RFQ, Request for Quotation (For Construction)

Interesting,…

I’ll throw a few things in starting with… should permitting be included?

do you mean obtaining permits?

Yes, Occupancy Permit to start with.

I'd suggest something about your standard payment terms (10% on contract acceptance, 10% on commencement, 40% on civil completion, 20% on handover and 20% (Bond) on defect liability period as example)

For projects over $1M, I'd be looking for "similar project examples", essentially references for similar work already completed as evidence of competence. I'd also be interested in corporate capabilities and what will be passed to secondary contractors.

We usually get "profiles" for the major players, like the intended project manager, technical representative and so on.

We run a three level project scope system. The form proposed would maybe pass for a "basic" project like a fence around a site or road surface replacement. Larger and more complex projects have progressively higher governance levels expected on both ourselves and the contractor.

"(10% on contract acceptance, 10% on commencement, 40% on civil completion, 20% on handover and 20% (Bond)"

Oh I wont be that so interested if you have such proportions. How about 30% on acceptance and commencement, progress billing on 50%, 10% upon completion, 10% after warranty period expires. That to me seems a reasonable proportion.

Thanks for the detailed feedback — much appreciated.

Just to clarify one point:
The RFQ I posted is intentionally designed for commodity items and well-defined scopes, regardless of contract value.

For example, even a $3M steel or concrete package can still be procured using a simple RFQ if:

• the specifications are clear,
• no engineering input is needed,
• and the vendor is only providing supply or straightforward installation.

So the form is not “limited” to small projects — it is simply aligned with situations where price and compliance are the primary evaluation criteria.

The items you mentioned (corporate capability, team CVs, subcontractor strategy, governance levels, payment milestones, etc.) definitely apply, but only when the package requires:

• technical or engineering methodology,
• design or coordination,
• complex execution planning,
• or vendor-led solutions.

In those cases, we issue a full RFP, not an RFQ.

So your comment is absolutely valid for solution-based packages, but not for commodity procurement or clearly defined material orders — even if they are high-value.

Thanks again for the insights — very helpful input.

Hello,

Thanks for the feedback.

For higher usage commodity type products and services (Asphalt for our roads $/sqm, pipes for our water network $/m, CCTV inspection of sewer mains $/m) we run a "preferred supplier" process where multiple suppliers are invited to offer their products.

We might select up to three for road resealing programs and have them "approved" for a three year term.

Thus for projects, if we need to do a 25km road resealing program, the department is able to select from already approved vendors to an already agreed price and quality. This means that executive review is only necessary at end of period rather than for each internal project.

Good day.

In our experience, the key in not the description of the construction activity but the adendum which point out all the technicals & financials details that must be considere.

It seems there’s a bit of a terminology gap around the term “RFQ” (Request for Quotation). In many countries — particularly in North America and parts of Europe — an RFQ is not a tender document but rather a price enquiry form used to collect and compare supplier quotations before moving into a formal contract or tendering phase.

However, in several regions (especially in government and large-scale industrial projects), the term RFQ is used interchangeably with Invitation to Tender (ITT) or Request for Proposal (RFP), making it a binding part of the bidding process.

The RFQ form I shared is intended for the first case — a non-binding price request used in smaller procurement exercises or internal sourcing, where the goal is to standardize how price offers are received and compared. Once a supplier is selected, a formal tender, contract, or purchase order would follow under separate documentation.

So while this template may look light from a tendering perspective, it’s actually designed for practical use in everyday procurement, not for formal bid submissions or large contract awards.

good points…

I agree, depending on the company’s standards on what they use. You need to adjust for it.

I use the RFQ for a high level, conservative quote so we can start establishing a budget.

Hello,

I find that this template is simple and easy to use. However, we currently find that almost all bids have templates which are unique to the project and quite detailed at that, so you might want to consider variants according to different projects.

That aside, we are looking for estimators who can work with us on bid submissions for a post-win / (post potitus) basis for the states of Florida, California and Wisconsin. We wouldn't be able to pay anything up upfront, sorry. In case if you come across someone who is willing to work on partnership or profit sharing basis for some of our ongoing bids, do let me know. We are also looking out for bid solicitation persons with relevant backgrounds on same remuneration basis.

Good day.

I can see a lot of good opinions... it would be a good idea to have some sort of summary.

There si something we use to do it before to submit a proposal: have a meeting with the client and all the suppliers to clarify anything to make the proposal more precise and everybody submit the same

Thanks everyone for the discussion – this exact confusion between RFQ and RFP is what pushed me to sit down and write a longer piece about it.

Very short version of how I see it in construction:

• RFQ (Request for Quotation) is price-driven. The scope is already defined, and you’re basically asking “How much and when can you deliver?”. That can be for 5,000 USD of bolts or 3M USD of rebar – the value doesn’t turn it into an RFP. It’s still a commodity / clearly defined package.
• RFP (Request for Proposal) is solution-driven. You’re asking a contractor or specialist to help define how the work will be done: system selection, methodology, sequencing, maybe design responsibility. That’s where risk and sometimes design liability start to shift to the contractor (façade systems, waterproofing concepts, complex MEP, value engineering, etc.).
• Tender / ITT sits a bit differently again: it’s used when the design is complete and you want “apples-to-apples” prices for a fully defined scope, usually under a more formal/regulated process.

So in my view:
“High value but fully defined” → RFQ
“Need method/solution/value engineering” → RFP
“Final design, full project award” → Tender

I pulled all of this together (with examples, legal flavour and a section on the usual RFI confusion) in an article here if anyone wants the longer version:
RFQ vs RFP vs Tender in Construction