What is a tender?
The tendering process is a system of inviting bids from various firms operating in a given industry or vertical, for a particular project or contract. Tenders are usually only floated for large projects involving a substantial amount of money. The Request for Tenders or Request for Proposals document published by the client will usually have the specifications of the project as well as a broad outline of the requirements and expectations of the organization, floating the tender.
The tendering process is a system of inviting bids from various firms operating in a given industry or vertical, for a particular project or contract. Tenders are usually only floated for large projects involving a substantial amount of money. The Request for Tenders or Request for Proposals document published by the client will usually have the specifications of the project as well as a broad outline of the requirements and expectations of the organization, floating the tender.
On the basis of this, interested and qualified firms operating in the industry must submit their bids within a deadline, quoting a price, the materials to be used as well as a schedule for completion. The bids will then be opened in public, with the contract being awarded without any further negotiations to the firm quoting the lowest price for the best quality end product. Some of the advantages of the tendering process have been listed below.
- The tendering process eliminates nepotism and favoritism in the awarding of contracts. The firm quoting the lowest price for the best product is awarded the contract, even if it has no prior contacts in the industry. As the bids are opened in public, this leaves little room for maneuvering and unfairness.
- Tendering allows the entry of new firms into the market, as one can win prestigious contracts by offering value for money, even without prior connections in the industry.
- This system enables the client organization to get the best value for their money. They pay the right amount of money for the highest quality product. In case of government tenders, this saves a substantial amount of taxpayer money. It also enhances the profitability of private firms.
So, if you want to know about all the latest national and international tenders being floated in your industry, you should definitely check out the website of Tender Detail, one of the most reputed online portals giving up-to-date information on government and private tenders floated in almost every industry.
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