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Knowing the tendering system will make it work for you. It is important to fully
understand tender requests, tenders in contract law, buyers and suppliers and the
tendering process, gives you a much greater chance of a winning tender contract.

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Tenders, Buyers and Suppliers
qA tender is best described as a formal offer put forward to perform work in return for an
agreed payment, via a schedule of rates.
qThis work could include the supply of services or goods or both. Time to understand the
tender process and what buyers expects.

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qBuyers are the people looking for tender responses from businesses who can do the
required work.
qThey will use a Request for Tender (RFT) to accomplish this. Suppliers are the businesses
or individuals that carry out the work for the buyers. Suppliers offer services, goods or
both.

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The competitive process of tendering
qBuyers will seek responses for tenders from numerous suppliers which creates a
competitive process.
qBuyers will evaluate and then accept the tender response they believe best meets their
needs as well as offering the best value for money.
qThe tender with the lowest price will not necessarily be the winning bid.

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qEach tender is regulated by its own conditions and rules which are referred to as the
Conditions of Tender.
qWhen councils or government ‘put out a tender’, the government is asking for offers to
do required work on a contract basis.
qOnce a tender is accepted by the government, it is binding to both the successful
tenderer and the government.

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Type of tender requests
Tender requests can come in many forms and include the following:
Ø Approach to Market (ATM)
Ø Request for Tender (RFT)
Ø Invitation to Offer (ITO)
Ø Request for Proposals (RFP)
Ø Request for Quote (RFQ)
Ø Invitation to Respond (ITR)

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What is the Difference?
qAll these requests share similar characteristics even though the names are different.

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What is Included?
qThey generally will include details of the buyer’s requirements. They will request
evidence about the supplier’s capability, experience and capacity to do the job.
qThey will typically request a fixed price or schedule of rates. More than one supplier will
be invited to tender.

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qThere will always be a firm cut off time and date for responding to the tender.
qThere will be a pre-determined criteria the responses are evaluated on. A contract will
then be awarded to the successful supplier.

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Tenders in Contract Law
qIf you make a bid via a tender and that offer is successful and then accepted, you have a
legally enforceable contract as a result of that agreement.
qThe tender is not a contract in itself but will result in a contract when it is accepted. The
submitted tender response forms part of the contract.
qSo does the tender request and all other communication and documentation between
you and the buyer.

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Can a Professional Tender Writer help?
qYes, a professional tender writer understands the tendering process and can help you
navigate it.
qRed Tape Busters has a team of tender writers Australia wide, ready to help. Tender
writer Vic to Tender Writer Sydney, tender writer Melbourne to tender writer WA, Red
Tape Busters have all your tender writing needs covered

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Tape Busters or check us out on YouTube just search for Red Tape Busters.

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