Characteristics and benefits of the Tendering process

A tender is, in essence, a type of dealings model employed by large organizations, government bodies, firms and NGOs so as to search out contractors for particular projects or procurement's. Basically, it's a bidding method used by each public and private organizations. Most organizations use Requests for Tender (RTF) to ask bids for large projects, procurement's or contracts from all qualified suppliers or companies in a given business.

Usually, most of those projects involve a significant of money of cash. a number of the foremost necessary characteristics of tenders, in my opinion, are listed below:

• All potential contractors and suppliers and should submit their bids inside the deadline decided on by the client

• The bid should embody all the specified and relevant details concerning the materials to be used, the expected cost of the project, etc.

• After the deadline has passed, all bids are evaluated by the client on the basis of a group of preset criteria like price and quality

• The tendering method begins with an invitation to tender or a request for tender (RTF)

• It ends with the public analysis method, following that one amongst the companies that submitted a bid wins the project or contract

• Before they're floated by the client, tenders are extensively advertised in a variety of media, to permit all interested suppliers a chance to bid for the project

Advantages of tendering

Some of the key advantages and benefits of the tendering method are as follows:

• No Nepotism: Tenders or bids are evaluated on the basis of certain preset criteria, like price, quality and value for money. In alternative words, the firm giving the very best quality product or service at the lowest price point would win the contract. As most tender documents are opened and evaluated in a public process, i feel that there remains very little space for discrimination or favoritism of any kind.

• Value for Money: From the angle of the consumer, tenders offer the best value for the amount of money spent. Based on the fact that the client can choose between a wide pool of potential suppliers to pick those that may turn out the very best quality product or service at the lowest price point. This enables the corporate, institution or organization to save lots of money while not having to compromise on quality. Therefore, despite being quite time overwhelming, tendering is, in my opinion, a profitable long method from AN organization’s purpose of view.

• Encourages Competition: the method of tendering helps promote a competitive market. This can be as a result of variety of potential contractors,firms or suppliers get an opportunity to bid for each project. And since choice depends on quality and price, each bidder tries to reduce operational inefficiencies and redundancies as much as potential so as to lower expenses and improve quality. This complete method encourages healthy competition within the market and prevents satisfaction and laziness, that successively provides a boost to innovation and new concepts.

• Easier Entry: The system of tendering makes it easier and easier for new companies to enter the market or perhaps a selected industry. This can be thanks to the fact that contracts under this technique are awarded on the idea of preset, objective criteria. As a result, even a firm that's a new entrant to the market, having no connections or contacts in the business, will win a prestigious and moneymaking contract by providing the very best worth for the client’s money. This method so helps new companies to quickly get a footing within the market or business, therefore considerably lowering the standard barriers to entry.

Knowing about the latest tenders

Hence, if you'd wish to participate within the tendering method, then i feel that you just should decide to gain the maximum amount relevant data as potential concerning the newest national and international tenders being floated in the business of your selection. To do this, you must in my opinion flick through the web site of a reputed on-line tendering portal.