A Tender Bid Price or Financial Proposal is the detailed breakdown of costs and financial terms submitted by a bidder in response to a tender invitation. It outlines the price that the bidder is offering for the goods, services, or works requested in the tender documents. The proposal is typically part of the bid package and is evaluated alongside other components, such as technical and legal compliance, to determine the most suitable bidder for a project.

Here’s an outline of what a Tender Bid Price or Financial Proposal usually includes:

1. Bid Price

• Total Cost: The full price for the goods, services, or works offered.
• Unit Prices: If applicable, unit prices for individual items or services, which allow the buyer to understand the cost structure.
• Breakdown of Costs: A detailed breakdown of various components such as materials, labor, overheads, transportation, and any other relevant costs.

2. Taxes and Duties

• A clear indication of taxes and duties applicable, such as VAT, customs duties, and local taxes, which may either be included in the price or listed separately.

3. Payment Terms

• Clear terms for payment, such as advance payments, progress payments, and final payments.
• The proposed schedule or milestones for payments, linked to project deliverables or stages of work completion.

4. Currency

• The currency in which the bid is submitted (e.g., USD, EUR, local currency), as this is important for cross-border tenders.

5. Validity Period

• The duration for which the bid price remains valid, typically a few months, during which the buyer can decide whether to accept the bid.

6. Contingency and Risk Provisions

• Any proposed contingency amounts to cover unexpected changes in project scope, cost overruns, or risks.

7. Discounts and Special Offers

• Any early payment discounts, bulk purchase discounts, or other offers that might lower the final cost.

8. Cost Implications for Variations

• How additional work or changes to the scope will be priced, often detailed in unit rates or an agreed formula.

9. Other Fees and Charges

• Any other fees or charges that might apply, such as administrative fees, handling charges, delivery costs, or setup fees.

Example Format:

Description	Unit Price	Quantity	Total Price
Item 1	$100	10	$1,000
Item 2	$150	5	$750
Subtotal			$1,750
Taxes (e.g., VAT 10%)			$175
Total Bid Price			$1,925

10. Bid Submission Requirements

• Cover Letter: A formal letter submitting the proposal.
• Supporting Documents: Any additional financial documents or certifications required by the tender, such as proof of financial stability, tax clearance, or company certifications.

A well-structured Tender Bid Price/Financial Proposal demonstrates professionalism and clarity, helping buyers compare proposals more effectively and ensuring that all costs are transparent. It also outlines the bidder’s approach to managing the financial aspects of the contract.