Aside from an obvious difference in the number of stress-induced panic attacks (sharp increase usually seen when the word ‘tender’ is thrown around), the main difference is what you are asked to produce.
A quote typically only requires you to provide a price for your product or service.
A tender, however, is like a quote on steroids. It also requires you to explain how you will carry out the work, plus answer any number of other questions the procurer decides to ask.
At the crux of it, a tender is a sales document, designed to demonstrate why you should be chosen for the job above any of your competitors. They are usually governed by a set of ethical standards, are time-bound (with strict due dates) and competitive, meaning you should assume you are up against other bidders.
Traditionally, tenders have two distinct response criteria:
1. Qualitative Criteria (Think ‘quality’…these are your descriptive written answers)
2. Quantitative Criteria (Think ‘quantity’…this is your pricing)
This means that tender success is usually not based on price alone, value is what is important. More on that next week.
Happy bidding!
How much does price matter?