Tender glossary: 28 terms in plain English
A tender glossary explains the words Australian buyers use in tender documents. Each term below has a short plain English meaning, so you can read a request for tender, a request for quote or an expression of interest and know what the buyer is asking for before you start writing your response.
New to tendering? Start with what a tender is, then how tendering works and how to write a tender response. Watch for the knock outs in the conditions of tender.
- Tender
- A formal written offer to supply goods, services or works to a buyer, at a stated price and on the buyer's terms, in answer to the buyer's request.
- Request for tender (RFT)
- The buyer's invitation to submit a tender. It sets out what they want, the conditions, how to respond and how responses will be scored.
- Request for quote (RFQ)
- A simpler request, usually for lower value work, where price and basic compliance carry most of the weight.
- Expression of interest (EOI)
- A first stage that asks suppliers to show their capability. A shortlist is then invited to tender.
- Request for proposal (RFP)
- A request where the buyer describes the outcome and asks suppliers to propose how they would deliver it.
- Tender pack
- All the documents the buyer releases for one tender: the request, conditions, specification, returnable schedules, pricing schedule and any addenda.
- Conditions of tender
- The rules of the tender process: how and when to lodge, what makes a response non conforming, and how the buyer may evaluate and negotiate.
- Returnable schedules
- The forms the buyer wants filled in and sent back, such as company details, insurances, referees and the tender form itself.
- Returnables
- Everything the buyer asks you to return with your tender, including schedules, attachments, certificates and the price.
- Knock out
- A requirement that rules a tender out if it is not met, such as a mandatory site inspection, a minimum insurance level or lodging after the closing time.
- Mandatory requirement
- A must have. A response that does not meet it may be excluded before it is scored.
- Selection criteria
- The questions or topics a tender is scored on, for example methodology, experience, key personnel and price.
- Weighting
- The share of the total score given to each criterion, for example price 40% and non price criteria 60%.
- Methodology
- Your plan for how you will deliver the work: approach, resources, program, risks and quality controls.
- Addendum
- A change or clarification the buyer issues during the tender period. Most buyers ask you to acknowledge every addendum.
- Clarification question
- A question a supplier asks the buyer during the tender period, usually before a stated cut off date.
- Closing time
- The exact date and time responses must be lodged. Late responses are usually not considered.
- Lodge
- To submit your tender, usually by uploading it to the buyer's online portal before the closing time.
- Go or no go
- The decision whether to bid at all, based on fit, capacity, risk and your chance of winning.
- Value for money
- The core test in Australian Government procurement. It weighs price together with quality, risk, capability and whole of life cost.
- Panel
- A group of pre approved suppliers a buyer can order from without a full tender each time.
- Standing offer
- An arrangement to supply goods or services on agreed terms when the buyer asks, often set up through a panel.
- Statutory declaration
- A written statement declared to be true, signed in front of an authorised witness. Some tenders require one.
- Capability statement
- A short document showing who you are, what you do, your experience and your credentials.
- Non conforming tender
- A response that does not follow the conditions of tender. The buyer may set it aside or exclude it.
- Open tender
- A tender advertised publicly that any supplier can respond to.
- Select tender
- A tender where only invited suppliers can respond.
- Approach to market
- The general term for any request a buyer issues to suppliers, such as an RFT, RFQ or EOI.