Request for Quotation (RFQ) — definition
Buyer-issued document requesting priced offers from potential suppliers for a defined scope of equipment or services, based on fixed or largely fixed specifications.
An RFQ is typically used when the technical requirement is well defined and the buyer's main decision variable is price, lead time and commercial terms. It commonly includes technical specifications, quantities, delivery location and required response format so quotes can be compared on a like-for-like basis.
Why it matters to industrial buyers
A well-structured RFQ reduces ambiguity in supplier responses, shortens the comparison cycle, and lowers the risk of scope disputes after contract award.
Key reference points
Typical response window
Suppliers commonly need 2–6 weeks to quote custom or special-purpose equipment, depending on complexity.
Comparison basis
RFQs generally use a bill of quantities or technical specification as the fixed reference for pricing.
Commonly confused with
Request for Proposal (RFP)
An RFQ assumes the solution approach is already defined and asks mainly for price; an RFP asks suppliers to propose how they would solve a problem.
How it is used in practice
A food processor issues an RFQ to three qualified suppliers for a pre-specified pasteurisation skid, requesting price, lead time and payment terms.
Frequently asked questions
When should a buyer use an RFQ instead of an RFP?
An RFQ is appropriate once technical specifications are fixed and the remaining decision is largely commercial, such as price and delivery.
Can an RFQ be used for complex custom machinery?
It can, provided the specification is detailed enough to prevent inconsistent scope interpretation between suppliers.
Go deeper on the platform
Related terms
Request for Proposal (RFP)
Buyer-issued document inviting suppliers to propose a technical approach, methodology and price for a problem or objective that is not yet fully specified.
Technical Specification
Structured document describing the functional, performance, materials, and interface requirements an item of equipment or system must meet.
Bill of Quantities (BOQ)
Itemised schedule listing materials, equipment, labour and quantities required for a project, used as the basis for supplier pricing and comparison.
Tender Evaluation Matrix
Structured scoring tool used to compare competing supplier bids against weighted technical, commercial and risk criteria in a consistent, auditable manner.
Custom Machinery
Custom machinery refers to production equipment designed and built to satisfy a buyer's specific process, product or facility requirements rather than a generic market offering.
Request for Information (RFI)
Preliminary buyer inquiry used to gather general capability, capacity and technology information from potential suppliers before formal tendering begins.
Should-Cost Analysis
Independent estimate of what a piece of equipment or service should reasonably cost, built from materials, labour, overhead and margin assumptions.
Supplier Neutrality
Principle that a sourcing process, platform or advisor evaluates and presents qualified suppliers without favouring any particular manufacturer or vendor.
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Reference content only. Global B2B Group is independent of equipment manufacturers and financing institutions; definitions are provided for education and do not constitute engineering, financial or legal advice.