Invitation To Tender Simply Explained (updated 2024)

If a business requires goods or services from another supplier they will typically go through a procurement process to identify a suitable partner. As part of this process, they will develop and issue an invitation to tender.

But what does this mean, and how do you go about responding to it? Well, we answer common questions and give you our expert tips to help you successfully respond and secure the tender contract.

What is an invitation to tender?

An invitation to tender, also known as an ITT, is a formal procurement document that is issued by the buyer, inviting suppliers to bid for the contract of works they are looking to fulfil.

This could be for the supply of either goods, services or works that the procurement authority (the buyer) requires. The Procurement Act is bringing in some significant changes to UK Procurement, including an increased focus on Social Value, KPIs and contract management. The implications on the ITT should be considered closely.

In-line with the tender process, it is common that before an ITT is released, the step beforehand would be to issue a pre-qualification questionnaire, PQQ. This helps the buyer narrow down the potential suppliers, pushing the invitation to tender out to the selected businesses that have been successful in the previous round. This process is particularly standard in public sector procurement.

You can receive an invitation to tender notification either via email, an online portal or via a traditional letter (though we don’t see many of those anymore). If it’s through an online method you can usually express an interest and download the documents and instructions which tell you everything you need to know. This will allow you to decide whether it is right for your business.

Some tenders still require a hard copy submission, but again this will be detailed in the documents. Some buyers are specific with the design, layout, font, word or page count and submission process so ensure you read the instructions thoroughly.

What does ITT stand for?

ITT stands for invitation to tender, and is commonly abbreviated across the bid and procurement industry.

The document can be issued across a range of sectors as buyers look to find suppliers for specific specialism from construction companies to marketing agencies.

If you are invited to tender, and once passed the pre-qualification stage, PQQ (if applicable), you are essentially shortlisted to continue to bid and submit why your business should win the contract, often through responding to a formal set of questions, and your price, which could be a one-off project or a framework agreement.

This will then involve you providing more information to the buyer, developing a strong bid submission, giving in-depth answers to their questions and evidencing your businesses capabilities.

As bid writing experts this is where our knowledge and experience can truly help your business secure the contract and grow your business. If you need help to develop a winning bid, contact our team today.

What would an invitation to tender include?

The specific information included in the invitation to tender documents can vary depending on the industry and buyers requirements. However, they broadly include more detailed information about the goods or services they need to procure, along with specific considerations they wish you to explore and evidence in order to choose the most suitable candidate.

You can typically expect the following within an invitation to tender;

A letter of invitation to tender

This can be in two versions, either a ‘closed tender’ or ‘open tender’. A closed tender means that a PQQ stage has been carried out and it is now closed to those that have been selected to continue to ITT stage. Alternatively, an open tender is when the buyer begins the tender process with an ITT, opening the opportunity to anyone at this stage. It is important to understand this and be clear about whether you are in an open or closed tendering position.

Scope of works

If you have gone through a PQQ stage already, you may have an overview of the works involved however, as part of the ITT a detailed scope of works will be provided to ensure suitability is correct for both parties. This can include timescales, expectations, concerns and any technical aspects. For construction tenders this can also include surveys, drawings, designs, pre-construction information, schedules, supply chains and costs.

Explanation of the tender process & instructions

The buyer will provide more information about themselves, along with instructions on how to submit your tender and how they are going to work the tender process effectively and efficiently. This will include the critical information for the supplier, deadline date!

The criteria

Another very important part of the tender for any supplier is to understand the criteria of the buyer. This lays out what their expectations are so any supplier that wishes to tender should go through this with a fine tooth comb, highlighting where they can add the added value or unique selling point, particularly in comparison to other competitors.

How they will assess and measure against their criteria

The buyer will outline how they will evaluate and assess the tender responses in-line with their criteria. These should be highlighted in the response and overcome, for example if the cost is a key factor that will be measured then you need to discuss value for money and outline how and why you have come to this price.

As discussed above, this list is not exhaustive, it can include much more than this depending on the services or goods required to procure. It can also vary in length and detail, as this is the buyer's discretion and responsibility.

How do you respond to an invitation to tender? Our top tips...

The response can be specified by the buyer, for example they may request that the submission should be uploaded to an online portal, with a maximum page or word count, with limited design. Therefore, our first tip would be to ensure you read over the invitation to tender, and all documents, and then again!

