Understanding Tendering in Business

Tendering is the process through which organizations invite suppliers to bid for contracts. It ensures transparency, competition, and the selection of the most qualified bidder based on cost, quality, and service delivery. There are different types of tenders, including:

• Open Tendering – Available to all qualified bidders, ensuring fairness.
• Selective Tendering – Only pre-selected suppliers can bid, improving efficiency.
• Negotiated Tendering – Direct negotiations between a buyer and a supplier for specialized contracts.

A well-structured tendering process helps businesses and government entities minimize risks and ensure value for money.