Tender Pricing Calculator
Turn direct cost into a tender price with P&G, overhead, and profit.
Build up a tender price from your direct cost by adding preliminaries & general (P&G), overhead, profit, and contingency — so you know the mark-up baked into your bid.
- Tender price (excl. VAT)R 1 392 16039.2% over direct cost
- P&G12% of directR 120 000
- Overhead + contingencyR 145 600
- Profit10%R 126 560
- Add 15% VATVAT-inclusive priceR 1 600 984
A simplified build-up: P&G is added to direct cost, then overhead and contingency on that base, then profit on the subtotal. Real tenders price P&G as measured items — treat this as a sense-check.
Questions
- What is P&G in a tender?
- Preliminaries & General cover site-wide costs not tied to a single trade — site establishment, supervision, plant, insurances, and temporary works. It typically runs 8–15% of direct cost.
- How much profit should I add?
- Margins in SA construction commonly sit between 5% and 15% depending on risk, competition, and project size. Thin margins win work but leave no room for variations going against you.
- Should contingency be in my tender?
- A contingency protects against measured-but-uncertain risk. On lump-sum tenders it is often carried internally rather than shown; on cost-plus or provisional work it may be an explicit line.
Compiled by Setout. Figures are planning-stage estimates, not quotes.