Most mid-sized vendors lose time on tenders because they answer in the wrong format. A request for quotation is answered with a price. A request for proposals is answered with a narrative, a methodology and a price. An open tender is usually the broadest of the three, but not always.
Request for quotation
Use this when the specification is complete and the buyer wants a price. The winning quotation is normally the lowest compliant price, subject to the authority reserving the right to reject non-responsive quotations. Price is the dominant factor, and the scope for negotiation is minimal.
Request for proposals
Use this when the problem needs a solution rather than an item. Evaluation usually weights technical quality more heavily, frequently on a quality-and-cost basis. You are judged on your understanding of the requirement, your methodology, your team and your schedule, with price considered alongside rather than in isolation.
Open tender
An open tender is a public competition where any eligible firm may submit. Within that family, evaluation may be lowest responsive bid or lowest evaluated bid, and a price adjustment for the life cycle of the goods or works may be applied. Read the evaluation criteria section rather than assuming lowest price wins.
- Lowest responsive bid: the lowest price among bids that meet every mandatory condition.
- Lowest evaluated bid: price adjusted for factors such as energy use, maintenance or delivery life.
- Quality and cost based selection: technical score and price score combined at a stated weight.
The bid that is technically excellent and commercially vague loses to the bid that is technically solid and priced precisely.
TendersBox tender desk
The one-line test
If the notice asks what you will do, it is a proposal. If it asks what it will cost, it is a quotation. If it asks for a competitive price against a stated specification, it is a tender. Answer in the format the method expects, using the templates supplied, and you will already have eliminated a large share of avoidable risk.
Hina Ashraf
Head of Tender Intelligence
Writes about procurement rules, tender notices and the practical realities of bidding in Pakistan, drawing on work with contractors and consulting firms.