A quotation is a simplified bid submitted by a supplier, typically in response to a Request for Quotation (RFQ). It outlines the price (and occasionally basic delivery or service details) at which the supplier is willing to fulfill a defined requirement. Unlike full tenders, quotations are used for straightforward or low-value procurements where competitive submissions are brief and focused primarily on price and baseline compliance.
In public and private procurement alike, RFQs are used when requirements are well-defined and standardized—making a brief price-based process efficient. Suppliers respond with quotations that may include payment terms, quantities, and specifications. Buyers often compare these quotations based on price, delivery, and minimal technical criteria to select the best match for their needs.
Quotations offer a fast, efficient way to procure goods or services without lengthy documentation. They are particularly useful for routine, standardized purchases. However, because detail is minimal, both buyer and supplier should ensure clarity on scope, terms, and validity to avoid misunderstandings. Properly structured RFQ and quotation processes support quicker decisions while maintaining transparency and fairness.
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