Tenders

A tender is a formal procurement process in which an organization invites suppliers to submit competitive bids for goods, services, or works. Tenders are used by governments, municipalities, and many private sector buyers to obtain offers under transparent and competitive conditions, with the aim of obtaining the best value while complying with legal and policy requirements. The process typically begins with planning and a decision to purchase, followed by preparing tender documents that outline the scope, technical specifications, terms and conditions, contract form, and evaluation criteria. These documents may include a statement of work, drawings or performance standards, contract terms, payment schedule, and any security requirements such as a bid bond.

Tenders are usually announced through an invitation to tender or request for proposals. They can be open, inviting bids from any supplier, or selective or negotiated, inviting bids only from a prequalified shortlist. Submissions are due by a stated deadline and are opened in a manner that is designed to be transparent. An evaluation committee then assesses bids against predefined criteria such as price, technical merit, delivery capability, experience, and life-cycle costs, while ensuring compliance with specifications and regulatory requirements. The contract is awarded to the bidder that best meets the criteria, and a standstill or bid protest period may follow before signing. Suppliers may request a debrief if not successful.

Tendering may involve tender security to deter non-performance, and increasingly uses electronic tendering platforms. Cross-border or international tenders may be subject to procurement rules and international trade agreements to ensure non-discrimination and transparency.