RFQ template: what a request for quotation must include to get comparable prices

A request for quotation asks suppliers to price a clearly defined requirement. Because the decision usually turns on price, the RFQ lives or dies on one thing: whether every quote is priced on the same basis.

What to include in an RFQ

Buyer details and reference. Your organisation, the RFQ reference number and a single contact.

Item or service description. Specification, quantities, units of measure, quality standards and any approved brands or equivalents.

Delivery requirements. Locations, dates, lead times, packaging and Incoterms for physical goods.

Pricing schedule. A fixed table for suppliers to complete, with line items, unit price, quantity, discounts, taxes and total.

Commercial terms. Payment terms, quote validity period, warranty and your standard terms of purchase.

Submission instructions. Deadline, format and the statement that late or incomplete quotes may be rejected.

Award basis. Lowest compliant price, or price plus a small number of named factors such as delivery time.

A simple pricing schedule layout

| Line | Description | Unit | Quantity | Unit price | Line total | |---|---|---|---|---|---| | 1 | Item to specification | Unit | 500 | | | | 2 | Delivery to site | Lot | 1 | | | | 3 | Optional extended warranty | Unit | 500 | | |

Fix currency, quantities and inclusions so every supplier fills in the same cells. Ask for optional items on separate lines so they do not distort the comparison.

Rules that keep quotes comparable

• Send the identical RFQ to every supplier on the same day.
• Answer clarification questions in writing and share every answer with all bidders.
• Reject or clarify quotes with conditions attached before comparing prices.
• Compare total cost, including delivery, duties and payment terms.
• Record the outcome and the reason for award.

RFQ or three quotes?

Many policies require three written quotations below a set value and a formal RFQ or tender above it. Your route-to-market thresholds should make this explicit so budget holders know which route applies. Not sure whether an RFQ is the right document? Read [RFI vs RFP vs RFQ](/blog/rfi-vs-rfp-vs-rfq-differences).

Templates

The [Sourcing toolkit](/toolkits#toolkit-03) includes an RFQ template within the RFI, RFP and RFQ pack, a three-quotation pack, pricing schedule templates, a total cost of ownership calculator and award and regret letters. Route-to-market thresholds by value are in the [Governance and policy toolkit](/toolkits#toolkit-01).