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.
Supply, Delivery and Off-loading of Cleaning Material and Toiletries for Thohoyandou and Polokwane Management Areas ( Limpopo Province) 2018-11-06 11:00 LMN 12/ 2018 LIMPOPO
Supply: T-shirts for Election Day 2018-10-26 11:00 10388287
Request for proposals for appointment of a service provider for supply, installation and maintenance of the online training (examination) accreditation system for security officers for a period of 36 months. 2018-10-24 11:00 RFB/ 2018/ PSiRA/ 08
Request for proposals for appointment of a panel of legal service providers for a period of 36 months. 2018-10-25 11:00 RFB/ 2018/ PSiRA/ 09
Appointment of a Recruitment Panel for a period of thirty six (36) months. 2018-10-26 11:00 SCMN007/ 2018
Supply , Delivery and Off-loading of Perishable Provisions for Thohoyandou and Polokwane management areas ( Limpopo Province) 2018-11-06 11:00 LMN 06/ 2018 LIMPOPO
Supply, Delivery and Off-loading of Perishable Provisions at Klerksdorp, Rooigrond and Rustenburg Management Areas (North -West Province) 2018-11-06 11:00 LMN 04/ 2018 NORTH - WEST
Supply , Delivery and Off-loading of Perishable Provisions at Barberton ,Bethal and Witbank management areas( Mpumalanga Province) 2018-11-06 11:00 LMN 05/ 2018 MPUMALANGA
Provision of Geographical Information Solution (GIS) including maintenance and support services. 2018-10-24 11:00 RFP 29/ 2018
Refrigerated Cross-Border Transport and clearing of cargo; including payment of import Value Added Tax (VAT) for the import of the Foot-and-Mouth Disease (FMD) vaccines from Botswana via the Kopfontein Border Post 2018-10-29 11:00 ARC/
Provision of Office Accommodation: Empangeni Local Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 48/ 2018
Provision of Office Accommodation: Stanger Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 53/ 2018
Provision of Office Accommodation: Limpopo Mpumalanga Provincial Office for a leased period of 5 years. (Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 47/ 2018
Removal and Disposal of Printing Aluminium Lithographic Plates from Shore Base Naval Publication Unit, Simon’s Town as per Statement of Work 2018-11-14 11:00 SPSC- B- 046- 2018
Provision of Office Accommodation: Bochum Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 49/ 2018
Provision of Office Accommodation: Kimberley Local Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 40/ 2018
Provision of Office Accommodation: Victoria West Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 44/ 2018
Upgrade of Security System at Regional Works Unit, KwaZulu-Natal 2018-10-25 11:00 SPSC- B- 044- 2018
Provision of Office Accommodation: Prieska Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 45/ 2018
Provision of Office Accommodation: Eastern Cape Provincial Office for a leased period of 5 years. (Leases ranging from seven to ten years will also be considered). 2018-10-26 11:00 43/ 2018

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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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