We suggest highlighting key information which can be flagged as important, such as key elements of the specification or instructions, which could influence your quality or commercial response. This will also include of course the deadline for submission and clarification questions, to confirm anything which isn’t clear in the tender.

Additionally, our top tips to ensure you respond effectively are;

1. Work as a team

Once you understand the documents and have decided to bid, you may then want to assign specific areas of the response to multiple team members. Writing a submission can be a huge task for one person and if you have employees that are specialists in a range of departments you may want to lean on their expertise.

For example; a question that refers to health & safety may be best to consult or seek the help of a health & safety manager.

Another note on this, if you proceed with this approach, ensure all of the team members are very clear on what it is you expect from them, the approach, format, writing style and the deadline. You should then give yourself enough time to review their response, make changes to it and ensure it has a single voice across the bid, as well as asking any other questions you may need in advance of the bid submission deadline.

2. Ask the buyer additional questions

If you still have questions after reading the documents then don’t be afraid to ask the buyer. It may be a really important question that they have accidentally missed from the documents, and other competitors may also be struggling too. This tells the buyer that you are interested, capable and willing to communicate effectively with them to seek clarification.

3. Work to the criteria

It sounds obvious, but so many businesses lose track of what the buyer actually wants from you when developing your bid submission. The criteria has been made to help and guide you, so make sure you use it! Keep referring back to it and ensure you have covered every aspect of their requirements.

Buyers will look for your technical solution/ your offer. Essentially, understanding how you will meet their requirements. This could be technical compliance with a product specification, your programme of works or simply how you will mobilise and manage the contract. They will want to know about the team which will manage the contract, their experience, roles and achievements.

Your specific sector may also have specific accreditations, such as SIA in the security services sector. Or they may require ISO accreditation such as ISO9001 (Quality), 14001 (Environment), 18000 (Health & Safety) or 27001 (Information Security Management), though having systems in line with the requirements rather than accredited too, will often suffice, again depending on the industry and competition

4. Win themes

Further to meeting the criteria, how can you showcase your capabilities and put yourself in prime position above competitors. We call these win themes, as they should be key discriminators, which are aligned to the buyers requirements, and what make you stand out from the other suppliers.

5. Write, review and feedback

Writing your bid can be a lengthy process, and this should involve reviewing and improving it frequently as you go along. Seek feedback from other members of the team where you can to keep developing the content and making it the best it can possibly be. Put yourself in the buyer's shoes and don’t forget to cover ALL of their questions, which includes the sub-questions. Use their structure to form your subheadings, this also quickly demonstrates to the buyer you have answered all elements.

6. Review and proofread, seek another pair of eyes

If you have done the above then your final version should be in a good state, but another pair of eyes is always a must. If there is someone who hasn’t been involved or read any of the content already then use them to proofread the final version. They should be checking spelling mistakes, punctuation, formatting, word counts and terminology. Don’t use technical jargon where it isn’t relevant or required, consider if the buyer has used this language in their documentation or not, as perhaps they don’t actually understand what you are saying or referring to. We will often provide this critical review for our clients assessing their responses against the specification, evaluation criteria and ensuring they are answering the question.

7. Submit, and evaluate

Breathe, it has been submitted and you can now sit back and relax now, right? Wrong, yes take some time to relax but ensure you, and the team involved, come together soon after the submission to reflect, evaluate and plan for the future. What could you do better, or differently next time round?

Also, if you are or aren’t successful, hopefully you are though with thanks to our tips above, you will receive feedback from the buyer. This is valuable and should be looked at in detail to ensure you keep growing your tender writing skills.

You can read more tips, and advice in our Bid Writing Guide available here.

Not quite got it right? Don’t worry, you’ve come to the right place. We offer a range of services to manage or support your bid writing functionality, from consultancy, bid writing support, to training and resources.

Get in touch with our bid experts today to see how we can help you win more contracts.

