RFQs Explained: How to Write a Request for Quote

July 19, 2022 - 10 min read

Yuvika Iyer

Every business scans the marketplace for the best vendor so they can make an informed purchase.

Whether you are looking for a reliable product vendor or a service provider, knowing how to write an effective request for quote is critical.

A well-written and comprehensive request for quotation (or RFQ) can help companies get competitive quotes that will help fulfill their business and project needs.

In this blog, we will explain what an RFQ is, with example templates to help you achieve your procurement goals.

What is an RFQ?

In a procurement process, companies evaluate vendor bids and choose the vendor that is the best fit for the project. An RFQ is a key document used to invite and screen vendors.

A request for a quote is a formal process that companies use when they want to order products or services for their projects. It is a business document that invites vendors to provide their best prices and payment terms.

A typical RFQ contains:

General and technical specifications for the product or service
Last date for accepting RFQ responses
Estimated dates for the final product or service delivery
Proposed contract duration with the vendor
Other terms and conditions that need to be accepted by the vendor

It is important to note that a request for quote is not a firm offer to purchase. Therefore, it is not considered a formal contract or agreement. The final contract is created once the buyer sends an offer and the vendor or supplier accepts it.

What is an RFQ in project management?

To complete project deliverables, teams work with external organizations to obtain raw materials, complementary products, spare parts, or necessary services. They negotiate with external organizations and complete the requisite documentation.

A request for quotation is not exclusively used in the project management domain. Many private and government organizations use it as a part of their procurement process.

An RFQ in project management is a written document inviting potential vendors to supply essential products or services for project completion.

Some companies also consider an RFQ as a request for qualification to:

Shortlist vendors based on their capability to meet internal company standards
Evaluate suppliers and find out if they can supply the desired products and services

Many businesses also use a term called RFP — request for proposal.

How is an RFQ different from an RFP and RFI?

Organizations in the business-to-business (B2B) domain generally use a request for information (RFI), a request for quote (RFQ), and a request for proposal (RFP).

All these documents help buyers gain more information from their prospective vendors. Each one of them helps you accomplish different goals.

Request for information (RFI): A request for information is a formal document companies use to explore available options in the marketplace. They use open-ended questions to discover how prospective vendors can support them in meeting their business challenges.
Request for proposal (RFP): A request for proposal is an official process that outlines a project for products or services. Buyers utilize RFPs to gather information on different vendors and how they will perform if chosen. Companies use RFPs when they have a complex project with detailed technical requirements that needs significant product customizations.

A request for quote is used to get pricing and payment information for vendor products and services. It contains company requirements based on which vendors send in their bids.

When should you use an RFQ?

An RFQ isn’t required for every procurement order. There are certain situations in which a request for a quote is used:

A pre-qualified list of suppliers exists
Specific products or services are required, and there is no scope for innovative solutions
Bulk product quantity is needed on an ongoing basis (for example, raw material for constructing a table)
Standard product specifications without any scope of customization (for example, an RFQ for screws for a steel almirah)
There is no requirement for add-on service or maintenance contract

Are there different types of RFQs?

A request for quotation can be formulated in different ways, as outlined below:

Open bid

An open bid is a request for quote format in which the buyer publicly opens the bid during submission time.

The pricing and payment terms of suppliers are available for everyone to view. Open bids encourage a competitive process but may prompt vendors to fix higher prices.

Sealed bid

In a sealed bid process, all qualified bidders send their bids. These bids are opened after receiving all responses.

Sealed bids are considered a more transparent bidding format compared to open bids. Government or public sector contracts commonly use sealed bids in their procurement process.

Invited bid

An invited bid is a request for quote where selected vendors are invited to send in their bids. Invited bids are cost-effective as only trusted or pre-vetted suppliers are chosen to participate.

However, while the supplier selection process seems easier to navigate, buyers may miss out on cost savings due to the limited competition.

Reverse auction

A reverse auction is a request for quotation method in which vendors give their best (lowest) offers for the buyer’s consideration.

Many companies conduct reverse auctions when they fail to find vendors. Reverse auctions can be a good option if cost is the primary criterion for awarding a contract. Conducting reverse auctions online can give quick results besides being competitive for companies.

What is the RFQ process?

