What Is a Tender: A Comprehensive Guide to Understanding the Bidding Process

Table of Contents

Definition of a Tender

A tender is a formal procurement process where buyers invite suppliers to bid for contracts to provide goods, services, or works. This structured approach is supposed to ensure fair competition and helps organisations find the best supplier at the right price.

Key Features of Tenders

Tenders usually come with detailed specifications outlining exactly what the buyer needs. These documents lay out requirements, timelines, evaluation criteria, and terms and conditions that bidders need to meet.

Most tenders stick to a structured format with clear submission deadlines. If you’re new to the world of tenders, you’ll run into a few different types:

  • Request for Tender (RFT): A formal invitation seeking complete bids

  • Request for Proposal (RFP): Seeks creative or innovative solutions

  • Request for Information (RFI): Gathers preliminary information before a formal tender

  • Open Tenders: Available to all suppliers

  • Restricted Tenders: Limited to pre-qualified suppliers

Tenders are legally binding. Once you submit your bid, you’re on the hook to deliver what you promised if they pick you.

Purpose of Tenders

The main point of tendering is to keep procurement transparent and competitive. Inviting multiple suppliers to bid lets organisations compare what’s on offer and (hopefully) get the best value.

In the public sector, tenders help organisations meet legal requirements for open competition. They’re meant to prevent corruption and ensure public funds are used responsibly.

Private companies use tenders to streamline supplier selection. It’s a structured way to judge potential partners based on capability, experience, and price.

Tenders also help manage risk. All those detailed specs and terms protect both sides by spelling out expectations, deliverables, and consequences if things go sideways.

How the Tender Process Works

The tender process follows a structured approach that lets buyers pick the most suitable suppliers for their projects. If you get to know each stage, you’ll be better equipped to navigate this competitive landscape—and maybe even win some contracts.

Stages of Tendering

The process usually starts when the buying organisation figures out what it needs. Once they’ve nailed down their requirements, they publish a tender notice or Request for Tender (RFT) on platforms like Find a Tender or Contracts Finder.

If you spot an opportunity, you can submit an Expression of Interest (EOI) to show you’re keen to bid. Sometimes there’s a pre-qualification stage where you demonstrate your company’s ability to deliver.

Next, the buyer sends out the Invitation to Tender (ITT) to qualified suppliers. You’ll need to prepare and submit your proposal by the deadline, detailing how you’ll meet the requirements and at what cost.

After submission, the buyer evaluates all bids using their chosen criteria. If you’re successful, you get the contract. If not, you might get some feedback that could help next time.

Tender Documentation

Getting the documentation right is crucial for a successful tender. The buyer’s tender pack usually includes several key documents you’ll want to read thoroughly.

The Request for Tender (RFT) spells out the project scope, requirements, and conditions. Specification documents cover the technical details and quality standards.

Contract terms and conditions set the legal framework for delivery. These might include payment terms, delivery timelines, and performance indicators.

Evaluation criteria tell you how your bid will be judged. You’ll often see factors like pricing, technical capability, experience, and quality management systems in the mix.

Response templates are there to standardise submissions. Stick to these templates—if you don’t, your bid might not even get looked at.

Evaluation and Selection

Buyers use systematic evaluation processes to keep things fair and transparent. Knowing what they’re looking for helps you put together a stronger bid.

Most frameworks combine qualitative and quantitative measures. Price matters, but it’s not everything. Quality, experience, methodology, and risk management all get a look-in.

Many public sector tenders use a scoring system—your bid might get points for each criterion, with some areas weighted more heavily than others.

The Most Economically Advantageous Tender (MEAT) approach is pretty common in the UK. It tries to balance price with quality to get the best value—not just the cheapest offer.

Once the evaluation’s done, the buyer lets everyone know the outcome. If you don’t win, you might get a debriefing, which can be surprisingly useful for future bids.

Types of Tendering

Tendering isn’t one-size-fits-all. The process can vary a lot depending on the project, timeline, and how much competition the buyer wants.

Open Tendering

Open tendering is the most transparent and competitive method out there. The organisation advertises the tender publicly, and any qualified supplier can throw their hat in the ring.

Tender notices usually pop up in trade journals, newspapers, procurement websites, and government portals. No special invitation needed—if you meet the criteria, you can submit a proposal.

This method gives you wide market exposure and keeps things competitive. But, fair warning: open tendering attracts a lot of responses, so evaluation can take ages.

Public sector contracts often require open tendering for fairness and transparency. It’s best when you want maximum competition and aren’t in a rush.

Selective Tendering

Selective (or restricted) tendering uses a two-stage process. First, you pre-qualify suppliers, then invite bids from those who make the cut.

