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.
Supply, delivery and installation of a water flow meter system 2018-10-02 11:00 FQ/SM : 25/19
Consultant required to provide Monitoring, Evaluation, Accountability and Learning (MEAL) technical support to SCSA projects in Gauteng Province 2018-10-04 16:00 No reference number supplied
Supply of Services to Repair Traffic Signals and Associated Equipment within the Breede Valley Municipality 2018-09-27 11:00 288145
Consultancy services for SAP grant management implementation support 2018-10-05 15:00 ET-AUC-78675-CS-QCBS
Supply and Delivery of VBTS Collimator Insulating Piece. 2018-09-25 11:00 Themba LABS – RFQ/2018/19:84
Supply, delivery and Laying of Tiles 2018-09-28 11:00 280918
Procurement of Bus Services for Spring Schools – 4 x 30 Seater Buses. 2018-09-25 11:00 iThemba LABS – RFQ/2018/19:92
Supply and delivery of optic fibre cables at Empangeni once off. 2018-09-25 10:00 ERAC EMU 27571 BD 267
Consultancy service to carry out targeted research on online child sexual exploitation (OCSE) in Africa 2018-10-05 15:00 AUC /SAD/C/365
Provision of cleaning services at various buildings in Pretoria (Koedoespoort) for period of Seven (7) months. 2018-09-25 10:00 ERACKT 4679 - 27937
Supply, delivery and Installation of Glass and Latches for Windows and a Stacking Folding Door 2018-09-28 11:00 270918
Appointment of a preferred list of suppliers to conduct Airborne Magnetic Gradiometer and Radiometric Surveys for the Council for Geoscience for a period of three (3) years. 2018-10-16 11:00 CGS-2018- 027A
Scuff – Sanding, Seal and Finish of Wooden Floor and Stage of Town Hall 2018-09-28 11:00 290918
Supply and delivery of Galvanised Poles. 2018-09-26 11:00 288080
Reverse circulation drilling on the premises of Nkomati Mine. 2018-10-01 13:00 NKG E 008/2018
Interested parties are invited  to submit proposals covering technical & financial aspect relating to the following field: Diamond Transport & Security. 2018-10-10 11:00 SDT84/2018-1S
Consultancy Service to Assist the Department of Trade and Industry on the Implementation of the SMEs Strategy 2018-10-05 15:00 AUC/DTI/C/127
Provision of Directional Drilling Services within the Breede Valley Municipal Area. 2018-09-26 11:00 288679
Supply and delivery of 137cm Hotellier Double Bed Set or Equivalent 2018-09-27 11:00 288526
Stellenbosch University (SU) is hereby requesting tenders from businesses with relevant experience and qualification for the management of the SU’s healthcare consultancy service. 2018-10-05 12:00 SU/T9I/20I8

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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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