Every project comes with a new set of tasks that require unique solutions. A common task for projects of all sizes involves securing vendors to provide the necessary materials, and having multiple options provides an opportunity to find the best deal for each project’s needs. Sending potential vendors a request for quotation, or RFQ, lets you view the price of their materials without a full proposal.
An RFQ template, or request for quote template, streamlines the process of gathering information from multiple vendors. This article covers the basics of an RFQ template and provides tips and extra resources for the entire bidding process. We’ll also provide a free RFQ template you can use when managing bid processes on monday.com.
What is an RFQ template?
An RFQ template is a document sent to formally request a quote on specific materials from a vendor. RFQ templates are designed for simple customization to make gathering multiple quotes more efficient. . An RFQ template requests pricing, packaging, and shipping costs from a vendor.
Projects expected to take multiple months or years to complete often have a construction timeline within the RFQ documentation. Vendors are able to check the timeline against their supply windows to ensure consistent delivery of materials until the project is complete.
Additional details gathered with an RFQ template include the vendor’s delivery method and direct contact information. Every piece of information is then reviewed by the project management team or other internal stakeholders before a choice is made to move forward with a supplier.
Why use an RFQ template?
Projects with separate teams for securing materials benefit from standardized request for quotation documents. Consistent branding and company voice found on an RFQ template can help establish your company as a professional organization. Each RFQ builds rapport with vendors to make future bids easier to obtain and supports more accurate quotes for any product or service.
Your project management team can send multiple requests out each day with an RFQ template. Each RFQ can be customized with details and verbiage specific to the receiving vendor or unique goods or services required.
Integrating an RFQ template into your project bidding routine can separate your team from other bidders through tailored and branded requests.
What are some examples of RFQ templates?
Consider the types of bids that vendors can receive when a new local project is being developed. Each one is considered a type of RFQ process, and you can build a template to help teams create them quickly.
Projects that require minimal competition with total vendor transparency can leverage a sealed bid. A sealed bid RFQ template provides vendors with specific information about a need and requests details on how the company will deliver solutions and at what cost.
The benefit of a sealed bid is that all offers are submitted before the review begins. A sealed bid template may help reduce the number of bids from fraudulent or low-quality vendors. This extra security may come at the cost of slightly more expensive materials, though. The price difference can be minimal considering that a poorly chosen vendor can delay a project indefinitely.
Your team may already be familiar with the top candidates to supply the project with materials. An invited bid can be ideal for these scenarios, as only selected vendors are sent an RFQ. Invited bids completely remove unknown vendors from the bidding competition. Doing so ensures that only vendors with proven results submit bids.Limiting RFQ requests to invited bids ensure you work with trusted vendors.
An open bid casts a broader net when searching for potential suppliers. An open bid template consists of required materials, project deadline, and bidding deadline. Vendors submit their quotes up until the deadline while the buyer opens each bid as it’s received. Bids can be adjusted by vendors until a decision is made or the bidding deadline has passed.
Reverse auctions are an intensive method of RFQ that can generate fast results and low prices. Participating vendors provide their lowest bids based on project requirements. Each vendor’s pricing is lowered throughout the auction until the winning bid is called. Keep in mind that the only factor that goes into winning a reverse auction is providing the buyer with the lowest price. Aspects such as professionalism, experience, and processes may not be considered.
Multiple RFQ templates can be used for the bidding process. Each bid type may take additional attempts before an agreement can be made between buyer and vendor. Tracking bids and vendors in one place can streamline the entire process.
Start with our RFQ Template and track the process on monday.com
A comprehensive RFQ template can prepare your team to secure materials for current and future projects. Combine our RFQ Template with other features on our Work OS to visualize the bidding process and automate certain tasks related to it.
For example, if your team is running an open bid, the review of each bid can be assigned to a team member as it comes in. A backlogged task is created for unreviewed bids, which automatically assigns new work as previous reviews are completed.
monday.com’s powerful Work OS can support other project management efforts with customization options and additional templates. That helps you move from one part of the process, like requesting pricing quotes with our RFQ Template, to handling other aspects of bidding, buying, or projects.
Choosing an RFQ template to kick off the bidding process for a project can save time for your entire team. New projects often have requirements beyond the scope of an RFQ template, and we’ve got templates for those tasks too.
Project proposal template
- An end goal
- The plan to achieve this goal
- A value proposition to attract stakeholders
Project proposal templates can be adjusted based on stakeholder feedback to create an agreeable proposal.
Our Bid Template is used in response to an RFQ or for a team to bid on a new contract. Bid templates are completed with information about the team, applicable project experience, and a summary of how to reach the project goals. Terms and conditions are included to instantly transform a bid into a binding contract once all parties are satisfied.
FAQs about RFQ templates
How do you write a request for quote?
The first step for creating an RFQ is to determine the project’s budget. Apply this budget to the total cost of material to create a detailed plan of where funds should be allocated. Understanding your project’s budget is key to deciding which vendor’s pricing best suits project needs. The next phase is identifying how much of each material is needed, when it’s needed by, and how the payment schedule will unfold as the project progresses.
Include information such as:
- How vendors can submit bids
- Project timeline
- Contact information
- The required level of detail for pricing breakdowns
The final step is to send the customized RFQ template to each vendor and wait for the submissions.
When do you write a request for quote?
An RFQ template is one of the first steps in proposing a new project to vendors. Writing a request for quote should come after the project has acquired stakeholder approval and before proposals are sent to vendors and contractors. RFQs give your team an opportunity to explore supplier options before committing to a vendor.
Create a consistent RFQ workflow for your team on monday.com
Project management is an ongoing task that deserves a dedicated management system. An RFQ template is only the beginning of what monday.com’s Work OS has to offer your team. Collaboration and optimization tools for your next project can take your team’s productivity to new heights.