What is the difference between Tender and Quotation?
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Tender vs Quotation :
Here, I will be discussing the definition of tender and quotation and the differences inbetween them.
Definition of quotation :
The quotation is one of the documents which sets the estimated cost for supplying goods and services.
Definition of Tender :
A process of soliciting suppliers to bid on the goods and services needed by the buyer is called a tender.
Important differences between tender and quotation are given below;
Tender have earnest money deposit. It is 1% of the total project cost. EDM is required to fill tender
Where in quotations not have any EMD. It is free of cost, and the quotation is not protected by law.
For small work we use quotation, and for large work we use tender
Quotations are requested where the value of goods and/or services is less than $150,000. Tenders, as a rule are called for contracts in excess of $150,000. Every business has to give its customers prices for its products or services.
While Tender is the large document which contains all specific and general terms and conditions (it is more like a contract wherein it has clauses and sections).
Quotation is a part of the tender and it just includes the statement which sets the prices for a particular work for which the tender is called for.
The Tender is called by the Gov/Organisation/Company for some work whereas Quotation is estimated cost which will be incurred, submitted by the bidder to these institutions which call the tender