Auction vs. Tender — What's the Difference?
By Tayyaba Rehman & Urooj Arif — Updated on May 9, 2024
Auction involves open bidding where the highest bid usually wins, while tendering is a submission of offers in sealed envelopes, often awarded on criteria beyond just price.
Difference Between Auction and Tender
Table of Contents
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Key Differences
In an auction, interested buyers openly compete by placing higher bids in a public or online setting, aiming to outbid each other. In contrast, a tender process requires potential suppliers to submit their bids confidentially, typically in a sealed envelope, and these are reviewed privately by the tendering authority.
Auctions are often fast-paced and dynamic, with prices visibly escalating as bidders vie for the item. Tenders, on the other hand, are structured and methodical, with offers evaluated systematically based on set criteria which may include price, quality, and capability.
The auction process is usually transparent with all participants aware of the competing bids. Conversely, the tender process is opaque, with each bidder unaware of other bids, promoting fairness and preventing bid manipulation.
Auctions can be seen in scenarios ranging from art sales to real estate auctions, where the excitement and competitive spirit can drive up prices. Tenders are common in government and corporate procurement, where the focus is on obtaining the best value for money and adherence to procurement standards.
Auctions conclude within a few hours or days, making them suitable for quick sales. Tenders, however, often involve lengthy evaluation periods, making them better suited for complex projects requiring detailed proposals.
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Comparison Chart
Definition
A public sale where goods or services are sold to the highest bidder.
A formal offer submission process to procure goods or services.
Process
Dynamic and open, with bids placed publicly.
Structured and confidential, with bids submitted in sealed envelopes.
Transparency
High, as bids are made openly.
Low, as bids are not disclosed to other competitors.
Speed
Usually quick, ending when the highest bid is reached.
Time-consuming, involves detailed proposal evaluations.
Common Uses
Real estate, antiques, art.
Government contracts, large corporate procurements.
Compare with Definitions
Auction
An online or physical marketplace for buying by submitting the highest bid.
She bought her first car through an online auction.
Tender
A confidential bidding process aimed at fairness and transparency.
The tender process was strict to ensure no bid leaks occurred.
Auction
A competitive process where goods or services are sold to the highest bidder.
An antique vase was sold for $5,000 at the auction.
Tender
A procurement method used by governments and large organizations.
The government tender for the new library attracted many bids.
Auction
A public event where items are sold to those who offer the highest price.
The estate auction attracted collectors from across the state.
Tender
A formal invitation to suppliers to make an offer for supply of goods or services.
The city council issued a tender for road construction services.
Auction
A method of sale where the price is determined by ascending bids.
The painting's auction started at $1,000.
Tender
A process where companies submit bids in sealed envelopes.
They won the project by submitting the most competitive tender.
Auction
A bidding process where participants compete openly.
He participated in a live auction to purchase rare books.
Tender
An offer submitted in response to a request for tender.
Their tender included a detailed proposal and budget breakdown.
Auction
An auction is usually a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder or buying the item from the lowest bidder. Some exceptions to this definition exist and are described in the section about different types.
Tender
Showing gentleness, kindness, and affection
She covered his face with tender kisses
He was being so kind and tender
Auction
A public sale in which property or items of merchandise are sold to the highest bidder.
Tender
(of food) easy to cut or chew; not tough
Tender green beans
Auction
(Games) See auction bridge.
Tender
(of a part of the body) sensitive to pain
The pale, tender skin of her forearm
Auction
To sell at or by an auction
Auctioned off the remaining inventory.
Tender
Young, inexperienced, or vulnerable
He started sailing at the tender age of ten
Auction
A public event where goods or property are sold to the highest bidder.
Tender
(of a ship) leaning or readily inclined to roll in response to the wind.
Auction
(bridge) The first stage of a deal, in which players bid to determine the final contract.
Tender
Offer or present (something) formally
He tendered his resignation as leader
Auction
To sell at an auction.
Tender
An offer to carry out work, supply goods, or buy land, shares, or another asset at a stated fixed price
Being government land, it was sold by tender
We invited tenders for up to three more frigates
A minimum tender price
Auction
A public sale of property to the highest bidder, esp. by a person licensed and authorized for the purpose; a vendue.
Tender
A vehicle used by a fire service for carrying specified supplies or equipment or fulfilling a specified role
Three fire engines, including an emergency tender, attended the scene
Auction
The things sold by auction or put up to auction.
Ask you why Phryne the whole auction buys ?
Tender
A dinghy or other boat used to ferry people and supplies to and from a ship.
Auction
To sell by auction.
Tender
A trailing vehicle closely coupled to a steam locomotive to carry fuel and water.
Auction
A variety of bridge in which tricks made in excess of the contract are scored toward game; now generally superseded by contract bridge
Tender
A person who looks after someone else or a machine or place
Alexei signalled to one of the engine tenders
Auction
The public sale of something to the highest bidder
Tender
Easily crushed or bruised; fragile
A tender petal.
