Success stories

The history of the emergence of competition as a form of bidding. How the first ever tenders were held

2013-11-14 17:58:00

The word "tender" came into Russian from English. "Tender" can be translated as "offer". The official definition of a tender is a competitive form of selection of various proposals for the provision of services or the supply of goods. A successful candidate undertakes to comply with the terms and conditions stipulated in the contract, and is ready to complete the task at the lowest price - this is the selection criterion.

However, such a standardized form of tender did not appear immediately; development and formation took place over many centuries.

Text: Konstantin Don

The very first "tender" - a complete failure

The world's first description of an unsuccessful tender can be considered a chapter in the Bible, which tells about the sons of Adam, Abel and Cain, who took part in the competition for offering gifts to God. Being a farmer, Cain brought a gift of the fruits of the earth, while the shepherd Abel decided to bring some sheep.

God chose Abel's gifts, which made Cain very angry. The result is known to all: the brothers went out into the field, where the offended Cain killed Abel. Of course, this story is primarily the embodiment of human weaknesses, but one can see analogies with modern tenders.

The cheapest tenders in the Middle Ages

The construction of luxurious castles, and today striking the eye, of course, required a lot of Money. The financial condition of representatives of noble families of those times was not endless, so the question of the final price played an important role. Architects were responsible for the construction, who were engaged not only in engineering structures, but also in budgeting. Before the start of construction, the customer was often interested in the approximate price. An estimate of the cost of the castle of Beaumaris, made by the architect Jacques de Saint-Georges d'Espéranche (he supervised the work), has been preserved. He explained to customers why such large weekly expenses come from, while emphasizing that he was already able to save quite a bit on employee benefits. In those days, serf workers mostly worked on construction, that is, there was simply no talk of wages. Hence the reduced costs.

First tenders in Russia

The first public auctions, which fully fall under the definition of tenders, were held during the reign of Tsar Alexei Mikhailovich, who issued a decree on July 7, 1654 on the contract price for the delivery of crackers and flour to Smolensk.

This official government document, which clearly stipulated the terms of the deal, was intended to help find contractors willing to supply at a set price. This can be considered the first attempt of conscious economic relations between the state and the manufacturer in Russia.

Peter I and the growing popularity of tenders

The first regulation of public auctions is connected with the era of the reign of Peter I. Such a need arose in connection with a sharp increase in the military activity of the Russian Empire - the state needed more and more military goods.

The trades of the 18th century were distinguished by publicity and complete openness, which only contributed to their popularization and widespread distribution. For control, a special department was established, which centrally dealt with issues of supply and sales. The new Office of Contracting Affairs also carried out the fight against abuse and corruption.

Tenders in the XVIII - XIX centuries

The modernization of the system continued under the successors of Peter I. The main changes: printing of announcements about competitions in the central newspaper began, separate hearings were held on the proposals of merchants.

Under Catherine the Great, a document “On Contracts, Supplies and Farming Out” was issued, which became decisive. The next revision was made already in the era of the reign of Alexander I. The emperor was very interested in this topic - more than 100 state provisions in this area speak of this. The key was the act allowing the change of the amount of the contract. Also in the 19th century, it was allowed to send proposals for a tender by mail, the results of bidding from the middle of the century were published in Vedomosti, published in St. Petersburg and Moscow.

Before the revolution of 1917, another important law was passed, in which for the first time the concept of a system for securing the performance of obligations appeared - a system of financial security for an application was introduced. Careless "winners" of competitions could be prosecuted under criminal law.

The most unsuccessful tender for the supply of the army

The desire to "earn a lot right now" by offering the lowest price has owned merchants at all times. The scam of the Ryabushinskys, who during the First World War bought out a contract for the supply of military ammunition for the Russian army, is widely known. Then only tarpaulin boots appeared. Boots arrived at the front in the required quantity. One "but": they were all with soles made of ... cardboard.

Establishing a tender structure

After the end of World War II, the United States, engaged in the reconstruction of the destroyed European cities, faced an unprecedented level of corruption. It is a well-known fact that a significant part of the money directed to good purposes ended up in the pockets of US government officials.

To prevent similar situations in the future, American politicians developed a standard for bidding: the emphasis was on maximum objectivity and transparency. It is this process that is accepted all over the world today and is to some extent decisive for the entire sphere.

The future of tenders

The history of the tender, apparently, is quite simple: there were ups and downs. The purpose of open tenders is very clear: each customer should have the opportunity to compare offers from different suppliers, healthy competition in quality and prices only stimulates the economy.

In the old days, tenders were used to search for suppliers for the royal courts, approve projects for castles, palaces, bridges, and distribute orders. The system, greatly improved, works successfully in a similar way today.

