What is a tender? Everything you need to know

A tender is a formal invitation from a buyer — usually a government agency — for suppliers to submit a proposal to deliver goods, services or works. It's how governments buy things fairly: instead of picking a supplier they know, they publish what they need and let qualified businesses compete on merit.

How tenders differ from quotes

A quote is informal — someone calls you, you give a price. A tender is structured: there's a published document (the tender documents), formal evaluation criteria, a closing deadline, and a defined process. Tenders exist to ensure transparency, value for money and fair access for all suppliers — principles enshrined in the Commonwealth Procurement Rules and equivalent state policies.

Types of tenders in Australia

Open tender

Published publicly — any qualified supplier can respond. This is the most common type and what most people mean when they say "government tender." You'll find these on AusTender and every state portal.

Selective tender

The buyer invites a shortlist of suppliers, often from an existing panel or prequalification scheme. You need to be on the list to be invited.

Limited tender (direct sourcing)

The buyer approaches one supplier directly — permitted only under specific conditions (urgency, sole supplier, low value). Not publicly advertised.

Common tender document types

RFT (Request for Tender) — the most formal. Full specification, evaluation criteria, contract terms. See our RFT guide.

RFQ (Request for Quote) — simpler, usually for lower-value purchases. Less formal evaluation.

RFP (Request for Proposal) — used when the buyer wants suppliers to propose a solution, not just price a specification.

EOI (Expression of Interest) — a pre-qualification step. Suppliers express interest, the buyer shortlists, then issues a full tender to the shortlist. See our EOI guide.

When do governments have to tender?

Every jurisdiction sets thresholds above which formal tendering is required. Federally, the Commonwealth Procurement Rules require open approaches to market above $80,000 (or $400,000 for construction). State thresholds vary — typically $150,000 to $250,000. Below these thresholds, agencies can use simpler purchasing methods.

How to start finding and winning tenders

The practical steps: register on the relevant government portals, set up alerts, learn to apply properly, and develop the capability to write competitive responses. Or, let your AI do the finding — AskTender streams every Australian government tender into ChatGPT and Claude within 15 minutes of publishing.