What is a Request for Quotation (RFQ)?
A Request for Quotation (RFQ) is a document prepared by a buyer, such as a procurement officer, to get price quotes for a specific product or service from suppliers or vendors. It usually contains the requirements set by the buyer, the product quantity or length of service (e.g., number of hours), and any additional information that could help the supplier or vendor in submitting a detailed and accurate quote.
What to Include
A request for quotation should include the following:
- Product or service details
- Quantity and unit price (for products)
- Number of hours and cost of labor (for services)
- Required delivery date of product/service
- Quote submission deadline
- Evaluation process and criteria
- Payment terms and other information
- Contract terms and conditions
What is a Request for Quotation Template?
A request for quotation template (or RFQ template) is a tool used by procurement officers to send the same RFQ to multiple suppliers and vendors. A RFQ template standardizes the information received by the procurement officer by asking each supplier or vendor the same set of questions. This helps in comparing price quotes and selecting the best supplier or vendor for the product or service.
How to Write RFQ with Example
Write a request for quotation by following these 10 steps:
- Specify the product or service you’re requesting the quote for
- State the product quantity or length of service needed
- Determine the pricing method (e.g., unit price or hourly rate)
- Request a product or service price breakdown
- Note when you need the product or service delivered
- Describe the evaluation method/criteria and process
- Include payment terms and contract terms and conditions
- Create a section for Frequently Asked Questions (FAQ)
- Provide instructions on how to complete the RFQ
- Highlight the due date for submitting price quotations
For more guidance on how to write RFQ, preview the request for quotation sample PDF report or test out other RFQ templates, such as the ones below: