The system of tendering is commonly used by public and private sector enterprises to invite bids from suppliers and contractors for the completion of certain projects. These are usually large scale projects involving a large sum of investment and are required to be completed within a finite deadline. In most cases tenders are announced on a public platform in order to make the potential contractors aware of the requirement of the relevant product or service.
Most government contracts are awarded through the tendering process due to the high efficiency and transparency of this process. Government offices, agencies and departments follow a well-defined tendering process for the opening of tenders, their evaluation and final selection of contractors. This structured system enables organizations to identify the most qualified and efficient bidders for the relevant project, while eliminating the ones not fit for the contract.
Here are some of the key reasons why govt tenders are commonly used for the completion of various public works projects:
- Government organizations have to operate under certain stringent legislative regulations, and all the projects issued by them have to meet the same conditions as well. In order to ensure that all relevant polices are observed while completing a government project, strict supervision is required. The meticulous and structured procedure of tendering provides assurance of the fact that government projects are completed under the prescribed framework, and meet the relevant regulations of the government organization.
- Majority of the funds invested in a government project comes from the public and hence it must be ensured that it is being used constructively. The tendering system leaves a proper audit trail and hence there is substantial evidence of how the taxpayers’ money is being utilized to complete a project. Through this audit trail any financial discrepancies can be identified immediately.
- A pool of contractors bid for a single project in case of tendering. Hence, in order to gain an edge over their competitors, contractors tend to offer superior quality of products at the most cost effective pricing. They may even offer attractive incentives in the form of added innovations, price reductions and value adds. Since, the tendering system encourages suppliers to add more innovations and advanced features to their products, the government organization issuing the tender can enjoy the benefits of securing the best possible deal.
Information about the latest govt tenders issued can be found on online portals providing reliable and up-to-date tender specifications and details.
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