Differentiate between an estimate and a tender.

An estimate is a rough calculation of the cost of a project or service, based on limited information and assumptions. It is not a formal offer and is subject to change based on further details or changes in the project scope.

A tender, on the other hand, is a formal offer to provide goods or services at a specified price. It is usually submitted in response to a request for proposal (RFP) or invitation to tender (ITT) and includes detailed information about the scope of work, pricing, terms and conditions, and other relevant details. Tenders are typically binding and can be accepted or rejected by the client.

Estimate

- A preliminary assessment of the cost or value of a project or service.
- Usually based on a limited amount of detailed information.
- Provides a general idea of the expected cost.
- Non-binding and subject to revision as more information becomes available.
- Often used during the initial planning and budgeting stage.

Tender

- A formal offer to provide goods or services at a specific price and under defined terms and conditions.
- Based on a detailed understanding of the project requirements and specifications.
- Binding on the contractor if awarded the project.
- Submitted in response to a tender invitation or request for proposal (RFP).
- Involves a formal bidding process where contractors submit their most competitive proposals.