A Request for Quotation (RFQ) is a formal document used by contractors to request pricing information from suppliers or service providers for specific materials or services. RFQs help contractors gather competitive bids to manage project budgets effectively.

How RFQs Help with Cost Management

RFQs are essential for obtaining competitive pricing, allowing contractors to make informed decisions when purchasing materials or services. By requesting multiple quotations, contractors can compare prices and select the best value for their project, ensuring that costs stay within budget.

Best Practices for Using RFQs

When issuing an RFQ, contractors should provide detailed specifications for the materials or services required to ensure accurate quotes. RFQs should be sent to multiple suppliers to obtain a range of pricing options. Keeping detailed records of all RFQs can help with budgeting and procurement planning. Related Terms: Purchase Order (PO), Supplier

FAQs

What should be included in an RFQ?

A: An RFQ should include detailed specifications of the materials or services required, along with deadlines for submission and any other relevant terms or conditions.

How does an RFQ differ from a Purchase Order?

A: An RFQ is a request for pricing information, while a Purchase Order is a formal document authorising the purchase of goods or services.

Request for Quotation (RFQ) Definition

How RFQs Help with Cost Management

Best Practices for Using RFQs

FAQs

What should be included in an RFQ?

How does an RFQ differ from a Purchase Order?

Just upload your starting project budget, and follow the financial progress in real-time