A tender represents an invitation for suppliers and/or service providers to bid on a specific requirement. Tenders are listed by both public and private organisations alike, typically detailing the requirements of large and sometimes ongoing projects. When an organisation requires certain products or services to complete a project, they may publish a tender to encourage suppliers and service providers to bid accordingly.
In a working example, a company needs a thousand units of the same component to complete a manufacturing project. They issue an invitation for suppliers to bid on the project, who in turn submit applications detailing what they can offer, the price they’re willing to accept and so on. The purchasing organisation selects the best application to suit the requirements of the project, grants the tender to the supplier and a contract is signed by both parties.
For construction businesses, electronic procurement can be used to gain access to almost any products or services required, for the completion of larger and more complex projects. Rather than shopping online for the products and services you need, it’s a case of publishing your requirements and allowing quality suppliers to ‘fight it out’ for your business.
The benefits of electronic tendering in construction are numerous, including lower transactional costs, better reporting through automation, the most competitive quotes from suppliers and service providers, significant time-savings and many more besides. Whether planning ahead or looking to fill a more urgent requirement, electronic tendering is transforming the procurement process for the contemporary construction business.
For more information on the benefits of electronic tendering for the construction sector, contact the team at Tender Expert today.