What is a Tender?
In the world of business, a tender is a formal written offer to carry out work, supply goods, or buy land, shares, or another asset at a stated fixed price. It is a crucial part of the procurement process where organizations invite suppliers to bid on projects or products.
Types of Tenders
- Open Tender
- Selective Tender
- Single-stage Tender
- Two-stage Tender
Benefits of Tenders
- Competition
- Transparency
- Value for Money
Case Study: Government Tenders
In 2019, the UK government awarded £93 billion worth of contracts through tenders, demonstrating the significance of this process in public procurement.
Tendering Process
- Preparation
- Invitation to Tender
- Submission
- Evaluation
- Award
Challenges in Tendering
- Complexity
- Competition
- Costs
Conclusion
Tenders play a vital role in business and public procurement, ensuring fair competition and value for money. Understanding the tender definition and process is essential for organizations looking to secure contracts and grow their business.
