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November 3, 2020

Everything you need to know about calls for tender

Tendering can seem very complex and time-consuming, so it’s understandable that some businesses prefer to avoid tendering for public sector jobs. If you have a company in Canada and think this may apply to you, then read this article as tenders can be incredibly useful for your business.

What does “call to tender” mean?

An invitation to bid on a project or accept a formal offer, such as a takeover bid, is known as a tender. 

Tendering is the mechanism by which governments, such as the government of Canada, and financial institutions request bids for major projects that must be completed within a defined time frame.

The term also applies to the mechanism by which shareholders respond to a takeover offer by sending their shares or securities.

How does a tender work?

Most government institutions have a well-defined tender process for projects or procurements, as well as processes to control the opening, assessment, and final selection of vendors. This guarantees a fair and open selection process. 

When it comes to tender offers for takeovers, the terms of the bid are clearly defined, including the purchase price, the number of shares required, and a response deadline.

Bribery and nepotism can thrive in the absence of laws. Potential bidders may use tender services to find a variety of tenders from both the private sector and public sources. Crafting appropriate bids, organizing the process to ensure deadlines are met, and ensuring compliance with relevant laws are all part of these services.

Main types of tender

Competitive tenders have been on the rise and have been an everyday occurrence for contractors since the early 2000s. Tenders have accumulated over time, making it difficult to sort through the inconsistencies and advantages of the different forms. The following are different tenders you can encounter:


This is the most common form of tender since it helps all parties: it allows the client to narrow down a shortlist of eligible applicants, making the second stage simpler. It also provides tenderers with earlier input, so that if they were successful, they can build on that and plan for the main tender, and if they were not, they will not have to wait until the end of a lengthy process to find out.

All bidders are welcome to participate, but after expressing an interest, they must first pass a pre-qualification review (more on that later) before being invited to tender. During the restricted tender process, no negotiations are permitted.


This is often used by both private and public sector customers, and it allows any company to request a tender – most often involving the submission of a pre-qualification questionnaire (PQQ) and a more comprehensive tender response at the same time.

The principle behind open tendering is that everyone has an equal chance, and prices will likely be kept down as parties fight for the best deal. However, as previously mentioned, the timeframes for reviewing and awarding these types of tenders are often much longer, and the chances of winning can be hindered by the sheer number of applicants – especially for public sector tenders.


The client can invite a contractor to participate in these tenders based on their unique project experience or an established partnership and previous project performance. This bypasses the pre-qualification requirements and guides you to the main tender; however, if your business is new and still developing itself, you can miss out on selection.


These employ a unique selection method and are suitable for securing long-term job supplies. The framework tender is used by the client or developer to select a group of trustworthy contractors for whom they will work for a defined period, with the possibility of an extension if the relationship is successful.

Individual projects tendered within the system are then competed for by the selected contractors. Since the client is already familiar with the contractor's qualifications, framework project tenders are frequently condensed into smaller documents with a fast turnaround.

Other types of tender opportunities

CFT… RFT … ITT … So many business acronyms! It may seem overwhelming, especially if you are a small, or new business but don’t worry we’re here to clarify everything. 

Request for tender (RFT)

RFTs are often shared online by companies, both public and private, either on their own websites or on third-party channels that suppliers are aware of. Potential bidders search these forums on a regular basis for new requests and respond to those that pique their interest.

There are typically guidelines dictating how RFTs should be formatted and how responses should be assessed in the public sector, where they are most common. These rules generally demand, among other things, impartiality, transparency, and strict adherence to evaluation criteria.

Invitation to tender (ITT)

An invitation to tender (ITT) is the first step in competitive tendering, in which manufacturers and contractors are invited to request bids for supply or service contracts.Tender invites are often referred to as calls for bids or tenders.

An ITT document outlines the organization's criteria, including products, facilities, and deadlines, as well as the assessment process to be followed. Invitations to tender are often used by public sector organizations, which are required by law in many countries to offer contracts for a product and service contracts.

Any vendor who can provide a guarantee of performance can bid in an open invitation to tender. Vendors in closed ITTs may have been pre-selected, screened, or qualified based on an expression of interest, resulting in a shortlist of eligible applicants. Proposals to a tender are often submitted in a double-envelope scheme, with separate technological and economical envelopes issued for the inviting firm's individual evaluation.

How to bid for a tender?

If a company wishes to bid on a tender, they may request the procurement documents from the appropriate authority or the client directly. Information on the technical knowledge and skills needed should be included. 

They should also provide an indication of the client's expectations and the services that are needed. In most cases, bids will contain details about the application process and deadlines.

Tender Criteria

All participants in a procure service must meet the following government criteria:

  • They must possess the requisite specialist expertise or skill set, and proof in the form of previous work contracts or registration certificates may be required.
  • By supplementing a list of staff and financial capital, the company must show its organizational or efficiency potential.
  • By submitting certificates of conduct and evidence of prompt tax payments, a corporation will demonstrate its responsibility and dependability.

What information should you include in a tender?

When drafting a tender, it’s important to reflect on the client's needs and how the business will better satisfy their requirements. When composing a tender, bear the following points in mind:

  • Capabilities. How does the business cater to the client's requirements? Rely on your expert skills and expertise to propose solutions to the mentioned problems.
  • Credentials. Be sure to provide this information if a client has requested certification documents.
  • Worth. Discuss the proposed fees and how the business offers good value. A contract is not always awarded to the lowest bidder. Contractors are frequently selected based on what they can bring to the table.
  • Supplies. Demonstrate that you have the tools needed to complete the project. Staff, equipment, and tools/machinery are all included. You should highlight the team's strengths and clarify why they are the perfect choice for the project.

Where do I find calls for tenders?

Aloha Tenders alerts you to all applicable public tenders for your company, enabling you to take advantage of any opportunity.

What makes Aloha Tenders so great? To answer simply, it’s the numerous benefits and functions that it offers:

  • Access to the public markets of Quebec, Ontario, and Canada
    We make it easy for you to access the public tenders of the most relevant Canadian and American prime contractors. You haven’t been able to locate the one you're searching for? Contact us!
  • Artificial intelligence.
    This is where our key expertise comes into play: our efficient algorithms are continually refining the precision of your research so that the best opportunities can be prioritized!
  • Simple to use and centralized
    You will save time by navigating in a centralized and intuitive tool thanks to our platform. You'll pick a set of keywords, and we'll configure the platform to give you only the most relevant results. It is now incredibly simple to find the best opportunities!
  • Emails with regular rundowns
    You will receive a regular email overview of tenders related to your company, in addition to an elegant and productive platform.

If you’re interested in Aloha Tenders to optimize your opportunities, then feel free to contact us or click here to begin your free trial!