Difference Wiki

Quotation vs. Tender: What's the Difference?

Edited by Sawaira Riaz || By Sumera Saeed || Updated on October 12, 2023
Quotation provides specific price for a specific job, while tender is a bid submitted by businesses to win a contract.

Key Differences

In the sphere of business transactions, a quotation embodies a seller’s statement of cost terms for a specific job or service. It delineates a detailed breakdown, offering insight into what a customer can expect in terms of cost for a particular job. Tender, on the other hand, is a structured proposal put forth by potential suppliers to buyers, which is primarily utilized in business-to-business transactions.
Sumera Saeed
Oct 12, 2023
Quotations, typically, are unsolicited and can be offered to any client or customer who is exploring options for a particular job or purchase. The tender process is generally initiated by the buyer, where an invitation is disseminated to suppliers to submit their bids under specified terms and conditions. It's more formal and follows specific procedures.
Sumera Saeed
Oct 12, 2023
In practical scenarios, quotations are customarily employed for smaller jobs, or in scenarios where the work specifics are well-understood by all parties. This is in contrast to tenders, which are typically oriented towards larger projects and contracts, often where there may be a higher level of complexity or variation in potential approaches.
Sumera Saeed
Oct 12, 2023
When it comes to the legal implications, quotations, once accepted, often become binding contracts unless otherwise specified. Tenders, given their formal and larger-scale nature, undergo a rigorous evaluation process, with contracts being awarded after detailed scrutiny and comparisons of all received bids.
Sumera Saeed
Oct 12, 2023
Essentially, quotations offer a snapshot into the potential financial scope of a job, providing a predefined cost and usually scope. Tenders, however, extend beyond cost implications to engage suppliers in a competitive process, which can influence contract awards not merely by cost but also capacity, capability, reputation, and adherence to compliance and quality.
Harlon Moss
Oct 12, 2023
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Comparison Chart

Nature

Generally informal and can be unsolicited.
Formal, often following specific procedures.
Sumera Saeed
Oct 12, 2023

Usage

Used for smaller, clearly-defined jobs.
Employed for larger projects and contracts.
Sumera Saeed
Oct 12, 2023

Origination

Can be given by a seller without request.
Usually initiated by a buyer’s request.
Sumera Saeed
Oct 12, 2023

Legal Implications

Can become binding once accepted.
Entails a detailed evaluation before awarding.
Janet White
Oct 12, 2023

Scale and Complexity

Typically simpler and more straightforward.
Can be intricate and vast in scope.
Sumera Saeed
Oct 12, 2023
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Quotation and Tender Definitions

Quotation

A quotation is a fixed price offer.
The mechanic provided a quotation for the car repair.
Sumera Saeed
Oct 12, 2023

Tender

Tender involves a bidding process among various competitors.
Numerous suppliers presented their tender to secure the school’s uniform contract.
Sumera Saeed
Oct 12, 2023

Quotation

A quotation is generally not legally binding.
The customer decided to decline the quotation provided by the plumber.
Sawaira Riaz
Oct 12, 2023

Tender

A tender is a formal offer to perform work for a specified price.
The construction company submitted a tender for the new bridge project.
Sawaira Riaz
Oct 12, 2023

Quotation

Quotations are typically used for smaller jobs.
She requested a quotation for the cost of painting her room.
Sumera Saeed
Oct 12, 2023

Tender

Tenders can be open (public) or closed (private).
The state issued an open tender for the construction of the new hospital.
Sumera Saeed
Oct 12, 2023

Quotation

A quotation outlines the price for a specified service or item.
The builder gave them a quotation that outlined the cost of the new kitchen.
Sumera Saeed
Oct 12, 2023

Tender

A tender usually pertains to large-scale projects.
The government issued a tender for the development of a new highway.
Harlon Moss
Oct 12, 2023

Quotation

Quotations can be verbal or written.
The verbal quotation given by the florist was reasonable and affordable.
Janet White
Oct 12, 2023

Tender

Tender documentation outlines the terms and conditions of the bid.
The contractor carefully reviewed the tender documentation before submitting a bid.
Janet White
Oct 12, 2023

Quotation

The act of quoting.
Sumera Saeed
Apr 07, 2020

Tender

Easily crushed or bruised; fragile
A tender petal.
Sumera Saeed
Apr 07, 2020

Quotation

A passage quoted.
Sumera Saeed
Apr 07, 2020

FAQs

Is a quotation legally binding?

