Request For Quote - RFQ

AAA

DEFINITION of 'Request For Quote - RFQ'

A type of bidding solicitation in which a company or organization asks outside vendors to provide a cost quote for the completion of a particular project or program. A Request For Quote is a variation of a Request For Proposal (RFP), and typically provides more information to the bidder about the project's requirements. It often requires the bidder to break down costs for each phase of the project so as to allow the soliciting company to compare different bids.

INVESTOPEDIA EXPLAINS 'Request For Quote - RFQ'

The use of a Request For Quote is more likely to occur in situations where products and services are standardized, since this allows the soliciting company to compare the different bids easily. It is also more likely to be used when the soliciting company knows the volume of products that it wishes to purchase. For example, a government agency looking to buy 500 computers with a particular hard drive size and processing speed will send out an RFQ. Because the product is standardized, the agency is better able to compare different quotes to see which one is best suited.

RELATED TERMS
  1. Request For Proposal - RFP

    A type of bidding solicitation in which a company or organization ...
  2. Contractor Fraud

    Illegal business practices committed by firms hired to reform, ...
  3. Bilateral Contract

    A bilateral contract is a reciprocal arrangement between two ...
  4. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  5. Independent Contractor

    A self-employed taxpayer that controls his or her own employment ...
  6. BCG Growth Share Matrix

    A planning tool that uses graphical representations of a company’s ...
Related Articles
  1. Don't Get Sued: 5 Tips To Protect Your ...
    Entrepreneurship

    Don't Get Sued: 5 Tips To Protect Your ...

  2. Start Your Own Small Business
    Entrepreneurship

    Start Your Own Small Business

  3. Small Business: It's All About Relationships
    Entrepreneurship

    Small Business: It's All About Relationships

  4. What CEOs Actually Do
    Investing

    What CEOs Actually Do

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center