7 ITT questions you will be asked when tendering for public sector contracts

The invitation to tender (ITTs you will receive will regularly include the following quality questions, also known as method statements. Below we have included typical ITT questions along with an explanation of what they will want you to include:

1. Mobilisation: Explain your mobilisation plan, including timelines, resources, and how you will ensure a smooth transition. Provide evidence of successful mobilisations in similar contracts.
   • Timeline and key milestones
   • Resource allocation and management
   • Communication and stakeholder engagement
   • Risk assessment and mitigation strategies
2. Contract Management: Describe your contract management processes, including communication, reporting, and performance monitoring. Highlight your experience in managing similar contracts and provide template documents, such as status reports or meeting agendas.
   • Governance and service delivery structure and roles
   • Performance metrics and reporting
   • Issue resolution and escalation processes
   • Continuous improvement initiatives
3. Risk Management: Outline your risk management strategy, including how you identify, assess, and mitigate risks. Provide examples of risk registers and contingency plans from previous projects.
   • Risk identification and assessment methodology
   • Risk prioritisation and ownership
   • Key contract risks and mitigation strategies
   • Contingency plans
   • Monitoring and review processes
4. Quality: Explain your quality management system and how you ensure consistent quality throughout the contract. Provide evidence of quality certifications, such as ISO 9001, and template quality documents, such as quality plans or inspection checklists.
   • Quality management framework and standards
   • Quality assurance and control processes
   • Continuous improvement initiatives
   • Training and development programs
5. Social Value: Describe how your organisation contributes to social value, including environmental sustainability, diversity and inclusion, and community engagement. Provide examples of social value initiatives you have implemented in previous contracts.
   • Environmental sustainability practices
   • Diversity and inclusion policies and initiatives
   • Community engagement and outreach programs
   • Training, apprenticeships and career opportunities
   • Measuring and reporting social value impact

For more specifics on social value see Social Value Vs TOMs.

In addition to these quality questions, the ITT will also include a Pricing Schedule. When preparing your pricing response, consider the following:

• Breakdown of costs by key deliverables or milestones
• Assumptions and dependencies that may impact pricing
• Value for money and competitive positioning
• Flexibility for future adjustments or variations

Being able to learn from feedback and calculating your competitors' pricing can be very useful!

ITT Requirements: Broken Down

Invitation to Tender: Bid Writing Mistakes

Advice to Bidders: Avoiding Common ITT Response Mistakes

Many businesses make common bid writing mistakes when responding to an ITT, which can affect their chances of winning the contract. These bid writing mistakes include:

• Lack of detailed assessment before starting the tender. A detailed bid no bid system can help you formally assess which bids you go for, based on criteria such as alignment with your strategy, value proposition, competitive advantage, and risk. This can help you avoid wasting time and resources on bids that are not suitable or feasible for you. Even if it does not change your behaviour initially, you can report back on your tender wins and losses based on your bid no bid decisions, which can inform future behaviour.

• Failing to prepare adequately, especially when you are the incumbent on the contract. The year before the renewal is a perfect opportunity to propose and evidence initiatives relating to social value, value engineering, and contract improvement strategies and savings, which become invaluable evidence in your bid for the renewal. If you are bidding to win a new contract with a new customer, this same evidence is equally important but from your existing clients. Ensuring plenty of time to both fully develop the perfect solution and why you are best placed. This area is also known as win theme development, can make all the difference when responding to an ITT. It allows effective bid writing to take place.

• Investing too little time into the quality tender questions, as well as the price. This is especially important with public sector invitations to tender, where the quality score often carries more weight than the price. You need to assess and reassess how you can better answer each question, how you can demonstrate that you fully meet all the requirements of the highest scoring response, and how you can provide relevant and specific evidence to support your claims. This approach will make a significant impact on your win rates when completing an ITT.

These are some of the common bid writing mistakes with ITTs that, if fixed, will make a substantial difference to your success. By following these tips, you can improve your bid quality, competitiveness, and confidence, and increase your chances of winning the contract.

Can I Respond to an ITT Using AI?

The Uk Government has produced guidance on the implications of AI, bid writing and tenders.

Bid software and AI writing products should be used with caution. While they can create efficiencies, bidders need to ensure they work to clear systems, which are designed to maximise the potential of AI, while guiding users on the appropriate use.

New to Bidding and Need Tender Answers to the Quality Questions of Invitation to Tenders?

Common AI products can be used but only as a small part of your solution. For many businesses new to bidding, quite often they simply need to understand what good looks like and what the expectations are when it comes to tendering. Thornton & Lowe provides Bid Templates, across 4 different sectors (construction, facilities management, health and social care, and professional services). These templates provide answers to the frequently asked ITT questions!