WHAT IS TENDER?
In this system the entity invites suppliers to give their
The supplier with the lowest quotation wins the contract.
It is a kind of contract mostly followed by large organisations
and governments when purchases are of large value.
This is where an opportunity (including all tender documents) is
advertised inviting providers to bid directly for a contract.
All interest parties then submit a tender.
Scoring takes place and the successful organisation is
awarded the contract.
Sometimes there is a selection stage first, which is then
followed by the award stage.
This involves the opportunity being advertised in the relevant
places and media.
Organisations will then submit an expression of interest and fill
in a pre qualification questionnaire.
Successful organisations will go onto select list and be given
an invitation to tender with the tender documents.
Tender documents are completed and submitted.
From the submitted tender documents scoring takes place and
the successful organisation is awarded the contract.
Low Price usually Detriment of Quality
Site Visit Tender Box
Receipt of Tenders
Withdrawal of Offer
Tender Offerings Evaluation
Letter of Award
Conditions of Award
Company purchase many small items on day to day basis. It
becomes difficult to have inventory for all.
It is most popular method for purchasing items which are used
There are two methods:
Agreement is made to supply a Fixed Quantity of the product at
a Fixed Price for a Specific Period.
Agreement is made to supply for a Specific Period but the
Quantity is unknown.