What is the main feature of restricted tendering?

The main feature of restricted tendering is that invitations to tender are sent only to a select group of pre-evaluated suppliers. This approach allows organizations to limit the number of participants in the bidding process to those who are already deemed capable of meeting the required standards and qualifications for the project or procurement task at hand.

By selecting suppliers based on established criteria or past performance, the organization can ensure that it is working with vendors that have proven reliability and the necessary expertise, which can result in better quality proposals and a more streamlined procurement process. This method can also reduce the administrative burden associated with evaluating a larger pool of tenders and can help in managing project risk effectively.

In contrast, options that imply an open invitation to all interested suppliers or a focus solely on the lowest cost do not accurately capture the selective nature of restricted tendering. Additionally, requiring shareholder approval pertains to internal governance and decision-making processes rather than the specific characteristics related to the tendering method itself.