What Is an RFQ? Request for Quotation Template & How to Respond
By QuotApp Team · Published August 1, 2026 · Updated October 16, 2026
An RFQ (request for quotation) is a formal document a buyer sends to suppliers asking for priced bids on a clearly defined scope of goods or services. Because the buyer has already fixed the specs, quantities and delivery terms, suppliers compete mainly on price, lead time and reliability rather than on ideas.
This guide covers what goes into an RFQ, gives you a fill-in request for quotation template you can copy, and walks suppliers through responding and pricing a bid that holds up.
RFQ vs RFP vs RFI at a glance
| Document | The buyer is asking | Typical use |
|---|---|---|
| RFI (Request for Information) | “Who does this, and what’s possible?” | Early research, building a vendor list |
| RFP (Request for Proposal) | “How would you solve this, and at what price?” | The solution is open-ended |
| RFQ (Request for Quotation) | “What’s your price for exactly this?” | Specs are fixed; price is the main variable |
The short version: an RFQ is the most price-driven of the three. For scoring methods, response checklists and side-by-side scenarios, see our full guide to RFQ vs RFP.
What an RFQ contains
A well-written RFQ removes guesswork so every supplier prices the same thing. Expect these sections:
- Buyer information and point of contact. Who is buying, who answers questions, and how questions must be submitted (often in writing only, with answers shared with all bidders).
- Scope or statement of work. Exactly what is being bought: item descriptions, part numbers, service tasks, frequency, and performance standards.
- Quantities and units. Each, per hour, per square foot, per visit, per month. Units matter because they decide how you price.
- Specifications. Brand or “approved equal” rules, materials, grades, certifications, and drawings or photos.
- Delivery or performance terms. Location, dates, access hours, shipping terms, and who is responsible for unloading or disposal.
- Commercial terms. Payment terms (Net 30 is common in B2B), warranty, insurance minimums, and whether the price must be firm for a set period.
- Pricing form. A table you fill in, line by line, often with a required unit price and extended price.
- Submission instructions. Deadline (date, time and time zone), format, where to send it, and what attachments are required.
- Evaluation basis. Usually lowest price among responsive, qualified bidders. Some RFQs add lead time or past performance.
Free RFQ template (copy and fill in)
If you are the buyer, copy the structure below into a document and fill in the brackets. If you are a supplier, this also shows you what a complete RFQ should look like, so you know which questions to ask when one arrives half-finished.
REQUEST FOR QUOTATION
RFQ No: [RFQ-2026-014] Issue date: [Oct 17, 2026]
Response due: [Oct 31, 2026, 5:00 PM ET]
1. BUYER
Company: [Name]
Contact: [Name, title, email, phone]
Questions due by: [date] — submit by email only
2. SCOPE OF WORK
[Plain description of goods or services]
Location: [Site address]
Period of performance: [Start date – end date]
3. LINE ITEMS
# | Description | Unit | Qty | Unit price | Extended
1 | [Item or task] | [each] | [ ] | $ | $
2 | [Item or task] | [visit] | [ ] | $ | $
3 | [Item or task] | [hour] | [ ] | $ | $
4. SPECIFICATIONS
[Brands, grades, standards, "or approved equal" rules]
5. DELIVERY / PERFORMANCE
[Dates, access hours, shipping terms, site rules]
6. COMMERCIAL TERMS
Payment terms: [Net 30]
Price validity required: [60 days]
Warranty: [Minimum required]
Insurance: [General liability minimum, COI required]
7. SUBMISSION REQUIREMENTS
- Completed pricing table (Section 3), no blanks
- Lead time and earliest start date
- Exceptions or clarifications, listed separately
- [W-9, COI, license number, references]
8. EVALUATION
Award to the lowest-priced responsive, qualified supplier.
Buyer may award all, part, or none of this RFQ.Keep the line items in a table rather than prose. A table forces every supplier to price the same units, which is the whole point of an RFQ.
How suppliers should respond, step by step
- Read it twice and log every requirement. Make a checklist from the RFQ: each line item, each attachment, each certification. Missing one item is the most common reason a low bid loses.
- Decide whether to bid. Check the deadline, the insurance requirements, the payment terms and whether the scope fits your crew and equipment. Not every RFQ is worth answering.
- Ask questions early and in writing. Ambiguous quantities, unclear site access, or a spec you cannot source should be raised before the question deadline. Answers often reshape everyone’s price.
- Build your cost per line. Price materials, labor and equipment for each line separately. This is where a labor cost calculator and a markup calculator save you from underpricing.
- Fill in their pricing form exactly. Use their units, their line numbers and their order. Attach your own branded quotation as a supporting document if you like, but the buyer’s form is what gets compared.
