People are often confused about the difference between bids and tenders. They are two distinctive elements, in fact; some folks state that tenders fall under bids since they're vital documents that secure the bids.
Basically, a bid is the presentation of how much a business would like to charge for a project to be carried out and a tender, by contrast, is basically the write-up that reflects how the project will be accomplished according to the project standards given by the clients. They perform hand in hand in persuading the clients that a specific business can get the project completed in a fashion which fits their liking.
Essentially, a bid is backed up by a tender document...this is the easiest way of distinguishing bids and tenders. Currently, however, people easily interchange these two terms due to the general nature of how bids and tenders are done.
The bid for important contracts typically comes in three forms; an IFB or an Invitation for Bid, an RFP or Request for Proposal and the RFQ or Request for Quote. The IFB is a contract commonly known as the Sealed Bid, which is a complete bid package containing all of the basic specifications of the contract or project. For this, there's no more room for negotiation as its attributes already are fixed. The RFP, however, is a flexible contract; there may be adjustments with regards to the certain standards as well as the pricing; this is a more flexible contract for bidders. Lastly, the RFQ offers bidders the opportunity to ask for certain specifics about the project, like the cost; it's not a binding document, which naturally signifies that it is also flexible. Every bid package comes with a typical budget range but this may differ according to how high-profile the project is or the location where the project will be accomplished. In the United States, $100,000.00 is the standard range but in other places, the range may be so much higher or lower.
A tender in comparison is either open or closed. An open tender means that any group can participate if they can create a tender document that is compliant to the requirements of the project. Open tender is commonly promoted in daily periodicals. For a closed or limited tender, only invited organizations get to bid for the contracts or projects. Generally, the invited agencies are the ones which have already proven themselves in the industry that the project falls under.
Basically, a bid is the presentation of how much a business would like to charge for a project to be carried out and a tender, by contrast, is basically the write-up that reflects how the project will be accomplished according to the project standards given by the clients. They perform hand in hand in persuading the clients that a specific business can get the project completed in a fashion which fits their liking.
Essentially, a bid is backed up by a tender document...this is the easiest way of distinguishing bids and tenders. Currently, however, people easily interchange these two terms due to the general nature of how bids and tenders are done.
The bid for important contracts typically comes in three forms; an IFB or an Invitation for Bid, an RFP or Request for Proposal and the RFQ or Request for Quote. The IFB is a contract commonly known as the Sealed Bid, which is a complete bid package containing all of the basic specifications of the contract or project. For this, there's no more room for negotiation as its attributes already are fixed. The RFP, however, is a flexible contract; there may be adjustments with regards to the certain standards as well as the pricing; this is a more flexible contract for bidders. Lastly, the RFQ offers bidders the opportunity to ask for certain specifics about the project, like the cost; it's not a binding document, which naturally signifies that it is also flexible. Every bid package comes with a typical budget range but this may differ according to how high-profile the project is or the location where the project will be accomplished. In the United States, $100,000.00 is the standard range but in other places, the range may be so much higher or lower.
A tender in comparison is either open or closed. An open tender means that any group can participate if they can create a tender document that is compliant to the requirements of the project. Open tender is commonly promoted in daily periodicals. For a closed or limited tender, only invited organizations get to bid for the contracts or projects. Generally, the invited agencies are the ones which have already proven themselves in the industry that the project falls under.
0 comments:
Post a Comment