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.
Provision of Office Accommodation: Siyabuswa Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered) 2018-08-24 11:00 32/ 2018
ORBIT TVET College invites capable and competent service providers to supply and deliver New Classroom Furniture for CET. 2018-08-24 11:00 CET01/ 2018
Provision of Office Accommodation: Dundee Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-08-24 11:00 33/ 2018
Provision of a comprehensive catering service to Eerste River Hospital under control of the Department of Health, Western Cape Government for a 3-year period. 2018-08-17 11:00 WCGHSC0096/ 2018
Provision of Office Accommodation: Ladysmith Local Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered) 2018-08-24 11:00 29/ 2018
Provision of Office Accommodation: Estcourt Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered) 2018-08-24 11:00 27/ 2018
Supply Chest Freezer - Frost Free. 410 - 500L 2018-07-27 11:00 ZNQ 07/ 05/ 2018
Request for the procurement of external vendors to assist with creation of Records Centre. 2018-08-14 11:00 RFB 1773/ 2018
Provision of Office Accommodation: Port Shepstone Local Office for a lease period of 5 years or more 2018-08-24 11:00 28/ 2018
Provision of Office Accommodation: Grahamstown Local Office for a lease period of 5 years or more. 2018-08-24 11:00 35/ 2018
Draining Pumps; Circulator Pump 2018-07-27 11:00 ZNQ 30- 2018/ 19
Hosting Event Management, Erection Exhibition Stalls and Décor Services for the Department of Defence for the DOD Suppliers day. (Procurement Plan Number: DOD PROC PLAN 18-19/LOG DIV/572). 2018-08-20 11:00 CPSC- B- G- 085- 2018
Supply and delivery of building materials to 11 Sections in Tshakhuma Village, Vhembe District. 2018-08-13 11:00 WRC- 010- 18/ 19
Pounding yard for Department of Community Safety for a period of 60 months (05 years) 2018-08-10 11:00 GT/ GDCS/ 083/ 2018
Establishment of a Pre-Qualified Service Providers for the Supply and Installation of library furniture (including space planning and layout) for a period of 36 months. 2018-08-10 11:00 GT/ GDSACR/ 091/ 2018
The Rural Housing Loan Fund NPC (RHLF) is a Schedule 3A public entity and Development Finance Institution reporting to the Minister of Human Settlements. In terms of PFMA, the company is required to have an internal audit function reporting to its Audit and Risk Committee. As RHLF is a small entity this function is outsourced and the company now calls for tenders, from established internal auditing firms, to undertake this work from August 2018 for a three-year period. 2018-08-21 16:00 IA001
Appointment of a Qualification Development Facilitator to develop and realign occupational qualification. 2018-08-21 11:00 QDF/ PSETA/ 2018- 07
Mixer Pillar Elbow; Mixer Bib Elbow; Geyser 200 L; Geyser 150 L; Heavy Duty shire low level Cistern; PVC Toilet Flushing Mechanism 2018-07-27 11:00 ZNQ 31- 2018/ 19
NC092 - Dikgatlong Local Office Accommodation. 2018-08-10 11:00 IEC/ NC- 03/ 2018
Appointment of a service provider to supply, install and integrate an enterprise level Nintex or equivalent business process automation tool solution with the NRF’s existing sharepoint infrastructure and support the tool solution for a period of five years. 2018-08-16 11:00 NRF/ CORP- RISA ICT/ 002/ 2018


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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