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.
Provision of Office Accommodation: Pretoria Local Office for a leased period of 5 years. 2018-10-26 01:00 52/ 2018
Erect retaining wall to separate classrooms, plaster and painting at Sizaminqubeko Combined School, Umhlabuyalingana. 2018-10-19 11:00 ZNQ UM 27M/ 17- 18
Procurement of a service for the establishment of the Project Management Office (PMO) for the Kopanong Precinct Project (KPP) for a period of 7 (seven) years 2018-10-16 11:00 RFP 10/ 09/ 2018
Repair to roof, doors, windows, floors and painting in 6 classrooms including kitchen and storage at Velabasha Primary School, Manguzi. 2018-10-19 10:00 ZNQ UM 24M/ 17- 18
Provision of Property Management Services for the Gauteng Department of Infrastructure Department Development for the period of three (3) years. 2018-10-16 11:00 RFP 11/ 09/ 2018
Repairs to 5 classrooms, roof, floor, windows, doors, door frames, veranda, floors and painting at Majindi Primary School, Hlabisa. 2018-10-19 11:00 ZNQ UM 2871 U
Repair 5 classrooms, roof, floor, windows, doors, door frames, veranda and painting at Manzengwenya Primary School, Umhlabuyalingana. 2018-10-19 11:00 ZNQ UM 71M/ 17- 18
KwaZulu-Natal: Department of Health: EThekwini Region: Durban: St. Aidan’s Hospital: Replacement of collapsing boundary Wall. 2018-10-23 11:00 ZNTD 03682W
Repairs to 5 classrooms, roof, doors, door frames, windows, floors and painting at Ntshingwayo Secondary School, Umhlabuyalingana. 2018-10-19 11:00 ZNQ UM 2843 U
Repair 5 classrooms roof, doors, door frames, windows, floor, veranda and painting at Mashalaza High School, Umhlabuyalingana. 2018-10-19 11:00 ZNQ UM 16M/ 17- 18
KwaZulu-Natal: Department of Public Works: eThekwini Regional Office: Mayville Offices–South Wing: Upgrade of Air Conditioning System 2018-10-26 11:00 ZNTD 03279W
Construction of 40KL elevated water tank at Mduku clinic- Hlabisa. 2018-10-19 11:00 ZNTU 03407 W
DUTYWA MAGISTRATE: Replacement of damaged wall. 2018-10-12 11:00 MTH 58/ 2018
KwaZulu-Natal: Department of Public Works: eThekwini Region: Durban: Installation of 800KVA standby generator for the Mayville Complex and Relocation of the existing 400KVA to iLembe District Office. 2018-10-29 11:00 ZNTD 04430W
14 SAI BATALLION: Office & Staff Quarters - Repairs to Storm Damage. 2018-10-12 11:00 MTH 56/ 2018
14 SAI BATTALION: Garrison Village - Repairs to Storm Damage Required CIDB grading: 3 GB or Higher. 2018-10-12 11:00 MTH 57/ 2018
Construction, Furnishing and Delivery of the New Boitumelo Clinic. 2018-10-18 11:00 DID40/ 09/ 2018
The South African National Roads Agency SOC Limited (SANRAL) invites tenders from qualified Bidder/s to enter into an agreement for DATABASE Administration and Managed Services (Oracle, Microsoft Mssql and Mongodb). 2018-10-16 14:00 NRA 58000/ 2018/ ORAMSSQL
Appointment of a service provider to render 24 hour security services for the KZN Department of Human Settlements at Ugu District Offices, for a period of 12 months. 2018-10-18 11:00 ZNB44/ 2018/ 19HSE
Appointment of a panel of service providers to undertake plumbing work for the KZN Department of Human Settlements on a rotational basis for a period of 2 years. 2018-10-23 11:00 ZNB20/ 2017/ 18HSE


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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