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Tender is an offer in writing used to execute a work or purchase/supply goods or services at the mentioned price as per the predefined conditions.
The process of tendering helps to get the best-fit supplier offering the best value for money.
Each type of profit or nonprofit organization has the requirement for purchasing commodities goods or services where a contract is designed by the commodity purchasing manager who needs to obtain the preeminent supplies from the market at the lowest possible rate.
The process involves issuing a request for quotations and in response getting bids to choose the lowest and most appropriate offer.
Tender is used by the commodity supply managers who ensure the legalities and establish the ownership of the process.
The team should be knowledgeable enough to reduce overall risk and accept responsibility for the unforeseen issues and be able to rectify any difficult situation.
Before asking for the bids, the procurement team should have the idea of which type of organization will be most suitable or the type of contenders in the marketplace.
Some firm makes use of computer programs and related data to come to finalize a bid.
The stages involved in assigning contract are –
The involved parties – the buyer, the legalities, engineering, production, finance, and the end-user should agree to the terms mentioned in the document.
The timetable of accomplishing the works or a basic draft related to the type of contract and the timetable should be designed.
The buyer needs to ensure all the requirements related to the goods and services that will be identified and incorporated in the bid.
The team management and seniors involved in the process should approve the strategy.
Duration and competitive market price adjustment and issues related to dangers / unforeseen factors should be determined.
The tender should have the interfaces, the resource specialist, objectives, and clarity, completeness, and measurability terms.
Specific terms for quality and recognized communication channels should be mentioned.
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