Compulsory tendering
Compulsory tendering is the process of requiring potential suppliers to submit competitive quotes in order to be considered for a contract. It is a common practice in the public and private sectors, as governments and businesses strive to ensure that purchasers receive the best value for money and suppliers receive a fair and transparent process. The aim of compulsory tendering is to obtain the best quality products and services at the lowest cost.
Compulsory tendering is typically used in the public sector when procuring goods and services such as construction and building services, consultancy, printing and IT. The tender process attracts a wide range of potential suppliers, enabling buyers to identify who offers the best value for money. This is done by evaluating each tender against predetermined criteria, such as cost, quality, track record and legal and financial stability.
The tender process can be complex and time-consuming, and should always be completed with the assistance of a qualified procurement professional. They should ensure that tender processes are fair and transparent, and that the procurement process meets all legal requirements.
When issuing a tender, the buyer must clearly state their requirements and all the criteria that bidders must meet. The potential bidders are then invited to submit a quotation or tender, which is typically supported by a detailed submission outlining how their services meet the buyers needs. The buyer will then assess all the tenders for suitability, cost and viability. If the process is carried out correctly and fairly, it can save the buyer time and money, and lead to better quality product or service.
Compulsory tendering is also a useful tool to identify potential suppliers who may have previously been overlooked. By ensuring that all potential suppliers are given the opportunity to submit a tender, the buyer is more likely to find the best solution for their needs. It can also increase the buyer’s negotiating power, as they can compare prices and get better deals.
In conclusion, compulsory tendering is a useful and effective procurement method used by public and private sector buyers. It enables buyers to obtain the best quality products and services at the lowest cost, while ensuring the process is fair and transparent.
