• Nicole Martin

Tender and Bid - What's the difference?

Both tender and bid are standard terms in the QSing world, if not construction and building industry too. Tendering is predominately used by large scaled companies who want the best contractor for either A. Less or B. Specific to that type of work needing to be carried out. Sometimes, it's a case of being competitively priced which is a hard task in itself without trying to cut your margins and forgetting X,Y,Z (whilst you stare at your quote thinking thats hella sharp - definitely a good time for a QS to come in!)


Clients often need specific construction projects to be undertaken, and they make formal offers to the public for qualified businesses to bid. The tender process varies based on the nature of the construction project to be undertaken. Sometimes it is a bit like a job application, you may have to jump through a couple of hoops before you are "invited" to tender.


But, what is the difference between the two terms – tender and bid?


I'm glad you asked!

A tender is a document issued by a company to procure (or search) construction services. The client formulated the tender, stipulating what services the company requires. The contractors responded to the tender by submitting a proposal known as a bid.


The "Bid" refers to the process in which a business expresses interest in a project by providing the required information. The company can bid for new or repeat business.

The contractor provides all relevant information, including the cost for the project and a list of the contractor’s equipment to perform the work, workers’ qualifications, and answers to whether the contractor meets the required contract conditions. Very important to have a list prepared so you include everything and skip nothing!


What is Bidding in Tender?

Companies who need specific construction projects to be undertaken, and they make formal offers to the public for qualified businesses to bid. The tender process varies based on the nature of the construction project to be undertaken.


After receiving the bids, the client evaluates the submitted tender documents and picks the most qualified business to do the project. The companies offering competitive prices and having a proven track record of delivering quality work are likely to get awarded the contract!


What is Tender and Bid Writing?

The bids need to be written professionally and submitted within the specified timeframe (That's where we come in!). Businesses with well-written proposals have higher chances of getting more jobs and growing.


Importantly, in bidding, there is no specific formula for writing a perfect bid. Tenders for different projects are different, and no two contractors can submit exactly similar proposals. The bid should always be compelling, clear, and competitive - Don't miss out on good opportunities!

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