Definition of 'tendering'

tendering
(tndr

1. the act of giving, presenting, or offering

2. (Commerce) the act of making a formal offer or estimate for (a job or contract)

3. (Law) the act of offering (money or goods) in settlement of a debt or claim.

estimate
verb (used with object), estimated, estimating.
1.to form an approximate judgment or opinion regarding the worth,amount
, size, weight, etc., of; calculate approximately:
to estimate the cost of a college education

2. to form an opinion of; judge.

verb (used without object), estimated, estimating.
3. to make an estimate.
noun
4.an approximate judgment or calculation, as of the value, amount,time, size, or weight of s
omething.
5. a judgment or opinion, as of the qualities of a person or thing.
6.a statement of the approximate charge for work to be done,submitted by a person or busin
ess firm ready to undertake the work

Definition of ESTIMATE
2a :to judge tentatively or approximately the value,
worth, or significance of

b :to determine roughly the size, extent, or nature of

c :to produce a statement of the approximate cost of

Introduction
A tender is a submission made by a prospective supplier in response to an invitation to tender.
It makes an offer for the supply of goods or services.
In construction, the main tender process is generally for the selection of the contractor that will
construct the works. However, as procurement routes have become more complex,
so tendersmay be sought for a wide range of goods and services (for example on a construction
management contract the works are constructed by a number of different trade
contractors each contracted to the client) and contractors may take on additional functions such
as design and management. There is also an increasing tendency for suppliers to
be aggregated into single contracts, for example, 'integrated supply teams' on public projects
may include; the main contractor, designers, sub-contractors, suppliers, facilities mangers
and so on.
Irrespective of the nature of the goods or services that are being sought, the process for
securing tenders may take a number of different basic forms:
Open tendering
Open tendering allows anyone to submit a tender to supply the goods or services that are
required. Generally an advert will be placed giving notice that the contract is being tendered, and
offering an equal opportunity to any organisation to submit a tender.
On larger projects, there may then be a pre-qualification process that produces a short-list of
suitable suppliers who will be invited to prepare tenders. This sort of pre-qualification process
is not the same as selective tendering (see below).
Open tendering has been criticised for attracting tenders / expressions of interest from large
numbers of suppliers, some of whom may be entirely unsuitable for the contract and as a result it
can waste a great deal of time, effort and money. However, open tendering offers the greatest
competition and has the advantage of allowing new or emerging suppliers to try to secure work.
For a more detailed description of the procedures for open tendering see Tender.
Selective tendering
Selective tendering only allows suppliers to submit tenders by invitation. A pre-selected list of
possible suppliers is prepared that are known by their track record to be suitable for a contract of
the size, nature and complexity required. Consultants or experienced clients may maintain
approved lists of prospective suppliers and then regularly review performance to assess
whether suppliers should remain on the list.
Selective tendering can give clients greater confidence that their requirements will be satisfied
and should reduce the wasted effort that can be involved in open tendering. It may be particularly
appropriate for specialist or complex contracts, or contracts where there are only a few suitable
firms. However, it can exclude smaller suppliers or those trying to establish themselves in a new
market.
See selective tendering for more information.
Negotiated tendering
Negotiating with a single supplier may be appropriate for highly specialist contracts, or for
extending the scope of an existing contract. It can reduce the costs of tendering and allow early
contractor involvement, but the competitive element is reduced, and unless the structure of the
negotiation is clearly set out there is the potential for an adversarial atmosphere to develop, even
before the contract has been awarded.
See negotiated tendering for more information.
Serial tendering
Serial tendering involves the preparation of tenders based on a typical or notional bill of
quantitiesor schedule of works. The rates submitted can then be used to value works over a
series of similar projects, often for a fixed period of time following which the tendering procedure
may be repeated.
Serial tendering can reduce tender costs, and may encourage suppliers to submit low rates to
secure an ongoing programme of work.
See also Serial tendering and Measured term contract.
Framework tendering
Clients that are continuously commissioning work might reduce timescales, learning curves and
other risks by using framework agreements. Such arrangements allow the client to
invite tendersfrom suppliers of goods and services to be carried out over a period of time on a
call-off basis as and when required.
Framework tender documents are likely to include a request for a schedules of rates and time
charges and a breakdown of resources and overheads to be applied (including any
proposed subcontractor or sub-consultant details).
One or more suppliers are then selected and appointed. When specific projects arise the client is
then able to simply select a suitable framework supplier and instruct them to start work. Where
there is more than one suitable supplier on the framework, the client may introduce a secondary
selection process to assess which supplier is likely to offer best value for a specific project. The
advantage of this process to the client is that they are able instigate a selection procedure for
individual projects without having to undertake a time-consuming pre-qualification process. This
should also reduced tender costs.
For more information see Framework contract.
Single-stage and two-stage tendering
Single-stage tendering is used when all the information necessary to calculate a realistic price is
available when tendering commences. An invitation to tender is issued to
prospective suppliers, tenders are prepared and returned, a preferred tenderer is selected and
following negotiations they may be appointed.
For more information see Single-stage tendering.
Two-stage tendering is used to allow early appointment of a supplier, prior to the completion of
all the information required to enable them to offer a fixed price. In the first stage, a limited
appointment is agreed to allow work to begin and in the second stage a fixed price is negotiated
for the contract
For more information see Two-stage tendering.
Public procurement
Public projects or publicly-subsidised projects may be subject to OJEU procurement procedures,
enacted in the UK by The Public Contracts Regulations. The regulations set out rules requiring
that contracts must be advertised in the Official Journal of the EU (OJEU). This is of particular
importance because the time taken to advertise contracts can be up to 52 days. The regulations
also describe allowable procedures for the selection of contractors.

