Tendering Solutions Definition

In business, a tender is an offer to do work or supply goods at a fixed price. The key difference between a bid and a tender is that a bid is an offer to do work or provide goods at a lower price than the tendered price.

A request for tender (RFT) is a solicitation by an organization for suppliers to submit bids for the supply of goods or services. An RFT typically follows a selection process whereby preliminary proposals are invited, usually through advertisement, and then evaluated in order to shortlist potential suppliers.

The main types of tenders are:

-Open Tenders: These are published advertisements inviting any interested party to submit a proposal. Open tenders are generally used for large value contracts.

-Selective Tenders: These are invitations sent to pre-selected firms asking them to submit proposals. Selective tenders are generally used when the required good or service is specialized or when time is limited.

-Negotiated Tenders: In this type of tender, the buyer negotiates terms with one or more suppliers before inviting them to submit proposals. Negotiated tenders are often used when the buyer has an established relationship with the supplier or when the contract requires customization.