difference between quotation and tender
Answers
A quotation is simply a statement setting out the estimated cost for a particular work, goods or service. The quotation maker isn't necessarily offering to provide them. It's simply an indication of the expected cost. You can accept or reject it, or not even respond at all.
We will send you a written quotation for the cost of repairing your machine.
Tender is a legal offer to supply or do something
A tender at the most general level is a formal offer to supply goods or services or perform work for a stated fixed price. As you can see, the quotation is part of the tender. In practice, you must accept or reject it, but you can't just walk away from it.
ABC Corporation has started inviting tenders for the work. Various engineering firms have been submitting tenders for it. ABC will decide by Friday which tenders it will reject and the remainder go on the shortlist for the next round of decision.
The tender is part of an overall process called tendering (also known as public procurement), which is a way that establishments governed by public law obtain their goods, services and work requirements. The establishment issues a request for tender (a structured invitation to vendors for the supply of goods or services). The vendors then submit tenders, which contain their formal price quotation as a formal offer to supply the goods or services.
Note the exception is "tender offer," which is a specialised term related to a proposed buyout of a publicly listed company.
Tender- The method of procuring goods and services for companies basically in public sector units . It is a document containing the terms and conditions of the offer made , the working nature and quality of work is mentioned in the document . The two parties involved are the suppliers and the company . Tendering is basically the interest shown by the bidders as they make offers in response to companies in form of advertisements .
WHEREAS
Quotation- It is a process that all of us make use of in our day to day lives . In general during work , we ask quotation from electricians , plumbers , insurance agents , before deciding in some favor of suppliers or contractors . It can be considered as a formal documentation submitted by the interested parties in response of the tender . A request for quotation has become a general practice in terms of business nowadays . The formal response of the bidders can also be termed as Quotation .