What is the difference between bid document and tender document
Knowing the difference between tender document and bid document might save you a lot of time and money. These words might seem similar but they are very different. People often confuse tender and bidding. It is one of the biggest misconceptions among the business people in India. These terms are used primarily while applying for government tenders in India. You need to understand the difference to avoid any misunderstanding and missed opportunity because of that misunderstanding.
A Request For Proposal is released by an organization to procure goods or service from another organization. It contains the details of the required services and invitation of bids. Sellers who are interested in the RFP, submit their bids with their cost, deadline and other details. After closing time, the buyer selects the bid based on their criteria. This process involves both tender and bid. Let’s see the difference between them.
What is a Tender?
In the simplest term, a tender is a process where a buyer invites a seller. The buyer can be a government department or a private entity. They require some product or service so they invite a company to provide it. The buyer can post this requirement on their website or on the local and national newspapers. The sellers then contact them with their quotes. Whichever quote is suitable for the buyer gets selected and given the project. So tenders are actually RFPs for inviting bids.
What is a Bid?
When a buyer issues anRFPs or a tender, the sellers share their proposals for work. These proposals contain prices, availability of products, deadlines, etc. They are done with sealed envelopes to maintain transparency. These sealed bids are then opened by the buyer and whichever suits themthe best is given the project. Anybody who’s interested in working with the buyer and providing the necessary service can bid for the particular project. So basically, tender is a process of procuring goods. Bidding is just a step further. It is an application to the tender and the process of getting the project. They both are interrelated but completely different.
The difference usually lies in the way how these contracts are released and given. They might seem interchangeable but in the world of procurement, the difference is night and day. You need to understand them before jumping in to get projects. A tender partner helps you get started and provide relevant tenders for you to bid on. We have dedicated account managers who make sure you get the best tender. Contact us for tender bidding now.
19 Jan, 2023
05 Jan, 2023