- List exceptions and alternates separately. Quote the spec as written first. If you have a cheaper or better option, add it as a labeled alternate, never as a silent substitution.
- State validity, lead time and assumptions. “Prices firm for 60 days. Start within 10 business days of PO. Assumes access to roof via interior hatch.”
- Submit early and confirm receipt. Late responses are usually rejected unopened. Ask for a confirmation email.
Example RFQ response (line items)
Here is an illustrative response from an HVAC contractor to a property manager’s RFQ for a one-year preventive maintenance program on 12 rooftop units. All numbers are examples, not market rates.
| # | Description | Unit | Qty | Unit price | Extended |
|---|---|---|---|---|---|
| 1 | Quarterly PM inspection per rooftop unit | visit | 48 | $145.00 | $6,960.00 |
| 2 | Pleated filters, MERV 8 (2 per unit per visit) | each | 96 | $18.00 | $1,728.00 |
| 3 | Belt replacement allowance (1 per unit per year) | each | 12 | $65.00 | $780.00 |
| 4 | Condensate line flush (twice per year) | each | 24 | $40.00 | $960.00 |
| Subtotal | $10,428.00 | ||||
| Sales tax on materials (example 7% on lines 2–3) | $175.56 | ||||
| Total | $10,603.56 | ||||
| Alt. A | Upgrade to MERV 13 filters (add per filter) | each | 96 | $9.00 | +$864.00 |
Notes on this example: the alternate is priced as an add, not baked into the base bid, so the buyer can compare base prices fairly. Sales tax treatment varies by state and by whether an item is a service or tangible goods, so check your own state’s rules. For a ready-made layout, see the HVAC quote template.
Common mistakes when responding to an RFQ
- Changing the units. The RFQ asks for price per visit and you quote per month. Now the buyer cannot compare you, and many will simply drop your bid.
- Leaving lines blank or writing “TBD.” Treat every line as mandatory. If an item is genuinely not applicable, write “N/A — not included” and explain why.
- Hiding exceptions in the fine print. Buyers notice, and it destroys trust. Put exceptions in a clearly titled section.
- Forgetting required attachments. No certificate of insurance or W-9 can make an otherwise winning bid non-responsive.
- Quoting a validity period shorter than requested. If the RFQ asks for 60-day pricing and you offer 30, you have effectively declined the terms.
- Math errors. Check that quantity times unit price equals the extended price on every line. Some buyers correct the math using your unit price, which can change your total.
How to price an RFQ response
An RFQ is a price contest, so it is tempting to slash your number. Resist that until you know your real floor.
Start with true cost per line: materials at your actual cost plus waste, labor hours at a loaded rate (wages plus payroll taxes, insurance and benefits), and equipment or travel. If you do not know your loaded rate, run it through the hourly rate calculator. Then add overhead and profit. The difference between markup and margin trips up many bidders: a 25% markup on cost is only a 20% margin on price. Our cost-plus pricing guide explains the math.
For multi-year or recurring RFQs, consider whether you can hold prices that long. If not, propose an annual adjustment clause as a stated exception.
Government vs private RFQs
Private-sector RFQs range from a three-line email to a formal package from a procurement department. Rules are whatever the buyer sets, and they can negotiate after receiving quotes.
Government RFQs follow published procurement rules. In the US, federal agencies commonly use RFQs for smaller purchases under simplified acquisition procedures, and opportunities are posted on SAM.gov, where suppliers must register before they can be awarded federal contracts. State, county and city agencies set their own thresholds: small purchases may need only a few informal quotes, while larger ones move to formal sealed bids. Expect stricter formatting, mandatory forms, public bid openings in some cases, and little or no room to fix a mistake after the deadline. Check the specific agency’s procurement rules before bidding.
Responding to informal RFQs
Most small-business “RFQs” are just an email: “Can you quote me for this?” Apply the same discipline: restate the scope, itemize the pricing, state validity and lead time, and make accepting easy. The free QuotApp quote maker turns those line items into a clean quotation you can attach in a couple of minutes.
FAQ
What is the difference between an RFQ and a quote?
The RFQ is the buyer’s request; the quote (or quotation) is the supplier’s priced answer to it. Learn more in what is a quotation.
Is an RFQ response legally binding?
A quotation submitted in response to an RFQ is generally treated as an offer, and once the buyer accepts it, for example by issuing a purchase order, a contract can be formed. Rules vary by jurisdiction and by the RFQ’s own terms, so read them carefully.
How long should an RFQ response be valid?
Match whatever the RFQ requests. If it says nothing, 30 days is common for services and shorter for goods with volatile prices.
Can I submit an alternate in an RFQ?
Usually yes, if the RFQ does not prohibit it. Always price the spec as written first, then list the alternate separately with its own price.