How does a Tender Process Work?

Courtesy-eqmagpro

If you are getting into procurement management, you have to know how the whole tender process works, as many procurement contracts are decided through the whole tender process. Here’s how it works.

First, there is a request for tender. Request for tenders used to be done through the newspaper, but now times have changed, along with newspapers, there are exclusive agencies and online portals where the tenders can be requested for all to see. 

Tenders are usually done for large scale projects. This is to ensure that the whole process is fair, and everyone gets an opportunity. This is all done publicly to maintain transparency. Many governments and government-run businesses follow this format. However, many private companies have also begun using the tender format.

Businesses interested in supplying the goods or services respond to the tender with an offer. There is a certain process that is to be followed while responding to a tender. This is quite a detailed process. If an interested party fails to follow their set process, they are automatically disbarred from being in contention.

All the offers are thoroughly checked, and a final selection is made. There is a public announcement of the company that has been selected. Even the price of the goods and service and the terms and conditions are made public to ensure transparency. Contracts are signed and now the person in charge of the procurement has to look after the process.

If this interests you, there are many procurement certification programs online that you can do to take procurement up as a profession or added responsibility in your job.