Tender Pricing Practice: Costs, Surplus and Cash Gaps

Fund The People / Education & Training Centre
Fund The People · Education & Training Centre

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Fund The People · Education & Training Centre

Price the work and plan your cash flow

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What you will learn

Separate delivery costs, a trading surplus and cash timing.

1

Cost the complete scope

Use this practice method: list supplier costs, transport, labour, installation and other delivery inputs. Check quantities, quote validity and exclusions. Use a consistent tax basis and follow the buyer’s pricing schedule for a real bid.

2

Work a simple example

Illustration only: an order price of R100,000 less R60,000 of goods and R10,000 of other delivery costs leaves R30,000 before overheads, finance costs and taxes. This is a learning calculation, not a profit guarantee.

3

Map when money moves

Separate the expected sale from the cash available today. Write down deposits, supplier due dates and the buyer’s agreed payment terms. Use the practice calculator here to explore a supplier-cost gap before discussing actual terms with Fund The People.

Put it into practice

Run the example in the costing tool. Increase transport by R5,000 and observe the change. List any costs the simple calculation does not include.

Optional. Keep identity numbers, bank details and passwords out of this note.

Remember: A profitable-looking order can still have a cash-timing gap.

Put it into practice

Connect your learning to funding guidance

Service summaries and linked guidance are in English. Fund The People assesses eligible government and municipal tender-linked transactions across South Africa. Private corporate orders, corporate invoices and general startup capital are outside its published funding model.

For a dated award-to-payment schedule, read the tender cash flow calendar guide.

Translations support learning. Follow the original official tender documents. Linked services may use a different language.

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