Australian Tenders Blog

Difference Between Tenders and EOI's

Written by Rob Nathan | 14/02/20 06:49

Do you find it confusing to find a Buyer advertising a Tender and another asking for an Expression of Interest (EOI)? This simple guide breaks down the key differences between an EOI and a tender request and explains when and how each is used in the Australian procurement process.

What Is an Expression of Interest (EOI)?

An Expression of Interest (EOI) is often the first stage in a multi-phase procurement process. It’s used by government or private buyers to gauge market capability before issuing a formal Request for Tender (RFT).

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.

 What EOIs Typically Ask For:

  • A summary of your business’s capabilities

  • Experience with similar projects

  • Evidence of qualifications, certifications, or licences

  • References or past performance indicators

The EOI process helps buyers shortlist qualified suppliers who will then be invited to tender, often referred to as invited tenders or select tenders.

 

What Is a Tender?

A tender (or Request for Tender – RFT) is a formal request from a buyer asking for detailed bids to deliver specific goods or services. Unlike EOIs, tenders require pricing, timeframes, and detailed delivery plans.

Responding to a tender is a more involved process and typically includes:

  • Proposed pricing (fixed rate or schedule of rates)

  • Project timelines

  • WHS and compliance documentation

  • Methodology and approach

  • Risk management and capability statements

Once submitted, a tender can be accepted outright, which can result in a legally binding contract.

 

Expression of Interest vs Tender

The main difference between an EOI and a tender request is that there is typically no requirement for you to submit a price. The general intent is to enter some form of negotiation or process which may lead to a contract in the future. Unlike these requests, a tender response can be accepted immediately and you can then be legally bound to enter into a contract for the work at the price tendered. Other key differences include:
 
Feature Expression of Interest (EOI) Tender (RFT)
Purpose Qualify and shortlist suppliers Select supplier to deliver work
Price Required  No Yes
Lagally Binding  No Yes, if accepted
Detail Level General business capability Detailed project plan and pricing
Common in  Multi-stage processes Open procurement or final contract award

Why EOIs Matter for Australian Businesses

EOIs are a strategic way for buyers to:

  • Identify capable suppliers early

  • Reduce risk before going to market

  • Streamline the formal tendering process

For suppliers, EOIs are an entry point into large or government-led projects. Even if you’re not successful immediately, being shortlisted can lead to future opportunities.

 

Our Advice: Read the Fine Print

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.

 

Sample EOI 

If you're curious to see an EOI standard form, check out the sample forms at NSW Government Procurement website. Note that these forms are examples only for the construction industry and EOI forms will differ for different projects. 

 

Whats Next?

If you want to start reviewing some EOIs from your industry, start searching for opportunities here or check out the service categories and see if there's anything tenders or EOIs for your business.

For a detailed look at Request for Tenders (RFT) and Request for Quotes (RFQ), check out our previous blog Difference Between a Tender and a Quote

If you want to learn more about how we can help your tendering process, drop us a line via email at support@australiantenders.com.au. Alternatively, check our our free "Introduction to Tendering" eBook

Good luck and happy bidding!