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.
Moving and Maintenance of Developed Public Open Spaces, Sidewalks, Entrances, Underdeveloped Public Spaces and Road Reserves as per specifications 2017-11-28 11:00 FQ 116/18
Supply: Hardware items 2017-11-23 12:00 GG11800266
Supply: twine - material: tarred; colour: black 2017-11-23 12:00 GG11800263
Supply: plastic sheeting - material: polyethylene 2017-11-23 12:00 GG11800262
The Construction and Furnishing of Residential House for the African Union Commission (AUC), Addis Ababa, Bole Sub-City, Ethiopia 2017-12-20 15:00 AUC/AFMD/W/6
Experienced and competent architect for the design of container offices, Beltana 2017-12-01 11:00 FQ/SM117/18
Supply: Hardware items 2017-11-27 12:00 GG11800267
Supply: Hardware items 2017-11-27 12:00 GG11800268
Amanzimtoti Station – Construction of 200mm diameter (45m long) and 150mm diameter (120m long) steel reticulation mains: Ward 97 2017-12-08 12:00 WS.7050
Supply: whistle - colour: red; material: plastic 2017-11-22 12:00 GG11800219
Upgrading of LA Motte community hall. 2017-12-01 11:00 FQ/SM113/18
Supply and install Borehole system at Tygerhof Sports Ground 2017-11-28 14:00 SB11800466
Supply and delivery of ablution cleaning chemicals 2017-12-01 11:00 FQ/SM 110/18
Supply: Bomag Trailer with ring towage 2017-11-24 09:00 WJ11800205
Provision of Voice Services for the Contract Period Ending 30 June 2020 2017-12-18 12:00 B/SM 40/18
Monthly servicing of passenger lifts – Athlone Stadium 2017-11-27 12:00 SC11800062
Construction and installation of parkhomes for DSW 2017-12-08 12:00 WS.7051
Professional Shuttle Services at Kloof Nek Water Treatment Plant , Off table Mountain Road 2017-11-24 09:00 WJ11800206
Construction of Kayamandi George Blake Informal Trading Site 2017-12-18 12:00 B/SM 42/18
Supply: Chemicals 2017-11-24 16:00 GC11800343

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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