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.
Chairs Recliner x 30 Units 2018-07-27 11:00 ZNQ 28- 2018/ 19
Supply and configure a next generation firewall including advanced threat protection solution for two NRF sites and a five year maintenance and licensing service for related hardware and software requirements. 2018-08-18 11:00 NRF/ CORP- RISA ICT/ 003/ 2018
Security Warehousing and Distribution 2018-08-20 11:00 IEC/ LG- 05/ 2018
Cabinets; Cupboards; Lockers - 6 Tiers; Lockers - Single; Shelving; 2018-07-27 11:00 ZNQ 24- 2018/ 19
Engcobo Magistrate office : Condition base maintenance 2018-08-10 11:00 MTH 35/ 2018
Fryer; Toaster; Bain Marie table top; Vegetable Prep. Machine; Trolley - Dish clearing; Trolley - Tea 2018-07-27 11:00 ZNQ 26- 2018/ 19
The appointment of a service provider to assist GGDA with its 6th term of governance 5 year strategy 2019-2024. 2018-08-24 11:00 GGDA/ 06/ 2018- 19/ CORPORATE STRA
The appointment of an external service provider to undertake evaluation of GGDA programmes. 2018-08-24 11:00 Gauteng: Gauteng Growth and Development Agency
Department of Health: Empangeni: Hiring of office accommodation. 2018-08-17 11:00 ZNT 7850 W
Department of Agriculture and Rural Development: Mtubatuba: Hiring of office accommodation 2018-08-17 11:00 ZNT 7852 W
The Financial Intelligence Centre requires proposals from service providers that will provide a Syspro support and upgrade. 2018-08-10 11:00 FIC/ RFB/ SYSPRO/ 0003/ 1/ 2018/ 19
Department of Education: Empangeni: Hiring of office accommodation. 2018-08-17 11:00 ZNT 7853 W
The services of a suitably qualified company to provide ICT systems and support services including an MIS, accounting system, SCM system, payroll and leave system, call centre function, disaster recovery and other related solutions. 2018-08-17 11:00 FAS/ ET/ EXE/ ICTSYSTEMS/ CON1002
Fridges Bar,; Fridges 314L; Freezer Chest 2018-07-27 11:00 ZNQ 27- 2018/ 19
Terms of Reference for the appointment of an accredited service provider for the implementation of Learnerships and Skills Programme for the ETDP SETA. 2018-08-14 11:00 SCMU: 08 - 2018/ 19
Microwaves; Kettles; Hydroboils; Water dispensers 2018-07-27 11:00 ZNQ 25- 2018/ 19
Department of Agriculture and Rural Development: Mbonambi: Hiring of office accommodation. 2018-08-17 11:00 ZNT 7844 W
The South African National Roads Agency SOC Limited (SANRAL) invites tenders from qualified Bidder/s to enter into an agreement for the provision of SAP digital transformation, and end-to-end solution and support services. Only Bidders who are BBBEE compliant and are between level 1,2,3 and 4 are eligible subject to a minimum of 30 % of the contract value to be subcontracted to EME’s or QSE’s with a level 2 or higher BBBEE compliance. 2018-08-15 14:00 NRA 58000/ 2018/ SAP
Department of Community Safety and Liaison: Mkuze: Hiring of office accommodation 2018-08-17 11:00 ZNT 7856 W
The NEF herewith invites potential service providers to submit proposals for the provision of RFP: NEF 03/2018: Payroll and Automated Leave Services for the NEF 2018-08-03 14:00 RFP: NEF 03/ 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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