What is the difference between a tender, ITT and quotation?

A tender is the overall procurement process, an ITT (Invitation to Tender) is the specific document requesting formal bids, and a quotation is an informal price request, with each requiring different response approaches and formality levels for electrical wholesalers, distributors, and manufacturers.

Most electrical businesses use these terms interchangeably, causing confusion about what buyers actually expect and leading to inappropriate responses that cost opportunities.

Understanding the distinctions helps you respond appropriately, allocate correct resources, and avoid over-investing in informal quotes or under-investing in formal tenders.

Paul Nightingale navigated these procurement variations throughout 15 years, winning over £300 million in contracts for CEF and YESSS Electrical. Different buyers use different terminology, but the underlying distinctions remain consistent across Procurement for Housing (PfH), NHS Shared Business Services, and local authority procurement.

TenderAI helps electrical supply businesses identify what buyers actually require, regardless of the terminology used, ensuring appropriate response formality and effort allocation.

Understanding the Tender Process

“Tender” refers to the complete competitive procurement process, not a specific document.

What constitutes a tender process:

The buyer publishes an opportunity notice (often on Find a Tender Service), releases procurement documents (PQQ, ITT, specifications), sets evaluation criteria and scoring methodology, collects and evaluates submissions from suppliers, and awards a contract to the highest-scoring bidder.

Tenders are formal, structured, and legally regulated processes governed by procurement regulations. The Procurement Act 2023 sets rules for public sector tenders, ensuring transparency, fairness, and value for money.

When buyers use tender processes:

Public sector contracts typically over £30,000 require formal tendering. Framework agreements and Dynamic Purchasing Systems always use tender processes. Complex requirements needing detailed evaluation of quality and capability.

Private sector buyers may use tender processes for high-value or complex requirements, though they’re not legally obligated.

For electrical supply businesses, tender processes typically cover:

Framework applications for materials supply (£5m+ over 4 years), large supply contracts (£200,000+ annually), and multi-site or multi-year supply agreements.

Tender processes require substantial effort (50-100+ hours) but offer high-value, long-term contracts justifying the investment.

The ITT (Invitation to Tender) Document

ITT is the specific document package buyers issue, inviting formal bid submissions.

What ITT packages contain:

Instructions to tenderers (submission requirements, deadlines, evaluation criteria), specification of goods or services required, contract terms and conditions, form of tender (pricing schedules, signatures), quality questionnaires (capability, experience, methodology), and supporting documents required (insurance certificates, policies, case studies).

ITT documents for electrical supply frameworks typically run 80-150 pages covering product specifications, delivery requirements, quality standards, social value expectations, and commercial terms.

Response requirements:

ITT responses must be complete and compliant (answering all questions, providing all documents), formally structured (following prescribed format and word limits), evidence-based (proving capability through case studies and data), and professionally presented (clear, well-organised, error-free).

Missing requirements or exceeding word limits can disqualify submissions regardless of content quality.

Timeline expectations:

ITT processes typically allow 4-8 weeks from document release to submission deadline. Public sector ITTs must provide minimum 30 days (Procurement Act 2023). Framework ITTs often allow 6-8 weeks, given the documentation volume.

For electrical businesses:

Responding to ITTs requires dedicated effort. You’re competing formally against other suppliers with evaluation scorecards determining winners. Professional responses score 8-9/10. Generic responses score 3-4/10.

TenderAI’s £4,000 framework ITT fee covers complete response development using your company profile and evidence library created during setup.

RFQ (Request for Quotation) and Quotations

Quotations are informal price requests without the structured evaluation of tenders.

How quotations work:

Buyers email or phone requesting prices for specific products or services. They provide basic specifications and quantities. You respond with pricing (often just an email or price list). Buyers compare quotes and select suppliers based primarily on price.

Key differences from tenders:

No formal evaluation criteria or scoring. No requirement for detailed capability evidence or case studies. No compliance requirements beyond basic product specifications. Decision timeframes are typically days, not weeks.

Quotations focus almost entirely on price. Quality factors matter less unless buyers know suppliers and trust their capability.

When buyers request quotations:

Low-value requirements (typically under £10,000-£50,000 depending on buyer), repeat orders from known suppliers, straightforward products without complex specifications, and urgent requirements needing fast procurement.

For electrical wholesalers and distributors:

Quotations represent daily business activity. Respond quickly (same day ideally). Price competitively. Include delivery times and any relevant terms. Don’t over-invest effort in detailed responses for quotation requests.

RFP (Request for Proposal) vs ITT

RFP and ITT are often used interchangeably, but subtle differences exist in some contexts.

RFP characteristics:

More flexible than ITT, allowing suppliers to propose different approaches. Often used when the buyer needs creative solutions, not just price. May request alternative specifications or delivery models. Common in the private sector and consultative purchases.

ITT characteristics:

Prescriptive requirements with fixed specifications. Buyers know exactly what they want suppliers to deliver. Focus on the capability to deliver specified requirements, not innovative alternatives. Standard in the public sector for regulated procurement.

For electrical supply:

Most public sector frameworks use ITT terminology with prescriptive specifications. Private sector buyers may use RFP when seeking recommendations on product alternatives or technical solutions.

The response approach differs little in practice. Both require formal, evidence-based submissions addressing buyer requirements.

Framework Mini-Competitions (Further Confusion)

Framework call-offs add another terminology layer that confuses electrical businesses.

Mini-competition terminology:

Buyers use various terms for framework call-offs, including mini-competition, further competition, call-off tender, framework competition, and expression of interest (EOI) followed by quotation.

All mean the same thing: buyers invite framework suppliers to compete for specific requirements.

How they differ from full tenders:

Only framework suppliers can participate (not open market). Documentation is lighter (20-40 pages vs 100+ pages for full ITT). Timescales are shorter (2-3 weeks vs 4-8 weeks). Focus more on the price given the capability already proven during the framework application.

Response requirements:

Still formal and structured with evaluation criteria. Still require quality responses, not just pricing. Still need evidence and case studies, though less extensive than the original framework application.

TenderAI’s £2,000 mini-competition fee reflects reduced effort versus full framework ITTs while maintaining professional response quality.

Matching Response Effort to Opportunity Type

The key skill is matching your response effort appropriately to what buyers actually require.

Quotation (informal, price-focused):

• Effort: 15-30 minutes
• Format: Email or simple price list
• Content: Pricing, delivery time, basic terms
• Win factor: Price competitiveness and speed

Mini-Competition (framework call-off):

• Effort: 8-12 hours (or £2,000 with TenderAI)
• Format: Structured response to buyer questions
• Content: Pricing plus quality responses (capability, methodology, social value)
• Win factor: Balance of price (60-70%) and quality (30-40%)

ITT (full tender):

• Effort: 50-100+ hours (or £4,000 with TenderAI for frameworks)
• Format: Comprehensive formal submission with appendices
• Content: Complete capability evidence, case studies, policies, detailed methodology
• Win factor: Quality (50-70%) and price (30-50%) balanced

Framework Application:

• Effort: 100-200+ hours (or £4,000 with TenderAI after £6,000 setup)
• Format: PQQ plus full ITT response
• Content: Everything required for ITT plus 4-year supply capability proof
• Win factor: Meeting qualification thresholds plus competitive quality/price balance

Over-investing effort in quotations wastes resources. Under-investing in formal tenders loses opportunities. Matching effort to requirement type maximises efficiency and win rates.

TenderAI handles this assessment automatically. When opportunities appear, we identify what level of response buyers require and allocate appropriate resources, ensuring you don’t waste time on informal quotes or lose formal tenders through inadequate responses.

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