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.
NDPW: Durban Workshops: 24 Months Term Contract - Supply of Material for Electrical. 2017-11-27 11:00 DBN17/ 10/ 05
Bloemfontein deeds office: Upgrading of sewer system CIDB grading 3CE or higher 2017-11-28 11:00 BL17/ 023
The Western Cape Government Department of Human Settlements invites tenders for the construction of civil services for various erven and the building of FLISP housing units. 2017-11-24 11:00 HSC 07 + 08/ 2017/ 2018
Replacement school: Kwafuku Primary School; Philippi 2017-12-05 11:00 S093/ 17
Construction of a replacement school: Disa Primary School; Strand 2017-12-07 11:00 S097/ 17
Replacement school: Crestway High School; Retreat 2017-12-05 11:00 S092/ 17
Replacement school: Turfhall Primary School; Athlone 2017-12-06 11:00 S094/ 17
Construction of a new school: Wallacedene Primary School; Kraaifontein. 2017-12-06 11:00 S095/ 17
Construction of a replacement school: Willows Primary School; Heideveld 2017-12-07 11:00 S096/ 17
Drilling and geotechnical services for the preliminary design of the Pietermaritzburg ring road on National route 3 2017-12-01 14:00 NRA N.003- 023- 2010/ 1D- SS1
Vrede SAPS: Police station and housing units: Condition based maintenance on structural, electrical and civil elements CIDB grading 4GB or higher and 3GB PE or higher 2017-11-28 11:00 BL17/ 024
Provision of Office Accommodation: Springbok Satellite Office for a period of 5 years. (Leases ranging from seven to ten years will also be considered). 2017-12-08 11:00 35/ 2017
Provision of Office Accommodation: Groblersdal Satellite Office for a period of 5 years. (Leases ranging from seven to ten years will also be considered). 2017-12-08 11:00 34/ 2017
Provision of Office Accommodation: Groblersdal Satellite Office for a period of 5 years. (Leases ranging from seven to ten years will also be considered). 2017-12-08 11:00 34/ 2017
Provision of Office Accommodation: Vryheid Justice Centre for a period of 5 years. (Leases ranging from seven to ten years will also be considered). 2017-12-08 11:00 32/ 2017
Provision of Office Accommodation: Modimolle Justice Centre for a period of 5 years 2017-12-08 11:00 33/ 2017
Provision of Office Accommodation: Tzaneen Justice Centre for a period of 5 years. 2017-12-08 11:00 37/ 2017
Supply of Hygiene Equipment and Maintenance Services to Gauteng Department of Education Offices for a specific term contract for period of 3 years 2017-11-24 11:00 GT/ GDE/ 158/ 2017
NW384 - Ditsobotla Local Office Accommodation 2017-11-24 11:00 IEC/ NW- 03/ 2017
NW393 - Mamusa Local Office Accommodation 2017-11-24 11:00 IEC/ NW- 04/ 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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