Request for Quotation Law and Legal Definition

A request for quotation (RFQ) is a standard business process used to invite suppliers into a bidding process to bid on specific products and/or services. It is similar to invitation to bid. Information like payment terms, quality level per item or time frame of the contract can be requested during the bidding process. As an RFQ allows different contractors to provide a quotation, the best can be selected. It also makes the potential for competitive bidding a lot higher, as the suppliers are aware that they are not the only ones bidding for the products.