Content
- Definition of a Tender
- Types of Tenders
- How to Participate in a Tender
- Common Mistakes of Beginners in Tenders
- Conclusion
Definition of a Tender
A tender is a process for selecting suppliers of goods or services based on the principles of competitive bidding. Tenders are typically organized by large companies or government institutions. During the tender process, a technical specification is developed, outlining the requirements and deadlines, and participants are invited to take part. Companies offering the most favorable conditions become winners and sign contracts with the customers.
Tenders are widely used in various fields, including medicine, construction, and military procurement. Additionally, organizations may conduct tenders to select contractors for services such as security or advertising.
Types of Tenders
There are several classifications of tenders that can be divided by various criteria:
By Forms of Conduct
- Open Tenders - available to all legal and physical entities that can meet the requirements specified in the tender documentation. Information about such tenders is published on government procurement portals.
- Closed Tenders - conducted for a limited circle of participants, for example, in cases where confidentiality or specific qualifications of suppliers are required. Information about such tenders is not publicly available, and invitations are sent only to selected companies.
By Methods of Conduct
- Auction - the winner is the one who offers the lowest price. Participants place their bids online.
- Request for Quotations - the customer requests proposals from contractors, and the contract is awarded to the one who offers the lowest price, but participants do not see each other's prices.
- Competition - the winner is chosen not only based on price but also on other criteria such as experience and professionalism.
- Request for Proposals - similar to a competition, but participants can submit a bid only once and cannot change their proposals.
Electronic and "Paper" Tenders
Tenders can be conducted in both electronic and traditional paper forms. Electronic tenders take place on specialized trading platforms where participants submit bids and communicate through electronic channels. Participation in them requires an electronic signature.
Paper tenders are less common and require submission of applications in paper form. They necessitate greater effort from the organizers, as all documents must be stored and responsibility for their safekeeping must be ensured.
How to Participate in a Tender
To successfully participate in a tender, it is necessary to go through several stages:
- Preparation for the Tender - involves studying legislation, preparing a proposal, and gathering necessary documents.
- Registration on Electronic Platforms - it is necessary to register on platforms for government procurement and commercial tenders.
- Bid Security - a monetary deposit must be placed in a special account, confirming the bidder's readiness to fulfill the tender conditions.
- Submission of Application - it is necessary to submit an application with the required documents, which may include product specifications and licenses.
- Conducting the Tender - on the day of bidding, participants must monitor bids and offer their prices if it is an auction.
Common Mistakes of Beginners in Tenders
New participants often make mistakes that can lead to failure:
- Lack of Attention When Studying Conditions - insufficient attention to requirements can lead to non-compliance of bids.
- Ignorance of Legislation - ignoring legal norms can result in penalties.
- Incorrect Cost Calculation - underestimating expenses can lead to losses.
- Desire to Win at Any Cost - price dumping can negatively affect profitability.
- Participating in Multiple Tenders Simultaneously - if there is no capacity to fulfill multiple contracts, it is better to focus on one.
Conclusion
Participation in tenders requires careful preparation and understanding of the process. It is advisable to consult specialists who can assist in preparing the necessary documents and provide advice on successful participation in bidding. However, it is important to remember that payments for tenders are often made post-payment, which can create financial difficulties for newcomers.