Writing the exact project requirements is crucial for creating a successful RFQ. The clearer the business needs are, the easier it will be to choose the perfect vendor for the project. Let’s find out more about how an RFQ process works:

Preparation

Gather all information before you start writing the request for quotation. Though this step sounds time-consuming, it is also the most critical one, so don’t rush it.

Write down business needs: Identify the specific business and project requirements. Talk to project managers, internal teams, and relevant stakeholders to determine what they need to execute the project. The more accurate the requirements are, the easier it will be to compare vendor responses to find the best one.
Determine the vendors: Decide whether you want a bigger pool of vendors to bid for the project or a smaller, pre-vetted group. Sometimes companies prefer to work with the vendors with whom they already have a good relationship.
Create the RFQ: Create the request for quote document from scratch or save time using the easy-to-use template provided in this article. An RFQ template is a good option if your company sends out RFQs frequently. Teams can customize the request for quote based on the project needs. Reviewing bids and awarding contracts will be easier if all vendors provide bid information in the same format. Remember to include details such as:
- An introduction to the company and project for which the products and services are being solicited
- A complete list of product or service specifications
- Exact product specifications, including quality guidelines and required quantity
- Any basic vendor qualification criteria that suppliers need to meet to bid for the project
- Detailed information on the bid’s evaluation process, including selection criteria
- How to bid and the bid submission deadline

RFQs Explained: How to Write a Request for Quote 2 — Photo by Headway on Unsplash

Management

In this step, the request for a quote is sent to the vendors. Companies set a deadline to receive all the bids. Three to eight vendor bids is considered to be a cost-effective and competitive bidding process.

Having less than three bidders would mean that the process isn’t competitive, and there is scope for the buyer to get better pricing. Receiving more than ten bids can make the process time-consuming and complicated.

Issue the document: Give your vendors sufficient time to work on the request for quote response. If you have provided adequate information about the business, project needs, and product specifications, expect very few follow-up questions. If you do happen to get vendor queries, make sure to respond to them promptly.
Review the bids: In this step, all bids are opened and evaluated based on the selection criteria such as pricing, delivery dates, and product quality. This also ensures that the bid selection process is objective, unbiased, and fair. Any decision is made solely based on the bid responses document.
Communicate: Keep the bidders informed on all the steps in the RFQ process. Send acknowledgments to each vendor once you receive their bids. Keep them informed about the bid opening date and when the bid results are expected. It is good practice to keep vendor offers confidential unless you have an open bid.

Closing

Bidding is straightforward when the RFQ process is comprehensive. Long hours spent by procurement team members on perfecting the RFQ document pay off at this stage.

Decision-making can be made easier by sending out RFQs in a templated format and comparing vendor responses.

Stakeholder management: Create a one-page bid response summary with key information for project stakeholders or the bid selection committee. List the number of bids received, qualified bidders, and pricing details for every bid. Bidders may be disqualified if they don’t meet the vendor selection criteria. In this case, communicate the reason for disqualification to them.
Selection: Select the vendor that meets the pricing targets and project terms. Formulate a memo outlining the reasons for choosing the final supplier. Detailed RFQ process information is useful for managing the upcoming bids or training new team members.
Award: So, you’ve finally found a dependable supplier for your RFQ! Use this time to inform them of their winning bid and get their written acceptance. If you enter into price negotiations with the winning supplier, sign a binding contract with them before announcing the bid winner. Publicly inform all the bidders of the final decision and thank them for their applications. Maintain cordial relations with the vendors that didn’t qualify as you may require their services in the future.

What to include in an RFQ

While RFQs vary for different industries and business needs, there are certain elements that should always be included in a request for quotation.

Invitation to bid and summary

Write a brief outline summarizing all the key elements present in the request for quotation, such as:

Product quantity, features, and specifications
Project deliverables and whether they are one-time or required at periodic intervals
Important dates, such as bid submission dates and the last date for accepting bids

Complete the summary by extending an invitation to vendors to send in their bid responses.

Business and project overview

Give a complete overview of the company and its project requirements in the RFQ document. This gives vendors a thorough knowledge of buyers’ specific project needs, meaning they are more likely to place bids.

For example, an electronics manufacturer may send out an RFQ to source microprocessor chips, an essential component in many electrical appliances such as microwaves, computers, toasters, video game consoles, and dishwashers.

The RFQ should mention the products that they will be manufacturing.

