Tender Bids Definition
A tender bid is an offer to perform a specific task or service at a specified price and under specified conditions. A business may solicit tender bids for a variety of reasons, such as to get the best possible price for a product or service or to ensure that the work is performed according to specific standards.
When issuing a request for tender (RFT), businesses will generally specify what they are looking for in terms of price, quality, and delivery time. Bidders will then submit their offers, and the business will choose the one that best meets their needs. In some cases, businesses may negotiate with multiple bidders before choosing one, or they may issue a second RFT if none of the initial bids meet their requirements.
The term ‘tender bid’ can also refer to the process of submitting an offer in response to an RFT.
