What is it commercial Organization

A commercial organization is a company (legal entity), the main purpose of which is to generate income from the sale of goods, the provision of services or the performance of work.

Types of Commercial Organizations

Commercial companies can be classified according to a wide range of criteria, however, several of them can be called the most significant in the context of the requirements of electronic tenders. Depending on the scale, which is determined by the number of employees, the size of fixed capital and annual turnover, companies are:

• • small;

  • medium;

  • large.

By type of activity, commercial enterprises are divided into the following types:

• • industrial (production of goods);

  • trade (turnover of finished goods);

  • service companies.

Some sources single out organizations involved in financial and logistics services. However, from a more general point of view, both types are service companies. These include companies that carry out various work.

Commercial organization as a party to the tender

In public procurement, commercial organizations can only act as contractors, since customers are always government bodies and structures or central procurement organizations. In commercial procurement at SmartTender.biz platform, companies can act both as customers and contractors.

As a tender organizer, a commercial organization may open tenders for various types of tender procedures, indicating the list and characteristics of goods, services or works that it needs; qualify participants, choose a winner and conclude a cooperation agreement with him. After the contractor has provided the goods, services or works in full, the commercial organization-customer pays him the remuneration stipulated by the contract.

As a potential contractor, the company can respond to customers' requests, formulating proposals, participate in online bidding, dispute the organizer’s actions, which are illegal, in her opinion, and, in case of victory, conclude a cooperation agreement with the customer. Having become the winner of the tender, the commercial organization is obliged to provide the agreed goods, services or work within the time period established by the contract and has the right to receive remuneration.