It usually starts with a pre-qualification questionnaire (PQQ) or expression of interest to weed out unsuitable candidates. Only those who meet the criteria get an invitation to tender (ITT).

Selection criteria often include financial stability, technical skills, relevant experience, and quality certifications. The upside? You deal with fewer, but better-qualified, bidders.

This approach balances competition with efficiency. It’s especially handy when you need specialised expertise or want to keep the admin manageable without losing that competitive edge.

Negotiated Tendering

Negotiated tendering is all about direct discussions with one or a few pre-selected suppliers. You might go this route for specialised projects, urgent needs, or when only a handful of suppliers can do the job.

You pick potential suppliers based on reputation, past work, or unique capabilities. After some initial chats, you ask for detailed proposals, which then become the basis for further negotiation.

Negotiated tendering gives you a lot of flexibility. You can tweak terms, specs, delivery schedules, and pricing through direct talks.

It’s a good fit for complex projects where requirements might shift, or when intellectual property issues or continuity from previous work rule out open competition.

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Roles of Suppliers in Tendering

Suppliers are really the backbone of the tendering process. Their competitive bids for goods and services help keep the marketplace fair, with quality, pricing, and capability deciding who wins contracts.

Supplier Selection Criteria

When organisations review tender submissions, they look at a few key things. Price competitiveness is up there, but it’s rarely the only thing that matters.

Technical capability and experience on similar projects often carry a lot of weight. Quality standards and certifications—like ISO or industry-specific ones—show you can meet expectations.

Financial stability is another biggie. Buyers want to know you won’t go bust halfway through the contract, so they’ll check your financials and credit history.

Innovation and value-added services can set your bid apart. Unique approaches or extra benefits might just tip the scales in your favour.

Supplier Registration

Most organisations keep a database of approved suppliers to make procurement smoother. Registering as a supplier is usually your first step if you want to bid.

Pre-qualification questionnaires (PQQs) are common for vetting suppliers before they get to bid. These forms ask about your company structure, finances, and technical chops.

You’ll probably need to provide things like company registration certificates, tax compliance documents, and insurance policies. These prove you’re legit and able to take on the work.

Many public bodies and big companies use e-procurement platforms for supplier registration. You can set up a profile, get notified about tenders, and submit bids all in one place.

Keep your supplier profile up to date. If your info’s out of date, you could miss out on opportunities that match your skills or specialisations.

Procurement and Contract Awards

Procurement processes and contract awards are the heart of the tendering system. They shape how buyers pick suppliers and formalise business relationships, aiming for fair competition and value for money.

Procurement Methods

Procurement methods change depending on how complex or valuable the project is. You’ll see a few different approaches when you’re bidding.

Open tendering is the most common—any supplier can submit a bid. It maximises competition but can mean a mountain of paperwork for buyers.

Restricted tendering limits the field to pre-qualified suppliers. This two-stage process saves time by screening bidders before the full tender.

Dynamic Purchasing Systems (DPS) are a bit different. Suppliers can join at any time during the system’s life, and once you’re in, bidding on future opportunities gets easier.

Framework agreements set terms with multiple suppliers for a set period. Individual contracts are then awarded through mini-competitions among those suppliers.

Contract Award Procedures

Contract awards need to follow transparent procedures to keep things fair and legal. The Public Contracts Regulations 2015 set the rules for public sector procurement in the UK.

Contracts go to the Most Advantageous Tender (MAT), which replaced the old Most Economically Advantageous Tender (MEAT) criteria. This change broadens the focus beyond price to include social value and other policies.

Before awarding a contract, buyers check that your tender meets all the requirements and criteria in the contract notice and documents.

For public contracts, buyers have to publish Contract Award Notices before finalising deals. These notices explain the selection and usually start a standstill period before the contract is signed.

Award decisions weigh up things like quality, price, technical merit, and delivery times. The weighting for each factor should be clear in the tender documents.

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Tender Notices and Public Access

Tender notices are the official announcements of contracting opportunities. They’re the gateway for suppliers to find projects, read the details, and decide if they want to bid.

Publishing Tender Notices

The UK’s Find a Tender Service (FTS) is now the main digital platform for public procurement notices. It launched on 24 February 2025, taking over from the Official Journal of the European Union (OJEU) after Brexit.

When a public sector organisation wants to buy something, they post a contract notice on FTS. That’s when the tender goes “live” and the bidding window opens.

