Chapter 3 Common types of tender processes

There are three common tender processes.

Request for tender (RFT)

This process is the most common. It is used when:

  • the scope of the required supply is known;
  • price is the most important selection criteria;
  • documentation and contract conditions have been finalised; and little or no negotiation is required.

Request for proposal (RFP)

RFPs are more often used when there are elements of uncertainty to a project, this may include:

  • technology or procedures are new or being used in new applications;
  • documentation has been developed but not finalised;
  • the scope of the market is not fully known; or
  • a purchaser is looking for innovative options.

Negotiations usually take place with one or more proponents before a contract is entered into.

Request for an expression of interest (REOI)

This process is more often used when:

  • the scope or identity of the potential market is not known;
  • feasibility is still being tested;
  • a small number of better suppliers can be identified early to save the cost of assessing a lot of tenders;
  • documents have not been fully developed and market input is needed; or
  • there may be useful, but unknown, technologies in the market.

A short list of potential contractors are then invited to submit full tenders or proposals.