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.

Pages

Title Closing Date Tender No.
Department of Health: Utrecht: Niemeyer Memorial Hospital: Construction of Borehole and Erecting a New Galvanised Elevated Water Storage Facility 2018-10-29 11:00 ZNTL 03837 W
Department of Social Development: Amajuba District: Osizweni Arts Centre: Repairs and Renovations: Completion Project 2018-10-29 11:00 ZNTU 52439 W
Supply, Delivery and Installation of Surface Grinding and Milling Machine for Regional Workshop Gauteng. 2018-11-08 11:00 CPSC- B- G- 113- 2018
Procurement of Mobile Prefabricated Office and Store Utilising the Volumetric and Light Steel Frame Building Method. 2018-11-01 11:00 CPSC- B- G- 151- 2018
Umzinyathi District :Dundee: Department Of Cooperative Governance and Traditional Affairs: Hire of Office Accommodation : A Lettable Area Sufficient to Accommodate 470m2 of Assignable Office Space Plus 94m2 of Non-Assignable Space. 2018-10-30 11:00 ZNT 6002 W
Supply and Delivery of Twenty (20) Specialised Breeding Dogs between Eighteen Months and Three Years of Age for Military Veterinary Institute. 2018-10-22 11:00 CPSC- B- M- 066- 2018
Electrical maintenance and perimeter lighting at Catherine Booth Hospital, Amatikulu. 2018-10-25 11:00 ZNTU 03423 W
Construction of Kwa-Nocomboshe, Osuthu and Dondotha New, Deep Rural Police Stations: (Cluster 1) KwaZulu Natal Province 2018-10-31 11:00 19/ 1/ 9/ 1 / 60TB (18)
Construction of Nsuze New Police Station: KwaZulu-Natal Province 2018-10-30 11:00 19/ 1/ 9/ 1/ 82TB (18)
Procurement and Installation of Four (04) Mobile Flatpack Modular System Unit at SA army Combat Centre for VIP Accommodation. 2018-10-22 11:00 CPSC- B- G- 137- 2018
Supply and Delivery of Coal Peas A-Grade for boilers at Bizzah Makhate Correctional Centre 2018-10-29 11:00 KST02/ 2018
Sconversion of a 12 Meter Flat Deck Trailer as well as a 6 Meter Flat Deck Trailer into a mobile Uniform Shop: Western Cape 2018-10-26 11:00 19/ 1/ 9/ 1/ 135TV(17)
Expression of Interest for Development of a Shopping Center at Erf 914 and Relocation of Ngqeleni Stadium 2018-10-25 12:00 47/2018
Lease of a portion of erf 397 2018-10-26 12:00 70/2018
Lease of a portion of Sklipadhoogte (3.3ha), McGregor 2018-10-26 12:00 69/2018
Lease of municipal building situated on erf 81, McGregor (Old ACVV building) 2018-10-26 12:00 68/2018
Alienation of various available erven 2018-10-26 12:00 71/2018
Supply, installation and management of a STS compliant prepayment electrical vending system for a period ending 30 June 2021 2018-10-26 11:00 BV 730
Lease and Management of the Point Caravan Park (Erf 3626, 3601 and 3794, Including the Putt-Putt Course, Skateboard Facility and Resort Shop): Total Area ±3.5ha, Mossel Bay: for a period of fifteen (15) years 2018-10-26 12:00 TENDER 25-18/19
Consultancy Services to Prepare a Solar Energy Policy Framework for Africa 2018-10-26 15:00 AUC/IED/C/379

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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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