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Tender process

Explore the different type of tendering and how the tender process works

What is tendering and types of tendering?

A tender is a formal offer or bid from a potential supplier looking to win a contract for works or services, usually submitted in writing, the tender outlines the work or supply of goods or services, at a stated price and under stated conditions.

An invite to tender (ITT) is a request to potential suppliers in respect of execution of work or supply of goods and services. A request to tender is a documentation used to invite tenders, although these can be verbal too.

There are four main types of tendering:

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How does a tender process work?

The main objective of the tendering process is to ensure the ‘best fit’ supplier is selected to supply goods or services. It’s also important to have a management team in place to deal with the tender process, to ensure legalities are observed. Selecting tenders isn’t easy, which is why a strict process is laid out.

There are five main stages of tendering:

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1. Develop documentation – pre-purchase questionnaire and detailed spec

It’s important to spend time developing the tender documents, including a detailed breakdown of the volume, service level agreement and terms and conditions.

Create a detail specification to ensure consistency on pricing, product quality and operations functionality. The specification will form part of the tender document for suppliers.
Distinguish in your specification between product requirements and preferences, building in tolerances for suppliers to adhere to

2. Supplier selection to participate in tender

Conduct a Request for Information (RFI) to help you gain insights into suppliers' size, capabilities, financials, strengths and weaknesses.

Assessing the criteria can help you determine if they should be included in the tender process and receive a Request for Quotation (RFQ).
Ranking the performance qualities against the business needs with key stakeholders will be useful at this stage

3. Issue tender documents

Once you’ve selected the companies to participate, you’ll need to send some formal documents.

Send an Invitation to Tender (ITT) and Request for Quotation (RFQ) for selected suppliers to participate.
Include the detailed specification and documentation developed around your organisation’s requirements, along with clear timescales to respond.

4. Bid and tender evaluation and validation

Once tenders are submitted, it’s for time for bid evaluation and validation against pre-defined award criteria. This helps to identify which supplier is offering the best value for money.

Ensure your tender evaluation is structured, disciplined and transparent.
Post-tender negotiation will often take place, along with reference, credit checks and supplier visits.
Consider whole life costs, including the removal or disposals of a product.

5. Contract award and implementation

Once the supplier has been selected, you’ll award a contract. This allows both parties to fully understand their obligations and key criteria.

Award criteria offers agreed terms and conditions to minimise contractual risks and exposure when doing business
Sets out clear timescales for both parties

CIPS Contract Management Cycle

Our Contract Management Cycle is used to create a smooth end-to-end process, ensuring optimum scoping, planning, managing, and reviewing are taken place at the right time. Find out more about the Contract Management Cycle.

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Tender process evaluation Procurement KPIs Change & Project Management Training

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Achieve your potential by becoming a member today. Whether you want to become a studying member or want to upgrade your membership to MCIPS, you’ll receive support and guidance whatever career level you’re at.

Access the latest research, whitepapers and tools across a range of key procurement and supply topics.

Quality measurement tendering guide

This CIPS practice document is written as a statement in time. It is a collection of views on good practice within a particular subject area. This document will provide you with an understanding of tendering and post tender negotiation.

Supplier selection guide

Selecting the right suppliers is crucial to any organisation that wants to be competitive in their industry. Obtain a greater understanding of the supplier selection process from the insights and guidance in this knowledge paper and discover the potential benefits to your organisation when successfully implemented.

How to prepare and evaluate tenders guide

All organisations, whether profit-making or not, need to buy goods or services. The value of spend and the degree of complexity can vary greatly with the nature of the product or service, and the business itself. Competitive demands require the procurement process to be accomplished professionally.

Vendor supplier rating guide

Supplier rating is beneficial to any organisation that wants to have a high performing supplier base. This document will provide you with a greater understanding of supplier rating and the potential benefits to your organisation. It will also explore: six uses of supplier rating systems, performance monitoring, rating criteria & rating scale.

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Tender process

What is tendering and types of tendering?

There are four main types of tendering:

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Open tender:

Selective tender:

Negotiated tender:

Single-stage and two stage tender:

How does a tender process work?

There are five main stages of tendering:

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1. Develop documentation – pre-purchase questionnaire and detailed spec

2. Supplier selection to participate in tender

3. Issue tender documents

4. Bid and tender evaluation and validation

5. Contract award and implementation

Quality and measurement key themes

Access the latest research, whitepapers and tools across a range of key procurement and supply topics.

Expand your tendering skills

Procurement Skills Training

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