Tendering is a popularly used process of inviting bids from the various firms operating in a certain industry, for any particular contract or project. Tenders are generally floated for large scale projects that involve a substantial sum of investment. The tendering system is used by both private and public sector organizations of the world. Most Govt tenders are announced publically for the purpose of informing all the potential contractors and suppliers belonging to the given industry about the need of the relevant product or service by the public sector organization.
The tendering system ideally enables organizations to identify the contractor who is the most qualified and skilled to complete the project in hand, while eliminating the ones unfit for the contract. This system also plays a major role in encouraging contactors to add more innovations and advanced features to their products, while optimizing all the resources available to them.
Owing to the advantageous characteristics of the tendering system, it is commonly used for the completion of governmental projects. Here are a few of those characteristics:
The tendering system ideally enables organizations to identify the contractor who is the most qualified and skilled to complete the project in hand, while eliminating the ones unfit for the contract. This system also plays a major role in encouraging contactors to add more innovations and advanced features to their products, while optimizing all the resources available to them.
Owing to the advantageous characteristics of the tendering system, it is commonly used for the completion of governmental projects. Here are a few of those characteristics:
- Value for money: In the tendering process, multiple suppliers belonging to the given industry compete for the same contract. In order to get an edge over their competitors, these suppliers usually offer superior quality of products at the most cost-effective pricing. They, at times, even provide incentives like additional innovations, price reductions and value adds to the buyers, in order to win the contract. Hence, with this system, governmental organizations are able to complete their projects for the minimum price. This factor subsequently provides assurance that the money of the taxpayers has been utilized optimally.
- Audit trail: A systematic audit trail is maintained for each and every step involved in the tendering system, as well as for the projects completed with its help. Therefore, in case of tendering, substantial evidence of how the taxpayers’ money has been spent is maintained, and any type of discrepancy in the financing of the projects completed with the help of tenders can be identified immediately.
- Adherence to regulations: All public sector enterprises are required to operate under strict legislative regulations, and projects issued under them are also undertaken while keeping in mind all these policies. The tendering system provides assurance that all the important regulations of the governmental organization are met in the completion of their project.
Detailed information about the latest Govt tenders can be easily found on popular online tendering websites.
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