A tender is an invitation to bid for a project or accept a formal offer such as a takeover bid. It is a written offer to supply certain goods or to perform certain acts upon specified terms, but it is not binding until the offer is accepted. It usually refers to the process whereby governments and financial institutions invite bids for large projects that must be submitted within a finite deadline. It is an on-paper invite sent to probable suppliers of a good or service to notify them about the information that is required for the buyer to choose among the provided choices.
Tendering usually refers to the process whereby governments and financial institutions invite bids for large projects that must be submitted within a finite deadline. The term tender also refers to the process whereby shareholders submit their shares or securities in response to a takeover offer. Issuing a tender document characteristically begins the tender procedure by which a business selects well- qualified and concerned suppliers based on various dimensions such as their worth, availability, and planned delivery terms and also taking into account all the conditions.
A request for tender (RFT) is a formal and structured invitation to suppliers to submit competitive bids to supply raw materials, products, or services. The tender also typically refers to the procedure whereby governments and financial institutions request bids for large projects that must be presented within a restricted time limit. The expression also refers to the procedure whereby all the shareholders put forward their shares or securities to a conquest offers.
In business terms, Tender is an invitation from a buyer who requires particular goods or services to suppliers of those products to put in negotiable price bids. When humans exchange goods, services, and works (a combination of goods and services), many a time, the specifications of goods, services, or works are known and even their prices in the market are standard. However, select requirements of procurement are unique, complex in which the knowledge of the procurer may be limited. They may be known only functional requirements of the project, that to a limited extent. They might not be knowing technology, suppliers, budget, etc.