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YOUR PATH TO A FIRST BID / 09

Price a bid that works for the contract and your business

A traceable route from quantities and time to a complete price sheet, without unrealistic low-price promises.

7 minutesFree guide
Price a bid that works for the contract and your business1. Cost the service actually required · 2. Include more than direct labour · 3. Review the arithmetic independentlyA QUESTION WORTH EXPLORINGPrice a bid that works for thecontract and your business1. Cost the serviceactually required2. Include more thandirect labour3. Review the arithmeticindependentlyEditorial study / Price a bid that works for the contract and your business
Context illustration

After this guide, you can …

  • Record costs and assumptions clearly
  • Reconcile price sheet and scope
  • Check commercial viability
01

1. Cost the service actually required

Read quantities, frequencies, duration, locations, response times and ancillary tasks. Distinguish guaranteed quantities from estimates or possible call-offs. Check whether the buyer requests unit rates, lump sums, hourly rates, options or lifecycle costs. Complete the prescribed fields. Your own lump-sum total does not replace a required itemised schedule. Clarify discrepancies rather than silently inventing quantities.

02

2. Include more than direct labour

Include personnel and applicable pay and employment conditions, materials, equipment, travel, cover, management, insurance and other contract costs. Add a reasoned allowance for risk and a margin appropriate to your business. Review payment terms and funding needed before payment. The price sheet and your circumstances determine tax treatment and required entries. Allowances belong in a compliant pricing model, not in hidden changes to contract terms.

03

3. Review the arithmetic independently

Check units, quantities, decimal separators, rounding, subtotals, options and totals. Reopen exported files. Have another person reconcile the technical response with the costing: daily checks promised in the narrative need resources in the model. Keep the calculation trail internally. Within the VgV’s scope, apparently abnormally low prices can require explanation. Depending on an unsustainable price is not a reliable strategy.

04

4. Understand how price enters evaluation

The lowest total price does not automatically win every procedure. Published award criteria and the stated evaluation method govern. Some procedures assess price or cost alone; others combine them with quality. Do not invent a pricing formula or assume a bonus for an attractive presentation. Calculation tools are aids; approval and responsibility remain with your business.

Keep this in mind:

A competitive price must fit the evaluated service and support reliable delivery.

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Editorially checked on 27 October 2026. The current original documents of your procedure govern.

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