Vendor requirements

Not every vendor will qualify for the bid. Organizations have criteria for selecting and screening prospective suppliers. Consider using some of these questions to gain more information about prospective vendors:

Can you provide a concise overview of the company? How long has it been in operation?
Can you share a list of the company’s business licenses and certifications?
Are you compliant with the industry laws and policies?
Have you completed similar orders in the past?
Can you share your previous quality assurance reports?
Can you provide past client testimonials and references?
Do you have the capacity to deliver this order on time in compliance with the quality guidelines mentioned in the RFQ?

Specifications and project terms

Use this section to give detailed information about the project and the products and services requested. Include details about:

Product specifications (size, quality, and quantity)
Delivery dates for the product or service
Project terms and conditions, such as performance incentives, product warranty or guarantee, length of the contract, and renewal options, if any
Hardware or software requirements for the product or service

Consider including a non-disclosure agreement (NDA) to keep key information about the company and the specific project confidential.

Tender fees or deposits

In government and public sector RFQs, tender fees may be applicable. Tender fees are cash deposits vendors pay to buyers to demonstrate their faith in the bid. The tender fee is also called an earnest money deposit (EMD).

Buyers hold the deposits in escrow during the bid process, and the money is returned to the vendors who are not selected. After signing the binding contract with the buyer, the winning bidder’s deposit is adjusted in the final payment schedule.

Pricing table or template

Including a pricing table or template in the RFQ can be helpful for managing bid responses after they come in.

A pricing table is a formula-driven section that calculates total cost when the product quantity, size, and other units of measure are entered. Here’s an example of what a pricing template would contain:

Total number of units
Price per unit
Product weight per unit
Shipping cost per unit

Pricing tables collect, present, and analyze comparable information across different vendors, making it easier to review vendor pricing information.

Timeline

While timelines vary across projects, an average request for quote timeline ranges from six to ten weeks. Avoid frustrated vendors and costly procurement cycles by clearly mentioning timelines in the RFQ.

A successful RFQ can lead to faster production cycles, delighted customers, and satisfied stakeholders. Use some of these tips to shorten your RFQ timeline:

Create an RFQ template library to save time and effort in creating multiple requests for quotes
Streamline the RFQ process with a detailed frequently asked questions (FAQs) section about the company and project
Use complementary procurement documents such as RFP and RFI to help with the vendor shortlisting process
Optimize the length of RFQs and send them to a small group of pre-vetted vendors

Evaluation criteria

RFQs need to be reviewed carefully to minimize business risks by finding the right vendor. Establishing well-defined evaluation criteria ensures that the RFQ process is fair and unbiased, leaving no scope for subjectivity.

Establish an RFQ scorecard: Standard sourcing questions tend to be long and open-ended. One great way to make the RFQ process more data-driven is to set up a scoring system. Evaluators can quickly compare vendors and identify their strengths and weaknesses. RFQ scorecards can be rated based on a simple or weighted approach. In a simple scoring system, all criteria have the same weight in the final score. In a weighted system, different elements are prioritized based on business importance. For example, category weights can be split as follows: technical requirements 20%, functionality 20%, reputation 20%, and financial stability 20%.
Define what’s important: Gather all RFQ stakeholders and get their feedback on achieving RFQ success. Determine the overall RFQ structure and approach by asking their perspectives on:
- Selection criteria for vendors, including years spent in business, similar projects handled, capacity to handle projects, place/state of supply, quality assurance certification or licensing
- Product specifications, especially those that are non-negotiable
- RFQ document structure and the sections to be included, such as company information, vendor criteria checklist, pricing tables, and product requirements

RFQ template example

A request for quote for an IT hardware company is very different from the one sent out by an oil engineering firm. Whether you’re creating your first RFQ or the tenth one, here is a simple RFQ template that can help.

How to respond to an RFQ

An RFQ is designed to provide pricing and payment information to a buyer. You can make your request for quotation stand out by including other important details, such as:

Demonstrating that your company has a fair understanding of the buyer’s needs and is ready to support them
Assuring that the project will be delivered on time
Showcasing a willingness to be flexible based on company needs or product specifications
Providing past client testimonials, social media feedback, and other social proof that illustrates your company’s domain expertise
Reviewing the document in detail and making valuable suggestions or recommendations to help the buyer work on their requirements
Writing a planned response to the RFQ and submitting it well within the deadline
Proofreading and editing the RFQ response before sending it to the buyer

How to plan and create your RFQ documents with Wrike

RFQs are a key part of your project management toolkit. Writing an effective RFQ will help your team get the perfect products or services at competitive prices from reliable vendors. Empower your staff to streamline workflows, find the best vendors, and delight your customers with a versatile professional services platform like Wrike.

