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.
Construction of new solid wate mangement office, Ottery City of Cape Town. 2017-10-23 10:00 88Q/2017/18
Supply: Various electrical goods 2017-11-05 11:00 GH11800184
Sale of as yet Unregistered Consolidated Erf 4081 Gansbaai, for the Development of a Hospital 2017-10-27 12:00 SC1823/2017
Professional Consulting Engineering Services for the Louwville 200 Irdp: Construction Of Civil Engineering Services on 200 Erven in Louwville 2017-11-03 12:00 SBM 26/18/17
Supply and delivery of water meters to the Saldanha Bay Municipality for a period 01 January 2018 to 31 December 2020 2017-11-03 12:00 SBM : 12/17/18
Supply and deliver of Pipes, Valves, Repair Fittings and accessories for the Saldanha Bay Municipality for a period 01 January 2018 to 31 December 2020 2017-11-03 12:00 SBM : 13/17/18
Request for Expressions of Interest for Disputes Board 2017-10-30 12:00 CS505
Supply and delivery of Liquid Chlorine Gas to Saldanha Bay Municipality for the period 01 January 2018 to 31 December 2020 2017-11-03 12:00 SBM : 14/17/18
Request for Urban Sector Network Strategy (Uns) Professional Programme Management Services for Implementation of Urban Network Strategy (Uns) in Rustenburg 2017-11-06 09:00 RLM/MM/0044/2017/18
Appointment of a service provider for the Purchase, Management Services, Maintenance and Repairs of Specialised Vehicles for all Fleet User Departments and Municipal Entities for a period of 3 (three) years. 2017-11-06 10:30 533/17
Detailed design, manufacture, supply, delivery and installation of all repairs and the testing and commissioning of the Inner Caisson at the Dry Dock at the Port of Durban 2017-11-07 10:00 TNPA 703
Appointment of a Service Provider for the Provision of Non- Specialised Vehicle on a Full Maintenance Lease and Fleet Support Services for aperiod of 5 (five) years for all fleet user Departments and Municipal Entities 2017-11-07 10:30 A733
Request for proposals for the appointment of a service provider for the procurement, installation, maintenance and support of the biometric thumbprint devices for the Unemployment Insurance Fund (UIF) 2017-11-07 11:00 UIF9/2017
Cool Air Wastewater Works: Supply, Delivery, Installation and Commissioning of Return Activated Sludge Pumps 2017-11-02 12:00 2018/030
Supply: Stock stationery- polypropylene label 2017-10-28 14:00 GM11800205
Supply of sutures 2017-10-26 11:00 ZNB 70- 17/ 18
Supply of Bandage crepe 150mm x 1666 dozen 2017-10-26 11:00 ZNB 73- 17/ 18
Supply of Bandage crepe 100mm x 1666 dozen 2017-10-26 11:00 ZNB 72- 17/ 18
Supply of Bandage crepe 75mm x 1250 dozen 2017-10-26 11:00 ZNB 71- 17/ 18
Supply, Delivery, Installation, Testing, Demonstration and Commissioning of 1 x Multispot Scan Laser Photo Coagulator System 2017-10-24 11:00 CPSC- B- M- 056- 2017


Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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