A quotation can become legally binding once accepted, depending on jurisdiction and specific terms.
Sawaira Riaz
Oct 12, 2023

Can a quotation be revised?

Yes, quotations can be revised with the consent of both parties involved.
Sumera Saeed
Oct 12, 2023

Can a quotation be issued without a request?

Yes, quotations can be unsolicited and issued without a formal request.
Sumera Saeed
Oct 12, 2023

What is a tender?

A tender is a formal proposal submitted by businesses to provide goods or services at a specified price.
Sumera Saeed
Oct 12, 2023

Are tenders legally binding?

Once accepted, tenders can become legally binding contracts, but not the submission itself.
Sara Rehman
Oct 12, 2023

Can anyone respond to a tender?

Depending on the type, open tenders allow any organization to bid, while closed tenders are by invitation.
Sumera Saeed
Oct 12, 2023

Is it mandatory to respond to every quotation request?

No, businesses can choose which quotation requests they wish to respond to.
Sumera Saeed
Oct 12, 2023

How is a tender different from a quotation?

Tenders generally pertain to larger projects and involve a formal bidding process, unlike quotations.
Aimie Carlson
Oct 12, 2023

What is the primary purpose of a quotation?

The primary purpose is to inform a potential buyer of the cost of goods or services.
Janet White
Oct 12, 2023

Can a quotation be submitted for large projects?

Yes, but quotations are generally used for smaller projects with clear requirements.
Sumera Saeed
Oct 12, 2023

Can multiple businesses win a tender?

Depending on the project, a tender might be awarded to multiple vendors for different components.
Sara Rehman
Oct 12, 2023

What is a quotation?

A quotation is a fixed price offer extended by a seller to a buyer for specific goods or services.
Sumera Saeed
Oct 12, 2023

Can a tender be withdrawn?

Yes, tenders can usually be withdrawn before the expiration of the validity period.
Sumera Saeed
Oct 12, 2023

How is the winner of a tender determined?

The winner is determined after evaluating bids based on price, quality, and capability, among other criteria.
Sumera Saeed
Oct 12, 2023

What documents are typically included in a tender?

Tender documents might include an invitation to tender, pricing document, terms and conditions, and specifications.
Harlon Moss
Oct 12, 2023

What is a tender notice?

A tender notice is a public announcement inviting suppliers to bid on a project.
Sumera Saeed
Oct 12, 2023

How long is a quotation valid?

Validity depends on the issuer's discretion and should be stated on the document.
Sara Rehman
Oct 12, 2023

What happens if no bids meet the tender criteria?

The tender may be re-evaluated, altered, or reissued to attract suitable bids.
Janet White
Oct 12, 2023

Is a tender always related to construction projects?

No, tenders can be related to various fields, like supply, services, maintenance, etc.
Sumera Saeed
Oct 12, 2023

What information is included in a quotation?

A quotation usually includes the price, quantity, timeframe, and terms and conditions.
Janet White
Oct 12, 2023
About Author
Written by
Sumera Saeed
Sumera is an experienced content writer and editor with a niche in comparative analysis. At Diffeence Wiki, she crafts clear and unbiased comparisons to guide readers in making informed decisions. With a dedication to thorough research and quality, Sumera's work stands out in the digital realm. Off the clock, she enjoys reading and exploring diverse cultures.
Edited by
Sawaira Riaz
Sawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.

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