Difference Between Bid and Tender:

Tender:

A tender is a formal invitation issued by a client or project owner to construction companies, contractors, or service providers to submit their offers or proposals to undertake a specific project or provide services. The tendering process is highly regulated, and it involves detailing the scope of work, terms of contract, and requirements for the project. The objective of the tender is to ensure a competitive process, where multiple contractors or suppliers submit their proposals based on predefined criteria. Tendering is a more formal and structured process.

• Types of Tendering:
  1. Open Tender: Anyone can submit a bid.
  2. Invited Tender: Only selected companies are invited to submit bids.
  3. Negotiated Tender: The client negotiates directly with the contractor.

Bid:

A bid refers to the offer or proposal that a contractor or supplier submits in response to a tender invitation. The bid includes the contractor's price proposal, timeline, and plan for completing the project. Bidding represents the response phase of the tender process. The bid can be either a fixed price, lump sum, or unit rate bid, depending on the project and terms outlined in the tender. The bid is submitted with the intention of being selected for the contract.

Key Differences:

1. Definition:

   • A tender is the process or invitation to submit offers.
   • A bid is the actual proposal or offer submitted by contractors in response to the tender.

2. Purpose:

   • The purpose of a tender is to request offers and provide details for the job.
   • The purpose of a bid is to provide a contractor's offer or proposal for fulfilling the requirements outlined in the tender.

3. Scope:

   • Tendering involves multiple stages, including documentation, submission of bids, evaluation, and award.
   • A bid is just the price or proposal submitted within the context of the tender.

4. Process:

   • The tender is issued by the client or project owner.
   • The bid is submitted by the contractor or service provider.

Wed Jan 29, 2025