Government Tenders - 10 Mistakes To Avoid | How To Tender For Government Services in South Africa

[@michaeel.j]

how do tenders determine their prices

[@ConsultKano]

Hi Michaeel. Prices are mainly based on the costs of supplying the service/ product. So, a good starting point for pricing tenders, will be to determine your own costs of supplying the service/ product and then adding your profit margin (e.g. percentage mark-up). You can also compare your prices with what the market offers. One more thing, some government departments and some industries/ professional bodies (such as engineering and lawyers) also lists hourly rates to be used when performing such services. Here are links to some: (www.dpsa.gov.za/policy-updates/nlrrm/consultants_hourly_fee_rates/) (www.ecsa.co.za/regulation/SitePages/Guideline%20Fees.aspx) www.hpcsa.co.za/Uploads/Finance/Tenders%202020/HPCSA%20TARIFF%20STRUCTURE-%20FEES%202020.pdf Please make sure you use the latest rates.

[@michaeel.j]

is it possible to found a business with the sole purpose of getting tenders from the government?

[@ConsultKano]

When you start a business, it is advisable to have the intention to do "business" - irrespective of winning a tender or not. Read the full article on "STARTING A “TENDERING BUSINESS” : www.sa-tenders.co.za/content/hints-tips-and-news/starting-%E2%80%9Ctendering-business%E2%80%9D

[@michaeel.j]

can only business apply for tenders?

[@ConsultKano]

It all depends on the tender requirements being issued. There are some tenders (although rare) that will ask for individuals as consultants or contractors. Just make sure you read and understand the tender requirements before submitting.