The main types of tender requests
| Request | What it is | When it is used |
|---|---|---|
| Request for tender (RFT) | A full invitation to tender with conditions, scope, returnables and evaluation criteria | Most larger contracts |
| Request for quote (RFQ) | A simpler request focused on price and basic compliance | Lower value or simple work |
| Expression of interest (EOI) | A first stage to show capability; a shortlist is then invited to tender | Large or complex work |
| Request for proposal (RFP) | The buyer describes the outcome and you propose the solution | Where the buyer wants ideas |
Buyers use the general term approach to market for any of these.
Who issues tenders in Australia
- The Australian Government, through AusTender. It publishes opportunities and contract notices valued at or above $10,000 (business.gov.au).
- State and territory governments, each through its own portal, such as NSW eTendering, Buying for Victoria and QTenders.
- Local councils, on their own websites or eProcurement portals.
- Private companies, such as head contractors and facility managers, often by direct invitation.
See where to find tenders in Australia for every portal.
When the Australian Government must tender
Australian Government entities follow the Commonwealth Procurement Rules, which aim for value for money. The current rules took effect on 17 November 2025 (Department of Finance).
| Rule | Threshold |
|---|---|
| Non construction procurement by non corporate Commonwealth entities | $125,000, up from $80,000 |
| Construction services | $7.5 million, including GST |
Above these thresholds, extra rules apply, including open tender unless an exemption applies. The 2025 changes also mean these entities only invite Australian businesses for non panel procurement below the threshold (Department of Finance). States, territories and councils set their own thresholds.
Open, select and panel tenders
- Open tender: advertised publicly; any supplier can respond.
- Select tender: only invited suppliers can respond.
- Panel: a buyer sets up a group of approved suppliers and orders from them without a full tender each time. Getting onto a panel is often a tender in itself.
What is in a tender pack
A tender pack usually holds the request, the conditions of tender, the specification or scope, returnable schedules, a pricing schedule, the draft contract and any addenda. Reading all of it is the first step in writing a tender response.
Why buyers use tenders
Public buyers must spend money fairly and be able to show it. A tender gives every supplier the same information, the same deadline and the same criteria, so the buyer can compare responses side by side and justify the choice. Private buyers such as head contractors use tenders for the same reason: comparable offers and a clear record of the decision.
What a tender is not
- Not a sales pitch. It answers the buyer's questions in the buyer's format.
- Not negotiable by default. Adding your own conditions can make a response non conforming.
- Not a guarantee of work. Panels and standing offers may lead to orders, or none at all.
Questions
Is a tender the same as a quote?
A quote is a price for work. A tender is a formal response to a buyer's request that usually includes a price plus evidence, forms and answers to scored criteria.
Do small businesses win government tenders?
Yes. In 2024 to 25, small businesses with fewer than 20 staff won 26,975 Australian Government contracts worth $5.9 billion (Department of Finance).
Is it free to tender?
Government tender portals are free to register on and download from. Your cost is the time to prepare the response.
What is the difference between a tender and a bid?
In Australia the words are mostly used the same way. Bid is common in private work and tender in government, but both mean a formal offer in answer to a buyer's request.
Who can submit a tender?
Any supplier that meets the conditions. Some tenders are limited to invited, registered or prequalified suppliers.