The procurement process takes work. Vendor pricing and payment terms can often kill even the most advanced projects. And qualified bidders know how to get around any potential roadblocks and into your pocket.

So, why fight them if you could invite them? RFQ, or request for quote pricing template, is a simple way of getting through the weeds of talking and hundreds of emails sent back and forth where it can be done by sending a simple document.

A well-drafted request for a quote could make finding the selected vendor an easy and no-stress process. You simply put all the necessary information in the RFQ templates and send it to vendors and the invited bid. It is a utility. Company RFQ could save you time getting everything done correctly and efficiently finding qualified vendors. Whether those are internal stakeholders or outside influence, RFQ can make or break your contracting process.

So, in that spirit, let’s discuss some details about finding the best vendor possible.

The first template on our list is a pretty basic document. It is excellent for government procurement projects as it combines detailed specifications but does not overwhelm the “audience” with too many details.

It’s easy to navigate, straight to the point, and overall - it makes all the RFQ documentation look accessible.

You can download this template for free at TemplateLab.com.

RFQ Template #2

This template is something completely different. It is much more detailed. You can see how many bids there are, add an executive summary, and highlight all the details well.

It is an RFQ for the more advanced vendors, like a public power company or another big organization that needs to find a specific and highly professional vendor for their needs. And using this template will make the entire process feel a lot easier to work through.

You can download this for free at Procurement.Govt.Nz.

RFQ Template #3

The third template on our list is when you want to add a little glamour to your RFQ. There are many more vivid details to it. You can see that it looks much artier, and overall - it is a great start to get all the trusted vendors interested in your project.

It may not be the best for all your needs, but if you work for some design company or something similar, it will surely do the work. 

You can download this free RFQ template for free at DocFormats.com.

Knowing what software to use for our quotation document, let’s get into some project details.

RFQ documents, or requests for the quote, are a process of obtaining possible vendors you could work with during the project. You send this out if you need something in your project/office and you want to find the best possible option to suit your needs.

Instead of sending tons of emails back and forth with dozens of possible vendors, you just send out the RFQ, and companies fill it out to narrow the suppliers down. It is standard practice with more prominent companies that do not want to repeatedly send out the same documents and would focus on choosing the potential vendor for office supplies rather than looking for them.

Request for Quote vs. Request for Proposal

What makes it different from than request of the proposal - someone asked. Well, those are very similar documents, and they are always working together, so you can say - there is no one without the other.

Request for proposal focuses on the project details when you go into more depth between chosen vendors. The quote request is simple - how much would it cost if you could do this in our company? With a payment schedule attached.

So, to put it simply, you send requests for a quote to multiple vendors and request proposals from the chosen ones who meet your financial requirements. 

Request for Quote vs. Statement of Work vs. Scope of Work

So, now that we are over the previous dilemma, let’s get into another. Why would the request for a quote be anything different than a statement of work or scope of work?

The statement of work is the first document that establishes the ground rules for finding vendors. It details the materials you need for the project/office and how you should get them.

On the other hand, the scope of work is part of SoW, and it details every step of accomplishing the goal set in the statement.

Whether you run a commercial company or a nonprofit, RFQ can make your life easier when sending documents to potential vendors. And you will be sending a lot of these kinds of documents during your work.

So, to shorten the process and not have to contact dozens of vendors each time you want to create a project, you can simply send an RFQ template, and you are good to go. Here are some other benefits of using RFQ.

Negotiating

A well-crafted RFQ gives you the upper hand in the negotiation process. It will show you the price of the goods you are trying to get and the standard price in the industry for that kind of goods/services.

Standardization

Or, at least, it helps if you have a standardized product. You can send out dozens of those and save time and also see the reception of the industry. Your potential vendors will notice that you are looking for those kinds of goods/services for the long run so that you can count on some discounts.

Save Money

Another significant aspect of RFQ is that it can save you a lot of money. You can compare submitted bids from your usual or other vendors and get detailed pricing information for the service/goods you need.

Additionally, you can send an open RFQ so the vendors can compete for your benefit. That way, you can get a much lower price than in any other circumstance.

You can also do something called a sealed bid. That way, you collect all the bids and open them simultaneously. Then, you send the invited bids back to the bidders and do a reverse auction on what kind of contract you will sign. Your quotation documents will thank you!

Track Your Costs

In project management, the key is getting the lowest price during the submission deadline. And by using RFQ, you will surely be able to track all the costs. Why? Well, it will show up in the detailed version of your RFQ. If you have the quote, and the vendors will try to negotiate in the process, you can either go the legal route or pick another vendor with a similar selection.

Typically, RFQ is drafted during the planning of the project. As we’ve stated before, it will show up in the statement of work as it will surely be necessary to find out essential elements in this project.

First, you will need a budget to start this process. Only then will you be able to get the green light for the project.

After that, you can start looking for potential vendors who will be happy to help you out in your struggles. Remember to add all the supporting documentation to the quote template, as it will be beneficial because the vendors can make it even more detailed in the process.

So, now that you have all the submission details - you have to choose your destiny. Are you going to use our template or opt for something completely different? The choice is yours, and feel free to make it that way but remember to personalize to the highest degree.

Feel free to browse through our rich library of articles. We are sure you will find something for yourself there if you have any ideas or suggestions on what we should write about next!