What's New - Aug '21
Catch up on the latest news & product updates
What is "Tendering"?
Tendering for dummies.
Harry Martin
Aug 30, 2021
About Pricing Get Started Sign In
Tendering is a big topic. We're even building a business around it.
But when it comes to the ins and outs of what tendering actually means and how it works - Well, things can seem a bit overwhelming. Which is fine! There's a bit to it for sure, but once you understand the fundamentals, tendering can help unlock consistent and sustainable growth for your business.
So what is a "tender"?
A tender is essentially a contract opportunity posted by an organisation (public or private) that is looking for someone to supply them with goods or services. Tendering forms a key role in an organisations "procurement" process - Which is, to put it simply, the other side to the tendering coin (more on procurement in another blog...)
It involves "going to tender" to a market of "suppliers", inviting them to submit a proposal. This can be referred to as an ITT (Invitation to Tender), RFQ (Request for Quote), RFP (Request for Pricing/Proposal), RFI (Request for Information) etc, etc....
Whatever you call it, the "buyer" is looking to run a competitive bid process in order to find the best "supplier" for the job.
There are typically 4 different ways this can play out.
1) Open Procedure:
This is where an organisation will invite interested parties to submit a tender by a set date. These bids are then evaluated, typically through a scoring system, and the contract awarded to the winning supplier.
2) Restricted Procedure:
This can be broken down in to two parts. Stage one involves identifying a shortlist, usually involving a Pre-Qualification Questionnaire (PQQ), to invite to participate in a full RFX. Stage two runs like an Open Procedure, and the contract is once again awarded to the winning supplier.
3) Competitive Dialogue Procedure:
Sometimes in life other people will know what you need, better than you do. Same goes for businesses.
A CDP allows organisations to engage with suppliers that are experts in their field in order to negotiate and develop suitable solutions. This typically will involve a Contract Notice to the market, involving a period of consultation, followed by a subsequent RFX (either to an open market or a closed shortlist) once the full scope has been agreed by the awarding body.
4) Negotiated Procedure:
Pretty simple, the buyer already knows the one or two suppliers they want to get a bid from, so they go to them direct for a proposal. Easy.
Why should we get involved?
The tender market is massive. The Australian & New Zealand governments alone spend roughly $100billion dollars a year on procurement, not to mention the large number of corporations that run competitive procurement processes as well. The market covers everything from purchasing live stock, to construction, to software development. If you supply a good or service, it's likely that there is an opportunity out there for you. A strong bidding process can help deliver significant growth to your business.
Where can I find these tender opportunities?
Cotiss is Australasia's best tender marketplace, with thousands of live contracts available - all in a simple, intuitive and affordable platform. Our advanced search functionality and recommendation engine will introduce you to new opportunities and potential for success.
You can currently take advantage of a two-week free trial to see what all the fuss is about.
Tendering is a big topic. We're even building a business around it.
But when it comes to the ins and outs of what tendering actually means and how it works - Well, things can seem a bit overwhelming. Which is fine! There's a bit to it for sure, but once you understand the fundamentals, tendering can help unlock consistent and sustainable growth for your business.
So what is a "tender"?
A tender is essentially a contract opportunity posted by an organisation (public or private) that is looking for someone to supply them with goods or services. Tendering forms a key role in an organisations "procurement" process - Which is, to put it simply, the other side to the tendering coin (more on procurement in another blog...)
It involves "going to tender" to a market of "suppliers", inviting them to submit a proposal. This can be referred to as an ITT (Invitation to Tender), RFQ (Request for Quote), RFP (Request for Pricing/Proposal), RFI (Request for Information) etc, etc....
Whatever you call it, the "buyer" is looking to run a competitive bid process in order to find the best "supplier" for the job.
There are typically 4 different ways this can play out.
1) Open Procedure:
This is where an organisation will invite interested parties to submit a tender by a set date. These bids are then evaluated, typically through a scoring system, and the contract awarded to the winning supplier.
