An RFQ (request for quotation) is a letter a company sends to several suppliers asking each one to price the same items, in the same quantities and under the same terms, so the replies can be compared on one basis. Type your company, the supplier and the delivery location into the letter, add the items and quantities, and download the RFQ template ready to send.
An RFQ = the items with specifications and quantities, a quote deadline, the delivery location and lead time, prices before VAT with VAT on its own line, and a no-commitment clause. Send the same request to at least three suppliers.
How to use the RFQ template
- Type your company name, the supplier and the delivery location into the letter, and pick the request date and quote deadline.
- Enter the items and quantities in the table, leaving the price column for the supplier.
- Switch to advanced mode for specifications, delivery time, quote validity, and the payment and warranty terms you require.
- Download the request and send it to each supplier, changing only the supplier name.
What is an RFQ?
An RFQ goes from the buyer to suppliers before a purchase, to get comparable prices for items whose specification the buyer already knows. It differs from an internal purchase requisition, which a department raises to purchasing, and from the purchase order, which goes to the winning supplier after comparison and approval. The order is: requisition, RFQ, quotation comparison, purchase order. When the specification is open, companies send a request for proposal (RFP) instead.
RFQ template: what to include
| Item | What to write |
|---|---|
| Items and quantities | Item name with size or model, unit and quantity, identical for every supplier. |
| Quote deadline | One clear date for every supplier, with enough time to price the items. |
| Delivery location and lead time | The address, and the number of days from the purchase order date. |
| VAT | Prices with or without 15% VAT stated clearly, VAT on a separate line, and the supplier's VAT number if registered. |
| Payment and warranty terms | Your company's terms if fixed; otherwise ask the supplier to state its own. |
| No commitment | A sentence reserving your right to accept all or part of a quote, or to reject it. |
The Word download gives you an editable file to add your logo, the PDF sends the request as it is, and the blank-form button prints it with an empty item table.
Comparing the replies and choosing a supplier
When replies arrive, compare them on price, lead time, quality, payment terms and warranty, using weights agreed before you open the quotes, not on price alone; the cheapest quote may arrive two weeks late or want payment up front. The quotation comparison template and purchase recommendation memo have their own page. Before comparing, check that every reply priced the same items and quantities, on the same basis before VAT.
Common RFQ mistakes
- Sending different quantities or specifications to each supplier.
- Not stating whether prices are before or including VAT.
- Ignoring quote validity and issuing the purchase order after it expires.
- Getting a single quote and calling it "the most suitable".
Tax and accounting notes
VAT in Saudi Arabia is 15% under the VAT Law (to be verified); check the current rate with the Zakat, Tax and Customs Authority (ZATCA). Ask for the VAT registration number of any supplier that adds VAT, because its invoice must carry that number for the VAT to count as input tax. Government entities follow the Government Tenders and Procurement Law; this template is for private companies.
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Frequently asked questions
What does RFQ mean?
RFQ stands for request for quotation. A company sends it to several suppliers with set items, quantities and terms, and each supplier replies with its price, lead time and conditions.
How many suppliers should receive an RFQ?
At least three, which many company purchasing policies require. If your purchasing policy sets a different number or a value above which quotes are required, follow it.
Is the RFQ template available in Arabic and English?
Yes. This page is in English, and the template has a separate Arabic page, linked below the tool.
Is an RFQ binding on the buyer?
No. It is an invitation to quote, with a clause reserving the right to accept all or part of a quote or reject it. Commitment starts with the purchase order.
Is the RFQ template free?
Yes, in Word and PDF with a blank version and no account; a short contact form appears once before the first download.