It is never a bad idea to know the basics of a highly important document such as a tender, which you will probably use while working in a business environment. Many people do not know how to write up a tender or what certain wording means. These are important aspects of business and must be understood by the party bidding for the tender. 

In the article below, Gurmeet Pahwa describes and explains the basics of tendering and what the different types of tenders entail. Use the navigation link to view various articles on tenders on CBN's website as well as other business related articles. 

Faq About Domestic and Global Tenders
Author: Gurmeet Pahwa

What is a Tender?

Tender means an invitation to offer for any item/items or work. All Public Sector purchases/Contracts in India, over a certain value has to be publicly notified through Tender Notices which are advertised through All India Newspapers, Trade Journals,Departmental Publications and Notice Boards, and now on Internet. An estimated Rs.300
billions (US$ 6.6 billions) worth of equipment and services are procured annually through all India Tenders.

Types of Tenders.

Broadly, there are four types of Tenders: Limited Tendering, Open Tendering, Single Tendering and Verbal Tendering

1.Limited Tendering:This involves issuing Tender to few selected tenders only.

2.Open Tendering:This means that the Tender is open to any supplier who can quote for the materials as per requirements. This is usually done by publishing the Tender Notice in newspapers/Trade journals/Internet and other bulletins.

3.Single Tendering:Single Tendering means sending the Tender to one particular   party.Normally, it is either for an item where there is only one supplier or for an item   where the purchaser has developed confidence in one supplier only and would just like to   verify the current price,delivery etc. Single Tenders are also sent for items of   proprietary nature.

4.Verbal Tendering:Where there is hardly any time to wait for the supplier to quote Verbal Tendering becomes necessary. This could either be done by telephoning the supplier or across the table.

A Tender Notice gives you the following details.

1.Type of Item/Work enquired for.
2.Name and Address of the Tender Authority
3.The Tender Enquiry reference Number/Date
4.The cost and the last date for collection of Bid Document
5.Earnest Money Deposit This deposit is refunded to unsuccessful Tenders
6.Due Date/Time The last Date/Time for submission of Tender papers
7.Estimated cost of Item/Work Mentioned in selected Tenders
8.Any other Instructions/Information

Collection of Bid  Documents/Tender Papers:
Interested parties, to collect / Purchase the Tender / Bid Documents on payment / free of cost, as the case may be. Every Tender quotation has to be accompanied by the Tender Documents.

 
Submission of Offers: The Quotation has to be submitted along with all other Documents as stipulated by the Tender Authority in the Tender Notice.