Everything you need to know about quotes and tenders when bidding for contracts
If you’re new to the world of procurement quotes and tenders may seem like a minefield. We know the tendering process may seem confusing and you might be left feeling baffled. It doesn’t have to be this complicated. Once you understand the basics, you’re off to a good start.
What exactly do you need to know about quotes and tenders? Well, everything really, so let’s start with requests for quotes and tenders.
A request for quote and a tender are both formal offers to bid for work. Buyers may request work via a tender from suppliers by issuing an Invitation to Tender (ITT). Or they may issue a Request for Quotation (RFQ).
Definition of quotation
The quotation is a formal document. The goods or services should be outlined with a stated price and conditions. It should include the following:
- Terms of sale
- Date, time and place of delivery
- Charges.
A quotation helps the buyer know how much a good or service is going to cost before procuring them.
Definition of tenders
A response to an invitation to provide goods or services at a quoted price. It is subject to specific conditions. Prospective suppliers will be invited to bid on a contract. The bid will require them to detail their price, quality and experience.
Requests for quotes and tender generally involve the following:
- A written request document
- Tender information
- Evaluation criteria
- A deadline for responses.
The main differences between quotes and tenders:
- Tenders follow a more formal process and require more time to complete
- A RFQ is for purchasing goods and services that are lower in risk and complexity.
- A ITT is an open invitation to suppliers to respond to questions and demonstrate their capability.
- An invitation to tender is used to scope suppliers who offer the best value for money.
- When evaluating tender submissions, contracts are awarded to the most economically advantageous tender (MEAT).
Types of tenders
There are several types of tenders you should be aware of. These include:
- Public sector tenders – Majority of tendering opportunities are published by public sector
- Open tendering procedure – Any business can bid for this contract. This is used for procuring good or services that are considered to be straightforward.
- Restricted procedure – This procedure is used for procuring more complex goods or services.
- Competitive dialogue – This tender is used if buyers need more information about their solution.
- Negotiated tendering procedure – Simply put, shortlisted bidders are invited to negotiate on the bid.
- Innovation partnership – This tender is when the buyer has a need for a solution that isn’t available on the market.
- Private sector tenders – Privately owned businesses are able to choose a type of a supplier through a tendering procedure. They are not bound to the same regulations as public sector tenders. Therefore, private organisations can award contracts to the cheapest bidder, without considering value. They are less likely to use an open process as they can simply contact the suppliers they want to compete.
By now, you should have a better understanding of requests for quotes and tenders. You should now be prepared to learn more about writing the tender response.
There are a number of things to consider when writing your response. If you’re looking for some tips take a look at our blog to write a successful tender response.
Now you have all this information, you’re probably wondering where you can find tenders. Don’t worry, we can help you. It can be time-consuming trying to source tendering opportunities. Our Hudson Discover tendering portals makes this process a lot easier.
Hudson Discover houses:
- Creative Tenders
- Construction Tenders
- Healthcare Tenders
- Facilities Tenders
- Logistics Tenders
- Research Tenders
- Technology Tenders
- Consultancy Tenders
- HR Tenders
- Hospitality Tenders
- Finance Tenders
Hudson Succeed
Hudson Succeed is our sister company. The bid writing consultancy offers tender writing services and support businesses of all sizes. Our Bid Writing Team has over 60 years of collective experience and proudly hold an 87% success rate.
Our tender writing services gives organisations of all sizes, at various stages of growth, a chance to succeed with tendering. Hudson Succeed can help if you’re completely new to tendering or aren’t seeing success from your current tendering responses.
Tender Mentor
If you’ve written a tender response and want someone to double-check it for errors, then Tender Mentor is for you. One of our Bid Writers will proofread it.
Tender Writing
If you’ve found the perfect tender for your business, but don’t know where to start – send it our way.
Tender Ready
Our Tender Ready programme is designed for those new to tendering.
Tender Improvement
If you’ve already been tendering for work, but aren’t seeing success, our Tender Improvement programme can help.
Contact us for more information.