Stop spending hours creating requests for quotations. Use Wrike’s customizable request forms to create RFQs and send them to external vendors. Tailor the forms to user responses to ensure no important details are missed. Store everything related to the RFQ process in a unified location so that information is easily accessible.

Get a free Wrike trial to plan, organize, and implement a successful RFQ process.

Yuvika Iyer

Yuvika is a freelance writer who specializes in recruitment and resume writing.

#Professional Services #Vendor Management

Project Management 10 min read

What is a Request for Proposal? How to Write an RFP

Not all projects should kick off with a handshake agreement. Some are too complex and have far too much at stake. For the big projects, with many stakeholders at every step, you should vet contractors, seek out bids, and review your options before you get started. And even then, you may find yourself crossing your fingers in the hopes you’ve made the right decision. Before you turn that key project over to someone just because you heard they were the best, stop. Slow down. Take a breath, sit down with your team, and create one of the most important documents required to complete big projects: an RFP. What does RFP stand for? So, what is an RFP? An RFP (which stands for request for proposal) is a business document that outlines a new project. In an RFP, you’ll ask prospective contractors to submit their bids for completing that project. It’s common in businesses like construction, for example, when a business can’t build its own sites. As Investopedia puts it, an RFP “is a project announcement posted publicly by an organization indicating that bids for contractors to complete the project are sought.” In other words, when you create an RFP, you’re asking businesses to submit their best estimates for completing what you need to get done. But the RFP is more than just an “ask.” It should also provide enough details about the project so that the aspiring bidders can provide an accurate estimate of what it would take to finish it. The more accurate the RFP is, the more likely it is to solicit bids that line up with real-world results. When are RFPs issued? You might issue an RFP whenever you have a large, complicated project with a significant budget. This is particularly true in the public sector. Typically, government agencies issue RFPs to solicit private bids, opening up price competition between bidders and maximizing the quality of results for the price. For example, the National Association of Counties (NACo) includes its own instructions for governments creating RFPs. This isn’t to say that RFPs are public-only documents. Any time a private company needs to consult outside help from bidders and contractors — who often enlist subcontractors themselves — an RFP could be an effective way to start. RFP benefits go beyond inviting potential bidders to submit their estimates. These documents should also include details of the project. Critical details include project milestones, regulatory requirements, and any pressing calendar deadlines. The more clear the RFP is about these requirements, the more it will naturally filter out any bidders who can’t meet the project's scope. What kind of organizations use RFPs? RFPs are particularly adept at lining up potential contractors for complex, service-based projects. For small projects with one contractor and one deliverable, an RFP might not be necessary. However, professional services that require extensive project planning and the employment of different skills, equipment, and labor are much more complicated. This makes their pricing and planning more complex. RFPs are common across a range of businesses, but they’re especially common in the following industries. Construction companies The project might have a simple goal: to build a site by a specific date. But anyone who’s worked in construction knows that even a project with a simple goal can be susceptible to scope creep. An RFP for construction companies should define key stakeholders, establish the expectations for the final result, explain cost and budget limitations, and establish realistic deadlines. In turn, the construction company has plenty of information to include in its bid: estimated timelines for meeting milestones, equipment used, insurance and regulatory compliance needs, and subcontractor details. A construction RFP should also include notices for any extra materials you’ll need to review. For example, a business building a new office compound may have no ideas about handling fire safety. But they can build a notice into the RFP asking each construction bid to highlight their fire safety plan for each floor. Marketing companies A detailed marketing project can be a multimillion-dollar effort. Like construction, putting together a large marketing campaign requires skills across a range of disciplines — writing ads, editing TV and internet spots, data and research, and ad buying. An RFP outlines the goals of a marketing campaign while leaving flexibility in the hands of digital marketing experts as to how to achieve those goals. Government agencies A government agency is often unable to offer all of the services it’s responsible for. But with the budget to do so, it can solicit private contractors to place bids on the required work. Government agencies will often hire construction, consulting, educational, and marketing-based services to fulfill the government’s obligations to the public. The RFP is an essential tool here, allowing government agencies to review each bidder while securing the best possible rates. Statement of work vs. proposal: What’s