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Anatomy of a tender: what each section means and what to watch
A typical public tender package walked through section by section, from the cover page to the draft contract, with what each part means and what to check.
In short
Most public tender packages have the same parts: a cover page with dates, instructions to bidders, the scope or specifications, the evaluation method, forms to fill in, and a draft contract. Read the dates and mandatory requirements first, then the scope and how bids are scored, then the contract terms that change your cost or risk.
A tender can run to 40 pages or 400, but most follow the same plan. Once you know the parts, you can find what matters in minutes. This walk-through uses a typical municipal service tender; the names of sections change from buyer to buyer, but the jobs they do don't.
- 1Budget and plan
- 2Posted
- 3Questions and addenda
- 4Closes
- 5Evaluated
- 6Awarded
- 7Contract term
- 8Back out to tender
1. Cover page and key dates
The title, the reference number, the buyer, and the dates: when questions close, when the site meeting is, and when bids close, to the minute. Write these down first.
2. Instructions to bidders
How the competition runs: how to ask questions, how addenda are issued, how and where to submit, how long your price must stay open, and what makes a bid non-compliant. This section often contains the mandatory requirements, such as a site meeting, a licence, insurance or bid security. Make a list of every "must" and "shall".
3. Scope of work or specifications
What the buyer wants done. For services, a description of tasks, frequencies, sites and standards. For construction, drawings and specifications. Look for:
- Quantities and frequencies you'll price against.
- Service standards, such as response times.
- What's not included, and who does it.
- Site conditions that will change your method.
4. Evaluation
How bids are judged. Lowest compliant price, or points for criteria such as experience, approach, team and price. If points, the weights tell you where to put your effort. See how public bids are scored.
5. Forms
The price form, declarations, references, sub-contractor lists, acknowledgements of addenda and anything else to sign. Fill in every line. A blank line can make a bid non-compliant.
6. Draft contract and general conditions
The contract you'll sign if you win. It's easy to skip and expensive to ignore. Skim for:
| Term | Why it matters |
|---|---|
| Term and extensions | How long your prices must hold |
| Price adjustment | Whether wages or fuel can be passed on |
| Payment terms | How fast you get paid, and holdback |
| Insurance | Limits and who must be named |
| Termination | Whether the buyer can end it early, and on what notice |
| Liquidated damages or penalties | What a missed deadline costs |
| Prime contractor | Whether you'll be responsible for site safety |
7. Appendices
Site maps, past quantities, hazardous materials reports, buyer policies. Hidden here are often the details that change your price, such as a site list with more locations than the scope implied.
How should I read it?
Once, quickly, to decide whether to bid. Then again slowly, with a highlighter, building your list of mandatories, questions and pricing notes. Then a third time before you submit, against your bid. See bid or no bid for deciding, and how to read a tender for the step-by-step.
Where to go next
Read tender words in plain English when a term is new, and questions and addenda for what to do when something's unclear.
What to do next
Sources
Rules and forms change. Check the official page before you rely on a detail here.