Professional Documents
Culture Documents
Tendeing Introduction
Tendeing Introduction
tendering
(tndr
2. (Commerce) the act of making a formal offer or estimate for (a job or contract)
estimate
verb (used with object), estimated, estimating.
1.to form an approximate judgment or opinion regarding the worth,amount
, size, weight, etc., of; calculate approximately:
to estimate the cost of a college education
Definition of ESTIMATE
2a :to judge tentatively or approximately the value,
worth, or significance of
On publicly-funded projects, the consultant team will often be contracted along with the main
contractor as part of a complete 'integrated supply team', and so appointments may be restricted
to independent client advisers and project managers.
When you have more time, you do bidding and less time you do negotiating.
If you have enough time for the selection - You organize a tender and ask for
quotations and select your desired ones leisurely
But
If it is urgent (less time) - You quickly seek quotations from your new
suppliers via phone calls, email, faxes or any other available modes.
Tender is the formal process of asking suppliers to bid on the products and
services required by a company.
Quotation is the response of the bidders where they quote their price for the
goods and services.
Quotation also refers to the estimate that people ask from professionals for jobs
that they require done.
They are almost the same thing but the difference between them is their legal
significance.
A quotation is simply a statement setting out the estimated cost for a particular work,
goods or service. The quotation maker isn't necessarily offering to provide them. It's
simply an indication of the expected cost. You can accept or reject it, or not even
respond at all.
We will send you a written quotation for the cost of repairing your
machine.
Tender is a legal offer to supply or do something
A tender at the most general level is a formal offer to supply goods or services or
perform work for a stated fixed price. As you can see, the quotation is part of the
tender. In practice, you must accept or reject it, but you can't just walk away from it.
ABC Corporation has started inviting tenders for the work. Various
engineering firms have been submitting tenders for it. ABC will decide by
Friday which tenders it will reject and the remainder go on the shortlist for
the next round of decision.
The tender is part of an overall process called tendering (also known as public
procurement), which is a way that establishments governed by public law obtain their
goods, services and work requirements. The establishment issues a request for
tender (a structured invitation to vendors for the supply of goods or services). The
vendors then submit tenders, which contain their formal price quotation as a formal
offer to supply the goods or services.
Note the exception is "tender offer," which is a specialised term related to a proposed
buyout of a publicly listed company.