Tender Writing- Understanding the process

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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 q A tender is best described as a formal offer put forward to perform work in return for an agreed payment, via a schedule of rates. q This 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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q Buyers are the people looking for tender responses from businesses who can do the required work. q They 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 q Buyers will seek responses for tenders from numerous suppliers which creates a competitive process. q Buyers will evaluate and then accept the tender response they believe best meets their needs as well as offering the best value for money. q The tender with the lowest price will not necessarily be the winning bid.

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q Each tender is regulated by its own conditions and rules which are referred to as the Conditions of Tender. q When councils or government ‘put out a tender’, the government is asking for offers to do required work on a contract basis. q Once 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) PAGE 7

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

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What is Included? q They 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. q They will typically request a fixed price or schedule of rates. More than one supplier will be invited to tender.

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q There will always be a firm cut off time and date for responding to the tender. q There 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 q If 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. q The 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. q So 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? q Yes, a professional tender writer understands the tendering process and can help you navigate it. q Red 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 P A G E 12

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