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 


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.

2 items that determine tender pricing

Article by Werner van Rooyen


31 January 2019

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.
Replacement of checkpoint firewalls 2019-07-02 11:00 FSCA2019/ 20- T002
Terms of Reference to appoint a service provider to conduct a Tracking and Tracing Evaluation Study for the ETDP SETA 2019-07-02 11:00 SCMU: 02 - 2019/ 20
Appointment of a Service Provider Provider to Establish the Centre for Maritime Policy, Strategy, and Innovation of South Africa (CEMPSA) 2019-06-28 11:00 SCM/ 07/ 2018/ MT
Appointment of Employment Agencies for a Period of Three (3) Years 2019-07-01 11:00 DST06/ 2019- 20
Appointment of a Service Provider to Assist The Department of Rural Development and Land Reform with Project Management and Monitoring Services on all Its Proactive Land Acquisition Strategy and Selected Restitution Farms In Nine Provinces for a Period of Three Years. 2019-06-27 11:00 5/ 2/ 2/ 1- RDLR 0010(2019/ 2020)
Request for proposals: Definition of norms and standards for the African Railway Network as an annex of the continental transport policy 2019-07-05 15:00 AUC/IED/C/005
Individual consultant: Request for expression of interest: Consultancy services develop a general comment on child sexual exploitation and abuse under article 27 of the African Charter on the rights and welfare of the child 2019-06-21 15:00 AUC/DSA/C/035
Appointment of a Company(Ies) to Provide Agribusiness Analysis Services for the Strengthening The Relative Rights (SRR) Programme for a period up to twelve (12) months 2019-06-20 11:00 5/ 2/ 2/ 1- RDLR 0011(2019/ 2020)
Appointment of a Service Provider to Develop The Vaal River Regional Spatial Development Framework Within a Period of Eighteen (18) Months 2019-06-27 11:00 5/ 2/ 2/ 1- RDLR 0012(2019/ 2020)
Appointment of a Service Provider to Develop a Land Reform Master Plan 2019-06-28 11:00 5/ 2/ 2/ 1- RDLR 0013(2019/ 2020)
The Appointment of a Service Provider for the Maintenance and IT Support of the Attendance Management System Currently Installed at the Chief Directorate: National Geo-Spatial Information, Mowbray, Cape Town 2019-06-28 11:00 SSC WC Q04 (2019/ 2020) DRDLR
Supply and delivery of newspapers and magazines for 2 years ( 2019/07/01 to 2021/06/30) 2019-06-28 12:00 DPME 04/ 2019- 20
Terms of Reference for the Appointment of a Suitable Service Provider to Render Internal Audit Services at the Department Of Higher Education and Training 2019-07-09 11:00 DHET126
The Appointing a Suitable Independent Service Provider to Develop The Required Sector-Specific Planning Documents and Guidelines for the Expanded Public Works Programme (EPWP): The Environment and Culture Sector for a Period of 12 Months 2019-06-28 11:00 E1514
Call for Proposals: The establishment of a Panel of Service Providers for the development of Provincial Integrated Waste Management Plans (PIWMPs) for a period of 3 years 2019-06-28 11:00 E1517
Micro Disaster Risk Assessment, Profiling and Mapping, and Review of the Macro Risk Assessment 2019-07-01 11:00 COGTA 4/ 2/ 2- 2018/ 10
Consultancy services to support integrated planning and development of AUDA-NEPAD knowledge management strategy 2019-06-21 14:30 79/NPCA/PIO/SKM/QCBS/2019
Appointment of a Panel of Service Providers to Render Services for the Events Management for a period of 36 months 2019-07-09 11:00 ZNT 1906/ 2018 LG
The appointment of a service provider for the supply and delivery of customised procedure kits to Tygerberg Hospital 2019-07-05 11:00 TBH 502/ 2019
Appointment of an entity to provide CETA SCM with related experts for compilation of Bid Specifications 2019-07-01 11:00 002- 2019/ 2020


Tenders and VAT

By Werner van Rooyen

31 January 2019

One question that gets raised during each HowtoTender Workshop is must my business (or I) be registered for Value Added Tax (VAT) in order for me to respond to a tender? Or, must I register my business for VAT?

The answer according to the VAT Act, 1991 (Act No. 89 of 1991) is simple:

  • If your turnover is more than R1 million per annum then you have to register your business (or yourself in the case of a sole proprietor) for VAT.
  • There are commodities that are exempt from VAT and if you... Read More
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