Free Request for Quote (RFQ) Template

What is a Request for Quote (RFQ)?

A Request for Quote (RFQ), also known as a Request for Quotation, is a formal document that businesses send to potential vendors or suppliers to request pricing information for specific products or services. Unlike a simple inquiry, an RFQ provides detailed specifications and requirements, allowing vendors to prepare accurate, competitive quotes.

When to Use an RFQ

Procurement: When purchasing products or services for your business and you want to compare multiple vendor options
Project Bidding: For larger projects where you need detailed pricing from multiple service providers
Standardization: When you need all vendors to provide information in the same format for easy comparison
Budget Planning: To get accurate cost estimates for budget approval or project planning
Vendor Selection: To evaluate and compare different vendors based on price, terms, and capabilities

Key Elements of an RFQ

A professional RFQ should include:

RFQ Number and Date: Unique identifier for tracking and reference
Company Information: Your business details and contact person
Project Description: Clear, detailed description of what you need
Scope of Work: Specific requirements, deliverables, and specifications
Timeline: Required start date and completion deadline
Pricing Requirements: What pricing information you need (itemized, totals, payment terms)
Response Deadline: When you need vendors to submit their quotes
Additional Requirements: Certifications, references, warranties, or other criteria

RFQ vs. Quote vs. RFP

RFQ (Request for Quote): You're requesting pricing information for specific products/services. Focus is primarily on cost comparison.

Quote: The response from a vendor with pricing and terms. This is what vendors send back after receiving your RFQ.

RFP (Request for Proposal): More comprehensive than an RFQ, includes solution approach, methodology, and often used for complex projects where price isn't the only consideration.

Best Practices for RFQs

Be Specific: Provide detailed specifications to get accurate quotes. Include dimensions, quantities, quality requirements, and any technical specifications.
Set Clear Deadlines: Give vendors enough time (typically 1-2 weeks) but set a firm response date. Specify both the deadline date and time.
Standardize Format: Request all vendors to use the same format for easy comparison. Consider providing a template or specifying how you want quotes structured.
Include All Requirements: Don't forget certifications, insurance, bonding, references, or other mandatory requirements. This prevents disqualifying vendors who could otherwise meet your needs.
Provide Context: Help vendors understand your business needs, constraints, and objectives. The more context you provide, the better they can tailor their quotes.
Follow Up: Acknowledge receipt and respond to vendor questions promptly. Consider holding a Q&A session if multiple vendors have similar questions.
Be Fair and Transparent: Treat all vendors equally, provide the same information to everyone, and maintain confidentiality of their responses until you've made a decision.
Evaluate Beyond Price: While cost is important, also consider quality, delivery time, vendor reputation, warranty terms, and ongoing support.

How to Write an Effective RFQ

Writing an effective request for quote template requires careful planning and attention to detail. Here's a step-by-step guide to creating an RFQ that gets you the information you need:

Start with clear objectives: Before writing your RFQ, clearly define what you're trying to accomplish. What problem are you solving? What outcome are you seeking?
Gather technical requirements: Collect all technical specifications, dimensions, quality standards, and performance requirements. The more detail you provide upfront, the more accurate quotes you'll receive.
Identify potential vendors: Research and identify qualified vendors who can meet your needs. Consider both established vendors and new options.
Structure your RFQ clearly: Use our RFQ template above as a starting point. Organize information logically: project description, requirements, pricing needs, timeline, and evaluation criteria.
Specify submission requirements: Tell vendors exactly how to submit their quotes (email, online form, hard copy), what format to use, and what documents to include.
Set realistic deadlines: Give vendors adequate time to prepare comprehensive quotes. Rushing may result in incomplete or inaccurate responses.
Include evaluation criteria: Let vendors know how you'll evaluate quotes. Will you consider only price, or also quality, timeline, and vendor capabilities?
Provide contact information: Designate a contact person who can answer vendor questions. Respond promptly to ensure all vendors have the same information.

