Reasons Why Tenders Are Commonly Used For Government Projects

Due to the effectiveness and transparency of the tendering process, this system is quiet commonly used for the completion of Governmental projects. This process allows government agencies, departments and offices to orderly evaluate a pool of prospective suppliers and identify the most suitable candidate from among them.  The system of tendering also eliminates the suppliers who do not have the capability to meet the desired standards of the governmental organizations.  A number of construction, IT and telecom, BHEL and Railways tenders are being issued every passing day due to the incredible advantages offered by this system. 

Here’s more on the specific reasons why tenders are commonly used for government projects and contracts:

• Agreement to the regulatory requirements: Government bodies are required to work under certain legislative obligations, and therefore it is imperative that their projects be subjected to certain amount of monitoring in order to ensure that they are being developed under the prescribed framework. By sanctioning a project through the process of tendering, government firms are able to ensure that their chosen suppliers follow all the relevant guidelines.
  
• Best value for money:  In case of tendering, multiple suppliers compete with each other for the same project. Thus, in order to achieve an edge over their competitors, these suppliers are ideally inclined to provide the best quality of the product or the services at the most cost effective pricing. Government organizations can additionally acquire quite profitable deals from their suppliers, in the form of price reductions, better services and other value adds.Therefore, through the tendering system it can be ensured that the taxpayer’s money is beingoptimally utilized.
  
• Healthy competition: The tendering system fosters an environment of healthy competition in the market, subsequently encouraging the suppliers to   further innovate and develop their products. This invariably results in an increase in the general productivity of all the participating suppliers. 

Information about various governmental tenders, including electrical, construction and BHEL tenders can be found on renowned online portals providing accurate and up-to-date details about various tenders floating in distinguished industries.  Interested suppliers can also keep a track of these tenders through such websites.