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.
Training: Accredited service providers to facilitate an accredited forklift refresher course. (Valid from 01 July 2018 till 30 June 2019) 2018-09-27 10:00 DCG0011616
Training: Accredited service providers to facilitate an accredited medium / high voltage cable jointing course NQF level 4. (Valid from 01 July 2018 till 30 June 2019). 2018-09-27 10:00 DCG0011586
Staff transportation of Transnet employees at Operations General Freight Business (OPS GFB) depot and 2279 depot for a period of 6 months (01 November 2018 – 30 April 2019). 2018-10-04 10:00 ERAC-EMU-27808-MM-109
Financial accounting support for 2018/19 financial year (Re-advert). 2018-10-04 11:00 MLM/FIN/03/2018/19
Training: Accredited service providers to facilitate an accredited truck mounted crance refresher course NQF level 3. (Valid from 01 July 2018 till 30 June 2019) 2018-09-27 10:00 DCG0011583
Design and Construction of Matipana to Madikand gravel to tar road. 2018-10-04 11:00 mlm/tech/04/2018/19
Supply and Delivery of Microbiological Air Sampler 2018-10-04 11:00 iThemba LABS – RFQ/2018/19:71
Supply & delivery of excellence awards certificate frames. (Valid till 31 January 2019). 2018-09-27 10:00 WEB 27: 2018/2019
Request for Expression of Interest for Panel of Experts - Hydro-Mechanical Expert 2018-10-15 15:00 5506
Supply & delivery of power marker tape 3M 1500 EMS (6m spacing) 305m. (Valid til 30 June 2019) 2018-09-27 10:00 WEB 26: 2018/2019
Accounting and audit services. 2018-09-26 08:00 7G‐40428
Supply & delivery of coldmix all weather premix 30kg bags for Street section. (Valid til 30 June 2019) 2018-09-27 10:00 WEB 25: 2018/2019
Design manufacture supply installation testing commissioning and training of traction motor drop pit at the Transnet Engineering Krugersdorp Depot. 2018-10-09 10:00 TE18-GMX-08K-05251
Supply & delivery of hygiene toilet consumables. (Valid till 30 June 2019) 2018-09-27 10:00 WEB 15:2018/2019 (READVERTISE)
Integrated Business Planning. 2018-10-09 10:00 TE18-KLP-09B-06735
Supply & delivery of unifit VJ couplings with full threaded s/s 316 bolt & nut to fit size 108 – 128mm. Coating to be FBE 2018-09-27 10:00 DIC0026120
Supply & delivery of 425mm dia dedicated VJ coupling with s/s full threaded bolts & nuts 2018-09-27 10:00 DIC0026063
Service of a Consulting Engineer for the re-design and reconfiguration of the MV Equipment Protection Setting at the 11KV Network at OR Tambo Internationl Airport and update the "As-Build Drawings" 2018-10-10 10:00 Rec 60339
Supply & delivery of road traffic signs & consumables 2018-09-27 10:00 DIC0026016
Appointment of a contractor for the construction of 22km 9 strand boundary fence, 32km 6 strand internal fencing, construction of a cattle handling facility and siting, drilling and equipping of two boreholes in Zaaihoek Farm situated in Thembisile Hani Local Municipality at Nkangala District Municipality. 2018-10-10 11:00 CONMP0002 (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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