What Are Bids and Tenders?

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Tenders and bids show up all the time in public procurement, especially in the EU, and they’re basically the backbone of how public organisations buy things. People mix the words up a lot, which is understandable, because they’re part of the same process. But they actually mean two different things, and once you understand the split, the whole system makes more sense.

What Is a Tender?

A tender is something the buyer puts out. Think of governments, cities, hospitals, universities, or any public authority that has to follow a strict set of procurement rules. When they publish a tender, they’re basically saying:

  • here’s what we need
  • here’s the process
  • here’s how we’re going to choose someone

A tender usually includes the scope of work, eligibility rules, contract terms, scoring criteria, and a long list of instructions on how to submit your response. Some tenders are short and straightforward. Others feel endless, with pages of annexes and technical details. But the idea is always the same. The buyer lays out exactly what they want, and everyone has to play by the same rules.

What Is a Bid?

A bid is the supplier’s answer to that tender. It’s the full package you send back to show you can do the job. This usually includes:

  • how you plan to deliver the work
  • your pricing
  • your experience
  • your compliance documents
  • case studies and examples
  • who will be on the team
  • how you’ll manage risks
  • anything else the tender specifically asks for

The tender gives the structure, and the bid is you filling in all the blanks.

In the simplest terms: the authority puts out the tender, and suppliers compete by submitting bids.

How They Fit Together

Best Practices: What Makes a Winning Response?
Source: Semrush

Even though they’re different, tenders and bids depend on each other. The tender exists so the buyer can explain what they need in a clear, standardised way. The bid exists so you can show you meet those needs.

In the EU, this comes with a lot of rules. You usually have to:

  • submit the ESPD
  • follow formatting rules
  • attach documents in the right order
  • meet financial and technical thresholds
  • answer every question exactly as written

Even small mistakes can cause problems. Missing attachments, wrong file names, missing signatures, or not following the structure can get a bid rejected without anyone even reading the rest. That’s why bid work takes patience and a good internal workflow.

Why Knowing the Difference Helps

Once you understand what a tender is and what a bid is, the whole process becomes easier to follow. One is the official request. The other is your response. One sets the rules. The other tries to win within those rules.

When teams mix them up, they end up confused. When they understand the difference, the rest of procurement finally starts to click.

Bid Process Explained: Writing Winning Tenders

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What Are Bids and Tenders?

Not really. A tender comes from the buyer and lays out what they need. A bid comes from the supplier and explains how they plan to deliver it. They work together, but they are not the same.

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