A tender price isn't simply a number typed into a quotation. If a supplier misunderstands whether its quoted amount should include applicable taxes, the bid can become commercially unrealistic or administratively problematic — procurement rewards businesses that combine pricing discipline with compliance discipline.
Source: National Treasury — Preferential Procurement Regulations
Frequently Asked Questions
Does the tender price calculation include taxes?
The implementation guide states that the applicable price formulae use prices with all applicable taxes included.
Why is the lowest acceptable price important?
It forms part of the calculation used to determine price points against other tenders.
Can a supplier change the tender pricing rules itself?
No — suppliers should follow the pricing requirements specified in the tender documents exactly.