Definition: Request for Quote

What is a request for quote?

A Request for Quote (RFQ) is a document used by companies to request quotes or price proposals from potential vendors. It’s typically issued when a company has already defined its project requirements and is seeking specific price proposals to compare different vendors’ offers.

An RFQ provides a clear outline of the products or services needed, along with any relevant specifications. Vendors respond with detailed quotes that include pricing, terms, and any additional costs. This enables companies to evaluate the financial aspects of each proposal and select the best option for their budget.

The RFQ process usually, but not necessarily, follows a Request for Proposal (RFP) or Request for Information (RFI). An RFI might be used first to gather general information about potential vendors, and an RFP may follow to assess their proposed solutions. Once options are narrowed down, the RFQ is used to obtain precise cost details and facilitate the final selection of a vendor.