Making A Request For a Quotation (RFQ)
The method to make a request for quotation, commonly referred to as an RFQ, depends on the nature of the proposed project or work involved. Whenever a request for a quotation is extended, it's a result of specific needs for work by outside contractors. Example: a company needs to install a new heating system. The company may contact their bidders, i.e., subcontractors, general contractors, etc. in a formal request for quotation on the cost for labor, equipment and miscellaneous services. Each subcontractor or general contractor then submit their estimates using the original request for quotation as the formal document of response to the requesting company.
What's Included In A Request For A Quotation (RFQ)
The requesting company outlines the project or services they need in the Scope of Work section of the RFQ. This may also include specifics on such items as items the company will provide and items the chosen bidder will be responsible to provide in terms of equipment or extraneous services. The following sections may include Terms of Service, Performance Guarantees to be signed by the contractors, Terms of Payment and Standard Terms and Conditions as they apply to the final proposal, contract or agreement. This helps the contractors to define the length of time that is expected for start-up of the project to full and final satisfaction by the company submitting the Request For Quotation. In essence the Request for Quotation by the submitting company provides details of the project or service.
The Formal RFQ
In order to know how to make a request for a quotation, the first step is to clearly outline the specifications of the work to be done. These are referred to as "job specs". From the job specs, the formal document, the RFQ is established. Describe the work to be performed under the heading "Scope of Work".
The next sections of the request for quotation can be listed in numerical order. These can include headings such as Work To Be Performed By Contractors, Provisions to be supplied by the company, Terms of Service that describe the company's expectations of services to be provided in a specific time order, Terms of Payment that describes the amount of money the company intends to spend for the work and how contractors will be paid, Standard Terms and Conditions, and if applicable, Equipment Warranties required by the company and Performance Guarantees which may include company requirements for liability insurance to perform work at company's site.
This may also include bonds that may be required of contractors by the company submitting the RFQ. The submittal should include a fill-in section of the document for contact names, phone numbers, license numbers and signatures of prospective contractors and the authorizing company agent.