the difference? An RFP asks specifically for a proposal. On the surface, this might sound like the RFP is asking for a simple outline of the labor, budget, and timeline details required to fulfill a project. But a proposal differs from a statement of work (SoW) in that an SoW might be a section of the proposal, but never vice versa: A proposal is an overall pitch for a company’s approach to the project. The statement of work might be one element of this proposal, but a proposal can include other elements like a background on the company itself. Think of the proposal as a marketing tool on behalf of the company doing the bidding. It might include the basic details necessary to submit the bid, but it’s also looking to differentiate the company from the competition. A statement of work is a straightforward listing of the project’s milestones, the timeline, and the pricing of each element. One page within a proposal might outline the statement of work. Unlike the proposal itself, this section is typically written to be clear and is often closer to a list of bullet points. The RFP bidding process is typically the first stage in selecting a company. As G2 notes, it’s also an announcement of your upcoming project. For that reason, requesting a proposal means you’re inviting companies not only to outline their estimates, but essentially to make their best pitch. This puts you in the position to whittle down the best candidates. What to include in an RFP The purpose of an RFP is clear: not only to learn which companies can provide the services you’re looking for but to gauge what a realistic timeline and budget for your project might be. However, without adequate guidance on what to include in an RFP, you may find that businesses submit unclear proposals. Your goal with an RFP should be to cut through the ambiguity and bring clarity to your project. To do that, you’re going to need to include several elements: Relevant company and project history Start by getting a background on what the company is, who leads the company, and whether they’ve completed any similar projects in the past. It’s true that past performance isn’t necessarily indicative of future performance. But if your goal is to build a new downtown office high-rise and there’s only one company who can point to building a previous office high-rise who submits a proposal, you’ve probably got a fair idea that they’re going to be the best choice. The key here is to focus on relevant company and project history. You don’t need details about a company’s founding that have nothing to do with your upcoming project or initiative. Project scope and objectives In a project’s scope, you should provide just as much information as you solicit. This is when you need to make your deliverables clear. But what is a project’s “scope” exactly? It’s a brief document that includes the following details: Business case: This is the overall summary, detailing what the project is, why it’s necessary, and what the project hopes to achieve by the time it’s finished. Budget: Although it can sometimes be difficult to pin down a tight budget, many RFPs will include a basic budget “window” within which companies can submit their bids. Timeline: The overall timeline, especially the deadline, is critical. This is also a way to filter out companies that may be too busy to take on a significant amount of work in your timeline. Milestones: Milestones can be like mile-markers that signify the completion of individual portions of the project. Although not always necessary, it can be helpful to agree on project milestones ahead of time, particularly when subcontractor work is involved. Having milestones planned out in advance helps both sides assess what objectives to hit in order to keep the project on track. Deliverables: Finally, outline what deliverables you want completed by the end of the project. Include as many details necessary to consider the project to be completed, especially if there are any regulatory requirements at play. Project requirements Sometimes, project demands mean you’re working with constraints outside of your control. That may include budgetary constraints, government regulations, or NDAs you require bidders to sign. Don’t hide these in hopes of securing better bids upfront. Include these essential details in your RFP. The sooner you make these requirements clear, the more sure you’ll be that you’re only working with qualified bidders as the process moves on. Similarly, try not to limit the scope of requirements you include. Whether you have business requirements or technical requirements to be satisfied, it’s always better to include these on the RFP so there’s no mistaking them. You don’t want to get 2/3rds of the way to completing a new office building only to find out that the construction company you hired isn’t licensed to handle the windows and didn’t include that estimate in the bid. Selection criteria Ever had a teacher who told you what sections of your textbook would be on the quiz? When you studied, you probably made sure that you reviewed those exact pages. In doing so, you remembered them all. Stating your selection criteria in an RFP is a bit like that. Spell out the precise details that will make you select one bidder over another. Don’t make them guess. When you tell them what variables matter most to you — budget, scheduling, etc. — you make sure every bidder gives their best possible answer on these variables. This makes for better comparisons when it’s time to review the proposals and select the finalists. Timelines Executing is important, but not if a project has so many overruns that it’s only completed years after