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.
Appointment of a Maximum of two (2) Service Providers for the Supply, Delivery and Off-Loading of Lime and Sludge Thickening Polyelectrolyte as and when required for a period of thirty six (36) months 2018-04-19 12:00 BS12/02/2018
Consultants for the Investigation, Design, Supervision and Monitoring of Rietkuil Reservoir and Bulk Supply Pipe Lines in Steve Tshwete Local Municipality 2018-04-18 12:00 BS04/02/2018
Repair of light vehicle and trucks. 2018-04-18 11:00 67/2017/2018
Supply and delivery of cleaning chemicals, equipment and accessories. 2018-04-18 11:00 65/2017/2018
Supply and delivery of traffic road marking paints. 2018-04-18 11:00 77/2017/2018
Panel of Maximum Three (03) Mechanical Contractors to Provide Services for Repair and Maintenance of Plant and Equipment at the Water and Wastewater Treatment Works as and when required for a period of thirty six (36) months. 2018-04-24 12:00 BS06/02/2018
Supply, repair, fitting of tyres, wheel alignment and balancing. 2018-04-18 11:00 73/2017/2018
Supply and delivery of sanitary bins, air fresheners and dispensers. 2018-04-18 11:00 74/2017/2018
Supply and delivery of stationery. 2018-04-18 11:00 76/2017/2018
Request for the Civil Engineering Professional Service Providers for the Design, Supervision and Monitoring of Construction of a Outfall Sewer Line From German Development to Eastdene 2018-04-05 12:00 BS10/03/2018
Recruitment Engagement and Registration of Disaster Management Volunteers 2017/2018. 2018-04-17 11:00 COMM-36/2017/2018
Panel of a maximum of three (3) civil contractors for supply, delivery, erection and commissioning of ventilated improved toilets within MP313 rural areas for a period of 36 months as and when required 2018-04-19 12:00 BS04/03/2018
Provision of Employee Wellness Service. 2018-04-17 11:00 COR-A29/2017/2018
Proposal to invite black empowered enterprises, especially women owned to supply building and construction material on an "as when required basis" 2018-04-19 11:00 RFP065/2018
Proposals for design and supply of tables and chairs for municipal council chambers. 2018-04-19 12:00 2018/01/24/CCF
The Supply and Delivery of Wet Rations, bread and rolls to the Department of Defence (Maluti area). 2018-07-05 11:00 SPSC- B- 080- 2017
The Supply and Delivery of Wet Rations, various Meat (fresh and frozen) to the Department of Defence (Maluti area). 2018-07-05 11:00 SPSC- B- 079- 2017
The appointment of a service provider for the supply and delivery of perfusion and cardiothoracic surgery requirements to Groote Schuur - Tygerberg- and Red Cross War Memorial Children’s Hospital for a period of three (3) years. 2018-04-20 11:00 TBH514/2017
The Supply and Delivery of Wet Rations, various Dairy Products to the Department of Defence (Maluti area). 2018-07-05 11:00 SPSC- B- 083- 2017
Appointment of a Panel of Maximum Seven (7) Consulting Engineers for the Provision Of Professional Services, Planning, Design And Implementation of Civil Engineering Projects for a period of 36 months as and when required 2018-04-24 12:00 BS06/03/2018


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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