Subject: Alternative

Journal number: 2

Temder (eng. tender - offer) is a competitive form of selection of proposals for the supply of goods, the provision of services or the performance of work according to the conditions previously announced in the documentation, within the agreed time frame on the principles of competitiveness, fairness and efficiency. The contract is concluded with the winner of the tender - the participant who submitted a proposal that meets the requirements of the documentation, in which best conditions. auction tender application quotation

Those procedures that we currently call tenders have been known to the world for a long time. In Russia, the emergence of a semblance of a modern tender (or competition) is attributed to the 17th century, to the time of Peter the Great. During the revolutionary restructuring, tenders, in general, ceased to exist, because most of the large enterprises were nationalized.

More than seventy years passed, and gradually the custom of holding auctions came to naught. However, already in the 80s, the construction industry began to use contract bidding. In the same time construction companies even took part in international tenders, although there was no normal competitive system for placing orders even for the needs of the state in Russia. Only in the early 1990s did the active formation of this system begin.

The tender structure itself was created in the US (after World War II) in order to fight corruption. It is known that in 1946 a considerable amount of money was allocated for the restoration of German cities, most of which was distributed to American officials as bribes.

To avoid similar situations in the future, the Americans tried to create a supplier selection process as objectively as possible, describing in detail step by step actions this procedure. This is how the tender process came about.

The same decision was made in the 1950s at the UN. Law Commission international trade(UNCITRAL) has issued a standard law on the procurement of goods, services and works, which has been well drafted. The law described in detail the procedures for conducting tenders. Despite the fact that the law is more of a recommendatory nature, most countries have adopted it with minor amendments or completely in the form in which it was written.

It should be noted that this law became the basis for the creation of rules for international investment funds (for example, as the International Bank for Reconstruction and Development as a division of the World Bank, and the World Bank itself).

Tenders moved to the non-state sector of the economy in the 1960s. And even the European Bank for Reconstruction and Development, which finances mostly commercial structures, operates practically according to the same tendering rules as the World Bank.

The term "tender" (in translation from English this word means "offer") has recently firmly established itself in our everyday life. However, it is not fully understood by many, so it is advisable to consider it in more detail. So, what is a tender and how is it carried out? What is the history of its appearance in Russia and abroad? What species are found and how to get and win a tender?

The word tender has quite understandable synonyms - bidding, auction, competition.

In fact, tender is a word that denotes a competitive form of selection of proposals. These proposals may have a different scope - the supply of goods, the provision of services, etc.

A Brief History of the Emergence and Development of Tenders

Answering the question, what is a tender, it is impossible not to pay a little attention to its history.

The tender system was developed by the Americans at the end of World War II. The reason for the development was the huge sums that, instead of investing in the restoration of cities damaged during the war, fell into the pockets of officials. What is bidding in that sense? This is a system that allows you to objectively choose a supplier by describing the step-by-step stages of this procedure.

Tender in Russia

The procedure itself, called a tender, has been used in Russia for a very long time and quite successfully when concluding transactions. For the first time, such competitions (that is, a similar event) were mentioned in Russia in the 17th century. Later, they were widely used, as they differed in efficiency. However, during the revolutionary restructuring, the concept of what tenders were was forgotten, because almost all enterprises that had weight and status were nationalized.

Its revival took place quite recently, only in the eighties of the last century, and then these changes occurred only in the construction industry, which began to use contract bidding. A certain competitive system for placing orders in our country was not observed, however, construction companies at that time actively participated in foreign tenders. Intensive formation of a modern tender system began only in the 90s. You can learn more about tenders in modern Russia.

What is the purpose of tendering?

  1. The customer (buyer) announces a competition to select the most suitable offer for a product or service, with predetermined characteristics.
  2. Compares proposals received from different companies.
  3. Signs an agreement with the participant whose proposal, in his opinion, has become the best.

What types of tenders are there?

Trades can be classified by certain features that unite them.

  • closed,
  • open,
  • specialized with limited participation.

Closed tender - what is it?

Closed auctions are characterized by a personal invitation from the organizing company of each of the potential participants. Of course, the choice of participants depends on many criteria - reputation, rating and image. That's why large companies pay so much attention to materials about themselves in the media, corporate websites, participation in various exhibitions or conferences. All these factors help characterize the company and increase its attractiveness to potential customers.

The list of participants is never made public. First of all, this is done in order to exclude possible collusion between the participants (and this is observed quite often). In addition, holding such an auction of a closed type makes it possible to optimize this procedure.

Often, from 4 to 5 companies to participate in a closed tender.

Open tender - what is it?

This is when the customer is waiting for everyone who wants to visit the auction. The announcement of the competition is distributed through various sources (newsletters, official websites, and so on). Tender documentation is often distributed free of charge or for a fee not exceeding the cost of its creation. The documentation contains information about the upcoming event - conditions and rules of participation.

An open tender can be held by both the customer himself and the organization to which he applied.

What are the benefits of an open tender?

  1. This type of auction allows potential participants to get acquainted with the nuances of the competition and understand how great the chances of success in it are.
  2. This is an opportunity to get sometimes very profitable offer. Such a scheme allows the customer to consider a huge number of proposals and choose the most preferable for him.