Auction
Sell at an auction
Tender
Easily chewed or cut
Tender beef.
Tender
Young and vulnerable
Of tender age.
Tender
Frail; delicate.
Tender
Sensitive to frost or severe cold; not hardy
Tender green shoots.
Tender
Easily hurt; sensitive
Tender skin.
Tender
Painful; sore
A tender tooth.
Tender
Considerate and protective; solicitous
A tender mother.
His tender concern.
Tender
Characterized by or expressing gentle emotions; loving
A tender glance.
A tender ballad.
Tender
Given to sympathy or sentimentality; soft
A tender heart.
Tender
(Nautical) Likely to heel easily under sail; crank.
Tender
To make tender.
Tender
To offer formally
Tender a letter of resignation.
Tender
(Law) To offer (payment or performance) pursuant to an obligation.
Tender
A strip of meat, usually chicken, often breaded, deep-fried, and served with a sauce.
Tender
(Law) An offer to pay the amount due under a debt or obligation.
Tender
A written offer to contract goods or services at a specified cost or rate; a bid.
Tender
Something, especially money, offered in payment.
Tender
One who tends something
A lathe tender.
Tender
(Nautical) A vessel attendant on other vessels, especially one that ferries supplies between ship and shore.
Tender
A railroad car attached to the rear of a locomotive and designed to carry fuel and water.
Tender
Sensitive or painful to the touch.
Tender
Easily bruised or injured; not firm or hard; delicate.
Tender plants; tender flesh; tender fruit
Tender
Physically weak; not able to endure hardship.
Tender
(of food) Soft and easily chewed.
Tender
Sensible to impression and pain; easily pained.
Tender
Fond, loving, gentle, or sweet.
Suzanne was such a tender mother to her children.
Tender
Young and inexperienced.
Tender
Adapted to excite feeling or sympathy; expressive of the softer passions; pathetic.
Tender expressions; tender expostulations; a tender strain
Tender
Apt to give pain; causing grief or pain; delicate.
A tender subject
Tender
(nautical) Heeling over too easily when under sail; said of a vessel.
Tender
(obsolete) Exciting kind concern; dear; precious.
Tender
(obsolete) Careful to keep inviolate, or not to injure; used with of.
Tender
(obsolete) Care, kind concern, regard.
Tender
The inner flight muscle (pectoralis minor) of poultry.
Tender
(obsolete) Someone who tends or waits on someone.
Tender
(rail transport) A railroad car towed behind a steam engine to carry fuel and water.
Tender
(nautical) A naval ship that functions as a mobile base for other ships.
Submarine tender
Destroyer tender
Tender
(nautical) A smaller boat used for transportation between a large ship and the shore.
Tender
Anything which is offered, proffered, put forth or bid with the expectation of a response, answer, or reply.
You offer me the sword of my father, the very man whose bones, because of your perfidy, lie under the sod of Crecy. Aye, I'll surely take it, and just as surely you shall die with your tender through your heart!
Tender
A means of payment such as a check or cheque, cash or credit card.
Your credit card has been declined so you need to provide some other tender such as cash.
Legal tender
Tender
(legal) A formal offer to buy or sell something.
We will submit our tender to you within the week.
Tender
Any offer or proposal made for acceptance.
Tender
Tenderly
Love me tender, love me sweet
Never let me go
Never let me go
Tender
To make tender or delicate; to weaken.
Tender
(archaic) To feel tenderly towards; to regard fondly or with consideration.
Tender
To work on a tender.
Tender
(formal) To offer, to give.
To tender one’s resignation
Tender
To offer a payment, as at sales or auctions.
Tender
One who tends; one who takes care of any person or thing; a nurse.
Tender
A vessel employed to attend other vessels, to supply them with provisions and other stores, to convey intelligence, or the like.
Tender
A car attached to a locomotive, for carrying a supply of fuel and water.
Tender
An offer, either of money to pay a debt, or of service to be performed, in order to save a penalty or forfeiture, which would be incurred by nonpayment or nonperformance; as, the tender of rent due, or of the amount of a note, with interest.
Tender
Any offer or proposal made for acceptance; as, a tender of a loan, of service, or of friendship; a tender of a bid for a contract.
A free, unlimited tender of the gospel.
Tender
The thing offered; especially, money offered in payment of an obligation.
Tender
Regard; care; kind concern.
Tender
To offer in payment or satisfaction of a demand, in order to save a penalty or forfeiture; as, to tender the amount of rent or debt.
Tender
To offer in words; to present for acceptance.
You see how all conditions, how all minds, . . . tender downTheir services to Lord Timon.
Tender
To have a care of; to be tender toward; hence, to regard; to esteem; to value.
For first, next after life, he tendered her good.
Tender yourself more dearly.
To see a prince in want would move a miser's charity. Our western princes tendered his case, which they counted might be their own.
