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.

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Title Closing Date Tender No.
Supply: 108 pairs stockings anti embolism thigh high medium 2017-10-03 11:00 ZNQ 775/ 17/ 18
Supply: 150 pairs stockings anti embolism thigh high x large 2017-10-03 11:00 ZNQ 776/ 17/ 18
Supply: 6360 units nebulizer aerosol child 2017-10-03 11:00 ZNQ 835/ 17/ 18
Supply: 1100 pkts electrodes E.C.G adult pkt/50 2017-10-03 11:00 ZNQ 834/ 17/ 18
Supply and deliver 10L Buckets plastic. Green, Yellow, Blue, Red and White Colours. QTY: 32 Units 2017-10-06 11:00 ZNQ: 593/ 17- 18
Supply and deliver SHE Bins 10L. QTY: 48 Units 2017-10-06 11:00 ZNQ: 591/ 17- 18
CapeNature seeks the services of a skilled project management team and contractor to construct a recreational area including a swimming pool and shaded lapa at the Algeria campsite in the Cederberg Wilderness. The contractor must have a minimum level 3GB for the installation of the required pool and recreational area. 2017-10-20 11:00 WCNCB 02/ 09/ 2017
Supply & delivery of plumbing material 2017-09-29 11:00 ZNQ 276/ 17/ 18
CapeNature requires the services of an experienced Contractor to design, supply building material, and construct for the Upgrade of Tierkloof bushcamp at Gamkaberg Nature Reserve. 2017-09-22 11:00 WCNCB 03/ 09/ 2017
Supply: 5030 units nebulizer aerosol adult 2017-10-03 11:00 ZNQ 833/ 17/ 18
CapeNature seeks a Service Provider to erect a game proof boundary fence at the Ganzekraal Conservation Area west of the R27 near Mamre. 2017-10-20 11:00 WCNCB 04/ 09/ 2017
Supply trial frame for refraction 2017-10-06 11:00 ZNQ 365/ 17/ 18
Tubes cycle kenda 4.80/ 4.00-8 tr 13 SABS approved. Quantity: 10units 2017-10-03 11:00 ZNQ No.853/ 05/ 17
Supply ophthalmic desktop autoclave, 5L, positive pressure pulse displacement 2017-10-06 11:00 ZNQ 370/ 17/ 18
Appointment of a capable service provider to provide to raise funds and host the events aspects of the annual Andrew Mlangeni golf day and ministerial golf day. 2017-10-20 11:00 SRSA005/ 2017- 18
Supply puff tonometer, desktop 2017-10-06 11:00 ZNQ 367/ 17/ 18
Major service, rewind and replace fault parts for air supply fan motor at North block plant room & other services (see description for details) 2017-10-03 11:00 606/ 05/ 17
Supply surgeon’s stool with fully adjustable backrest and armrests used in cataract surgery 2017-10-06 11:00 ZNQ 369/ 17/ 18
Supply hydrocollator hot pack unit, 15L 2017-10-06 11:00 ZNQ 368/ 17/ 18
Appointment of a Fulfillment and Warehousing Services for South African Tourism Central Europe. 2017-10-16 12:00 SAT CENTRAL EUROPE 001/ 17

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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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