Difference Between Quotation and Tender
Basis |
Quotation |
Tender |
---|---|---|
Initiation |
A quotation is provided by the seller in response to a buyer’s inquiry about the price of specific goods or services. |
A tender is initiated by the buyer, who invites bids or proposals from potential sellers or contractors for a project or contract. |
Scope |
A quotation provides pricing details for the specific goods or services requested by the buyer. |
A tender is a broader invitation for sellers or contractors to submit bids or proposals for a larger project or contract. |
Legality |
Quotations are typically non-binding unless stated otherwise in the document. |
Tenders can have legal implications as they serve as the basis for contract negotiations and agreements. |
Formality |
Quotations are relatively informal documents provided by the seller to the buyer. |
Tenders follow a structured process with formal documentation, including detailed project specifications and evaluation criteria. |
Timeframe |
Quotations typically have shorter response times, as they are quicker processes. |
Tenders involve a longer process, with a specified bidding period during which sellers submit their proposals. |
Competitive Nature |
Quotations may or may not involve competition among sellers, depending on the buyer’s preferences. |
Tenders are inherently competitive, as multiple sellers or contractors submit bids, and the buyer selects the best offer. |
Difference between Quotation and Tender
In business, when you want to buy something or hire someone to do a job, you usually ask for a price. That’s where quotations and tenders come in. A quotation is like asking a store how much something costs, while a tender is more like asking different companies to give you their best price for a big project. It’s important to know the difference between these two because it helps you know how to buy things or hire services in the best possible way for your needs and budget.
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