A request for tender is essentially a method used by businesses to generate competitive offers from various suppliers or contractors on large projects. This process helps ensure transparency and fairness, as all bidding parties are given the same information and must follow the same guidelines. By doing this, a company can compare different bids on a like-for-like basis, making it easier to select the most suitable offer.

In the construction industry, getting the right contractor or supplier for your project is crucial, and that’s where a request for tender (RFT) comes into play. An RFT serves as a formal, organized invitation to potential suppliers, typically issued by a company looking to acquire a specific service or product. It’s the first step in the tender process, designed to attract offers from different vendors who can perform the work under specified conditions.

When to use a request for tender (RFT)

Deciding when to issue an RFT often depends on several factors:

• Project Size and Complexity: For large or complex projects, an RFT is ideal because it allows the buyer to assess multiple detailed aspects of each provider’s proposal.
• Requirement for Transparency: In public sector work or in industries where transparency in procurement processes is required by law, RFTs are a must.
• Need for Competitive Pricing: When a project’s budget is tight, and there’s a necessity to ensure that the company is getting the best value for money, an RFT can stimulate competition among providers, potentially driving down costs.

What to include in your request for tender (RFT)

Crafting an effective RFT is more than just asking for a quote; it involves providing detailed information so that the responses can be as relevant and accurate as possible. Here’s what to include:

• Project Overview: Start with a brief description of the project, including its scope, background, and objectives. This gives bidders a clear understanding of what is expected and the project’s context.
• Specifications: Detailed specifications of the goods or services required. This should include technical specifications, quality standards, quantities, timelines, and deliverables.
• Submission Guidelines: Clearly outline how to submit the tender, what formats are acceptable, and the deadline for submission. Specify any mandatory meetings or site visits.
• Evaluation Criteria: Outline the process by which the bids will be assessed. This might include price, compliance with specifications, delivery capabilities, and any value-added features or services.
• Terms and Conditions: Include payment terms, contract length, warranty and maintenance stipulations, and any penalties for non-compliance.
• Contact Information: Provide a point of contact for bidders to reach out if they have any questions or need clarification.

Using an request for tender effectively can make a significant difference in the success of your procurement process. It not only helps in obtaining the best possible bids but also ensures that all potential suppliers have a fair chance at winning the contract, ultimately leading to better project outcomes. By setting clear expectations and providing detailed information, you pave the way for smoother project execution.