Do you find it confusing to find a Buyer advertising a Tender and another asking for an Expression of Interest (EOI)? This handy guide spells out the difference simply for you.
You are being asked if you would like to be considered for the formal bidding process with an EOI. A decision on who gets the job is not decided at this stage.
An EOI is often the first step in a multi-stage tender process whereby more detailed requests for proposal or tender are issued to the shortlisted or registered suppliers. These tenders are sometimes referred to as invited or selected tenders.
An EOI typically seeks information from the supplier that demonstrates the capacity to perform a contract and can result in the supplier entering a negotiation for a contract or being shortlisted for a subsequent tender.
A Tender is similar to the EOI, but it’s a more structured invitation document that seeks more detailed information from the suppliers and contractors. With a tender you will need to provide more information, for example, the estimated cost of the project, time period to complete the project and financial viability.
Insight: An EOI is very similar to a tender, and like tenders, the devil is in the detail. Be sure to read the documents of the request carefully, in particular the conditions, to understand your legal obligations when submitting a response. Read our previous blog 'What is an Expression of Interest' for more explanation on EOI and RFT.
If you're curious to see an EOI standard form, check out the NSW Government Procurement website. Note that these forms are examples only for the construction industry and EOI forms will differ for different projects.