the deadline. State your project timeline in clear, specific terms. This is essential information that guides other priorities. Contractors can use project timelines to gauge their budget, whether they’ll have to hire subcontractors to supplement their team, or whether they’ll even have the bandwidth to take on this project in the first place. Possible roadblocks An effective plan doesn’t just state what should happen. It also considers the risks involved. Take the time to brainstorm these potential roadblocks with your team, then list them in their own section. Of all the RFP requirements, this may seem the most optional. Why perform this exercise? Isn’t it something that the contractors should consider instead? Simply put, you want to list the potential roadblocks because you still own this project. By making other companies aware of these roadblocks, you can solicit more accurate proposals. Rather than selecting a low-budget option when you aren’t sure if they meet your qualifications, getting the roadblocks out of the way will serve as another selection filter. You’re less likely to go wrong in the long term if you’re upfront about the challenges. Budget The budget is often the top concern for anyone crafting an RFP. That’s for obvious reasons. Budgets determine resources, investments, time, effort, and the amount of labor a contractor can allocate to your project. Even if you’re not confident that your budget is high enough, make it clear when you don’t have any wiggle room. It’s better to receive an RFP response of “sorry — we can’t do it at that price” than to create unrealistic budget expectations in the hopes of generating more responses. Be realistic about how much budget you can allocate to this project so you can get accurate proposals and realistic bids. The budget may also include payment terms, such as when each milestone’s invoice is due. About 63% of contractors say they “sometimes” get paid on time, so don’t be surprised if contracts include payment terms in this section of the proposal. Response guidance Finally, your RFP responses can use a little coaching. Tell these businesses what you want to hear from them and what you don’t. Make sure to include some other key details at the end, such as: Contact information: Who should businesses send their bids to? List the primary contact for the project and how to get in touch with them. Submission requirements and deadlines: Set a hard date, at which point you can gather all of the proposals and review them with your team. Give businesses enough cushion time to prepare an adequate proposal. Required elements: What are the must-have details you need to review in every proposal? Make note of the comparisons you want to make, such as the project’s budget — and let companies know that this information is required as part of their proposal. An RFP example Once complete, an RFP will mostly be an empty form — it’s up to the businesses to fill in the information. It may look something like this: Project overview: This is the part you do fill in. Here you’ll include the details we just reviewed, such as budget, timelines, project details, and any further guidance. Example: Imagine your project is a new website for your company. In this case, the project overview would include the types of pages you’d need for the website, the functionality you’d like to have, and when you’d like to launch the new site. Project goals: With the details in place, think of this section as a little bit like a time machine. Explain what you want the project to look like after everything is said and done. Example: Let’s stick with the website example. What do you want completed by the deadline? A fully-functioning website that’s capable of taking customer orders? Get specific about the deadlines and milestones your project needs to hit for you to consider it a success. Scope of work: Now it’s time to turn the work over to the people filling out the proposals. Explain the level of detail you need in the scope of work, then leave plenty of space for businesses to handle the rest. Example: In our website example, you might compare the scope of work from one project to another. Who is doing custom web development? Who is relying on pre-existing templates? “Scope of work” helps you understand each company’s approach. Roadblocks/barriers: In this section, either explain the roadblocks you foresee, allow the businesses to submit their own thoughts on the matter, or both. Example: Is there existing content that needs to be overwritten? Do you need to migrate to a new web hosting platform before the new company develops your website? Evaluation metrics: This is when you can include your own response guidance and selection criteria. List out the necessary details or extra materials you need to see for an effective bid. You might also include a submission requirements field here to further explain what every bid should look like before handing it in. Example: Tell the web developers what you need to see in each proposal. This will be up to you. Do you have a hard ceiling on the budget? Mention that. Is meeting the deadline your priority so you can have the website up by Black Friday? Mention that too. What does the RFP bidding process involve? You should have enough now to fill in the precise details of an RFP tailored to your upcoming project. Now what? You can’t wave a magic wand and expect the bids to start rolling in, after all. It may seem difficult at first, but since you’re the one looking to hire, don’t expect it to stay difficult for long. You simply need the contact information for relevant businesses you want to invite to submit a bid. You might ask