Invitation to Bid Template

Invitation to Bid Template

What Is an Invitation to Bid?

An Invitation to Bid is a document that must be filled in by customers to inform their prospective suppliers or contractors about the appearance of a new order, provide its detailed description, specify its terms and conditions, and invite these organizations to apply for participation.

Alternate Names:

  • Invitation to Bid Letter;
  • Bid Invitation.

Usually, a customer gathers pre-qualification questionnaires, completed by companies that wish to receive a work order. Based on the information contained in these questionnaires, a customer evaluates these organizations for their suitability and makes a list of prospective suppliers or contractors. When a customer has a new order, they send an Invitation to Bid Letter to organizations, contained in this list. After analyzing all the offers received, a customer chooses the most profitable and suitable one.

A printable Invitation to Bid template can be downloaded through the link below.


How to Write an Invitation to Bid?

An invitation to bid is used when the specification, prepared for a particular project, contains standard products or services that may differ only in price. After receiving the invitation, potential suppliers submit their proposals in sealed envelopes. The customer publicly opens envelopes at the specified time, evaluates these offers, and recognizes the organization that offered the lowest price as the winner. Usually, any additional negotiations are not required. When the contractor is selected this way, there is a risk of low-quality performance of work. Thus, when completing an Invitation to Bid, the customer should carefully develop a detailed specification and define the minimum qualification requirements for participants.

A typical Invitation to Bid Form contains the following sections:

  1. This document should be printed on the company's business letterhead. The customer has to indicate information about their company, such as its name, address, website, email, and phone number.
  2. Some public sector organizations are required to publish their Invitations to Bid openly on their websites and invite all interested participants. In this case, the form should not contain information about the recipient. In the case the Bid Invitation is intended only for companies from the customer's list of pre-qualified contractors or there is only one potential supplier, they must specify information about the recipient in the form. Prepare letters for each contractor separately, including the company's name, address, phone number, and email.
  3. The project name, its location, and full description should be entered.
  4. Provide a detailed specification. Indicate the list and scope of work and services to be provided. Enter the materials required for delivery and their quantity. Provide information about any additional services that may be necessary, such as shipping or handling, and specify the frequency of these services.
  5. Define qualification requirements for participants.
  6. Provide a space for the supplier's response regarding the invitation. They should indicate if they are going to bid or not.
  7. Specify a timetable for choosing a supplier, including the location where the offers will be collected and the submission dates.
  8. The requirements for submitting a bid should also be indicated.

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