Refresher on the Top 5 Advantages of Tendering

In simple terms, tenders are basically invitations for bids that are floated by various organizations for large scale projects and procurements in diverse sectors. Along with private and public sector enterprises, NGO’s may also use the tendering process for the completion of some of their large scale projects. 

In case of tendering, all qualified firms or prospective bidders related to a certain industry are invited to submit their bids within a fixed deadline, so as to win the contract.  The tenders submitted by the bidders must quote a price for the contract, along with the materials to be used and the schedule to be followed for the completion of the project.  These tenders are essentially evaluated on the basis of the quality of the raw material to be used, it’s pricing, innovations incorporated in the project and overall value for money. Usually the contract is awarded to the company providing the best quality of the end product at the most reasonable pricing.

In some scenarios, startup firms are apprehensive about participating in a tendering process as it is arguably a longwinded system involving a lot of stringent protocols. However, it is due to these systems in place that the tendering process can be carried out with complete transparency and efficiency.   One can even refer to prominent online portals relating to tenders and acquire their consultancy services to gain assistance for the complete bidding cycle and eliminate any inconveniences coming in the due process of submitting a bid and tracking its progress.

Advantages of tendering

From construction, IT, electricity to railway, renewable energy and smart cards, tenders are issued for the completion of projects relating to diverse domains. This system is commonly used by business organizations from across the globe due to the host of advantages offered by it. Some of the advantages of tendering have been discussed below.

• In the tendering system, the suppliers or contractors are often encouraged to incorporate innovations into their final product and enhance the efficiency of the manufacturing processes in order to gain an edge over their competitors.  This system also provides an incentive to the companies to re-evaluate pricing structures and adopt up to date business practices to gain a high-value contract, all of which eventually benefits the buyers.
  
• The tendering system ensures best value for money for the buyers. In case of government tenders, this system essentially facilitates the saving of taxpayer’s money.  While in case of private enterprises, tendering safeguards the interests of the stakeholders.
  
• The process of tendering encourages an atmosphere of healthy competition in the marketplace and provides the buyer a wide pool of bids to choose from.
  
• Tendering offers newly developed firms a chance to step into the corporate market by winning a prestigious contract on the basis of their merit, even without having any prior contacts in the industry.  As the contracts are awarded on the basis of price and quality there are minimal chances of favoritism or nepotism in this process.  This factor in turn benefits both the parties, as it saves the resources of the buyer that may have been spent on subpar products while providing the bidders with a chance at fair competition.
  
• The tendering system aims at keeping contractors on their toes to prevent any fall in quality due to complacency as everything here is documented with specific details and contractors cannot deviate from the agreed terms as otherwise they may be penalized for breach of contract.

Businesses looking to participate in different kinds of tenders then be it in IT or construction or security, one can always refer to websites that offer complete details on these. Also, these websites have tenders well-categorized into different domains, for instance, those like the smart card tenders can be found under one specific category while tenders for various consultancy services can be found under one category, which makes looking for a suitable tender all the more convenient.
Author bio: This article has been written by a renowned tender consultant. He has guided many organizations towards success by assisting them to win prominent large-scale contracts. He has recently started his own blog in which he writes about the various facets of tendering.