View Full Version : E-Tendering Definition

10-01-2011, 07:17 PM
I've looked at many defintions online but still am a bit confused by the term tendering.. Are there anyone who can clear up the definition for me?

As far as I'm aware tendering is some business who makes a secure environment for contractors, suppliers etc.

It's a system that contains documentations about bids,prices etc on a work or product. The system is secured and all the documentation remains private. Businesses cannot tell what other business are bidding at.

At the end of the bid . The business who owns the product chooses the best price from all the bids made by other business.

Billy T
10-01-2011, 07:48 PM
As far as I'm aware tendering is some business who makes a secure environment for contractors, suppliers etc.

Anything but I'm afraid. Tendering is not a business, it is a process used by businesses to choose suppliers of goods and/or services or to dispose of unwanted goods or surplus stock etc. It does not make a secure environment because if you price too low you can end up with a negative income at the end and you can't argue, that is the price you quoted. because of this, Tenders often include escalation clauses to cover cost increases due to circumstances beyond the tenderer's control.

In the example you appear to be thinking of though, you would be putting in a sealed bid to buy whatever they are offering, and at a particular price of your choosing. You buy the product or whatever "as inspected" and for used goods there is no guarantee. Quite often surplus new stock is sold by tender and again there may be no guarantee.

Tenders for services are not won on price alone. Experience and reputation can also be significant factors. You will often see the caveat "Highest or any tender not necessarily accepted", which basically means that the person advertising the tender has a good idea of what mix they want and price is not everything.

To bid on a tender request (wich is in some aspects similar to an auction) you have to obtain the tender documents, see if the job is within your experience, capabilities and resources, or the product or goods are suitable for your purposes, whether the items to be supplied are accessible to you at a competitive price, work out what your costs will be and the margin you want, add a percentage for unexpected complications or delays then submit your price.

That is the bare bones only, there can be a lot more to it than that.


Billy 8-{)

10-01-2011, 07:49 PM
Tendering is, as you say, a process in which something is for sale or offer, offers (tenders) are placed by those who are competing to be chosen, and the issuer of the tender chooses one.

Nobody making an offer knows what the other offers are.

This can be for sale or purchase. For example, two rather different scenarios are (1) a product for sale (eg used goods), where potential buyers make offers and one is chosen, or (2) a service to be rendered (eg an information system to be developed), where the potential service providers are the ones making the offers, and the customer chooses.

I don't know exactly what E-Tender means (apart from the obvious) - more context may be needed.

10-01-2011, 08:38 PM
Thanks for the explanation guys

10-01-2011, 08:57 PM
Here's an example of an E-Tendering "system":