businesses or organizations similar to yours where they were able to ask for proposals. Or, for some smaller projects, you might visit online resources and project postings to publicize your RFP. Once your RFP is in the hands of multiple businesses, your challenge shifts. No longer are you concerned with finding businesses, but dealing with the (potentially) overwhelming number of bids you’ve received. Organize the proposals and, after the deadline, begin whittling down. Use your key metrics for this funnel. For example, if one bid came in at double your maximum budget, but you have five others at the budget, you can reasonably toss the high-budget proposal aside. RFP response examples The specific RFP response you receive may vary, depending on the RFP itself. But typically, you should expect a cover letter and an attachment of the proposal in full. The cover letter is important and the first mark of a company with strong sales skills. It’s your first impression of the level of care and attention the company gave your proposal. For example, this… To whom it may concern: Attached is a standard project rate for XYZ Company. We very much look forward to serving your business needs. …reads like a form letter. However, a company that has taken the time to vet and review your RFP will address more specific concerns. To [Specific Contact’s Name]: Thank you for the opportunity to submit a bid for your [specific project details]. ABC Company has completed three similar projects in the past, the details of which are attached in this email. You can also find PDF and Word attachments detailing our proposals, as well as the extra materials you requested. It’s not hard to spot which cover letter sounds like it’s more likely to lead to a detailed, well-considered proposal. A good business has time to consider every aspect of their bid to increase their success — especially when companies that submit bids usually only win an average of 44% of them. RFP response tips and tricks What if you’re the one sending an RFP response? The RFP bidding process can feel like a minefield. Here are some time-tested tricks to get your proposal noticed: Take time to understand the RFP There’s no point in spending time on a proposal if you misunderstand the project in the first place. You’ll end up submitting a proposal that is either entirely off the mark or wasting your time with a project that wasn’t right for your business in the first place. However, if you take the time to understand the RFP, every point you include in the proposal will speak directly to your potential client’s needs, making it more likely they’ll accept yours. Review all project requirements thoroughly This is an off-shoot of the tip above. You don’t want to get too far in the project estimation process before you realize that the timeline is completely unrealistic for a company with your limited resources. Learn all of the requirements before you agree to a proposal. Draft possible questions from stakeholders A good RFP is open to feedback and questions. As you work through your proposal, maintain a list of questions that the RFP doesn’t answer. You’ll not only find this useful in researching the project, but the company requesting the information will likely appreciate the consideration you put into your proposal. Create the first draft of your response The first draft doesn’t have to be perfect. Create the first draft with the steps above in mind, but don’t hesitate over every detail. Remember you can always review and edit this response before you send it in. Get it checked by your team Don’t just have one person review the draft. Bring in the entire team. Make sure everyone is on board with the vision for the project — that you’re not writing checks that the company can’t cash, so to speak. Present and submit your final proposal Finally, create a cover letter (like the one above), polish up the proposal, and send it off. If you’re presenting it in person, prepare an overview presentation that includes the basic details. But if you’re presenting it via email only, make sure that everything is available via attachment and that you confirm your RFP is received. Why use Wrike to plan your RFP documents? The RFP is central to getting business done, on both ends. For the organization doing the hiring, it’s critical to get solid work on large projects with reasonable schedules and budgets. For a company submitting proposals, it’s the difference between a full schedule and wishing you had more work. But you shouldn’t try to reinvent the wheel with RFP documents. Use Wrike templates to ensure the proper organization and workflows necessary to build out documents that are professional, comprehensive, and effective. On both sides of an RFP, it’s critical to think of every key detail. It will help two different organizations not only connect, but thrive together. Ready to simplify your RFP process? Get started with Wrike today.

Project Management 7 min read

The State of IT in 2022: Why IT Teams Need Flexible Project Management

The past two years have brought great changes for IT teams. Here’s how the IT PMO and flexible project management can help them weather the storm.

Marketing 10 min read

How to Build a Customer Experience Strategy

Craft a distinct CX strategy that achieves business goals and delights customers. Learn more about customer experience strategies with Wrike.

For Teams

Use cases

Apps & Integrations

Explore Wrike

Learn and connect

Become Wrike Pro

RFQs Explained: How to Write a Request for Quote

What is an RFQ?

What is an RFQ in project management?

How is an RFQ different from an RFP and RFI?

When should you use an RFQ?