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.
Service to Diesel Fuel Tank Cleaning (CIDB RATING ME1) 2018-11-30 11:00 ZNQ 178/ 1819
Service and Repairs to Ups Batteries 2018-11-26 11:00 ZNQ 182/ 1819
Service to Standby Generator 2018-11-30 11:00 ZNQ 179/ 1819
Provision of learner transport to public schools: From Groendal Residential Area Turn-Off / Franschoek Squatter Camp, L’ormanis / Dennegeur, Normadia /Robertsvlei, Rhodes Fruit Farm / Weltevrede, Deltameer / Lubeck, Simondium Primary School,Paarl School Of Skills To Desmond Tutu And Ihlumelo Secondary Schools. 2018-12-07 11:00 B/ WCED 2468/ 18
Render a Cleaning Service at the Premises of the Metro North Education District (Mned) Office, Situated at 9 Timmerman Street, Parow for a period of two (2) years, starting From 1 April 2019 To 31 March 2021 2018-12-14 11:00 B/ WCED 2473/ 18
Hiring of seated stands and podium with canopy. 2018-12-14 11:00 SPSC- B- 060- 2018
Hiring of day and night big screens. 2018-12-14 11:00 SPSC- B- 059- 2018
Hiring of mobile toilets and showers. 2018-12-12 11:00 SPSC- B- 058- 2018
Hiring of Speed Fencing 2018-12-12 11:00 SPSC- B- 057- 2018
Hiring of buses for the transporting of members to different areas within 300 km radius of the Cape Town area over the period 16 - 21 February 2018. 2018-12-12 11:00 SPSC- B- 056- 2018
Appointment of a security companies to provide security services in the kei, matiwane and east griqualand districts in the Eastern Cape for the period of three (3) years 2018-12-07 11:00 4.4.12.4/ 7/ 18
The Western Cape Department of Agriculture (WCDOA) Requires the services of a service provider to Repair and Refurbishment of Fraunhofer Ibmt Bischoff & Scheck Mobile Biosafety Level 3 Laboratory At Western Cape Provincial Veterinary Laboratory In Stellenbosch 2018-12-13 11:00 BID 851 - 2018/ 2019
Appointment of a Service Provider to Provide Office Lease Space on a Lease Agreement for the CCMA George Office 2018-12-07 11:00 CCMA/ 2018/ 35- GEO
Appointment of a Service Provider To Provide Office Lease Space on a Lease Agreement for the CCMA Polokwane Office. 2018-12-07 11:00 CCMA/ 2018/ 36- POL
Appointment of a Service Provider to Provide Office Lease Space on a Lease Agreement for the CCMA Bloemfontein Office 2018-12-07 11:00 CCMA/ 2018/ 34- FS
Appointment of a Service Provider to Provide Office Lease Space on a Lease Agreement for the CCMA Vryburg Office 2018-12-07 11:00 CCMA/ 2018/ 33- NW
Expression of Interest:Supply & Installation of Security Fencing to Various Facilities Throughout South Africa (Framework Agreements) 2018-12-11 12:00 CDC/ 559/ 18
Request For Proposals :Design, Manufacture, Delivery, Commissioning & Maintenance of an Off Port Limits (Opl) Vessel for Coega Development Corporation 2018-12-07 12:00 CDC/ 589/ 18
Supply and Delivery of a Single Axle Training Vehicle with a 5th Wheel Conversion and a 6-Meter Single Axle Semi – Trailer (Flatbed). 2018-12-10 12:00 CDC/ 588/ 18
Design, Manufacture and Supply Pvc and Glass Panel Marquees Including Furniture 2018-12-10 12:00 CDC/ 592/ 18

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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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