This type of tender is often used to carry out public procurement, but among companies in ordinary business it is rarely used.

An open view can be quite effective, as it intensifies competition, which is a kind of motivation that allows the customer to get really worthwhile offers. However, it increases the workload on the staff, as the number of participants is not limited.

Specialized tenders with limited participation

Such tenders are, in fact, closed auctions, but the exact number of participants in them is not defined, as it may vary. The thing is that participation in them is limited by certain rules. For example, only citizens of the state in which it is held are allowed to participate. Or during this procedure, only those participants can submit proposals that were invited by the customer to the tender.

Where possible changes in competitive requirements, tenders are classified into the following types:

  • one-stage,
  • two-stage.

In the first case, negotiations are prohibited. The competition is held in one stage, and participants submit documents both for participation and for victory.

What are two-stage tenders? These are those that are carried out in two stages and are not very common in our country, as they require a lot of time. Two-stage are carried out, as the name implies, in several stages.

The organization organizing the auction, at the first stage, develops a draft version terms of reference. Based on it, the contestants prepare proposals. At the second stage, the organizer conducts negotiations, agreeing on a particular proposal.

Also tenders can be divided into the following types:

  • tender price,
  • tender of open solutions (“open brief”).

In the first option, the customer gives a precise definition of what he wants to see among the proposals of the participants. Participants provide proposals for price, terms, additional services etc.

Open brief auctions are organized in cases where the customer gives only approximate conditions that allow him to evaluate creative, creative solutions from the participants in the competition. True, there is a big risk of spread in prices.

Types of tenders in the form of competitive bidding:

  • international,
  • internal.

What is an international tender and how does it differ from a domestic one? Everything is clear here by name: international tenders allow contractors or suppliers from other countries to take part in them, while internal tenders are held within the same country.

In which industries is tendering allowed?

Such auctions have become widespread both abroad and in our country (although in our country the English term tender is often replaced by a simple and understandable synonym - competition). Therefore, they can be carried out in a variety of areas. They are held in medicine, in the field of electricity, in the trade field, in the field of industrial equipment. Sometimes competitions are held by banks. There are very often tenders for repairs and for scientific research.

Impact on the company's image

Many suppliers are interested in participation, since winning a tender in commerce means not only receiving financial benefits, but also significantly increasing the reputation of your company.

Of course, the application for participation may not be considered by the customer. The reasons most often lie in non-compliance with legal standards and insufficient or inappropriate qualifications of a potential participant. For example, if a bank conducts a tender, then applications from companies of other specializations are unlikely to be taken into account.

The winner of the competition receives a letter of conclusion of the contract.

Conditions for obtaining a guarantee for participation

You can get the opportunity to participate in the tender by following the instructions below.

  1. The first thing to do is to study the conditions of the competition. Conditions are often published on official websites. public institutions who need the delivery of goods or the performance of work.
  2. Submit an application for participation in the tender according to the requirements set out by the customer.
  3. Potential participants are aware of the deadlines for accepting applications, but if necessary, the tender committee can extend them. However, if you did not have time to submit an application, no one will accept it from you.
  4. Before the application process has been completed, the applicant may withdraw or amend their application.

How to win a tender?

This is the question that worries all the contestants. Let's look at a few tips that can help you win the competition.

  1. Before applying, think about what will win you? After all, there are tenders, the results of which are predetermined in advance, and the competition itself is carried out more for show than for real search the best offer. In this case, you will only ruin your reputation.
  2. Even if the proposal fully and completely meets the conditions of the tender, there is no guarantee that the customer will prefer it among dozens of others. Therefore, try to give your option additional value. For example, pay attention to customer problems. If you can solve at least one of them with your offer, then he will not be able to refuse it.
  3. Decisions are made by people. So making contact with someone who can help you win will never be superfluous.
  4. Tenders are a very painstaking business. Take into account all the nuances so that everything is perfect - no errors in the documents, no forgetfulness. But, doing the formalities, do not forget about the most important thing - your proposal.
  5. The competence of all persons participating in the tender is very important. Your negotiator must know everything perfectly in order to correctly and quickly answer all the questions that the customer wants to ask.

This list can be expanded, but the advice given in it is field-tested and should help those who hope to win the competition. And to do this, with the desire and a certain amount of knowledge, is not difficult at all.

Tender support

Tender support is a service aimed at ensuring the process of participation of an enterprise in a tender. The main goal of tender support is to create all the conditions (at the legal level) for the client-participant to win the tender.

Tender support is especially relevant if you:

  • do not have much experience or did not take part in state competitions at all;
  • do not want to take risks and act at random;
  • you don't want to misfire on a responsible tender.

Did you know that 90% of bidders are not allowed to bid due to flaws in the documentation or an incorrectly executed application? If you are not a professional, making a mistake in documents is easy. In this case, only tender support will help.

What is a tender (bidding): Video