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 

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.

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Title Closing Date Tender No.
Data Storage Upgrade - Supply, Delivery, Installation and Configuration 2018-12-07 11:00 RFT- 2- 2018/ 19
The RAF hereby invites service provider for rental of document scanners for a period of five (5) years. 2018-12-14 11:00 RAF 2018/ 00052
Construction of a New Replacement Umyezo Wama Apile Primary School, Overberg. 2019-01-17 11:00 S103/ 18
Appointment of a Contractor for the Refurbishment and Construction of New Infrastructure In Magudu Combined School Situated In Magudu Village In Nkomazi Local Municipality At Ehlanzeni District Municipality, Mpumalanga. 2018-12-06 11:00 CONMP 0009 (2018/ 2019)
Pretoria: Service, Repairs and Maintenance of Air Conditioners at Pretoria Central Magistrate Court for period of 24 months 2019-01-08 11:00 PT18/ 041
Pretoria: Service, Repairs and Maintenance of Air Conditioners at SAAF HQ Loftus building for period of 24 months 2019-01-08 11:00 PT18/ 042
Supply and delivery of four (4) clover high-purity germanium detectors and two (2) BGO (Bismuth Germanate) suppression shields for the Department of Subatomic Physics at iThemba Labs, Faure, Cape Town over a two year period 2018-12-10 11:00 NRF/ iThemba LABS/ 2018 - 19: 07
Pretoria: Service, Repairs and Maintenance of Air Conditioners at Department of Labour: Laboria House for period of 24 months 2019-01-15 11:00 PT18/ 048
Repairs and Renovations to entire building at Acacia Court, Empangeni, Department of Human Settlement. 2018-12-14 11:00 ZNTU 03427 W3
Supply smartcards for the Biometrics Access Control System (BACS) to KZN Provincial Treasury. 2018-12-07 11:00 RFB 1842/ 2018
Construction of a borehole and erecting of a new galvanised elevated storage facility at Ngudwini Clinic, Eshowe 2018-12-07 11:00 ZNTU 03409 W
The appointment of a service provider to develop, supply, deliver, install and maintain electronic security systems at 184 Jeff Masemola Street and South Block (National Office) of The Department of Rural Development and Land Reform. 2018-12-06 11:00 5/ 2/ 2/ 1- RDLR 0049(2018/ 2019)
Construction of a borehole facility at Ocilwane Clinic, Empangeni 2018-12-14 11:00 ZNTU 03410 W
Implementation evaluation of corporate governance in South Africa’s State Owned Enterprises (SOE’s) 2018-12-07 12:00 DPME 11/ 2018- 2019
Repairs to ceiling boards, gutters, floors, fascia boards, wall, tiles and paintwork at DOT cost centre office, Eshowe 2018-12-14 11:00 ZNTU 03429 W3
Supply and delivery of ten (10) laptops equivalent to lenovo thinkpad T580 2018-12-14 11:00 ZNQ 18/ 19/ 0017/ NCR
Dundee Regional Laundry: Refurbishment, Service Equipment and Procurement of New Equipment. 2018-12-14 11:00 WIMS 068237- ZNTL 03894W
Supply and delivery of twenty (20) of all-in-one desktops equivalent to Lenovo think centre M910z. Contract period: 01 month. 2018-12-14 11:00 ZNQ 18/ 19/ 0016/ NCR
Appointment of a Mult-Disciplinary Entity to Provide Professional Services to Undertake the Assessment and Upgrading of the Central Air Conditioning System at St. Aidans Hospital 2018-12-14 11:00 WIMS 063141
The Department of Local Government (DLG) requires a Service Provider to provide the Municipal Minimum Competency (MMC) Training programme to identified officials. 2018-12-14 11:00 LG 01/ 2018/ 2019

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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