Pricing Your Tender Correctly

Why Pricing Matters in Tendering

Pricing plays a critical role in tender success. Even a strong proposal can fail if the price is unrealistic or poorly calculated. Correct pricing helps you remain competitive while ensuring the project can be delivered sustainably.

Understand the Tender Requirements

Before pricing, clearly review the tender document, including:

• Scope of work
• Technical specifications
• Delivery timelines
• Contract conditions

Misunderstanding these requirements often leads to costly pricing errors.

Identify All Costs Clearly

A good tender price must cover all costs, including:

Direct costs

• Materials
• Labour
• Equipment
• Transport

Indirect costs

• Overheads
• Taxes
• Insurance
• Administrative expenses

Always include a reasonable contingency for unforeseen risks.

Follow the Pricing Format

Tender documents usually specify how pricing should be presented. Common mistakes include:

• Arithmetic errors
• Missing prices
• Inconsistent totals
• Ignoring the required format

Accurate and well-structured pricing reflects professionalism.

Balance Price and Value

The lowest price does not always win. Evaluators look for:

• Value for money
• Ability to deliver at the quoted price
• Quality and sustainability

Unrealistically low prices may raise performance concerns.

Key Takeaway

Correct tender pricing is about accuracy, balance, and clarity. A well-priced tender improves your chances of success and ensures smooth project delivery after award.