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.
Re - development lease of Windsor Hotel, Mthata 2017-11-30 12:00 ECDC/012 W1NH/9/2017
Re - development lease of Development House, Mthatha 2017-11-30 12:00 ECDC/011 DEVH/9/2017
Call for proposal for the implementation of section 78 study findings through the establishment of public private partnership for the general waste collection services for Kwadukuza Local Municipality 2017-11-27 12:00 MN 82/2017
Supply and Installation of new air-conditioning and refrigeration units for Centlec's owned, rented offices and sites. 2017-10-20 14:00 Re-advert CD67-2016
Suitable service provider for refurbishment of a portion of the power station building and addition of a mezzanine floor 2017-10-20 14:00 RFP56-2017
Professional service providers to manufacture, supply and delivery of personal protective equipment & clothing. 2017-10-20 14:00 CD19A - 2017
Service providers to manufacture, supply and delivery of corporate & equipment 2017-10-20 14:00 CD 19C/ 2017
Provision of digital screen management and general advertisement services 2017-10-20 14:00 RFP59/2017
Provision of Libraries Connectivity 2017-11-06 11:00 NEPO/091/2017
Car rental concession tender 2017-11-01 14:00 COR50/2017
Tender for the rendering of cleaning service at JJ Bosmanhuis in Silverton: three year period 2017-10-20 10:00 SDCT 19-2015/16
Appointment of a Panel of Accredited Catering Suppliers to Render Catering Services to the NYDA 2017-11-11 11:00 NYDA2017/02/FAC
Integrated Regulatory System (IRS) 2017-10-31 11:00 FSB2017/ 18- T015
Appointment of a Panel of Accredited Catering Suppliers to Render Catering Services to the NYDA 2017-11-10 11:00 NYDA 2017/ 02/ FAC
Appointment of provision of cleaning,pest control and hygiene services at NYDA Branches for a period of two (02) years 2017-10-27 11:00 NYDA 2017/ 01/ FAC
Eradication of alien invasive vegetation at specified SA Navy Units for a period of three (3) years. 2017-10-24 11:00 SPSC- B- 009- 2017
Provision of banking services for a period of 5 years 2017-11-06 12:00 BID 09/17
Supply & Delivery of Voter Registration Devices 2017-11-07 11:00 IEC/ LG- 04/ 2017
Reconfiguration of ERI TSS Workshop into a transformer assembly and repair works 2017-11-01 10:00 RFP/ERI/2017/ST
2 hectares of land for sale or development in Benoni suitable for 50 clusters,150 apartments or a mixed use development 2018-12-31 12:00 ERDT 0014


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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