUE N/ST BK 200-1000UL (3X1000UL), P2TIP018C-000010 TIPS N/FILTER CLEAR N/ST BK 0.5 -10UL (3X10UL), IGILF144058P PIPETMAN G PLASTIC EJECTOR P200G (1X P200G), IGILF144059P PIPETMAN G PLASTIC EJECTOR P1000G (1X P1000 2019-06-21 11:00 RFQ 000332
Provision of Anonymous Tip-off line. 2019-06-28 16:00 RFQ000335
Department of Agriculture requires an Event Coordinator to host the Western Cape Prestige Awards on 2 November 2019 2019-07-15 11:00 BID 859 - 2019/ 2020
Appointment of a service provider to develop a project plan to undertake a Probabilistic Seismic Hazard Analysis (PSHA) of the Duynefontein nuclear site following a SSHAC Level 3, an enhanced SSHAC Level 2 approach or other similar approach, oversee the execution of the PSHA, develop the provisional seismic source and ground motion models and perform seismic hazard calculations for the study. 2019-07-15 11:00 CGS- 2019- 022L
Appointment of a service provider for the purchase of three-dimensional modelling and estimation software for the Council for Geoscience for a period of three (3) years 2019-07-19 11:00 CGS- 2019- 017S
Appointment of a Professional Service Provider to Provide and Install a Managed Hosted Voip Solution for a period of 3 years. 2019-07-16 11:00 RFB60055
Panel of Contractors with CIDB Grading 4GB-8GB to submit an expression of interest for various projects for a Period of 3 years. 2019-07-11 12:00 DAC002/ 1920
Request to appoint panel of Project Managers for the provision of professional services on Infrastructure projects for a period of 3 years 2019-07-11 12:00 DAC001/ 1920
The Appointment of a Service Provider to Render Cleaning, Hygiene and Pest Control Services to Various Offices for Public Protector South Africa (PPSA ) for a period of three (3) years 2019-07-12 11:00 PPSA 002/ 2019
Facilities management services at the DDPP Port Elizabeth 2019-07-15 11:00 NPA 06- 19/ 20
Appointment of Service Provider to Render Security Guarding and Special Services In Western Cape Province for the Department of Rural Development and Land Reform (Drdlr) for a period that will resume on the 01 September 2019 Until 31 August 2022. 2019-07-10 11:00 5/ 2/ 2/ 1- RDLR 0024(2019/ 2020)
Appointment of Service Provider to Render Security Guarding and Special Services in North West Province for the Department Of Rural Development and Land Reform (Drdlr) for a Period That Will Resume on the 01 September 2019 Until 31 August 2022 2019-07-09 11:00 5/ 2/ 2/ 1- RDLR 0022 (2019/ 2020)
Appointment of Service Provider to Render Security Guarding and Special Services In Northern Cape Province for the Department of Rural Development and Land Reform (Drdlr) for a Period That Will Resume on the 01 September 2019 Until 31 August 2022. 2019-07-12 11:00 5/ 2/ 2/ 1- RDLR 0026(2019/ 2020)

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Tenders and VAT

By Werner van Rooyen

31 January 2019

One question that gets raised during each HowtoTender Workshop is must my business (or I) be registered for Value Added Tax (VAT) in order for me to respond to a tender? Or, must I register my business for VAT?

The answer according to the VAT Act, 1991 (Act No. 89 of 1991) is simple:

  • If your turnover is more than R1 million per annum then you have to register your business (or yourself in the case of a sole proprietor) for VAT.
  • There are commodities that are exempt from VAT and if you... Read More
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