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.
Maintenance: Fire Detection and Suppression System 2018-09-27 11:00 287025
Quotation for the appointment of two or more training service providers to facilitate, assess and moderate the accredited problem-solving and decision-making three-day course and portfolio of evidence of 20 learners per programme for the unit standard ID number 242817, NQF level 4, as and when required.Proof of accreditation for unit standard ID number 242817 must be provided. 2018-09-25 10:00 Q04-2018/19 RE-ADVERT
As and when supply and delivery of diesel to Umjantshi House, Shosholoza Meyl Junction, Gauteng Nerve Centre and PRASA House for a period of 12 month. 2018-09-25 10:00 RFQ/O8/09/06/2018
Supply and refurbishment of Sulzer pumps and spares at Kriel Power Station for a period of 3 years. 2018-10-04 10:00 MPGXC005314
Request for quotation for appointment of a principal agent to design and supervise access road repairs at the Sentech’s De Aar and Queenstown transmitter sites. 2018-09-26 12:00 SENT140918/Road-Cons
Supply & Delivery of Water & Sewer Pipes and Fittings (2year rates tender) 2018-10-04 10:00 PROC 10/2018
Proficiency testing. 2018-09-28 23:00 OLT1126042
Supply and delivery of various valves on an as and when required basis for a period of five (5) years. 2018-10-01 14:00 MAT00312
Service fire sprinkler system and hydrants. 2018-10-01 12:00 KZN/CRES/08/2018/015/Q
Re-advert: Appointment of registered insurance broker for short-term insurance portfolio for a period of three years. 2018-10-02 09:00 RLM/BTO/123/2017/18
Supply & Delivery of Materials for Water Connections to Drakenstein Municipality (2year rates tender) 2018-10-04 10:00 PROC 09/2018
Consultancy Services - Designing a Programme for Renewable Energy Development in African Island States (REAIS) 2018-10-19 15:00 AUC/IED/C/378
Supply & deliver thermal imager, hygrometer & clamp meter. 2018-10-01 15:00 PR 10286501
Supply and delivery of laboratory consumables for a period up to 30 June 2019 2018-09-27 10:00 CES 22/2018
For the supply and delivery of alcoholic beverages and non-alcoholic beverages to the Blue Train for a period of 12 months on an as and when required basis or once (the quantity stipulated is purchased). 2018-10-02 10:00 ERACES4660-27979
The provision of maintenance and support services for the train cab system back office system on the Transnet Freight Rail Coal line for a period of 3 years. 2018-10-02 10:00 ERAC OGS SG540-26849
Supply and delivery of semi rigid asphalt with conventional open graded asphalt (popcorn mix) to Maydon Wharf. 2018-10-02 10:00 CRAC DNR 27853
Pauper funerals for Drakenstein Municipal Area from 19 October 2018 till 30 June 2019 2018-09-27 10:00 DSC0019702
Provision of functional job evaluations and functional job match assessments for RSR related job grades. 2018-10-02 10:00 TE18-KLP-19B-05686
Provision of helicopter services on an as and when required basis for a period of 24 months. 2018-10-02 10:00 PTH/54515

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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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