Common RFQ Mistakes to Avoid

Being too vague: Vague requirements lead to quotes that don't meet your needs. Be specific about quantities, quality, timelines, and deliverables.
Unrealistic deadlines: Giving vendors only a few days to respond may result in incomplete quotes or vendors declining to bid. Plan ahead.
Missing critical requirements: Forgetting to specify certifications, insurance, or compliance requirements can disqualify otherwise qualified vendors or lead to issues later.
Focusing only on price: The cheapest quote isn't always the best value. Consider quality, reliability, vendor reputation, and total cost of ownership.
Not providing context: Vendors need to understand your business and objectives to provide the best solutions. Share relevant background information.
Poor communication: Not responding to vendor questions or providing updates creates confusion and may result in incomplete quotes.
Inconsistent information: Providing different information to different vendors is unfair and can lead to legal issues. Ensure all vendors receive the same RFQ document.

RFQ Template Use Cases

Request for quote templates are used across various industries and business scenarios:

Procurement & Purchasing

Businesses use RFQ templates to purchase office supplies, equipment, raw materials, and components. Standardizing the RFQ process ensures all vendors provide comparable quotes.

Service Contracts

For hiring service providers like cleaning companies, IT support, marketing agencies, or consulting firms. RFQs help compare pricing and service offerings.

Construction Projects

Construction companies and property managers use RFQs to get quotes from contractors, subcontractors, and suppliers for building materials and services.

Government & Nonprofits

Public sector organizations often require formal RFQ processes for transparency and compliance. Our RFQ template helps standardize the process.

Example RFQ Scenarios

Scenario 1: Office Equipment Purchase

A company needs to purchase 20 office computers. They send an RFQ to three IT vendors specifying:

Required specifications (processor, RAM, storage, monitor size)
Quantity needed and delivery timeline
Request for itemized pricing per unit
Warranty terms and support options
Installation and setup services

Scenario 2: Website Development Project

A business wants to redesign their website. They send an RFQ to web design agencies requesting:

Project scope and deliverables (number of pages, features, functionality)
Timeline and milestone breakdown
Pricing for design, development, and hosting
Revision rounds and change request process
Portfolio examples and client references

Scenario 3: Construction Materials

A construction company needs lumber and building materials. They send an RFQ to suppliers asking for:

Specific quantities of different materials
Quality grades and certifications required
Pricing with delivery costs included
Lead times and delivery schedule
Bulk pricing discounts if applicable

Frequently Asked Questions About RFQs

What's the difference between an RFQ and RFP?

An RFQ (Request for Quote) focuses primarily on pricing for well-defined products or services. An RFP (Request for Proposal) is more comprehensive, asking vendors to propose solutions, methodologies, and approaches. Use RFQs when you know what you need and want to compare prices. Use RFPs for complex projects where you need vendors to propose solutions.

How long should I give vendors to respond?

Generally, provide 1-2 weeks for vendors to prepare comprehensive quotes. Simple RFQs may need only 3-5 days, while complex projects may require 2-3 weeks. Consider the complexity of your requirements and be reasonable with deadlines to get quality responses.

Do I have to accept the lowest quote?

No, you're not obligated to accept the lowest quote. Consider quality, vendor reputation, delivery timeline, warranty terms, and total value. However, be prepared to justify your selection if questioned, especially in public sector or regulated environments.

Can I negotiate after receiving quotes?

Yes, you can negotiate with vendors after receiving quotes. Many businesses do this to clarify details, request modifications, or negotiate better terms. However, treat all vendors fairly and maintain transparency throughout the process.

How many vendors should I send an RFQ to?

Typically, send RFQs to 3-5 qualified vendors. Fewer than 3 may limit your options, while more than 5 can be time-consuming to evaluate and may overwhelm you with too many choices. Focus on vendors who are most likely to meet your needs.

What should I do if a vendor asks questions about my RFQ?

Respond promptly and professionally. If multiple vendors have similar questions, consider sending an addendum or clarification to all vendors to ensure everyone has the same information. This maintains fairness and transparency.

How do I evaluate quotes after receiving them?

Create an evaluation matrix comparing quotes on criteria like price, quality, timeline, vendor experience, warranty, and terms. This helps you make an objective decision. Some businesses use scoring systems where price might be weighted 40-50% and other factors make up the rest.

Need Help Creating Quotes?

If you're a vendor receiving an RFQ, use our free quote builder to create a professional response. Our tool helps you:

Organize your pricing in a professional format
Include all required information from the RFQ
Create itemized breakdowns with auto-calculated totals
Export as PDF for easy submission

Create Professional Quote

Invoice Penguin