How long does the tendering process take?

Do you want to know what a tender is, where to look for participants for a deal, and how the bidding market works? In this article, we will tell you in detail about electronic trading, and also share with you some secrets of searching and participating in them.

How long does the tendering process take?

So what is tendering? A tender is a generalized concept of a large competitive purchase. A tender is a method of purchasing goods or services based on the principle of open competition.

The tender process undoubtedly has a lot of advantages. Before, conducting a tender correctly, commercial property owners and their team members must spend a lot of time. Each of the participants must understand what is a tendering process and how to work effectively in the market.

Having figured out what is tendering process, you should understand how to properly plan your time to get a decision in your favor. Indeed, with slow work to participate in the tender, the attractiveness of the financial return from the project decreases. That is why all bidders need to set clear deadlines.

So how long does tendered for delivery take?

Tendered to delivery service provider: how long does it take, examples of tender stages

As an example, consider the time owners give suppliers during the tender process. The analysis will be carried out on the example of procurement at three different stages:

1. Invitation to participate in the first tender. During this period, suppliers are allowed to apply for the first round of tenders. This option is provided by the owner. It measures the time from when the first bidder is invited to tender software until the first bid is returned through the platform.
2. First bid - last bid. All applications are analyzed to identify whether there are any questions or clarifications on the project. This period also includes the time when the first notice and the last corrected notice were received.
3. Award. This is the final stage when, after the last tenders, the tender is awarded to the supplier.

This time includes all the final negotiations on the project, the approval procedure, and the signing of the necessary documents for the official award of the tender to the supplier.

Calculation of tender time

• Invitation to participate in the first tender: this takes an average of 7-8 days. During this period, participants are invited and confirmed to participate in the tender.
• First application - last application: 4 days required. During this period, all applications for participation come and are processed.
• Award. It takes about a week for the owners to make a decision. Usually already on the eighth day tendering for work is awarded.

Are these deadlines mandatory?

It is important to understand that the figures considered are certainly not final and may vary depending on the size and complexity of the project. Usually, these indicators vary greatly in one direction or another.

For small and simple projects up to $100,000, the time is reduced to 5 days for an invitation, all proposals arrive in 3 days, and the award occurs within 5 days. But for larger projects, such as tendering for building work worth more than $1 million, the tender process takes at least 16 days.

What is the most popular day for tenders?

If you, after reading the questions, decided that it was Monday, then you did not guess a little. According to statistics, Friday is the most popular day for vendors to ask for tender returns. While the reason is not clear, either managers align tenders on weekends, or managers protect themselves from late submission of information by suppliers and give them additional days to ensure that all applications are submitted by Monday.

Conclusion

It is a properly conducted tendering process that is the key to the door to a reliable relationship between the owner and suppliers. If each of the participants understands what responsibilities, deadlines, and implementation plan are, then the project is very likely to start and go perfectly.