Tender
Easily impressed, broken, bruised, or injured; not firm or hard; delicate; as, tender plants; tender flesh; tender fruit.
Tender
Sensible to impression and pain; easily pained.
Our bodies are not naturally more tender than our faces.
Tender
Physically weak; not hardly or able to endure hardship; immature; effeminate.
The tender and delicate woman among you.
Tender
Susceptible of the softer passions, as love, compassion, kindness; compassionate; pitiful; anxious for another's good; easily excited to pity, forgiveness, or favor; sympathetic.
The Lord is very pitiful, and of tender mercy.
I am choleric by my nature, and tender by my temper.
Tender
Exciting kind concern; dear; precious.
I love Valentine,Whose life's as tender to me as my soul!
Tender
Careful to save inviolate, or not to injure; - with of.
The civil authority should be tender of the honor of God and religion.
Tender
Unwilling to cause pain; gentle; mild.
You, that are thus so tender o'er his follies,Will never do him good.
Tender
Adapted to excite feeling or sympathy; expressive of the softer passions; pathetic; as, tender expressions; tender expostulations; a tender strain.
Tender
Apt to give pain; causing grief or pain; delicate; as, a tender subject.
Tender
Heeling over too easily when under sail; - said of a vessel.
Tender
Something used as an official medium of payment
Tender
Someone who waits on or tends to or attends to the needs of another
Tender
A formal proposal to buy at a specified price
Tender
Car attached to a locomotive to carry fuel and water
Tender
A boat for communication between ship and shore
Tender
Ship that usually provides supplies to other ships
Tender
Offer or present for acceptance
Tender
Propose a payment;
The Swiss dealer offered $2 million for the painting
Tender
Make a tender of; in legal settlements
Tender
Make tender or more tender as by marinating, pounding, or applying a tenderizer;
Tenderize meat
Tender
Given to sympathy or gentleness or sentimentality;
A tender heart
A tender smile
Tender loving care
Tender memories
A tender mother
Tender
Hurting;
The tender spot on his jaw
Tender
Susceptible to physical or emotional injury;
At a tender age
Tender
Having or displaying warmth or affection;
Affectionate children
Caring parents
A fond embrace
Fond of his nephew
A tender glance
A warm embrace
Tender
Easy to cut or chew;
Tender beef
Tender
Physically untoughened;
Tender feet
Tender
(used of boats) inclined to heel over easily under sail
Tender
(of plants) not hardy; easily killed by adverse growing condition;
Tender green shoots
Common Curiosities
What is meant by a sealed bid in tendering?
A sealed bid is a confidential bid submitted in a closed envelope, opened only by the tender committee.
Where are auctions commonly used?
Auctions are commonly used in real estate, art, and antique sales.
What is the main difference between an auction and a tender?
An auction is a public, competitive bidding process where the highest bid usually wins, whereas a tender is a private, sealed bid process evaluated on various criteria.
What happens if there are no suitable bids in a tender process?
If no suitable bids are received in a tender process, the tender may be re-issued or cancelled depending on the procurement policies of the issuing body.
How do bidders know their bid ranks in an auction and a tender?
In an auction, bidders know their rank immediately as bids are made openly, whereas in a tender, bidders do not typically know their rank as bids are evaluated confidentially.
Which is more susceptible to competitive collusion, auction or tender?
Tenders, due to their private and sealed nature, are generally more susceptible to collusion among bidders compared to the transparent environment of auctions.
Are there legal protections in place for bidders in auctions and tenders?
Yes, both auctions and tenders are governed by regulations that protect the fairness of the process, such as antitrust laws for auctions and procurement laws for tenders.
What types of projects typically use the tender process?
Large-scale government and corporate procurement projects typically use the tender process.
Can an auction be conducted online?
Yes, auctions can be conducted both in physical locations and online.
How is the final price determined in an auction compared to a tender?
In an auction, the final price is determined by the highest bid at the close of the auction, while in a tender, the final price may be negotiated after bid selection based on the tender rules.
Is it possible to withdraw a bid in an auction or a tender?
In auctions, bids are generally binding once made, while in tenders, withdrawal conditions vary and may be subject to penalties or restrictions as stipulated in the tender documents.
What impact do auctions and tenders have on market prices?
Auctions can drive prices up as bidders compete openly, potentially leading to higher market prices for similar items, while tenders might not directly affect market prices as they are often based on value for money rather than just the lowest bid.
Can anyone participate in an auction or a tender?
While auctions are typically open to the general public, tenders often require bidders to meet specific qualifications or standards set by the issuing authority.
How do participants prepare for an auction compared to a tender?
Participants in an auction often prepare by researching the item and its market value, while tender preparation usually involves detailed proposal writing and compliance with specific bid requirements.
What are the typical timelines for completing an auction and a tender?
Auctions are usually completed within a day or even hours, whereas tenders can take several weeks to months depending on the complexity of the project.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
