The Most Common Types of Tenders and When They’re Used

Public procurement is not one-size-fits-all. 

Different projects, budgets, and buyer objectives require different tender procedures. From fully open competitions to more selective or collaborative approaches, understanding the most common types of tenders is essential for suppliers who want to identify the right opportunities and respond effectively.

Knowing the differences not only helps you choose which tenders to pursue—it also lets you tailor your approach to each process. A bid that works for an open tender may fall flat in a negotiated procedure, and vice versa.

Here, we’ll explore the main types of tenders used in public procurement, why buyers use them, and what they mean for you as a supplier.

1. Open Procedure

What it is:
The open procedure is the simplest and most widely used form of tendering. Any supplier can submit a full bid in response to the notice—there’s no pre-qualification stage.

When buyers use it:

• For straightforward, well-defined purchases
  
  

• When they want maximum competition
  
  

• Often used for goods, services, or works with low to medium complexity

Advantages for suppliers:

• Completely open—no restrictions on who can apply
  
  

• Easy to access if you meet the criteria

Challenges:

• High competition
  
  

• Time-consuming to prepare a full bid without certainty of shortlisting

Tip: Only bid if you meet all requirements and can submit a high-quality, price-competitive offer—because everyone else will be trying too.

2. Restricted Procedure

What it is:
A two-stage process. First, suppliers submit a Selection Questionnaire (SQ) or European Single Procurement Document (ESPD) to demonstrate capability, compliance, and financial standing. Only shortlisted suppliers are invited to submit full bids.

When buyers use it:

• For more complex projects
  
  

• To reduce the number of full bids they must evaluate
  
  

• When specialist skills or track record are important

Advantages for suppliers:

• Less competition in the final stage
  
  

• Early filtering ensures your bid is evaluated against a smaller pool

Challenges:

• You must pass the first stage to get to the full bid
  
  

• Pre-qualification requirements can be strict

Tip: Treat the SQ stage seriously—it’s not a formality. Missing information here means you won’t progress, no matter how strong your final bid could be.

3. Competitive Procedure with Negotiation

What it is:
Buyers shortlist suppliers (as in restricted procedure) and invite them to submit initial tenders. They then negotiate to refine proposals before asking for a best-and-final offer.

When buyers use it:

• For high-value or technically complex contracts
  
  

• When they want flexibility to improve offers through discussion
  
  

• Where innovative or tailored solutions are possible

Advantages for suppliers:

• Opportunity to clarify and improve your proposal during negotiations
  
  

• Allows you to adapt to buyer feedback before final submission

Challenges:

• Longer process, requiring more resources
  
  

• Must balance openness in negotiation with protecting commercial confidentiality

Tip: Come to negotiation meetings prepared with multiple options and clear value propositions—not just price adjustments.

4. Competitive Dialogue

What it is:
Buyers engage in structured discussions with shortlisted suppliers before the final bidding stage. Unlike negotiation, the dialogue is about defining the solution itself because the buyer doesn’t have a clear idea at the start.

When buyers use it:

• For complex or innovative projects
  
  

• When the solution is not obvious or requires co-development
  
  

• Large-scale infrastructure, IT systems, or public-private partnerships

Advantages for suppliers:

• Chance to shape the requirements to match your strengths
  
  

• Encourages collaborative problem-solving

Challenges:

• Requires significant time and expertise
  
  

• You may invest heavily without guarantee of award

Tip: Use dialogue to build trust and position yourself as the most knowledgeable and reliable partner—not just a vendor.

5. Innovation Partnership

What it is:
A process where a buyer partners with a supplier to research, develop, and deliver a new solution that isn’t available on the market. The same supplier then implements it if the development is successful.

When buyers use it:

• For emerging technologies or novel service models
  
  

• Where existing solutions don’t meet needs
  
  

• In R&D-heavy sectors like healthcare, energy, or transport

Advantages for suppliers:

• Long-term collaboration and exclusivity for delivery phase
  
  

• Strong potential for future commercialisation

Challenges:

• High risk and resource commitment during R&D
  
  

• Not suitable for all suppliers—requires specialist capability

Tip: Ensure you understand intellectual property rights and commercialisation clauses before committing.

6. Framework Agreement

What it is:
A multi-year agreement with one or more suppliers, setting the terms for future purchases. Orders are placed via direct award or mini-competitions within the framework.

When buyers use it:

• For repeat purchases over several years
  
  

• To simplify procurement for common goods or services
  
  

• To maintain a pool of pre-qualified suppliers

Advantages for suppliers:

• Predictable pipeline of opportunities
  
  

• Less effort to compete for each call-off once on the framework

Challenges:

• No guaranteed spend
  
  

• Competitive entry—often only opens every few years

Tip: Track frameworks that are nearing expiry so you can prepare in advance for the next round of bids.

7. Dynamic Purchasing System (DPS)

What it is:
An entirely electronic, open system for buying commonly used goods and services. Suppliers can join at any time, and buyers run mini-competitions for specific needs.

When buyers use it:

• For flexible, ongoing procurement needs
  
  

• To encourage SME participation
  
  

• When demand changes frequently

Advantages for suppliers:

• You can join anytime, unlike frameworks
  
  

• Multiple chances to win work through mini-competitions

Challenges:

• Requires quick response to opportunities
  
  

• High competition for each call-off

Tip: Have mini-competition templates ready so you can submit fast, high-quality bids.

Conclusion

Public buyers choose different tender types depending on their goals, budget, and the complexity of what they need. For suppliers, understanding these types is more than just theory—it’s a competitive advantage.

Knowing when each tender type is used helps you:

• Target the right opportunities
  
  

• Allocate resources effectively
  
  

• Tailor your approach to the process and buyer expectations

Whether you’re aiming for open competitions, selective frameworks, or collaborative innovation projects, preparation and strategic bidding are key. And with tools like Mercell, you can track all these tender types in one place—so you never miss the right opportunity.