What is a tender document?

What is a tender document?

When businesses or public sector organisations need to procure goods, services or works, they often invite suppliers to bid for the contract through a process known as tendering. At the heart of this process is the tender document — a vital component that outlines the buyer’s requirements and sets out the rules of engagement for prospective suppliers. Whether you are a business owner looking to secure new contracts or an organisation preparing to issue a tender, understanding what a tender document is and how it works is key to a successful procurement process.

Purpose of a tender document

The primary function of a tender document is to provide potential suppliers with all the information they need to submit an informed and competitive bid. It ensures transparency, fairness and consistency in the procurement process, particularly in public sector tenders where strict compliance with legal standards is essential.

Tender documents are designed to:

• Clearly describe the goods, services or works required
• Set out the terms and conditions of the contract
• Define the evaluation criteria and scoring methodology
• Outline the timescales and submission requirements
• Ensure compliance with legal and regulatory frameworks

By providing a standardised approach, the tender document enables suppliers to prepare bids that are not only competitive but also aligned with the buyer’s strategic, technical and commercial expectations.

What is typically included in a tender document?

A well-prepared tender document contains several essential sections, each designed to give suppliers the information they need to make a fully informed response. These may include:

Instructions to tenderers

This section outlines the procedural aspects of the tendering process, such as how to submit a bid, the deadline for submissions, clarification procedures and contact details for queries. It also includes information on mandatory requirements and potential grounds for disqualification.

Specification or scope of work

Here, the buyer describes in detail the services, goods or construction works they require. This section should include technical specifications, standards to be met, and any relevant performance indicators. The more precise this section is, the easier it is for suppliers to tailor their proposals appropriately.

Contract terms and conditions

The draft contract included in the tender document outlines the legal and commercial terms that will govern the relationship between the buyer and the successful supplier. Terms such as payment conditions, delivery timelines, warranties, indemnities and termination clauses are typically covered.

Evaluation criteria

This section details how the submitted bids will be assessed, often based on a combination of price and quality. It may include weighted scoring, qualitative assessments, and any pass/fail criteria. Understanding this section is vital for suppliers seeking to optimise their proposals.

Submission requirements and formats

Buyers often specify how the tender response should be formatted and what information must be included. Standard formats help ensure that submissions are consistent and easy to evaluate. Common requirements include a completed questionnaire, pricing tables, method statements and supporting documentation.

Types of tender documents

The exact structure and complexity of a tender document can vary depending on the value and nature of the procurement. The most common types include:

Invitation to tender (ITT)

This is a comprehensive document used in open or restricted procedures where suppliers are formally invited to submit a full proposal. ITTs are commonly used in the public sector and often include extensive technical and contractual documentation.

Request for proposal (RFP)

An RFP is typically used where the buyer is looking for a solution to a problem rather than prescribing a specific product or service. It allows for more creativity in supplier responses and is commonly used in the technology and consultancy sectors.

Request for quotation (RFQ)

RFQs are usually used for lower-value procurements where the specification is well defined and the primary focus is on price comparison. These documents are shorter and less complex than ITTs or RFPs.

Pre-qualification questionnaire (PQQ)

In larger tender exercises, especially in the public sector, PQQs may be issued in the early stages to assess the suitability of suppliers before issuing a full tender document. Questions will typically cover financial standing, technical capacity and compliance with legal obligations.