Before you start searching for a tender bid template and jump straight into the often complexing tender process, it’s important to first understand how the process works – especially if you are new to the world of tendering and bid proposals.
What is a tender?
A tender is a type of ‘transaction model’ that is used by many companies, non-profit organisations, Government bodies and corporate organisations. Tenders are used to source contractors for a particular procurement need or project.
In its most basic form, tenders are utilised as a bidding process by both private and public organisations. Many companies will use an RFT (Request for Tender) for inviting bids for their procurement needs, outsourcing for large projects or sourcing contracts from qualified firms and suppliers in a particular industry or sector.
What traits do all tenders share in common?
Tenders share many common characteristics that are important to understand, such as:
- Once a deadline has ended, each bid is then evaluated by the client based on a specific criterion. This can be based on factors including quality or price.
- When the deadline has been determined by the client, each potential supplier or contractor must have their tender bid template submitted within the allotted timeframe.
- The tendering process ends with a public evaluation process. Once it has been completed, the winning contract or supplier is selected for the contract or project.
- When submitting a bid, it will need to include all the relevant and required details requested by the client. This can include information regarding the expected cost involved with the project, the materials and resources to be used and more.
- To give all interested suppliers, contractors and firms an equal opportunity to bid for a specific tender, most tenders are advertised.
What are the main benefits?
Promotes a competitive market
Because many potential suppliers, firms and contractors have an equal chance to bid for a specific tender, it encourages healthy competition. Due to various criteria requirements, each company making a bid will try to improve operational inefficiencies and lower expenses as much as possible. This results in new creative ideas and boosting innovation.
Due to each tender bid template competing against a predetermined criterion, the bid offering the best quality of service or the best value for money will usually win the tender. Apart from this, many tenders are evaluated in a public process, eliminating favouritism or nepotism.
Easier to enter the market
Tendering allows new companies to enter the market much easier. Because they are only judged on the criteria relating to a specific tender, a new company with no existing connections in an industry can win a lucrative contract, even if they are new to the market. It allows them to gain a foothold much more quickly, eliminating traditional barriers of entering the market.
If you need the perfect tender document template in Australia to make your business stand out, then turn to our experienced team of professional bid writers at Bidsmith. To find out how we can assist your tender writing needs, explore our website to discover our range of services or call us on 1300 243 294 to get started today.