The proposal offered by a company which is requested to get good responses from the suppliers to meet the companys requirements is called a tender. Tenders are used in the procurement field as it includes many legal acts with it additional to uncommon business laws. While accepting or forwarding a tenders proposal one must abide all business laws. Public tenders and business tenders are two well known tenders.

Tenders are broadly divided to three categories namely work, supply and service tenders. Tendering techniques are of four types namely limited, open, single and verbal tendering.

Limited tendering involves offering tenders to a limited number of shareholders. Open tendering offers tender to any supplier who can request for materials to meet their requirements. Single tendering is sending the tenders to a particular shareholder; this is generally done to supplier who exists solely for an item, or in the case of the purchaser who has built up confidence over a single individual. Verbal tendering is used for emergency situations as there is hardly enough time to wait for quoting of the supplier. This is usually done by conversation over the telephone.

The tenders notice usually provides the following information.

1. Type of Item and enquiry for work.
2. Name and Address of the Tender Authority.
3. The Tender Enquiry reference Number, Date.
4. The cost and the last date for collection of Bid Document.
5. Earnest Money Deposit which is refunded to unsuccessful Tenders.
6. Due Date and time for submission of Tender papers.
7. Estimated cost of Item and work mentioned in selected Tenders.
8. Any other Instructions or Information.

Tenders are advertised mainly through online and offline mode. One can acquire access to tenders through magazines, newspapers, online bulletins and business forums. Tenders can also be tracked from the details available from websites through online mode. Around the world, tenders are the best online process to handle out all local and global business needs.

Collection of tender documents has to be done by the interested organizations through payment or non-payment depending on the tender offers. Submission of offers involves submitting of quotation with other documents as stipulated by the tender authority.

Tenders role in corporate world

There arises a situation to the companies where a takeover will be the last hope for survival of its existence regardless of companys likings to admit to the takeover. Usually, a bigger company undergoes hostile takeover of smaller company to gain its access. This takeover is generally started with tender offers. Tender offer is approached to every share holder to buy them out of stock shares of the company.

These transactions of buying and selling are improvised with the help of the internet. Each share holder receives the tender offer with a particular due date for their responses. There arises competition as there will be many offers available to share holders from different companies. The higher percentage of trafficking shareholders to your company is by making the best of offers compared to your competitors.