Tenders can come in many forms, depending on the industry you’re in. Requirements between different kinds of tender documents can vary significantly, meaning that your company can’t afford to take a one-size-fits-all approach to the creation and submission of tender bids.
Understanding what’s asked of your business by different kinds of tender documents can ensure that you are best positioned to secure the available contract. To help you navigate your way to your job, read this short guide to the different types of tender documents in use across your industry.
Types of tender documentation
The most common types of tender documents include:
Request for Tender (RFT)
Request for Proposals (RFP)
Request for Quote (RFQ)
Invitation to Offer (ITO)
Invitation to Respond (ITR)
Invitation to Tender (ITT)
Despite their different names, tenders generally share a few common characteristics that makes them easy to spot. First and foremost, they’ll outline who the tendering body is, so you know how to address your response. They’ll also provide an overview of the works on offer, whether that be supply of goods, provision of a service, or both.
Tenders usually come with a strict set of conditions that must be followed by any offerors looking to engage in the tender process. This includes a strict cut-off date and time for any responses, as well as the preferred format of submission. Failure to comply with these conditions typically results in immediate disqualification, so it’s worth reading the fine print.
Non-Prescriptive Tenders
When it comes time to tender, offerors will usually be asked to respond in one of two formats.
Non-prescriptive tenders come with a lot more freedom. They’ll outline a set of questions for the offeror to respond to in a format of their choosing. This allows the offeror to incorporate elements of design into their response to set their business apart from the competition.
Prescriptive Tenders
Prescriptive tenders will require responses to be confined to a set format. Offerors will commonly be asked to fill in a questionnaire or complete a number of short answer questions within a limited response space.
Expression of Interest (EOI)
EOIs are commonly confused with tenders, but it’s important to note the differences between the two. Short for Expression of Interest, EOIs are typically the first step in a multi-stage tender process. They are designed to gauge the level of interest in a project before commencing the tendering process. Unlike tenders, EOIs typically refrain from outlining the granular details of a project, instead just defining the general scope of works. As a result, they rarely require offerors to commit to a price—it’s simply too early in the process.
Pre-Qualifications & Panels
Not all tenders are open to every business in the industry. Commonly, tendering entities will require businesses to register for pre-qualification, or enter into a panel arrangement in order to secure an invitation to tender.
These methods typically involve a formal tender process, at the end of which a select number of businesses are accepted onto the panel or pre-qualification register. They are often used when tendering entities require good or services to be supplied on a regular basis.
The tending body can then engage panel members or prequalified businesses without the hassle of a formal procurement process.
Panels and pre-qualification registers are usually designated as open or closed. Open arrangements allow new suppliers to apply for qualification, often at predefined times over the agreed term. In contrast, closed arrangements do not accept new suppliers until the entire arrangement is up for renewal.
Importantly, becoming a panel member or prequalified business does not guarantee you a contract. It is simply a means of getting your foot in the door and opens your business up to opportunities that would not otherwise be available.
With that in mind, obtaining this status does have the potential to provide a steady stream of income for your business. It all depends on the needs of the tendering entity.
Tender writing services to help you secure that contract
Understanding the brief is one thing – nailing it is entirely another. At Tendered, we deliver the support suppliers need to make their case persuasively and effectively throughout the tendering process. Professional tender consultants, we’ve delivered exceptional results for businesses across Australia from Sydney to Perth. In choosing Tendered, you’ll be assigned an experienced tender writer who will be able to guide you through the process. From information gathering to project management, drafting and consultation, our bid writers take care of it all.
For more information on our tender writing services, please don’t hesitate to contact Tendered via our enquiry page.
