RFQ is the acronym for Request For Quote or Request For Quotation. An RFQ is a request that a company puts out when they want to hire contractors to perform a job; the RFQ is basically their way of encouraging contractors to bid against each other. The company that issues an RFQ then selects one of the bidders to take the job.

A small business owner or entrepreneur can also include an RFQ form on their website. This allows potential customers to contact them to request prices on services or products. An online RFQ form may help to encourage viewers to make a purchase, as it solicits action instead of passive Internet browsing.

The Request for Quotation (RFQ) is used where discussions aren't required with bidders (mainly when the specifications of a product or service are already known), and price is the main or only factor in selecting the successful bidder.

How to Write RFQ

A RFQ is divided into several important sections. The first section of the RFQ may be called the "Organizational Overview," or a similar term, and contains background information on the company issuing the RFQ.

Another important section of the RFQ is often called "Required Deliverables." This section describes what the end product of the job must be.

A third section of the RFQ is the "Assumptions and Agreements" section. This section describes the terms of the job, such as a project budget, a bid limit, & the process used to approve the product or materials. By submitting a bid, the contractor is agreeing to these terms. An RFQ also provides information for contractors to use when putting together a bid. This information may include a bid submission deadline, information that the bid documentation or proposal must include to be considered, and the factors that will determine which bid the company chooses.