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.
Supply: plinth - type: mini- sub jumbo 2 2017-11-27 14:00 GE11800785
Supply: Epidermic 311 5litre a solvent free underwater grade epoxy compound 2017-11-30 14:00 GE11800786
Supply Engineering Materials 2017-11-27 14:00 GE11800788
Guarding and Security Services at the Overberg District Municipality’s Bredasdorp and Caledon Offices 2017-12-18 12:00 T16-2017/18
Supply, delivery, installation & training for a discrete analyser to JB Marks Local Municipality in Potchefstroom 2017-12-01 12:00 TENDER: 99/2017
Supply: Civil materials 2017-11-30 14:00 GE11800789
Supply: 2 each x zenith 088kw, 220v, submissible pump 2017-11-30 14:00 GE11800790
TVBR Mpu Dual Trailer Mounted Generators 2017-11-27 12:00 RFI/RBF/2017/12
Gardening Service: Simons Town Municipal Court 2017-11-30 12:00 SD11800272
Water treatment for electrode boilers, Chiller plant and cooling towers. 2017-11-30 11:00 RFQ/17/241
Quotation for the construction of Nohhahha rising main in ward 15 of Umfolozi Local Municipality 2017-11-30 11:00 KCDM/QUOTE/210/2017
Printing and delivering of Postbank Terms & Conditions 2017-12-01 11:00 C18/Central Region/2017
Supply and deliver Fuse Wire Tinned Copper 2.0mm 2017-11-30 11:00 SQ11171141
The supply, installation and commissioning of a Class A+A+A+ Sun Simulator with Integrated Temperature Chamber for PV Modules for CSI 2017-12-05 16:30 CSIR RFP No. 3163/05/12/2017
Supply and deliver Penetrating Spray 2017-11-30 11:00 SQ11171141
Bloemfontein Campus: 83707-302: UFS University Estates Annex (CIDB 6GB) 2017-12-08 11:00 1-452-10411-0198
Supply and deliver Go-Mark Liquid Gel White 2017-11-30 11:00 SQ11171141
Appointment of a contractor for the upgrading of roads, related Stormwater and relocation of bulk sewer in Skoonvlei - Phase 2, Western Cape. 2017-12-08 11:00 SSC WC 04 (2017/2018) DRDLR
The upgrading of internal surfaces with the associated storm water and fencing, for Ceres valley fruit situated in the Witzenberg Municipality, Western Cape province. 2017-12-08 11:00 SSC WC 08 (2017/2018) DRDLR
The appointment of a contractor for the construction of Hlabisa irrigation scheme in Mtubatuba Local Municipality within Umkhanyakude District in the province of Kwazulu-Natal 2017-12-11 11:00 SS-KZN 7/1/6/3 (634) 000R

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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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