What are Tenders?  

Tenders are formal procedures in which contracting authorities request offers for goods or services. They serve to promote transparency and competition in the purchasing process. This procedure is particularly common in public and large private organisations.  

Invitations to tender enable organisations to systematically compare different offers. By formally requesting quotations, they can identify the best conditions and services. This not only encourages competition, but also ensures a fair selection among providers.

What is the purpose of Tenders?  

Tenders ensure that the purchase of goods and services takes place under fair and transparent conditions. They help organisations to save costs and increase the quality of purchases. This is particularly important in public administration and in large companies.  

Through tenders, clients can sound out market conditions and find the best provider for their specific needs. This is essential for the efficiency and effectiveness of the procurement process.  

What is the difference between Sourcing and a Tender?  

Sourcing is the process of identifying and selecting suppliers, while tendering involves the formal solicitation of bids. Sourcing can be informal, tendering is always formal and regulated.  

In sourcing, the focus is on the strategic search and pre-selection of potential suppliers. An invitation to tender, on the other hand, is an official procedure that follows fixed rules in order to obtain offers for a specific requirement.  

What does a Tender look like?  

A tender typically consists of a tender text that describes the requirements and conditions in detail. It includes terms and conditions, specifications of the goods or services to be supplied and criteria for evaluating bids.  

The documentation of a tender is often extensive. It contains not only technical specifications, but also legal and contractual framework conditions. This should give all bidders an equal opportunity and enable objective decision-making.  

How do you prepare a Tender?  

The preparation of a tender requires careful planning and precise knowledge of the procurement requirements. Firstly, the requirements must be precisely defined and documented. This includes a detailed description of the goods or services to be procured.  

The creation of a specification sheet or service description is a key step in the preparation process. This is where the technical and qualitative requirements are defined. It is also important to define the selection criteria according to which the tenders are to be evaluated. These criteria must be clear, fair and transparent in order to ensure an objective selection.  

What legal aspects need to be considered when Tendering?  

Legal framework conditions play a decisive role in tenders, especially in the public sector. In many countries, there are specific laws and regulations that govern the tendering process. These regulations are designed to prevent corruption, ensure equal treatment and avoid the misuse of public funds.  

Companies must adhere to these legal requirements in order to avoid legal consequences. This includes publicising the tender and granting all interested parties access to the information.  

In addition, the deadlines for the submission of tenders and the evaluation procedures must be clearly communicated to ensure compliance with legal standards.

Tender: Conclusion:

Tenders are an essential element of procurement management in many organisations. They serve to ensure transparency and competition, reduce costs and improve the quality of the goods and services purchased.  

The main difference to sourcing procedures lies in the formality and regulation of the process. Through well-designed tenders, organisations can ensure that they get the best value for their investment while promoting fair market conditions.