10/6/23, 7:01 PM Quotation vs Tender

Quotation vs Tender
Published : 8/08/2022

Very often the tendering jargon Quotation and

Tender are mixed up by almost everyone trying to
understand the basics of Tendering. Let’s begin
with understanding their definitions and then
moving to their difference.

Definition of Quotation
The quotation may be understood as a formal
document of promise, given by the prospective
supplier, to supply the stated goods or services
needed by the buyer at a given decided price
under specific conditions. It mainly includes
terms of sale, payment and warranty (which
includes the price decided to charge for the
product or service) date, time and place of
delivery, and validity period of quotation.

Additionally, a quotation aids the buyer to know

the cost of goods or services in advance, before
making a purchase. In order to obtain the
quotations (i.e. price for the required material),
generally, tenders are floated by the government
enterprises.

Definition of Tender
A tender is simply a response to an invitation to
provide a product or service at a quoted price and
assuring quality standards delivery.

An invitation to tender is floated by the

government undertaking, financial institution or a
big corporation for a variety of projects when
they want to purchase goods or services on a

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10/6/23, 7:01 PM Quotation vs Tender

large scale. When corporates cannot fulfil the

requirements on their own they resort to hiring
services from other organizations, making the
project a Joint Venture or making them a
Consortium partner. Hence, for this reason, third-
party suppliers are invited to bid and submit
tenders along with the parent supplier.

The tendering process commences with the buy

preparing a detailed tender document which is
then sent to prospective suppliers, to solicit
information, and finally then to select a supplier
on the basis of price, delivery terms and
availability. The sellers who are interested in the
request for proposal can respond to the request,
within the deadline specified, by submitting their
best offer in sealed covers, with the appropriate
authority.

Essentially, a tender is like a competition for a

contract, where various prospective suppliers are
requested to submit tenders, containing the price
and quality of the material required. The
invitation is published in a vernacular newspaper
of the concerned state or country, as it is a
mandatory requirement, to maintain transparency
in their operations. To avoid the hassle of going
through various media to source the right tender,
TenderTiger (https://www.tendertiger.com/) gives
you access to 2000+ million tenders worldwide,
ranging from various sectors.

Quotation vs Tender: A differentiation table for

more concept clarity:

The key differences between quotation and

tender are discussed in the points given below:

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10/6/23, 7:01 PM Quotation vs Tender

1. The quotation is a fixed price offer, which once

accepted by the customer, cannot be modified or
changed. On the other extreme, the tender is a
response to the invitation to tender, which is
used to find out the best value for money, from
the prospective suppliers.

2. Both quotations and tenders are offers. A

quotation is a response to a Request for
Quotation (RFQ), whereas tender is used in
response to a Request for Tender (RFT).

3. The only major element of the quotation is the

price which explains the cost of the contract,
submitted by the supplier. Against, the tender has
two main elements, price and quality standards
wherein price determines the best price offered
by the supplier, which is compared with the other
suppliers and quality determines the supplier's
potential to deliver the goods specified.

4. The scope of tender is wider in comparison to

tender , as the quotation is a part of the tender,
which contains prices for material to be supplied.

Conclusion:
Some people also get confused between Request
for Information (RFI), and Request for Proposal
(RFP) which are often used tender terms you must
get clarity on. Here is another article to help you
clear the Difference between RFI, RFP, RFT and
RFQ in the tender process.
(http://www.tendertigernew.com/Blog/Difference-
Between-RFI-RFP-RFT-RFQ.html) Government
agencies or the procurer of various goods or
services opt for the tenders or quotations, that
meet their specific needs, in the best manner
mainly aimed at providing optimal value for
money spent. In order to maintain transparency,
fairness and openness in the operations of the
government, tenders are floated by public bodies
and corporations.

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