Call for bids

A call for bids, call for tenders, invitation to tender (ITT, often called tender for short), invitation for bid (IfB) or invitation to bid (ItB) or notice inviting tenders (NIT, a term often used in purchasing in India) 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).Open tenders, open calls for tenders, or advertised tenders are open to all vendors or contractors who can guarantee performance.Dictionaries explain the etymology as coming from Old French tendre, which means 'to offer'.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 statement of work) from the financing or cost proposal in the form of two separate and sealed envelopes.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.Registered contractors are usually required to furnish a bond for a stipulated sum as security or earnest money deposit to be adjusted against work done, normally in the form of bank guarantee or surety.Public sector organisations 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 e-procurement are also increasingly prevalent.A typical invitation to tender template in any project has the following sections: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 'negotiation' phase.