Nature of tenders

An entity may well ask a number of suppliers to submit a tender for a project that the entity wishes to be started and completed

These tender invitations are sent out and those suppliers that are interested will spend time (and therefore also money) in preparing their tender which will normally detail the price that they would expect to receive for starting and completing the project

The tender invitation is an invitation to the suppliers to make an offer

The tender that is prepared by the suppliers is an offer and the successful tenderer is notified that they have won the contract at the price indicated

Now, imagine that that project was for the supply and delivery of a quantity of, say, 20 tonnes of wheat over a period of, say, two years to be delivered in consignments of 4 tonnes at such times as our entity may require

As each consignment is called for delivery, the terms of that request are as agreed within the tender document provided by the supplier and, in that respect, the tender is a standing offer available to be called off at such times as our entity may require the next instalment of wheat

Is that better?

You’re welcome