Published : 7/01/2020
Difference Between Bid Document and Tender Document
Tender and bidding is a word which is familiar to most of the people in India and across the world. People who are in the business use these terms on a daily basis as it is their primary or secondary source of income. These terms are primarily used while applying for the government tenders in India but are used elsewhere as well as these have become very popular words amongst people.
When an organisation wants service from another organisation, it creates an open Request For Proposal with the details of the expected services and invites bids on it. Organisations which are interested to offer their services bids on the projects with their cost, deadline of the project and other details. After receiving sufficient bids after the due date, the organisation which is asking for the services decides whom to allocate the project based on their multiple criteria.
Now let us understand tenders and bids in a more elaborated manner so that you get to understand the difference between the two
Tender
Tender in simpler terms is a process where a government or a private entity invites another organisation, company or entity to work for them. The entity will post the work related details either on their website or on the local and national newspapers and people or organisation interested to work for them will bid on the work with their quotes. Whichever organisation is found suitable for the work based on the bidding price, days of completion and quality will be alloted the tender. Organisations or people who take regular tenders are more interested in bidding for government tenders in India as the safety of payment is always a big factor which is not a problem when it comes to government entities.
In other words, tenders are the RFPs for inviting bids for a particular work and when the bidding process completes, work is allocated to the suitable organisation
Types of Tenders
Tender is just a word or a simple process for many people who are either ignorant of it or new in the business but it has a very long and detailed process. Tenders are mainly classified into three categories which are discussed in short for you to understand