Tuesday 9 April 2019

Types of tendering process - Tender Detail

Before we proceed, it is crucial to know what tenders are. Tenders are bids that invite individuals or organizations to complete large projects. This helps the issuer to find the best prospective client to accomplish said task. Usually, financial institutions and governments issue tenders for projects that have a fixed deadline. Online portals can aggregate a large number of tenders from different sources and can be filtered country wise e.g. Malawi tenders, Western Asia tenders, European tenders etc. or according to category.

What is RFT and RFP?

A request for tender or RFT is a formal outline of the requirements for the project that invites bids from suppliers for the products or services. This is done to make things fair and competitive.

A request for proposal or RFP gives the suppliers details about said organization as well as details about the project that it needs to undertake. These details can include timelines, company process, prior experience and other information.

Tendering and its types

Tendering can be described as the process where the prospective clients share their proposals or offers to show their interest in the project. This gives all the prospective clients and equal chance to claim the project granted they can meet the requirements of the issuer. The process for tendering is decided by the issuer and can be done in 4 ways:

Open Tendering

Open tendering is when the issuer gives out the details through public advertisement so as to reach a larger number of interested parties.

Select Tendering

As the name suggests, select tendering is when the tender is open to only a select group of prospects who may have previously worked with the organization.

Multi-stage Tendering

This is when a huge number of prospective applicants show their interest in the tender. The number of applicants is brought down in different stages of the process.

Invited Tendering

This is when the issuer selectively invites a specific number of applicants directly.

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