Issue Date: 
Thursday, October 31, 2019

What to consider when I do my tender pricing

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

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 but 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 to price your tender correct.

Dealing with the Standard Bidding Document 3 (SBD 3.1, 3.2 and 3.3), which is the pricing document, can be hair-raising.  In these documents they talk about firm prices, non-firm prices, professional service providers, exchange rates and lots more confusing matters.  There are three SBD 3 documents namely the:

  • SBD 3.1 for firm prices
  • SBD 3.2 for non-firm prices
  • SBD 3.3 for professional service providers.

Many people ask the question - how must we work out our tender price?  There is no straightforward answer because every tender is different.  The fact is that 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 thus providing individual pricing techniques would be exceedingly difficult.

In general, there are a couple of points that must be considered when you calculate your price.  These include:

  • Be precise; when your product that you supply is R10-26 then state it in the tender document as R10-26 and not as R10-00 or even R11-00.  Depending on the size of the tender, these minor differences can amount to substantial amounts that can be lost or influence the success of your tender.
  • Ensure that you take all your costs into consideration; double check your pricing – something small left out can come back and bite you later.
  • Always remember to add Value Added Tax (VAT) at 15% to your price.  The tender committees want to see the purchase price.  They do not want to sit with a calculator and calculate what your price is supposed to be when VAT is included.  Most tenders state that the price must include VAT.
  • Try and quote firm prices, even if the tender duration is more than 12 months.  Tender committees are hesitant for non-firm prices.

If you apply these points above, your pricing will be less of a challenge.

Another piece of advice is to draw up your own pricing schedule and to refer back to your own pricing schedule on the SBD 3 document, because every supply is unique and to try and fit your pricing into the SBD 3 forms is usually not possible.  You will find that almost all bidders do this.  Your tender would not be judged as non-responsive by using a separate pricing schedule.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Request for Proposals (RFP) The provision of Managed Bandwidth Connectivity Link for University of Venda for the CSIR based in Pretoria 2020-02-07 16:30 3354/07/02/2020
Appointment of duly authorised service provider for training of 118 child and youth care workers in Dr Ruth Segomotsi Mompati District 2020-02-20 12:00 NW/DSD/13/2019
Provision of security services at Apel Regional Office, Moses Mabotha Civic Hall, Strydkraal Community Hall, Municipal House In Burgersfort, Burgerfort Flea Market, Burgersfort Landfill Site and Pelangwe Community Hall (Cluster 5) 2020-02-17 12:00 FTM/T11/19/20
Supply, delivery, registration and licencing of sedans for traffic department 2020-02-07 12:00 FTM/T10/19/20
Request for two (2) 60 Seater Buses for the University of Limpopo 2020-02-19 10:00 UL/2020/01/03
Request for Ultra High Performance Liquid Chromatography - Mass Specifications for the University of Limpopo 2020-02-19 10:00 UL/2020/01/01
HOPETOWN: MAGISTRATE OFFICE: Installation and replacement of air conditioners 2020-01-31 11:00 CW02/ 20
NOUPOORT: MAGISTRATE OFFICE: Installation and replacement of air conditioners 2020-01-31 11:00 CW05/ 20
BRITSTOWN: MAGISTRATE OFFICE: Installation and replacement of air conditioners 2020-01-31 11:00 CW01/ 20
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of consulting services for the reseal between St Albans I/C and Linton Grange I/C on National Route 2 Section 11 km 7.19 to km 23.26. 2020-02-14 14:00 SANRAL N.002- 110- 2019/ 1F
DE AAR: MAGISTRATE OFFICE: Installation and replacement of air conditioners Bidders should have a: CIDB Grading: 1ME OR HIGHER OR 1 MEPE OR HIGHER 2020-01-31 11:00 CW04/ 20
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the improvement on National Route N2 Sections 14 and 15 from Green River (km 60) to Buffalo River bridge (km 3.2). 2020-02-14 14:00 SANRAL N.002- 145- 2012/ 1
Department of Basic Education: Midlands Region: Estcourt: Emadolobheni Primary School: Water and sanitation: upgrades to sanitation systems contract period: nine (09) calendar months cidb grading: 4GB or higher (open tender) joint venture: 3x3GB 2020-02-18 11:00 ZNTL 03026 W
Invitation for contractors with C2DB holding 2GB to 7GB, 2CE to 7CE and 2EP to 7EP to register on the Department of Human Settlements Framework [NEC] for a period of three years. 2020-02-14 11:00 HSC 03/ 2019/ 2020
SANSA invites bidders to bid for Comprehensive Travel Management Services for SANSA for a period of three (3) years. 2020-02-18 11:00 SS/ 018/ 01/ 2020
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the Consulting Engineering Services for the Reseal between Jeffreys Bay I/C and Gamtoos River on National Route 2 Section 10 km 39.2 to km 54.0. 2020-02-14 14:00 SANRAL N.002- 100- 2019/ 2F
Appointment of a service provider to maintain, enhance and hosting of website for Robben Island Museum (RIM) for a period of thirty-six (36) months 2020-02-14 11:00 RIM ICT 03- 2019/ 2020
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the improvement on National Route N2 Sections 14 and 15 from Green River (km 60) to Buffalo River bridge (km 3.2). 2020-02-14 14:00 SANRAL N.002- 145- 2012/ 1
The Road Accident Fund (RAF) requires rental of office space for the RAF Cape Town Branch for a period of nine (9) years and eleven (11) months. 2020-02-21 11:00 RAF/ 2019/ 00028
Appointment of a service provider to conduct Environmental impact assessment and Township establishment for Gauteng Industrial Development Zone (GIDZ) Springs SEZ 2020-02-10 11:00 GIDZ/ 07/ 2019- 20/ SPRINGSSEZ

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