Tendering is essentially a bidding process whereby large companies, government departments and NGOs invite bids from potential contractors and suppliers. The bids are usually invited for large projects that typically involve a significant sum of money. Tenders are invited for the supply of goods or the completion of particular projects. Various industries need to source materials for a variety of projects, including construction, power generation, infrastructural expansion, etc. Bids are invited from all interested and qualified contractors, as this allows the buyer to select from a large pool of potential suppliers. Some of the primary advantages of the tendering process have been listed below.
- Competitive Market : The tendering process encourages potential contractors to compete with each other in terms of price and quality. This provides an impetus to all of them to improve the quality of their product while lowering their prices. As a result, operational inefficiencies and redundancies are weeded out and the contractors become more efficient over time.
- Fair Evaluation: Under the tendering system, all the submitted bids are evaluated in public on certain predetermined criteria, which usually include price and quality. Therefore, this process of evaluation leaves little room for nepotism or favoritism in the awarding of contract. The contract is simply awarded to the company quoting the lowest price for the highest quality product.
- Value for Money: Tendering enables the buyer to get the best possible value for their money. This is because it enables them to choose from a large pool of interested contractors, all of whom are competing to win the contract. As a result, the tendering process helps drive down prices while improving the quality of the end product through competition.
- Ease of Entry :Tendering makes it easy for new firms to enter an industry. This is because one does not require prior contacts and relationships in order to win a tender. By providing an excellent product for a relatively low price, even a new entrant can win a prestigious contract through tendering, thus getting a firm foothold in the industry.
You can check out the websites of some of the most reputed online tendering portals to know about the latest national and international tenders floated in any particular industry. You can get up-to-date information about the latest New Zealand and Australia tenders online or those from any other country, simply by visiting the website of a reputed and reliable tendering portal.
