How to write a request for quotation (RFQ): checklist and template

A request for quotation (RFQ) asks suppliers for a price on something you can already describe exactly. It is the quickest way to buy standard goods or services, and it works only if every supplier is quoting for the same thing. Most poor RFQ results come from a vague request, not from bad suppliers.

If you are not sure an RFQ is the right instrument, see Tender, RFQ or RFP? first.

Before you write

Settle these points internally:

• The need. What exactly is required, in what quantity, and by when?
• The budget. You do not have to publish it, but you should know it.
• The approval. Who can approve this spend? Get approval before you ask for prices.
• The rules. Does your policy require a minimum number of quotes or a particular notice period?

The RFQ checklist

1. Title and reference. A short, specific title and a unique reference number, so suppliers can cite it in questions.

2. Buyer details. Organisation name, contact person or channel for questions, and the country where the goods will be delivered.

3. Scope and specification. Describe the item or service precisely: model or standard, size, grade, volume, service levels. Where possible, state the standard rather than a brand. If a brand is acceptable, say "or equivalent" and explain how equivalence is judged.

4. Quantity and unit. One unit of measure for everyone (pieces, kilograms, hours). Mixed units make quotes impossible to compare.

5. Delivery. Place, required date or window, and the delivery terms you expect. State who pays freight, insurance and import duties.

6. Price format. Ask for unit price, total price, currency, and what is included. Say whether taxes should be shown separately.

7. Validity. How long the offer must stay valid, for example 30 days.

8. Payment terms. Your usual terms, for example payment 30 days after the invoice. Ask suppliers to state any different terms.

9. Eligibility. Registration, licences, certificates or minimum experience you require.

10. Evaluation method. Say how you will choose. For an RFQ this is usually lowest compliant price, with delivery date as a tie-breaker. If delivery or warranty carries weight, publish the weights.

11. How to respond. Where to send the quote, the file format, and the closing date and time with a time zone.

12. Questions. The deadline for questions and how answers are shared with all bidders, so nobody gets an advantage.

13. Terms. Reference your standard terms and conditions, or attach them.

A simple template

RFQ reference: [number] Title: Supply of [item] Buyer: [organisation], [country] Contact for questions: [name or channel], until [date and time, time zone] Closing date and time: [date, time, time zone] 1. Requirement. Supply [quantity and unit] of [item], meeting [standard or specification]. 2. Delivery. To [place] by [date], on [delivery terms]. 3. Pricing. Unit price and total in [currency]. State separately: taxes, freight, installation, warranty. 4. Offer validity. At least [number] days. 5. Payment terms. [terms]. State any alternative. 6. Eligibility. [licences, registration, certificates]. 7. Evaluation. The lowest compliant price wins. Ties are broken by earlier delivery. 8. Submission. Via [channel], as a PDF.

Adapt it. Delete anything that does not apply. A short RFQ that is precise beats a long one that is vague.

Common mistakes

• Specifying by brand only. It limits competition and can look like favouritism.
• Leaving out delivery terms. One supplier quotes delivered, another ex-works, and the prices are not comparable.
• Changing the requirement after bids arrive. If it must change, reissue to everyone.
• Too short a deadline. Give suppliers enough time to quote properly, especially across time zones.
• No record of why you chose. Keep the comparison and the reason for the award.

After the quotes arrive

1. Open all quotes after the closing time.
2. Check each against the mandatory requirements.
3. Compare prices on the same basis (same delivery terms, same currency).
4. Award, and notify the unsuccessful suppliers politely.
5. Issue a purchase order. See The complete procurement lifecycle for the steps after award.

You can publish an RFQ on the eProcurement.si notice board once you register as a buyer, and suppliers can find and answer it without leaving the platform.