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.
Consulting Engineering Services for the Operations and Management of Road Incident Management Systems and Road Safety Appraisals in the Northern Cape Province 2017-12-15 14:00 NRA X.005- 024- 2018/ 1F
Appointment of a service provider for the supply and implementation of an in-house finance system. 2018-01-31 11:00 009- 2017/ 2018
Appointment of a service provider for the supply of Agro-processing Machinery within the Gauteng Province 2017-12-15 11:00 GT/ GDARD/ 167/ 2017
Construction, for the construction of a cast in-situ 1.8m x 1.8m double cell box culvert on Main Road P487 at Km 45.75 within the Ulundi Local Municipality, Zululand District 2018-01-08 11:00 ZNT4176/ 17T
Supply of a turnkey software asset management (SAM) solution to SITA, as well as integrated logistics support and advisory services. 2017-12-14 11:00 RFB 1661/ 2017
Construction of a cast in-situ 3m x 3m double cell box culvert on Main Road P704 at Km 9.65 within the Ulundi Local Municipality, Zululand District 2018-01-08 11:00 ZNT4173/ 17T
Supply and delivery of IT equipment (100 x PCS and 31 x Laptop) for the Amathole District, Eastern Cape Department of Health. 2017-12-15 11:00 SCMU3- 17/ 18- 0226: HO
Supply, delivery and installation of IT equipment (149 x PCS and 38 x Laptop and 3 x Bulk Printers and 2 x Data Projectors) for Frere Hospital, East London, Eastern Cape Department of Health. 2017-12-15 11:00 SCMU3- 17/ 18- 0046: FRE
George: Bus Depot: Extension of Bus Parking. 2017-12-12 11:00 S105/ 17
Supply, delivery, installation and maintenance of IT Servers for Frere Hospital, Buffalo City Metro, East London, Eastern Cape Department of Health. 2017-12-15 11:00 SCMU3- 17/ 18- 0027: FRE
Grabouw: Hottentotsholland Nature Reserve: Landroskop Road Upgrade Phase 2 2017-12-12 11:00 S106/ 17
Supply of Various Papers, Boards to the Government Printing Works, 149 Bosman Street, Pretoria for a period of three years commencing 01 February 2018 and terminating 31 January 2021. 2018-01-15 11:00 GPW- C 21
Maintenance services of the wireless network cabling for head offices (Bhisho and King William’s Town), Eastern Cape, Department of Health, for a period of thirty-six (36) months. 2017-12-19 11:00 SCMU3- 17/ 18- 0224: FRE
Supply and delivery of IT equipment for the implementation of Skype for business at three head office boardrooms, Eastern Cape Department of Health. 2017-12-19 11:00 SCMU3- 17/ 18- 0223: HO
Supply of various PVC Materials to the Government Printing Works, 149 Bosman Street, Pretoria for a period of three years commencing 01 February 2018 and terminating 31 January 2021. 2018-01-15 11:00 GPW- C 22
The supply, delivery & installation of unified threat management (UTM) proxy appliance including technical support services for KZN Department of Health: Information Technology: once off with 3 year support and maintenance. 2017-12-18 11:00 ZNB 9596/ 2017- H
The appointment of service providers to deliver and install the copier machines for the presidency for (3 ) years for Cape Town and Pretoria. 2017-12-18 11:00 PO 2017/ 18 : 009
Design, Supply, Installation and Comissioning of a new Desalination Plant on Robben Island 2018-01-22 12:00 CDC/ 378/ 17
The appointment of service providers to supply and deliver stationery or office consumables for a period of three years. 2017-12-18 11:00 PO 2017/ 18 : 001
Supply of Wooden Pallets and Various Corrugated Boxes (Folded and Unfolded) to the Government Printing Works, 149 Bosman Street, Pretoria for a period of three years commencing 01 February 2018 and terminating 31 January 2021. 2018-01-15 11:00 GPW- C 23

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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