Letter of Cancellation of Tender after Reward

When you write a letter to announce your decision to cancel a business deal or a tender, it brings bad news for the reader. Therefore, you need to be careful when writing this letter, as failing to write it correctly can end up offending the reader, which can ruin the situation and damage your business relationship with them.

A Letter of Cancellation of Tender after Award is a formal document issued by a company or contracting authority to cancel a tender or contract that has already been awarded to a bidder. This typically happens due to unforeseen circumstances such as funding issues, changes in project scope, errors in the award process, or non-compliance by the selected bidder.

The letter outlines the news that the tender is being cancelled. This letter brings bad news for the reader, as they were previously awarded the tender, which is now being cancelled.

Here are a few tips to follow when you announce the cancellation of a tender after award:

Make the right choice of words:

You should write this letter in such a way that you don’t hurt the sentiments of the reader. Choose your words carefully when announcing the cancellation of the tender.

Give details of the tender you are cancelling:

Don’t forget to mention the details of the tender so that the reader can know which tender you are referring to. Please note the unique tender number, the date it was accepted, and any other relevant details.

Give reason:

Mention the reason why you want to cancel the tender. The reason is important for the reader. If the tender is cancelled for a baseless reason, the reader will be entitled to compensation, and you will specify in the letter how the compensation will be carried out.

Sample letter #1

This is regarding Tender ID [ID], awarded to your firm on the 30^th of May 2025. We regret to inform you that due to unexpected budget constraints, we are compelled to cancel the awarded contract with immediate effect.

We thank you for your participation and interest in the project. Your proposal was impressive, and your well-reputed firm was our top choice. We would notify you as soon as the tender is reopened in the future.

We sincerely apologize for any inconvenience this may cause and hope to collaborate with you on future projects.

#2

We are writing to inform you that we have decided to withdraw the tender award granted to your organization on the 1^st of July 2025. This decision has been made based on some issues and inconsistencies discovered during our post-award verification of your organization.

Our inspection team has identified errors and misinformation in the documentation and references provided by your company. Additionally, we have also received reports regarding unresolved financial disputes associated with your firm. Therefore, in light of these discoveries, we regret to inform you that we have decided to cancel the tender with immediate effect.

Please note that this cancellation is being carried out following Clause XYZ of our tender policy. You are requested to refund the advance payment by the 30^th of July. Failure to comply might lead to legal proceedings.

Thank you for your attention to the matter.

#3

Sub: Cancellation of tender after award

Respected Mr. ABC,

We are writing to inform you that XYZ Private Limited has decided to cancel the tender for operating the company’s canteen. The tender (mention the tender ID) is being cancelled due to internal company issues. Please read the official notice of the cancellation of the tender attached to this letter. The company is compelled to cancel the tender after the award due to some grave reasons. It was not an easy decision for the company.

We are so sorry to make this decision. We look forward to continuing to do business together in the future. As per the contract, the company will compensate you for all payments made from the start to the date the tender was issued to you. You will receive the payment in one month.

Thank you so much for your cooperation with us. For more information about this news, please get in touch with us using the company’s official contact numbers. We will be delighted to guide you.

Letter of Cancellation of Tender after Reward

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#4

Sub: Cancellation of tender after award

Respected Mr. ABC,

We are writing to inform you that XYZ Enterprises has decided to cancel the tender (number mentioned) for cleaning services with your company. This was a tough decision for XYZ Enterprises, as the proposal you sent was the most persuasive, and we particularly liked your offer. However, due to some internal changes, it is no longer feasible for the company to continue getting cleaning services from an external body.

We regret having cancelled the tender with you, but we believe that we will be able to carry on our business relationship in the future. As per the agreement, the cancellation of the tender after the award binds us to compensate for the loss. Therefore, we are ready for this. We kindly request that you provide a detailed breakdown of the expenses you have incurred so that we can process your payment promptly.

Thank you so much for your cooperation and support. We look forward to working with you as our business partner in the future. If you would like to learn more about the tender cancellation notification, please do not hesitate to contact us.