What is the difference between tendering and bidding?

Definitions

tendering

- Referring to the process of inviting bids or proposals from potential suppliers or contractors for a project or job.

- Describing the act of submitting a formal offer or proposal in response to a tender invitation.

- Talking about the process of evaluating and selecting the best bid or proposal from among the submissions received.

bidding

- Referring to the process of making an offer or proposal to buy or sell goods or services at an auction or public sale.

- Describing the act of submitting a formal offer or proposal in response to a request for proposal (RFP) or request for quotation (RFQ).

- Talking about the process of evaluating and selecting the best bid or proposal from among the submissions received.

List of Similarities

• 1. Both involve the process of submitting formal offers or proposals.
• 2. Both require evaluation and selection of the best bid or proposal.
• 3. Both are used in business and commercial contexts.
• 4. Both can involve competition among multiple parties.
• 5. Both are means of acquiring goods or services.

What is the difference?

• 1. Context: Tendering is typically used in the context of procurement or construction projects, while bidding is more commonly associated with auctions or commercial contracts.
• 2. Initiation: Tendering is initiated by the buyer or procurer, while bidding can be initiated by either the buyer or seller.
• 3. Formality: Tendering is often more formal and structured than bidding, which can be more informal and flexible.
• 4. Scope: Tendering is usually limited to a specific project or job, while bidding can cover a wide range of goods or services.
• 5. Timing: Tendering typically has a longer timeline than bidding, which can be more immediate and time-sensitive.

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Remember this!

Tendering and bidding are both processes of submitting formal offers or proposals for goods or services. However, tendering is typically used in the context of procurement or construction projects, while bidding is more commonly associated with auctions or commercial contracts. Additionally, tendering is often more formal and structured, while bidding can be more informal and flexible.