Advantages & characteristics of tendering

A tender is a type of transaction model which is used by government bodies, large organizations, and companies to find contractors for procurements or projects. In fact, it is a bidding process which is used by public as well as private organizations. Usually the organizations use Requests for Tender which is commonly referred to as RTF to invite bids for projects, large procurements or contracts from all proficient suppliers or firms in a given industry. Usually, most of these projects include a major sum of money.

Whether you are applying for global tenders or domestic tenders, it is vital to match the specifications required by the buyer. Important characteristics of tenders are listed below:

• The bid must include all the essential and applicable details about the materials to be used and the projected cost of the project, etc.
  
• All prospective contractors and suppliers should submit their bids within the time frame as determined by the client.
  
• The tendering process begins with an invitation to tender or a RTF.
  
• All bids are evaluated by the client after the cut-off date has passed, on the basis of a set of given criteria for instance price and quality.
  
• The process concludes with the public evaluation procedure, after which one of the firms that has submitted a bid becomes the winner.
  
• Before they are floated by the client, tenders are widely publicized in a range of media, to allow all concerned suppliers a chance to bid for the project.

Advantages of Tendering

• Tenders offer the maximum value for money from the point of view of the client. This is because the client has the liberty to select from a wide range of potential suppliers.
  
• Tenders are assessed on detailed set criteria, such as price, quality, and value for money. This means that the firm providing the top quality product at the lowest price point has the chance to win the contract.
  
• The tendering method makes it hassle-free for new firms to enter the market. This is because the contracts under this method are given on the basis of objective, predetermined criteria.

To know about the latest tenders you can browse through the website of a reputed online tendering portal as well as business magazines.