Open tender versus restricted tender explained
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An open tender invites any interested supplier to submit a bid, while a restricted tender limits participation to a shortlisted group, usually selected through an earlier expression of interest process. Each approach trades a different mix of competition, efficiency and administrative effort depending on the nature of the purchase involved.
Open tenders maximise competition and are generally preferred for significant or unfamiliar purchases, since they cast the widest possible net and reduce any suspicion that a favoured supplier was quietly chosen in advance. The tradeoff is a heavier administrative burden, since every submission received still needs to be properly and fairly evaluated.
Restricted tenders suit complex or specialised work where evaluating dozens of full proposals would be genuinely impractical, allowing a shortlist stage to filter capable suppliers before the more detailed and costly proposal work begins. The shortlisting stage itself still needs clear, published criteria to avoid becoming an opaque decision in disguise.