What is the difference between bid and tender?

Definitions

bid

- Referring to the act of offering a price or proposal for a project, job, or contract.

- Describing the process of competing with others by submitting a formal offer or proposal.

- Talking about the action of making an attempt or effort to achieve something.

tender

- Describing the act of formally inviting bids or proposals for a project, job, or contract.

- Referring to the process of requesting offers or proposals from potential suppliers or contractors.

- Talking about the action of presenting or offering something for consideration or acceptance.

List of Similarities

• 1. Both involve the process of offering or proposing something.
• 2. Both are related to projects, jobs, or contracts.
• 3. Both require formal documentation or submission.
• 4. Both can be competitive processes with multiple participants.
• 5. Both are used in business or professional contexts.

What is the difference?

• 1. Perspective: Bid is from the perspective of the party making the offer, while tender is from the perspective of the party inviting the offers.
• 2. Action: Bid refers to the act of offering a price or proposal, while tender refers to the act of formally inviting bids or proposals.
• 3. Initiation: Bid is initiated by the party interested in securing the project or contract, while tender is initiated by the party seeking offers or proposals.
• 4. Focus: Bid emphasizes the act of competing with others by submitting an offer, while tender emphasizes the act of requesting offers or proposals.
• 5. Usage: Bid is more commonly used in the context of auctions or competitive bidding, while tender is more commonly used in the context of formal procurement processes.

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Remember this!

Bid and tender are synonyms that are commonly used in the context of projects, jobs, or contracts. However, there are some differences between the two words. Bid refers to the act of offering a price or proposal, often in a competitive context, while tender refers to the act of formally inviting bids or proposals. The perspective, initiation, and focus of the two words differ, with bid being more focused on the party making the offer and tender being more focused on the party inviting the offers.