What Is Open Tendering?

Open tendering is a bidding process that is open to all qualified bidders. Often called competitive bidding, open tendering promotes competitive bids from all interested bidders. The bid process is advertised with specific criteria and qualifications noted, and the lowest bidder is accepted without the need for negotiations.

Open tendering is often used for simple goods and services. The selection procedure is clearly defined, and an invitation to bid is advertised. Once bids are received, bids that do not meet the criteria are removed from consideration. More complex goods and services generally require negotiation and are not suitable for open tendering.