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.
Website Design and Hosting for a period of Three years. 2017-11-30 11:00 DTA 668152
Supply_ Install_ Commission and Maintain the Fleet Management System for the City of Umhlathuze 2017-12-04 12:00 8/2/1/UMH209-17/18
Supply and delivery of Pumps and Pump Spares to Eskom Power Stations as and wehn required for a 3 Years Period 2017-12-05 10:00 MPGX004923
Manufacture and Supply of 2 x NEC/NER/AUX TRF 44KV 360A 31 for Critical Department in Gauteng Operating Unit 2017-12-07 10:00 DX752
Cremation and Burial Pauper/ Destitute Persons within the NMBM area 2017-12-07 11:00 SCM/18-35/S
Cash Deposit Security Services 2017-12-07 11:00 SCM/18-91/S
Conditional Assessment of Sewerage Infrastructure 2017-12-07 11:00 SCM/18-89/C
Supply, delivery, installation and commissioning of equipment for the refurbishment of Kentron 132/11Kv substation: three year period 2017-12-08 10:00 USD EE 13-2017/18
Appointment of a service provider to render Travel Management Services to the Unemployment Insurance Fund 2017-12-15 11:00 UIF4B/2017
Contract for the Design and Contruction of Various Pipelines 2017-12-15 12:00 RW01349/17
The manufacture, supply and delivery of Integrated System Display (ISD) enclosures for a period of two years on an “as and when required basis. 2017-12-12 10:00 HOAC-HO-24515.
Professional Services for the Construction of Material Recovery Facility at Worcester 2017-11-24 11:00 BV 652
Construction of Langerug 20 Ml Reservoir 2017-12-01 11:00 BV 593
Supply and delivery of lug and Ferrules 2017-12-06 11:00 276248
Supply and delivery of Various Gears to Transnet Engineering for a period of four (4) years with an option to extend for a further one (1) year 2017-11-28 10:00 TE17-KLP-09X-7665
Call for service provider to provide business support services on the business consultancy services voucher programme to the NYDA for a period of three (3) years for all provinces 2018-01-18 11:00 NYDA2017/03/ED
Appointment of professional Consultancy Services to undertake baselinestudies, partner in the development of an urban design plan, land use enabalement and rezoning of the Swarklip Site. 2018-01-22 12:00 CIA 52 - 2016
Supply and Delivery of Junior and Senior Engineered Steel Playing Equipment for Polokwane Municipality Municipal Wide as and When Required for a Period of Three (3) Years 2017-11-30 10:00 PM102/2017
Supply and Delivery of Paving Bricks and Kerbs for Polokwane Municipality-Municipal Wide for a Period of Three (3) Years 2017-11-30 10:00 PM103/2017
Appointment of Two (2) Service Providers for the Supply and Delivery of Topsoil, Sand, Concrete and Gabion Stones for Polokwane Municipality – Municipal Wide for a Period of Three (3) Years 2017-11-30 10:00 PM104/2017

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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