What is a tender?
A tender is a formal offer that a supplier submits in response to an invitation to bid for a contract. The word also describes the process: tendering is the competitive procedure by which a buyer invites, receives and evaluates offers, then awards the contract to the best one. In UK public procurement, tendering is designed to be fair, transparent and to deliver value for money.
Tender, explained
A tender is the formal bid a supplier puts forward when asked to compete for a contract. It sets out how the supplier would meet the buyer's requirement and at what price, in response to the buyer's specification and terms. The same word is used for the wider process, so a buyer is said to "put a contract out to tender" when it opens a competition and asks suppliers to submit their offers.
The tendering process usually runs through several steps. The buyer defines and advertises the requirement, may assess suppliers' suitability at a selection stage, then issues an Invitation to Tender asking for full proposals. Suppliers prepare and submit their tenders by a deadline, the buyer evaluates them against published award criteria, and the contract is awarded to the winning bidder, after which any required standstill period applies before the contract is signed.
In UK public procurement, tendering is governed by rules designed to ensure fairness, transparency, equal treatment and value for money, now framed by the Procurement Act 2023, which came into force on 24 February 2025. Contracts are typically awarded on a combination of quality and price rather than price alone, and the process is documented so that decisions are transparent and can be justified if challenged.
Key things to know
A formal offer
A tender is the formal bid a supplier submits in response to an invitation to compete for a contract.
Also a process
Tendering describes the competitive procedure of inviting, receiving, evaluating and awarding offers.
Follows a specification
Suppliers tender against the buyer's published specification, terms and instructions.
Evaluated on quality and price
Public tenders are typically awarded on a combination of quality and price, not price alone.
Governed by rules
UK public tendering follows rules for fairness, transparency and value for money, now under the Procurement Act 2023.
Ends in an award
The contract is awarded to the winning bid, with a standstill period applying before signing where required.
Explore: What is an ITT?, What is an RFQ?, What is MEAT criteria?, Tender management software.
How eSourcingData helps
eSourcingData helps UK buyers run the whole tendering process in one place, from advertising to award, aligned to PA23.
End-to-end tendering
Advertise, invite, receive and evaluate tenders through a single, structured workflow.
Fair and transparent
Score bids against published criteria with a clear, defensible audit trail.
PA23-aligned
Reflect the new regime's procedures, award basis and standstill requirements.
Hands-on support
Our procurement team helps you design a proportionate, compliant tender for your requirement.
FAQs
What is a tender?
A tender is a formal offer that a supplier submits in response to an invitation to bid for a contract, and the word also describes the competitive process by which a buyer invites, receives and evaluates offers, then awards the contract to the best one. In UK public procurement, tendering is designed to be fair, transparent and to deliver value for money.
What is the difference between a tender and an ITT?
A tender is the supplier's formal bid, and tendering is the overall process. An Invitation to Tender (ITT) is the document the buyer issues to ask selected suppliers to submit those tenders against a published specification.
What are the main stages of a tendering process?
A typical process involves defining and advertising the requirement, an optional selection stage, issuing an Invitation to Tender, receiving and evaluating tenders against published criteria, and awarding the contract, with a standstill period before signing where required.
How are tenders evaluated?
Public tenders are usually evaluated against published award criteria on a combination of quality and price, each weighted, so the bid with the highest overall score wins rather than simply the cheapest.
What is the difference between a tender and an RFQ?
A tender usually involves a fuller proposal evaluated on quality and price, whereas a Request for Quotation is a quicker, price-led competition against an already-defined specification, suited to more straightforward purchases.
Run better tenders end to end
See how eSourcingData helps UK buyers run compliant tenders under PA23. Book a demo or request a pilot.