What’s the Difference between a Quotation and a Tender?

We are sometimes asked what is the difference between submitting a quotation and a tender?

A tender works for businesses supplying goods or services to other businesses or the public sector.

Yes, you need to quote for the job. However just submitting, as I have seen done on a number of occasions, a standard quote, will not get you the job. Your submission will not be considered.

Formal tenders apply to bigger jobs or for supply contracts spread over time. Public-sector work in particular has specific tendering processes, such as your local government.

Those requesting a tender are not just looking at price, but also your capacity to deliver the service, your occupational health and safety management, your employment practices.

Even if you are not awarded the tender, the process can clarify your business aims, strengths and weaknesses – and clarify which documentation or insurances are missing from your business process.  It makes for a better business with clearer goals.  It raises your profile with the customer and the community.

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