Tender Validity Period

The tender validity period is the defined window — typically 60 to 180 days from submission deadline — during which a submitted bid is irrevocable and binding on the supplier at the offered price and terms. If the contracting authority has not completed evaluation and made an award within this period, it must request an extension from bidders. Suppliers are free to refuse extension, which effectively withdraws their bid.

Tender validity periods serve an important function: they lock in bid prices during evaluation, preventing suppliers from withdrawing or varying their offer mid-process. They are particularly important in commodity-sensitive contracts where material costs fluctuate. Bid bonds are typically co-terminating with the validity period — if the validity lapses without an extension or forfeiture event, the bond is released.

For vendors, the validity period creates financial exposure in volatile markets. A 90-day validity on a large construction contract means the vendor's tendered prices must absorb input cost movements for three months. Price escalation mechanisms — explicitly requesting provisional sums or price adjustment clauses for material costs — are increasingly common in long-validity tenders. If an authority consistently requires extensions well beyond the original period, this signals procurement management problems that are worth factoring into the risk assessment of future bids with that authority.