Tender

A public buyer’s formal invitation for suppliers to offer to do a piece of work, and the offer a supplier sends back. Tenders set out what is needed, how bids will be scored and the deadline.

People use “tender” for the notice, the documents and the process as a whole. In North America “solicitation” or “bid opportunity” mean much the same thing.

Also called: Bid opportunity, Solicitation

Related terms

Request for proposal (RFP)

A tender where the buyer describes a problem or outcome and asks suppliers to propose how they would deliver it. RFPs are scored on approach, experience and price together, not price alone.

Invitation to tender (ITT)

The UK and Irish name for the formal tender documents a buyer sends to suppliers, usually after a selection stage. It asks for a full priced bid.

Bid

A supplier’s formal offer in response to a tender: the written answers, the price and any forms the buyer asks for. Once the deadline passes, a bid usually cannot be changed.