Understanding tender language
May 26, 2010
“IS it called a tender, or it is a bid? By the way, it might be called procurement! Now that I have got it, let’s fill this form quickly,†Joe, a contractor, said.Welcome to the procurement and tendering world! Like Joe, many contractors and individuals interested in the sector, find it confu
By Vision Reporter
“IS it called a tender, or it is a bid? By the way, it might be called procurement! Now that I have got it, let’s fill this form quickly,†Joe, a contractor, said.
Welcome to the procurement and tendering world! Like Joe, many contractors and individuals interested in the sector, find it confusing. What with the jargon and all those terms!
Some of these are defined below.
Tender or tendering means a formal process of bidding for work or contracts.
Invitation to tender. This is a paper or electronic documentation issued to organisations invited to tender for a contract. Typically it includes a background, rules of tender, contract specification, questions or information required and a draft contact.
Procurement is the acquisition of appropriate goods and/or services at the best possible total cost of ownership to meet the needs of the purchaser in terms of quality and quantity, time, and location.
Corporations and public bodies often define processes that promote fair and open competition for their business while minimising exposure to fraud and collusion.
Procurement fraud can be defined as dishonestly obtaining an advantage, avoiding an obligation or causing a loss to public property during the procurement process. This can be by public servants, contractors or any other person involved in the process.
E-procurement is the term used to describe the use of electronic methods in every stage of the purchasing process, from identification of requirement through to payment, and potentially to contract management.
This can also include e-sourcing, e-procurement and e-payment, including e-invoicing.
Initial expression of interest. High-value public sector contracts are advertised via the media. The Government usually starts by asking those interested in bidding to write and express their interest.
“IS it called a tender, or it is a bid? By the way, it might be called procurement! Now that I have got it, let’s fill this form quickly,†Joe, a contractor, said.
Welcome to the procurement and tendering world! Like Joe, many contractors and individuals interested in the sector, find it confusing. What with the jargon and all those terms!
Some of these are defined below.
Tender or tendering means a formal process of bidding for work or contracts.
Invitation to tender. This is a paper or electronic documentation issued to organisations invited to tender for a contract. Typically it includes a background, rules of tender, contract specification, questions or information required and a draft contact.
Procurement is the acquisition of appropriate goods and/or services at the best possible total cost of ownership to meet the needs of the purchaser in terms of quality and quantity, time, and location.
Corporations and public bodies often define processes that promote fair and open competition for their business while minimising exposure to fraud and collusion.
Procurement fraud can be defined as dishonestly obtaining an advantage, avoiding an obligation or causing a loss to public property during the procurement process. This can be by public servants, contractors or any other person involved in the process.
E-procurement is the term used to describe the use of electronic methods in every stage of the purchasing process, from identification of requirement through to payment, and potentially to contract management.
This can also include e-sourcing, e-procurement and e-payment, including e-invoicing.
Initial expression of interest. High-value public sector contracts are advertised via the media. The Government usually starts by asking those interested in bidding to write and express their interest.