2) Restricted Procedure:
This can be broken down in to two parts. Stage one involves identifying a shortlist, usually involving a Pre-Qualification Questionnaire (PQQ), to invite to participate in a full RFX. Stage two runs like an Open Procedure, and the contract is once again awarded to the winning supplier.
3) Competitive Dialogue Procedure:
Sometimes in life other people will know what you need, better than you do. Same goes for businesses.
A CDP allows organisations to engage with suppliers that are experts in their field in order to negotiate and develop suitable solutions. This typically will involve a Contract Notice to the market, involving a period of consultation, followed by a subsequent RFX (either to an open market or a closed shortlist) once the full scope has been agreed by the awarding body.
4) Negotiated Procedure:
Pretty simple, the buyer already knows the one or two suppliers they want to get a bid from, so they go to them direct for a proposal. Easy.
Why should we get involved?
The tender market is massive. The Australian & New Zealand governments alone spend roughly $100billion dollars a year on procurement, not to mention the large number of corporations that run competitive procurement processes as well. The market covers everything from purchasing live stock, to construction, to software development. If you supply a good or service, it's likely that there is an opportunity out there for you. A strong bidding process can help deliver significant growth to your business.
Where can I find these tender opportunities?
Cotiss is Australasia's best tender marketplace, with thousands of live contracts available - all in a simple, intuitive and affordable platform. Our advanced search functionality and recommendation engine will introduce you to new opportunities and potential for success.
You can currently take advantage of a two-week free trial to see what all the fuss is about.
Tendering is a big topic. We're even building a business around it.
But when it comes to the ins and outs of what tendering actually means and how it works - Well, things can seem a bit overwhelming. Which is fine! There's a bit to it for sure, but once you understand the fundamentals, tendering can help unlock consistent and sustainable growth for your business.
So what is a "tender"?
A tender is essentially a contract opportunity posted by an organisation (public or private) that is looking for someone to supply them with goods or services. Tendering forms a key role in an organisations "procurement" process - Which is, to put it simply, the other side to the tendering coin (more on procurement in another blog...)
It involves "going to tender" to a market of "suppliers", inviting them to submit a proposal. This can be referred to as an ITT (Invitation to Tender), RFQ (Request for Quote), RFP (Request for Pricing/Proposal), RFI (Request for Information) etc, etc....
Whatever you call it, the "buyer" is looking to run a competitive bid process in order to find the best "supplier" for the job.
There are typically 4 different ways this can play out.
1) Open Procedure:
This is where an organisation will invite interested parties to submit a tender by a set date. These bids are then evaluated, typically through a scoring system, and the contract awarded to the winning supplier.
2) Restricted Procedure:
This can be broken down in to two parts. Stage one involves identifying a shortlist, usually involving a Pre-Qualification Questionnaire (PQQ), to invite to participate in a full RFX. Stage two runs like an Open Procedure, and the contract is once again awarded to the winning supplier.
3) Competitive Dialogue Procedure:
Sometimes in life other people will know what you need, better than you do. Same goes for businesses.
A CDP allows organisations to engage with suppliers that are experts in their field in order to negotiate and develop suitable solutions. This typically will involve a Contract Notice to the market, involving a period of consultation, followed by a subsequent RFX (either to an open market or a closed shortlist) once the full scope has been agreed by the awarding body.
4) Negotiated Procedure:
Pretty simple, the buyer already knows the one or two suppliers they want to get a bid from, so they go to them direct for a proposal. Easy.
Why should we get involved?
The tender market is massive. The Australian & New Zealand governments alone spend roughly $100billion dollars a year on procurement, not to mention the large number of corporations that run competitive procurement processes as well. The market covers everything from purchasing live stock, to construction, to software development. If you supply a good or service, it's likely that there is an opportunity out there for you. A strong bidding process can help deliver significant growth to your business.
Where can I find these tender opportunities?
Cotiss is Australasia's best tender marketplace, with thousands of live contracts available - all in a simple, intuitive and affordable platform. Our advanced search functionality and recommendation engine will introduce you to new opportunities and potential for success.
You can currently take advantage of a two-week free trial to see what all the fuss is about.