Tender
Definition:
A tender is a formal expression of interest or offer to provide goods, services, or works at a specified price. It is a document that describes the requirements for the item or service and invites potential bidders to submit their proposals.
Key Elements of a Tender:
- Tender Document: A document containing all the details about the requirements, specifications, and conditions of the tender.
- Description: A clear and concise description of the item or service being tendered for.
- Price: The specified price or cost for the item or service.
- Submission Deadline: A specific date and time by which bids must be submitted.
- Evaluation Criteria: The factors that will be used to evaluate and select the winning bidder.
- Contractual Terms: The terms of the contract that will be awarded to the winning bidder.
Types of Tenders:
- Open Tender: A public invitation to tender, where anyone can submit a bid.
- Closed Tender: A private invitation to tender, where only invited bidders can submit bids.
- Single-Source Tender: A tender where there is only one potential bidder.
- Multiple-Source Tender: A tender where there is more than one potential bidder.
Process:
- Issuance of Tender Document: The issuing organization releases the tender document, which includes all the necessary details and requirements.
- Bid Submission: Potential bidders submit their proposals, which include their prices, technical qualifications, and other required documents.
- Evaluation and Selection: The organization evaluates the bids based on the specified criteria and selects the winning bidder.
- Contract Award: The winning bidder is awarded the contract and begins work on the item or service.
Examples:
- A construction company tenders for a new building project.
- A software company tenders for a contract to develop an e-commerce website.
- A government agency tenders for a new fleet of cars.
FAQs
What is a tender?
A tender is an official offer or bid to provide goods, services, or complete a project at a specified price.
What does it mean to tender a job?
Tendering a job means submitting a proposal to carry out work for a company or government, usually through a bidding process.
Why is the process called tendering?
It’s called tendering because it involves inviting bids and proposals for contracts, allowing suppliers to “tender” their offers.
What is a tender type?
A tender type refers to categories of bids, such as open, selective, or negotiated tenders, each with specific rules for submission.
What are the four main types of tenders?
The four main types are open tender, selective tender, negotiated tender, and single-source tender.
