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

www.how2tender.com

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.
Service Maintenance and Repair of Aeronautical/Navigation Aids to ensure compliance to Icao recommendations Ulundi Airport 2017-09-21 12:00 ZDMQ0251/09/2017
Supply and delivery of 15” Active Portable Speaker Inc 2 Wireless Mics and Heavy duty Asdjustable Speaker Stands 2017-09-20 11:00 W061800173
Training of four (4) employees in Basic Computer Literacy competencies for the Zululand District Municipality. 2017-09-27 12:00 ZDMQ: 0252/09/2017
Training on MS EXCEL 2010 (Re advt) 2017-09-27 12:00 ZDMQ 0253/09/2017
Disability awareness and stimulation kit training programme 2017-09-26 09:00 SM11800145
Training of eighteen (18) employees in Microsoft PowerPoint 2010 core competencies for the Zululand District Municipality 2017-09-27 12:00 ZDMQ: 0254/09/2017
Provision of support, maintenance and development on the Genesys Contact Centre Solution 2017-10-06 12:00 1l-33472
Horticultural Maintenance: Rusthof Cemetery & Surrounding Area 2017-09-26 12:00 W101800300
Catering for 200 VIPS SALGA Games 2017 2017-09-22 12:00 ZDMQ 0255/09/2017
Catering for 200 VIPS SALGA Games 2017 2017-09-22 12:00 ZDMQ 0256/09/2017
Supply: Valve 2017-09-20 14:00 A021800400
Supply: Road marking signs 2017-09-22 14:00 A021800381
UShaka Marine World hereby invites all prospective suppliers to tender for the provision of lifeguard services. 2017-10-06 11:00 UMW.162
Catering for 200 VIPS SALGA Games 2017 2017-09-22 12:00 ZDMQ 0257/09/2017
Supply: Microstar photocell;2000sa 60/40 lux 2017-09-20 11:00 R091800158
Hiring of Marquee, chairs and tables for SALGA Games 2017 2017-09-22 12:00 ZDMQ: 0258/09/2017
Supply: Pole mounting box;with bracket;spb1 2017-09-26 11:00 R091800157
Supply: Multimeter test leads with screw on crocodile clips 2017-09-29 11:00 R091800160
Supply and delivery of Refreshments and hiring of cold room SALGA Games 2017 2017-09-22 12:00 ZDMQ 0259/09/2017
Supply and Delivery of Golf shirt and Navy and white tog bag SALGA Games 2017 2017-09-22 12:00 ZDMQ: 0260/09/2017

Pages

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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