What is an RFQ? A request for quotation, and how to get prices you can compare.
An RFQ asks suppliers to price a scope you have already defined. Here is what it contains, how it differs from an RFI and an RFP, and the five steps that make the replies comparable.
What does RFQ mean?
RFQ stands for request for quotation, also called a request for quote. It is a document a buyer sends to several suppliers asking each of them to price the same defined scope: the items, specifications, quantities, delivery point and commercial terms. Because the scope is fixed, the replies are prices that can be compared line by line. An RFQ is used when the buyer already knows exactly what to buy, and the open question is who supplies it, at what price and on what terms.
Most of the work in an RFQ is not the sending. It is making sure every supplier prices the same thing, and that the replies come back in a form you can compare. PROCAI sends one RFQ to your whole shortlist from your own Gmail or Outlook mailbox, tracks the replies against it, and turns the quotations into a side by side comparison sheet.
RFI vs RFP vs RFQ: the difference in one table
A request for information (RFI), a request for proposal (RFP) and a request for quotation (RFQ) are often used in sequence: learn the market, compare solutions, then price a fixed scope.
| Question | RFI | RFP | RFQ |
|---|---|---|---|
| What it asks for | Information about the supplier and the market: capabilities, experience, products | A proposed solution to a need, with the method and a price | A price for a defined scope: exact items, specifications and quantities |
| When you use it | Early, while you are still learning what exists and who can supply it | When the need is clear but the best way to meet it is not | When you know exactly what to buy and need the best commercial offer |
| What the supplier sends back | Company information, product details and references, often with no price | A proposal document: approach, team, timeline and pricing | A quotation: unit prices, totals, lead time, validity and terms |
| How replies are judged | Used to build or shorten the supplier list, not to award | Against weighted criteria such as approach, capability and cost | Like for like on price, delivery and terms, for the same scope |
| How fixed the scope is | Open | Partly open: the outcome is defined, the method is proposed | Fixed: every supplier prices the identical scope |
| Typical next step | An RFP or an RFQ to the suppliers who qualify | Shortlisting and negotiation, then a contract | A comparison sheet, clarifications, the award and a purchase order |
What an RFQ contains.
Three parts. Leave one out and the quotations stop being comparable.
Scope and specifications
- One line per item, with a clear description and the standard or grade it must meet
- Quantities with units stated: tonnes, metres, pieces, never a bare number
- Drawings, a bill of quantities or datasheets attached, the same files for every supplier
- Accepted brands or equivalents, and whether alternatives may be offered as separate lines
Commercial terms
- Delivery point and delivery terms, such as delivered to site or ex works, and the required date
- The payment terms you expect, so every supplier prices the same credit period
- How long the quotation must stay valid, for example 30 days
- The currency to quote in, and whether VAT must be shown separately
Reply instructions
- A clear deadline: date, time and time zone
- A fixed reply format: the items table to fill in, with unit price and total per line
- What must be quoted besides price: lead time, warranty, certificates
- One named contact for questions, and how answers will be shared with every supplier
The RFQ process in five steps.
From a defined need to a purchase order. The details in each step are what make the replies comparable.
- 1
Define the need and the scope
Write down exactly what you are buying: items, specifications, quantities, units, delivery point and date. If you cannot fix the scope yet, you need an RFI or an RFP first, not an RFQ.
- 2
Build the RFQ document
Put the scope, the commercial terms and the reply instructions in one document, with an items table for suppliers to fill in. Start from a template so nothing is missed.
- 3
Send the identical RFQ to every supplier
Send the same scope, files and deadline to each supplier on the shortlist, on the same day. Answer any question in writing and share the answer with all of them.
- 4
Collect the quotations and compare like for like
Check that each supplier priced every line, in the requested units and currency. Put the offers side by side, with gaps, exclusions and terms visible, before you look at the totals. PROCAI builds this comparison sheet from the quotations as they arrived.
- 5
Clarify, award and raise the purchase order
Resolve open points with the suppliers in writing, choose on price, lead time, terms and compliance, and confirm the award. Then raise the purchase order, referencing the accepted quotation.
Where an RFQ stops.
An RFQ fits one situation: a fixed scope and a price question. These are its limits, and PROCAI's.
- An open scope needs an RFP. If suppliers must propose the method or the design, an RFQ forces them to guess, and you get prices for different things.
- The lowest price is not automatically the award. Lead time, payment terms, compliance with the specification and supplier history can make a higher quotation the better buy.
- An RFQ is not a contract by itself. It invites offers. The commitment usually comes with the purchase order or a signed agreement, and the exact rules depend on your terms and local law.
- PROCAI does not choose the supplier. It sends the RFQ, tracks the replies and builds the comparison sheet. The award stays with the people who sign it.
Free RFQ template, ready to download
A blank Excel RFQ form with an items table, the commercial terms laid out, and a column for the supplier's prices. Fill it in, send it, and ask suppliers to return it completed, so every reply has the same layout. Available in English and Arabic.
RFQs, answered.
What does RFQ stand for, and what is its full form?
RFQ stands for request for quotation, also written as request for quote. The full form describes exactly what it is: a formal request from a buyer asking suppliers to quote prices for a defined list of goods or services. It is also called an enquiry, a quotation request or a price request. The supplier's reply to it is called a quotation, or a quote.
Is a quotation legally binding?
Not automatically: whether a quotation binds anyone depends on its own wording and on the law that applies. In many places a quotation is treated as an offer the buyer can accept while it is valid, and the purchase order is the acceptance. Other quotations are marked as estimates or subject to confirmation. Read each quotation's validity period and conditions, and check with your legal advisers before relying on one for a large purchase.
How many suppliers should I send an RFQ to?
Common practice is to collect at least three quotations, so the price is tested against the market. Many organisations write that number into their purchasing policy, sometimes with a higher number for larger values. It is a policy choice, not a universal rule, and public sector buyers follow their own regulations. Send to more than three when some suppliers may not reply. In PROCAI, sending never costs credits, and the Free plan sends each RFQ to up to 20 suppliers.
How long should suppliers have to reply to an RFQ?
Give suppliers enough time to price the scope properly: often a few working days for standard stock items, and one to two weeks or more for engineered or large packages. State the deadline as a date, time and time zone, give every supplier the same deadline, and leave time for questions. A deadline that is too short tends to bring fewer replies and more cautious prices.
What is the difference between an RFQ and a tender?
A tender is usually a formal, often public, competitive process with published rules, sealed submissions and set evaluation criteria, while an RFQ is a simpler request for prices on a defined scope. Tenders are common for large contracts and in the public sector. RFQs are the everyday tool for buying defined goods and services, and are often sent by email to a shortlist. In some regions the two words are used loosely for the same thing.
Can an RFQ be sent by email?
Yes, email is a normal way to send an RFQ, with the specification and items table attached or in the message body. Send every supplier the same message and files, and ask for the reply in a fixed format. PROCAI sends one RFQ to your whole shortlist from your own connected Gmail, Microsoft 365 or custom SMTP mailbox, so suppliers see a normal email from you, and their replies are matched back to the RFQ.
What happens after the quotations arrive?
You compare them, clarify, award and raise a purchase order. First check that every supplier priced every line in the requested units, currency and terms, then lay the offers side by side in a comparison sheet. Ask suppliers in writing about gaps or exclusions. Choose on price, lead time, terms and compliance, confirm the award, and issue the purchase order. PROCAI builds the comparison sheet from the quotations as they arrived: PDF, Excel, Word or photos.
Your next RFQ, the same scope to every supplier.
Connect the mailbox you already use, send to your shortlist, and compare the quotations side by side. Sending RFQs is free on every plan.