A tender is a formal offer, usually a price, submitted by a contractor to carry out work on the terms set out in the tender documents. Tenders may be obtained competitively or by negotiation.
In the UK, tendering is the most common way of selecting a contractor and fixing the price. In competitive tendering, several contractors price the same documents so that their offers can be compared fairly. Tendering may be single stage, where the full price is fixed before award, or two stage, where a contractor is selected early on the basis of preliminaries, overheads and profit and the rest of the price is developed with the design. Public bodies must also follow public procurement rules. Before submitting a tender, a contractor should check:
- the scope, specification and form of contract
- the allocation of risk and any amendments to the standard conditions
- the programme and any liquidated damages
Related terms: tender documents, tender evaluation, invitation to tender, two-stage tendering.
