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


Tenders in South Africa are based on three principles:

  1. Functionality
  2. Price
  3. B-BBEE


Tenders and Pricing

By Werner van Rooyen


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


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.


Title Closing Date Tender No.
Business Turnaround Specialists Panel. 2018-04-13 14:00 RFP 12/2017
Appointment of a Debt Sponsor and a Panel of dealers for the IDC domestic Medium Term Note (DMTN) Programme. 2018-04-09 12:00 T12/03/18
Enterprise Development Tender for Start-up enterprises in the Plumbing, Refrigeration and Airconditioning services 2018-04-12 17:00 UM P&A – Startup Opp 2018
The appointment of a service provider to provide training for all CSOS Employees on conciliation (mediation) and adjudication (arbitration). 2018-04-10 11:00 CSOS009-2018
The provision of concrete structure repairs at the fabric filter plant for a period of 6 months at Camden Power Station. 2018-04-11 10:00 MPGXC005093
Appointment of a suitably qualified service provider to supply, install, and monitor power quality meters for a period of thirty six (36) months and train municipal personnel from date of appointment. 2018-04-11 10:00 11/2018/32 N32/2018
(Re-Advertisement) Appointment of a contractor for supply, delivery, installation, testing and commissioning of 11KV switchgear at NE 3 substation, Vanderbijlpark. 2018-04-11 10:00 11/2018/34 N34/2018
(Re-Advertisement) Appointment of a contractor for supply, delivery, installation, commissioning of 88KV switch gear at NE 3 substation, Vanderbijlpark. 2018-04-11 10:00 11/2018/35 N35/2018
(Re-Advertisment) Repair of protection in various substations for a period of thirty six (36) months on as and when required basis 2018-04-11 10:00 11/2018/36 N36/2018
Eskom Chartered Accountant (CA) Trainee Assessment System. 2018-04-11 10:00 CORP4372
As and When mechanical and electrical maintenance and repairs - COP 29 inspections of Rolling Stock Equipment. 2018-04-12 12:00 61/2017/CTN/RS
Provision of Major Maintenance and Reliability Substation Primary Plant in North West Operating Unit for 36 Months on an "as and when" required. 2018-04-12 14:00 PTATEN2398
Appointment of a services provider to render comprehensive hygiene services for a period of three (3) years. 2018-04-13 11:00 HSRC/04/2017/18
Provision of ablution facilities for a period of three years. 2018-04-17 12:00 CE:119
Invitation to submit proposals for establishment of a panel of professional service providers (PSP) to render professional multi-disciplinary services covering: Built-environment infrastructure projects for a period of three(3) years as and when required. 2018-05-04 12:00 T/2018/03/13/TECH/CONS
The provision of non-industrial cleaning, offices, kitchen and ablution areas at Duvha Power Station for the period of 3 (three) years. 2018-04-16 10:00 MPGXC005089
Supply and delivery of Protective Clothing for employees for 3 years. 2018-04-17 12:00 03/2018
Appointment of Service Provider for the Supply and installation of security equipment, X-ray Machines and Walk through Metal Detectors including a 5-year maintenance contract. 2018-04-19 12:00 SENT/043/2017-18
Manufacture and supply Antimony Lead Alloy Billets. 2018-04-20 12:00 355876
Short - term insurance from 1 July 2018 to 30 June 2019. 2018-04-20 12:00 WDM 02/2018


Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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