Open vs Restricted Tenders: Which Should You Use and When

A few years ago, I handled a project that reminded me how choosing the right tender method can make or break a procurement process.

We needed a specialized service and we needed it fast. Leadership wanted speed, Finance wanted savings and my team wanted a compliant process.

Initially, I leaned toward an open tender, more competition, better pricing, right? Until I remembered a previous experience.

The Experience That Changed Everything

I once ran an open tender for a technically-complicated item. Over 40 proposals came in and more than half were from suppliers who had no business participating. My team spent days filtering irrelevant bids, clarifying basic requirements and reviewing documents we should never have received in the first place. It sure was a laborious, time-consuming experience.

Was it necessary?

Not really. Ironically, the three suppliers who eventually qualified were the same ones we would have invited in a restricted tender.

That’s when it clicked: Open tenders bring quantity. Restricted tenders bring quality.

Back to the Project… So instead of opening the tender to everyone, we selected five proven suppliers and ran a restricted tender.

It was faster, cleaner and the winning supplier delivered ahead of schedule. Zero chaos, maximum value.

📌 Use Open Tender when you need:

●       Full market competition

●       Transparency

●       Opportunities for new vendors

Best for: General goods, non-technical items, public-facing projects.

📌 Use Restricted Tender when you need:

●       Speed

●       Technical expertise

●       Qualified suppliers only

Best for: Specialized services, complex equipment and time-sensitive projects.

Remember, both tender types are useful, the real skill is knowing when to use each one.

Need procurement specific training? Reach out to support@efemini.com and we'll get you sorted.