What is Tender?
A Buyer which can be moreover Government or great Private Company can float a Tender as and when they want to buy Goods, appoint services or build incredible. Normally tenders are floated by Government as it is a compulsory requirement for them.
A Seller which can be moreover Government or Large Private Company can suggest a tender for selling used machinery, scrap or surplus products. Normally Government floats sell tenders it is a compulsory requirement for them.
Why Tenders?
Tenders are open invitation to buy or sell goods/services/contracts. Those who are attracted in supplying what has been advertised can respond to a Tender & submit their best aggressive offer. The best aggressive offer is usually selected & the contract is awarded to L1 Bidder.
Types of Tenders?
There are various types of Tenders, some of them are listed below;
Open Tender - In Open Tender anyone can contribute. The participant has to ensure that they fulfill the minimum pre-qualification criteria exacting in the tender document to qualify. If they do not meet the pre qualification criteria, their bid will be rejected & they will lose the document fees they have paid. It is compulsory that open Tender is advertised in newspaper. The Lowest Bidder or L1 generally wins the contract.
Limited or Closed Tender - In Limited Tenders, only pre capable or empanelled bidders are allowed to participate. As Limited Tenders are not advertised in newspapers, other bidder normally do not come to know that such tender is floated. The Lowest Bidder or L1 normally wins the contract.
ICB or International Competitive Bidding - In such tender companies from outside India can also participate in Indian Tenders.
Envelope Bidding - In such Tender, Technical Bid & EMD is submitted in one Envelope & Price Bid is submitted in Second sealed envelope. Together Envelopes are then put in a Big Envelope, is sealed & submitted. First Technical bid containing EMD is opened & price bid of only those bidder who are found technically qualified are opened afterward at a later date.
Please Visit http://www.tradereader.com to view 1 Million Tenders.
RFP or Request for Proposal - In RFP a company is supposed to submit only the Technical offer. analytical price bid can also be invited, if so required by Buyers. Once RFP round is over, RFQ or Request for Quote can be invited from shortlisted Bidders.
Another Principle of RFQ is to understand the current technology offered in the market. For e.g. if a new power plant is to be built, the government can float an RFP stating that it wants to build a 1000 MW power plant, special Bidder will submit their response stating that they can build either Thermal, Nuclear, Solar, Fuel, Coal based plant. On the source of response from different bidders, buyer will select either of the technology & then float a fresh tender or just invite bids from Pre experienced bidders.
RFQ or Request for Quote - In RFQ, a Company has to offer their best offer & on the basis of this decision the contract is awarded.
For example if someone wants to buy 1 Window AC, only RFQ is floated because no Technical Pre-qualification is required as it is a standard product.
Single Envelope Bidding - In such tender both Technical Bid & Price bid is submitted in a same envelope. Both Technical & Price Bid is opened concurrently & bid is awarded on the spot.
A Buyer which can be moreover Government or great Private Company can float a Tender as and when they want to buy Goods, appoint services or build incredible. Normally tenders are floated by Government as it is a compulsory requirement for them.
A Seller which can be moreover Government or Large Private Company can suggest a tender for selling used machinery, scrap or surplus products. Normally Government floats sell tenders it is a compulsory requirement for them.
Why Tenders?
Tenders are open invitation to buy or sell goods/services/contracts. Those who are attracted in supplying what has been advertised can respond to a Tender & submit their best aggressive offer. The best aggressive offer is usually selected & the contract is awarded to L1 Bidder.
Types of Tenders?
There are various types of Tenders, some of them are listed below;
Open Tender - In Open Tender anyone can contribute. The participant has to ensure that they fulfill the minimum pre-qualification criteria exacting in the tender document to qualify. If they do not meet the pre qualification criteria, their bid will be rejected & they will lose the document fees they have paid. It is compulsory that open Tender is advertised in newspaper. The Lowest Bidder or L1 generally wins the contract.
Limited or Closed Tender - In Limited Tenders, only pre capable or empanelled bidders are allowed to participate. As Limited Tenders are not advertised in newspapers, other bidder normally do not come to know that such tender is floated. The Lowest Bidder or L1 normally wins the contract.
ICB or International Competitive Bidding - In such tender companies from outside India can also participate in Indian Tenders.
Envelope Bidding - In such Tender, Technical Bid & EMD is submitted in one Envelope & Price Bid is submitted in Second sealed envelope. Together Envelopes are then put in a Big Envelope, is sealed & submitted. First Technical bid containing EMD is opened & price bid of only those bidder who are found technically qualified are opened afterward at a later date.
Please Visit http://www.tradereader.com to view 1 Million Tenders.
RFP or Request for Proposal - In RFP a company is supposed to submit only the Technical offer. analytical price bid can also be invited, if so required by Buyers. Once RFP round is over, RFQ or Request for Quote can be invited from shortlisted Bidders.
Another Principle of RFQ is to understand the current technology offered in the market. For e.g. if a new power plant is to be built, the government can float an RFP stating that it wants to build a 1000 MW power plant, special Bidder will submit their response stating that they can build either Thermal, Nuclear, Solar, Fuel, Coal based plant. On the source of response from different bidders, buyer will select either of the technology & then float a fresh tender or just invite bids from Pre experienced bidders.
RFQ or Request for Quote - In RFQ, a Company has to offer their best offer & on the basis of this decision the contract is awarded.
For example if someone wants to buy 1 Window AC, only RFQ is floated because no Technical Pre-qualification is required as it is a standard product.
Single Envelope Bidding - In such tender both Technical Bid & Price bid is submitted in a same envelope. Both Technical & Price Bid is opened concurrently & bid is awarded on the spot.
