What is a tender?

Olga Kandayeva
Olga Kandayeva
January 14, 2013
What is a tender?

Some people are faced with such a concept as "tender" in their activities. If the concept is not familiar, then you have to wrestle with what tender is. At its core, this is an offer of services or goods in the form of competitive selection, which is based on competition between the participants. All candidates who want to participate in this tender must offer favorable terms for the supply of their services or goods. All conditions must meet the requirements, and the winner is the one whose conditions seem most profitable.

At its core, the tender is similar to the auction, as there is an element of competition, however, there are some peculiarities. All participants in the auction can familiarize themselves with the bids of other bidders, that is, the auction is held in an open form, and everyone can learn about what price and what conditions are offered by competitors. This information is not available to bidders; all conditions and proposals are submitted by participants in a closed form.So, those who are interested in what a tender is for should be aware that it is designed to ensure equal conditions for all participants and prevent lobbying the interests of any one company whose victory the creators of the tender may be interested in.

Basically, tenders are held by state enterprises for purchases or for the performance of any services. This method in state-owned enterprises is designed to eliminate corruption and helps to save budget funds by choosing a supplier of the best quality products at reasonable prices. Tenders can be open or closed, and held in one or two stages. Those who are interested in what a tender means should know that any firms or organizations can take part in an open tender, and only those firms that have been invited by the organizers themselves can take part in closed tenders. Most often, this type of tender can be found among the supplies in the military industry.