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A '''call for bids''',<ref>Consular reports: Commerce, manufactures, etc, Issues 164-167. United States. Bureau of Foreign Commerce, United States. Dept. of Commerce and Labor G.P.O., 1894. </ref> '''call for tenders''',<ref>The Electrical Journal, Volume 58. 1907 </ref> '''invitation to tender''' <ref>Invitation to tender, information for bidders, contract, specifications, bond and contractors' proposal, Issue 1. Delaware Bridge Joint Commission of the States of Pennsylvania and New Jersey Enterprise Pub. Co., 1921</ref> ('''ITT''', often called '''tender''' for short), '''invitation for bid''' ('''IfB''') or '''invitation to bid''' ('''ItB''') <ref>{{cite web |url=http://www.pmhut.com/procurement-management-in-project-management-taking-out-a-contract |title=Procurement Management in Project Management - Taking Out a Contract |accessdate=2010-03-24 |last=Phillips |first=Joseph |coauthors= |date= |work= |website=PM Hut}}</ref> is a procedure for generating competing offers from different bidders looking to obtain an award of business activity in works, supply, or service contracts, often from companies who have been previously assessed for suitability by means of a supplier questionnaire or pre-qualification questionnaire (PQQ).


{{Authority control}}
A '''call for bids''' differs from a ] (RfP), in which case other reasons (] used, quality) might cause or allow choice of the second best offer. An RfP is a request for a price from a ] but the buyer would also expect suggestions and ideas on how the project work should be done. RfPs are thus focused on more than just pricing/], they entail a bit of consulting from the contractor or ].

==Types==
Open tenders, open calls for tenders, or advertised tenders are open to all vendors or contractors who can guarantee performance.

Restricted tenders, restricted calls for tenders, or invited tenders are only open to selected prequalified vendors or contractors. This may form part of a two-stage process, the first stage of which (as in the expression-of-interest (EOI) tender call)<ref>
{{cite book
| last1 = Urizar
| first1 = Mark
| title = The Project Manager's Checklist for Building Projects: Delivery Strategies & Processes
| url = https://books.google.com/books?id=EWmLAAAAQBAJ
| publisher = Xlibris Corporation
| publication-date = 2013
| page = 236
| isbn = 9781483662954
| accessdate = 2015-12-03
| quote = The Expression of Interest (EOI) tender call is to inform tenderers of the context of the project, nature of proposed appointment and submission requirements. The aim of the EOI process is to shortlist the contenders who may be suitable for the appointment.
}}
</ref><ref>
Compare:
{{cite book
| last1 = Herbst
| first1 = Douglas
| last2 = Edmondson
| first2 = Samuel A.
| chapter = Design-Build Procurement Approaches
| editor1-last = Shorney-Darby
| editor1-first = Holly
| title = Design-build for Water and Wastewater Projects
| url = https://books.google.com/books?id=kiUG3w0KGmkC
| publisher = American Water Works Association
| publication-date = 2012
| page = 73
| isbn = 9781583218181
| accessdate = 2015-12-03
| quote = An Expression of Interest (EOI) is a document that an owner can issue prior to the release of the RFQ or RFP. An EOI would request basic information about the design-builder, solicit comments on the requested project features, and ask for an EOI for the project from the practitioners.
}}</ref> produces a ] of suitable vendors.

The reasons for restricted tenders differ in scope and purpose. Restricted tenders can come about because:
* essentially only one suitable supplier of the services or product exists
* of confidentiality issues (such as in military contracts)
* of the need for expedience (as in emergency situations)
* of a need to weed out tenderers who do not have the financial or technical capabilities to fulfill the requirements

==Origin of the term==
Dictionaries explain the etymology as coming from ] ''tendre'', which means "to offer".

The following ]{{Citation needed|date=June 2014}} is sometimes heard:
* When merchant ships arrived at a ], they would post a notice describing the goods they wished to buy or sell. This notice was delivered ahead of the ship by a ]—a small boat—and hence the process became known as tendering.

==Double envelope system==
In an open bid or tender system, a double envelope system may be used. The double envelope system separates the technical proposal (based on and intended to meet the ]) from the financing or cost proposal in the form of two separate and sealed envelopes.

During the tender evaluation, the technical proposal would be opened and evaluated first followed by the financing proposal.

The objective of this system is to ensure a fair evaluation of the proposal. The technical proposal would be evaluated purely on its technical merits and its ability to meet the requirements set forth in the Invitation without being unduly skewed by the financial proposal.

==Tender box==
A tender box is a mailbox that is used to receive the physical tender or bid documents. When a tender or bid is being called, a tender or bid number is usually issued as a reference number for the tender box. The tender box would be open for interested parties to submit their proposals for the duration of the bid or tender.

Once the duration is over, the tender box is closed and sealed and can only be opened by either the tender or bid evaluation committee or a member of the procurement department with two witnesses.

==Security deposit==
Registered contractors are usually required to furnish a ] for a stipulated sum as security or earnest money deposit to be adjusted against work done, normally in the form of bank guarantee or ].

==Locating tender opportunities==
] in many countries are legally obliged to release tenders for works and services. In the majority of cases, these are listed on their websites and traditional print media. Electronic procurement and tendering systems or ] are also increasingly prevalent.

A number of companies provide subscription alert services which send notifications of relevant tender documents to the subscriber.

An array of private organisations also assist businesses in finding out about these tenders. Cost may vary from a few pounds a week to a few hundred.

Because of the specialised language and sometimes difficult-to-grasp procedures, some organizations{{Who|date=May 2014}} also offer companies tender writing training, or do the writing for them.{{citation needed|date=May 2014}}

==Typical template contents (in project management)==
A typical invitation to tender template in any project has the following sections:<ref>{{cite web |url=http://www.pmhut.com/project-management-invitation-to-tender |title=Invitation to tender |accessdate=2010-04-02 |author=Lasa Information Systems Team |publisher=PM Hut}}</ref>
* Introduction
* Project background
* Legal issues
* Maintaining issues
* Supplier response required
* Timetable for choosing a supplier
* Requirements

==Post-tender negotiation==
Post-tender negotiation involves negotiation between an intending buyer and seller after a seller's tender has been submitted. An initial stage may involve tender clarification, which is intended to eliminate any uncertainties or contradictory elements of a proposal, before moving into a true "]" phase.

The ] believes that "provided it is undertaken ], ... post tender negotiation is an appropriate process to secure ].<ref>CIPS, , accessed 4 June 2018</ref>

==See also==
* ]
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==References ==
{{Reflist|2}}

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