People often believe that bids and tenders are synonymous. But, there exists a big difference. A bid is simply an offer to acquire some thing in a competition, on the other hand, a tender is an offer to present or provide specified services or goods at a stated rate. Nonetheless, in general terms in the UK and Europe the two are used interchangeably.
Generally, bidding is less formal as compared to tendering. More frequently, tenders are on a large-scale whilst bids is really as small-scale like an offer to create an article for ten pounds or as huge as a proposal to acquire an original painting of Picasso for millions of pounds.
On the other hand, they’re identical in a manner that essentially the most crucial area of an effective bid or tender could be the assurance given by the bidder or tender of being capable of supplying or buying in accordance to the stated terms.
Bids and tenders are analyzed according to a process. A ‘Lowest Priced Technically Acceptable’ bid is looked at against it being valid throughout the starting of bids, its cost being the lowest and still conforming with the requirements. In order for a tender to be a success, it is examined by tools like the Request for Proposal and decision matrix or evaluation matrix.
These decision matrices involve criteria setting, options identification, evaluating up the criteria and rating the criteria. These are tools which help decision makers in deciding whether a bid or tender is successful.
What exactly can determine the success of bidding or tendering? Commonly, the highest bid offered by a bidder, or the least expensive offer presented by a tenderer can determine the winning bid or tender. Even so, it isn’t really a rule. That is the reason why authorities often declare at the time of inviting sealed tenders, that they reserve the authority to reject any bids or tender without assigning any rationale.
They would like to come up with an option to evaluate the fulfillment of the needs, which may have been left out being specified at the time of bid or tender. Nonetheless, this practice will do more damage than good since it sometimes becomes a method to large-scale corruption, particularly in tendering for large projects.
Besides the price proposition, the key to victorious bids and tenders is to influence the reader about one’s credibility by giving enough, valid and unbiased evidence. As an example, a construction business may influence through showing the projects carried out along with its financial stability. Likewise, a writer, for example, may convince through his sample articles. In a nutshell, the success of bids and tenders depends upon the degree of declared and assessed capability and credibility.