What is a tender?
At its core, a tender is an official invitation from a buyer to potential suppliers or contractors to submit bids or proposals for a specific project or contract. It serves as a structured process through which organisations seek competitive offers to fulfil their requirements. Tenders can assume various forms, including Invitation to Tender (ITT),
Expression of Interest (EOI) Request for Proposal (RFP), or Request for Quotation (RFQ), each outlining project details and bid submission instructions.
What is the purpose of a tender?
The primary purpose of a tender is to enable organisations to select the most suitable supplier or contractor for a project or contract through a fair and transparent competitive bidding process. By soliciting multiple bids or proposals, buyers promote competition, ensure transparency, mitigate risks, and achieve value for money. Tenders facilitate an objective assessment of suppliers, enabling buyers to make informed decisions that align with their objectives.
Consider a city council seeking to construct a new playground in a local park. They issue a tender, inviting construction companies to submit proposals outlining their ideas and prices for the project. By soliciting bids from numerous companies, the council can evaluate offers and select the one offering the best value and quality for the community. Tenders ensure fairness and facilitate securing the optimal deal.
What is a bid/proposal?
Bids or proposals are typically prepared according to the requirements outlined in the tender document and are submitted within the specified deadline. The bidder's goal is to persuade the buyer that their offer is the most suitable and competitive among the submissions.
Tenders might seem complicated, but they're really just a way for businesses to find the best company for the job. By understanding what tenders are all about and mastering the art of tendering, you can put your best foot forward and increase your chances of winning contracts. If you need help with tendering, we're here to guide you through the process and help you write, design and curate a winning proposal.
Get in touch to discuss how we can improve your tender documents today.
Email nicky@tenderwins.co.nz
or call 021 760 498
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