On publicly-funded projects, the consultant team will often be contracted along with the main
contractor as part of a complete 'integrated supply team', and so appointments may be restricted
to independent client advisers and project managers.

What is the difference between

a tender and bid?
A bid is making a financial offer for something or the amount of money that
you will pay for something. A tender is offering a service at a specific price.

Answer by Mohd Ghufran

A bid is usually restricted to making a financial offer eg: at an auction you
might make a bid of a certain price for a painting. A tender means that you
will offer a service/item at a certain price. So it's a lot more complex than
just dealing with a price.

What is the difference between

tender and bid documents?
they all mean the same thing.they are documents indicating specification of
a customer.even in the English language we have two or more words
implying the same thing.
What is the difference between
bidding and negotiation?
Time is the factor here.

When you have more time, you do bidding and less time you do negotiating.

Eg - Assume you want a profitable supplier, so what you do is ask for

quotations.

If you have enough time for the selection - You organize a tender and ask for
quotations and select your desired ones leisurely

But

If it is urgent (less time) - You quickly seek quotations from your new
suppliers via phone calls, email, faxes or any other available modes.

What is the difference between

a contract document and a
tender document?
Answer by Mary Kate
A contract is an agreement between two parties for any means, typically
involving some sort of exchange. A tender document is a document that
indications the specification of a customer.

What is tender document?

tender document is a document submitted by a contractor bidding for a
construction project.some components of the document include,Bill of
Quantity,Company's Profile,Working Drawing etc.

What is the difference between

bid and offer?
Simply speaking "bid" is what you "bid" for that means when you want to
buy and the price you get offered for that purchase; Offer means, when you
want to offer i.e. offer to sell? the price someone is willing to pay your offer.
if it is the same person, he will pay you less but want more from you. that is
why, when you want to exchange currency from the same bank, the "offer" is
lower than the "bid" in relation to you! that means you can sell 1 USD for, say
1.20 SGD but if you want to buy USD by giving SGD then you have to give
1,25 SGD yielding a profit of SGD 0.05 to the bank. Clear?

What is difference between bid

security and Bid Bond?
There is no difference. Bid securities can come in different types. A bid bond
is just one type of bid security.

What is difference between

tender and quotation?
tender is a own organisation format but quotation is a organisation format

What is the difference between Tender and Quotation?

Tender is the formal process of asking suppliers to bid on the products and
services required by a company.

Quotation is the response of the bidders where they quote their price for the
goods and services.

Quotation also refers to the estimate that people ask from professionals for jobs
that they require done.

Tenders are more formal than quotations.

They are almost the same thing but the difference between them is their legal
significance.

Quotation is just a price estimate

A quotation is simply a statement setting out the estimated cost for a particular work,
goods or service. The quotation maker isn't necessarily offering to provide them. It's
simply an indication of the expected cost. You can accept or reject it, or not even
respond at all.

We will send you a written quotation for the cost of repairing your
machine.
Tender is a legal offer to supply or do something

A tender at the most general level is a formal offer to supply goods or services or
perform work for a stated fixed price. As you can see, the quotation is part of the
tender. In practice, you must accept or reject it, but you can't just walk away from it.
 ABC Corporation has started inviting tenders for the work. Various
engineering firms have been submitting tenders for it. ABC will decide by
Friday which tenders it will reject and the remainder go on the shortlist for
the next round of decision.
The tender is part of an overall process called tendering (also known as public
procurement), which is a way that establishments governed by public law obtain their
goods, services and work requirements. The establishment issues a request for
tender (a structured invitation to vendors for the supply of goods or services). The
vendors then submit tenders, which contain their formal price quotation as a formal
offer to supply the goods or services.

Note the exception is "tender offer," which is a specialised term related to a proposed
buyout of a publicly listed company.