You’ll see a few types of tender notices:

  • UK4 tender notice: For advertising tenders using competitive procedures

  • Prior information notice: Gives early heads-up about future procurement—sometimes reducing the minimum tender period to just 10 days

  • Below-threshold notices: For contracts over £12,000 but under the UK procurement thresholds

Transparency and Accountability

Publishing tender notices is all about transparency in public spending and keeping competition fair. The Procurement Act 2023 set out requirements for notices and documents to be published as per regulations.

Find a Tender makes it easier for you to spot and bid for contracts, while helping buyers meet their transparency obligations. The service covers contracts from start to finish.

Public sector organisations posting tenders include central government, local councils, NHS, police, and emergency services. Making procurement info public keeps the system accountable for how it spends public money.

You can search FTS for opportunities and download the documents you’ll need to put together your bid.   

How to Find and Bid for Tenders

Finding and bidding for tenders takes some know-how. You need to know where to look and how to craft proposals that stand out. There’s a bit of an art to navigating procurement platforms and figuring out strategies that boost your odds.

Using the Find a Tender Service

The Find a Tender Service (FTS) is the UK’s official platform for public sector procurement notices after Brexit. It’s a digital hub where you can search and apply for government contracts above certain thresholds.

Start by making an account on the official website. That way, you can save your preferred searches and get notified about opportunities that actually matter to you.

FTS lets you filter searches by sector, location, and contract value. These filters help you zero in on tenders that genuinely fit your business.

When a tender catches your eye, download the full pack of documents. Usually, you’ll get the invitation to tender (ITT), detailed requirements, and all the submission rules.

Tips for Successful Bidding

Take time to read the tender documentation before you even think about writing your bid. If you don’t understand exactly what the buyer wants, it’s tough to put together a proposal that hits the mark.

Try to show how you add value, not just how you can cut costs. Public sector buyers usually weigh both quality and price, so don’t undersell what makes you different.

Be specific about how you meet the requirements. Vague answers rarely get you anywhere in competitive tenders.

Answer every question fully and back up your claims with solid evidence. Things like case studies, testimonials, or certificates can make a big difference.

Check that you meet all compliance needs—think financial stability, insurance, health and safety policies. It’s not glamorous, but missing these can get you disqualified fast.

Get your bid in before the deadline. Late entries almost never make it through, even if they’re brilliant.

If you’re new to this, you might want to look into professional bid writing support. Sometimes, an experienced consultant is the edge you need. 

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Frequently Asked Questions

Tendering can feel confusing at first, but once you get the hang of the basics, it gets a bit less intimidating. Here are some common questions.

How does the tendering process work in a business context?

A buyer starts the process by publishing a tender notice or Request for Tender (RFT). This document spells out what goods or services they want.

Suppliers respond with submissions showing how they can meet those needs and at what price. The buyer then evaluates these against set criteria.

Sometimes, the evaluation includes clarification questions, presentations, or interviews before picking a preferred supplier. Once someone’s chosen, contract talks start, leading to a formal award.

What are the essential components of a tender document?

A strong tender document lays out exactly what’s needed—goods, services, all of it. This detail keeps everyone on the same page.

It also shows how bids will be scored, usually with weightings for things like price, quality, and experience. No one likes surprises when it comes to evaluation.

You’ll see terms and conditions, plus instructions on how and when to submit. Many tenders include templates so everyone responds in a similar format.

Can you describe the different types of tenders used in procurement?

Open tenders are out there for anyone to see and respond to. They encourage competition, but honestly, they can bring in a flood of responses.

Restricted tenders start with a pre-qualification round, so only suppliers who meet certain criteria get to submit in the end. This two-step method works well for tricky or specialized projects.

Negotiated tenders let buyers discuss and tweak proposals with shortlisted suppliers. For really complex needs, buyers might use a competitive dialogue, working with suppliers to shape the requirements.

Framework agreements set the terms for future contracts, while dynamic purchasing systems let new suppliers join anytime during the agreement period.

What is the function of a tender in legal terms?

Legally, a tender is a formal offer to supply goods or services under certain terms. If the buyer accepts, it becomes a binding contract.

The tender document spells out everyone’s rights and duties. If someone drops the ball, it defines what happens next.

Many places have specific procurement laws for public sector tenders, aiming to keep things fair and above board.

How is tendering conducted within the construction industry?

Construction tenders usually kick off with detailed specs, drawings, and bills of quantities. These documents help contractors price things accurately.

Contractors put together bids that cover costs, timelines, resources, and their approach to the build. Site visits are pretty common, so bidders can get a feel for the location.

Most construction tenders include a pre-qualification stage, checking bidders’ experience, financial health, and safety record. For big or complicated projects, two-stage tendering is the norm—technical evaluation first, then commercial details.