RFQ is the acronym for Request For Quote or Request For Quotation. This is a request that a company puts out when it wants to hire contractors to perform a job; the RFQ is basically the company's way of encouraging contractors to bid against each other. The company then selects one of the bidders to take the job.
A small business owner or entrepreneur can also include an RFQ form on his or her website. This allows potential customers to contact him or her to request prices on services or products. An online form may help to encourage potential customers to make a purchase, as it solicits action instead of passive Internet browsing.
Another term frequently used is Request For Proposal, or RFP. Although the difference in terms can be confusing, an RFP and an RFQ are basically the same thing: an invitation for a contractor to make a bid. Although the idea of an RFQ is fairly simple, it is still a business document, and as such is divided into several important sections. The first section of may be called the “Organizational Overview,” or a similar term, and contains background information on the company.
Another important section of the RFQ is often called “Required Deliverables.” This section describes what the end product of the job must be. For instance, if the company is looking for a contract technical writer to put together a software manual, the manual itself will be listed in this section. The RFQ may also describe any features that the company wants the manual to have, such as color images, specific sections, or a certain kind of binding.
A third section is the “Assumptions and Agreements” section. This describes the terms of the job, such as a project budget, a bid limit, what types of travel expenses or per diem the company will provide, the process used to approve the product or materials, and so on. By submitting a bid, the contractor is agreeing to these terms. An RFQ also provides information for contractors to use when putting together a bid. This information may include a bid submission deadline, information that the bid documentation or proposal must include to be considered, and the factors that will determine which bid the company chooses.