What is the difference between "Bid, Tender, Offer, and Proposal" ?

A
ahmed samir 👤 Member for 10 years 3 months

As mentioned in topic subject, What is the difference between "Bid, Tender, Offer, and Proposal" ?

Z
Zoltan Palffy 👤 Member for 16 years 11 months

to me the bid is the price that you are will to pay based on the proposal document provided. A bid is usually a competitive process with many parties hoping to win the project. 

an offer is also the price that a company is willing to pay to perfrom the work this may or may not be competitive.

a tender is bascially the same as a bid. 

there is usually a specific deadline associated with all of these

S
Santosh Bhat 👤 Member for 21 years 2 months

There isn't really much difference, as they are all suggesting that the proejct is still in a early stage of its lifecycle, when the scope, cost and time are still being developed. 

The first two terms "Bid" and "tender" might suggest a competitive stage where other parties are also preparing their bids/tenders, while "Offer" and "Proposal" *might* suggest some form of negotiated agreement rather than competitive.

But in practice, all the above terms are probably mixed up but serve the same purpose.

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