Tender
Also: Bid, Tendering, Call for tenders, Contract A
Quick definition: A formal, competitive bid submitted in response to an owner's call for bids, offering to perform defined work on stated terms; also the process of calling and evaluating such bids.
Explanation
Beginner explanation
When an owner tenders a project, it publishes the drawings and conditions and invites contractors to submit sealed prices by a deadline. The bids are opened and compared, and normally the lowest compliant bid wins.
Technical explanation
In Canadian common law, the Supreme Court's decision in R. v. Ron Engineering (1981) established that submitting a compliant bid can create Contract A — a process contract under which the bid is irrevocable for the stated period and both parties must enter into the construction contract (Contract B) if the bid is accepted. Owners therefore owe duties of fairness and consistency to compliant bidders, and must be careful with privilege clauses and post-bid negotiations. CCDC 23 (2018) is the industry guide to calling bids and awarding contracts. Bid security (a bid bond or deposit) secures the bidder's obligations under Contract A.
Practical example
A school board calls tenders closing at 2:00 p.m. Eight bids arrive; one is late and returned unopened, one lacks the required bid bond and is rejected as non-compliant, and the contract is awarded to the lowest compliant bidder by a letter of bid acceptance.
Why it matters
Tendering errors — accepting a non-compliant bid, negotiating after closing, unclear evaluation criteria — are a common source of procurement litigation in Canada.
Common confusion
A tender (bid) responds to a defined scope and is usually evaluated mainly on price; a request for proposals invites solutions evaluated on several criteria; prequalification shortlists bidders before either.
Standards and references
- [1981] 1 SCR 111; 1981 CanLII 17 (SCC) — R v Ron Engineering and Construction (Eastern) Ltd. Wikipedia, 1981.Historical record
Supports: R. v. Ron Engineering, [1981] 1 SCR 111: Contract A (irrevocable bid, obligation to enter Contract B) and Contract B - Practice Advisory 4.3: Contract Award. Ontario Association of Architects (OAA).Widely accepted professional interpretation
Supports: Contract A/B practice, CCDC 23 guidance, letter of bid acceptance, privilege clauses and post-bid negotiation cautions
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VDC Stack.io. (2026). Tender. In VDC Stack.io Knowledge Dictionary. Retrieved from https://vdcstack.io/dictionary/tender/