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 


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 and delivery of Chainsaw equipment 2018-11-23 12:00 B355/2018/19
Supply and delivery of Car Wash Products 2018-11-23 12:00 B356/2018/19
Appointment of a Maximum of two (2) Service Providers for Purchasing Of Bulk Media for a period of 36 months as and when required 2018-12-18 12:00 BS08/11/2018
Supply & Delivery of UNSCAN OTP 7500R X-Ray Security Screening System with A 100% content as indicated in specification. 2018-12-05 12:00 XYS/2018/105/AFBYSTER
Re-Advertisement: Provision and Fitting of 1200m X 2.4m High Concrete Palisade Fence at Three Resevoirs (Skietbaan, Nazareth and Kanonkop Resevoirs) In Middelburg 2018-12-06 12:00 BS 03/11/2018
Upgrading of Sleeping Quarters at Boskrans Waste Water Treatment Works 2018-12-04 11:00 BS06/11/2018
Supply and Delivery of Led Floodlights. 2018-12-14 12:00 T26/18/19
Construction of Civil Engineering Services and Implementation Agent for Riebeeck Kasteel and Kalbaskraal Low Income Housing Developments 2018-12-14 12:00 T20/18/19
Underwriting of the Municipality’s Group Life Insurance Portfolio for the Period 1 July 2019 to 30 June 2022 2018-12-13 12:00 T23/18/19
Integrated electronic procurement system 2019-01-23 10:30 JW RFP 01/18 SC
Provision of Vehicle Tracking System for the Period Ending 30 June 2021. 2018-12-13 12:00 T22/18/19
Provision of Social Media Services to Swartland Municipality 2018-12-13 12:00 T21/18/19
Supply and Delivery of 2x Laptops 2018-11-29 11:00 SCM 72/18/19
Olifantsvlei Waste Water Treatment Works: Infrastructure Renewal Plan 2019-01-25 10:30 JW 13065
Provision of Banking Services for a contract period ending 30 June 2024. 2019-01-25 12:00 SC 1933/2018
Sale of residential Erf. 971 (43 Protea Avenue), Barrydale 2019-01-25 12:00 SMT29/18/19
Supply and delivery of 400Volt joints to Boksburg electrical workshop; Cnr Krynauw and Trichardt St; Boksburg on an as and when required basis as to the value of R200 000.00 including vat or a period of 12 months (Whichever comes first) as per specifications 2018-11-22 15:00 BOQ.MI.11.39
Supply and delivery of 11kv non-extensible metering unit on an as and when required basis as to the value of R200 000.00 including vat or a period of 12 months (Whichever comes first) as per specifications 2018-11-22 15:00 BOQ.MI.11.41
Supply and delivery of thermal rolls to Springs Fresh Produce Market as per specifications 2018-11-22 15:00 SPQ.ED.11.30
Supply and delivery of aluminium A2 and A1 clip on frames per specifications 2018-11-27 15:00 SPQ.ED.11.29


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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