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.

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.

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Title Closing Date Tender No.
Connection of electricity/water, sanitation and building of ramps stairs/walk way at Masons clinic. 2018-10-01 11:00 ZNQ 23/ 18/ 19
Appointment of a service provider to provide maintenance and repairs of x-ray machines and walkthrough metal detectors to the NPA for a period of three (3) years. 2018-10-22 11:00 NPA 04- 18/ 19
Supply, installation, commissioning of weighing balances including training and maintenance for three (3) years in accordance with specification no 32120: Division: Visible policing. 2018-10-23 11:00 Bid no. 19/ 1/ 9/ 1/ 180TR (17/ 18)
Supply, Maintenance and Servicing of Tractors and Accessories for SANParks for a period of five (5) years. 2018-10-04 11:00 GNP- 025- 18
Appointment of a service provider for the rendering of cleaning, hygiene and fumigation services for the South African National Biodiversity Institute: Pretoria National Botanical Garden for a period of 36 months. 2018-10-19 11:00 SANBI: G310/ 2018
Request for a service provider to maintain and support Internet Protocol (IP) telephony for The Office of the Public Service Commission (OPSC) for a period of 36 months. 2018-10-08 11:00 OPSC 004/ 18
Design, manufacture, delivery and support for 30 RF shielded enclosures for the HERA nodes at SARAO in the Northern Cape. 2018-10-12 11:00 NRF SARAO HERA 005 2018
Appointment of a service provider to conduct wellness screening and related support services for employees within the employ of the Kwazulu-Natal Legislature. 2018-10-17 11:00 KZNL 17/ 2018
Invitation to experienced catering companies to rent the vacant cafeteria space for a period of three (3) years. 2018-10-08 11:00 HSRC/ 18/ 2018/ 19
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
Terms of reference for the appointment of a service provider to supply, deliver and offload shearing shed equipment and machinery for SENQU FPSU (Herschel Wool Growers Association) In SENQU Local Municipality at Joe Gqabi District, Eastern Cape Province. 2018-10-12 11:00 DRDLR: EC 007(2018/ 2019)
Follow on contract: East London, Queenstown & surrounding areas: Maintenance of electrical equipment for state owned buildings. (Electrical Engineering services) 2018-10-16 11:00 PET26/ 2018
Follow on contract: Port Elizabeth Regional Office: Maintenance of passenger and goods lifts. (Electrical engineering services) 2018-10-16 11:00 PET28/ 2018
Follow on contract: Port Elizabeth & surrounding areas: Maintenance of electrical equipment for state owned buildings. (Electrical engineering services). 2018-10-16 11:00 PET27/ 2018
Supply, delivery and off-loading perishable provisions. 2018-11-06 11:00 LMN 06/2018 LIMPOPO
External and Internal Painting of Water Pump Stations in Swartland Municipal Area. 2018-10-11 11:00 SCM46/18/19
Cleaning and repairs of the Water Treatment Plant (WTP) effluent launders at Duvha Power Station. 2018-09-27 10:00 MPGXC005249R
Supply and delivery of Relay Solid State at Millsite, Krugersdorp. 2018-09-27 10:00 RFQ CRAC-HO-27985.
The Provision of Supply, Delivery of Antenna; Radio, 919.25 to 921 MHZ & Plate Mounting ; 236060 – 115000, Ansys; Assy. 2018-09-27 10:00 RFQ CRAC-HO-27982.
Manufacture, Supply and delivery of 3 x Free Standing Spectator Pavilions 2018-10-04 11:00 SCM42/18/19

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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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