Tender Vs Quotation:
Tender : Tender is a very important way of procuring goods and services for a company, especially a public sector company. In fact, tender is a document that lays
down the terms and conditions of the offer; the work required to be done that in an acceptable quality is also spelt out in the document. The company is the buyer in this case and suppliers and contractors are the sellers as they provide their bids in sealed envelopes describing their offer price and the manner in which they propose to complete the work. Tendering is the interest shown by bidders as they make bids or offers in response to invitations set out by companies in the form of advertisements in newspapers. Companies do not necessarily go in for the least amount of a bid as they have to ensure that the work is completed within a time limit and to the satisfaction of the company.
Quotation Quotation can be considered as a formal document submitted by interested parties in response to an invitation called tender by companies. Quotations received by a company that has floated a tender allow it to come to a conclusion as to which of the bidders is the right party to supply the product or complete the work. A request for quotation has become a standard business practice whereby suppliers are invited to bid for products and services.
Quotation is a process that all of us make use of in our lives as when we have to get a work done at home or business premise by a professional. We ask for a quotation from insurance agents, plumbers, electricians, and even roofing experts before deciding in favor of a particular contractor or supplier.