Tender (Tendering)
Tendering is a formal, structured and competitive procurement process in which an organisation invites suppliers to submit bids (tenders) for a contract. An Invitation to Tender (ITT) sets out the requirement, specification, contract terms and the rules and deadline for bidding, and suppliers respond with sealed offers that are then evaluated against published criteria to select the winner.
Tendering emphasises fairness, transparency and value for money, which is why it is mandatory for much public-sector and high-value procurement, often under strict regulations. It can be open (any supplier may bid) or restricted/selective (only pre-qualified suppliers), and may run in stages (pre-qualification, then ITT). Related solicitations include the RFQ and RFP. A well-run tender delivers competitive pricing and a defensible, auditable award decision — but it is process-heavy, so it is reserved for significant or regulated purchases where the rigour is justified. Tendering is a cornerstone of formal procurement and contract award.
For big or public-money contracts, buying has to be fair, transparent and defensible — tendering is the process that delivers that, driving competition while producing an auditable award decision. It is heavy on process, so it is reserved for significant or regulated spend, but for those it is the cornerstone of proper procurement.
What is an Invitation to Tender (ITT)?
The document that sets out the requirement, specification, terms and bidding rules, inviting suppliers to submit tenders.
What is the difference between open and restricted tendering?
Open tendering lets any supplier bid; restricted (selective) tendering invites only pre-qualified suppliers.