What is Tender?
A tender refers to a formal request for bids or proposals from potential suppliers or contractors to provide goods or services at a specified price. When a company or organization requires certain goods or services, they may issue a tender document that outlines the requirements, specifications, terms, and conditions of the procurement process. Potential suppliers or contractors then submit their bids or proposals in response to the tender.
Key Features of Tender:
- Project Description: This is where the person or organization needing the work done explains exactly what they need. It includes details like what needs to be done, when it needs to be finished, and any special requirements.
- Requirements and Specifications: These are the specific rules and standards that companies must follow when submitting their offers. It could include things like quality standards, materials to be used, or specific skills required.
- Submission Process: This outlines how companies should submit their offers or bids. It includes details like the deadline for submitting bids, the format for proposals, and any documents that need to be included.
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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