How to Write an RFQ: A Step-by-Step Guide With Everything to Include

A well-written RFQ helps suppliers quote accurately and helps your team compare offers fairly. If the document is vague, incomplete or inconsistent, you will usually get pricing that is difficult to compare, multiple clarification rounds and delays in purchasing.

Quick answer

To write an RFQ, define exactly what you need, specify quantities and technical requirements, set commercial terms and submission rules, and give suppliers a clear format for quoting. A good RFQ should make it easy for suppliers to price the same scope and easy for your team to evaluate quotes on a like-for-like basis.

What an RFQ is and when to use it

An RFQ, or Request for Quotation, is a procurement document used to ask suppliers for pricing on clearly defined goods or services. It works best when the requirement is already well understood and the main comparison factor is commercial value, not open-ended solution design.

In practice, an RFQ is suitable when:

• The specification is clear enough for suppliers to price confidently
• You know the quantities, units, delivery location and timing
• You want comparable quotations from multiple suppliers
• The purchase is relatively standard or repeatable
• Your approval team needs a documented quotation process

An RFQ is less suitable when:

• The requirement is still being defined
• You need suppliers to propose different technical approaches
• The work is complex, consultative or highly customised
• Evaluation depends heavily on methodology, innovation or service model

RFQ vs other procurement requests

Choosing the right request format matters because it affects the quality of supplier responses.

Document typeBest used whenTypical outputMain focusRFQSpecifications are clear and fixedSupplier quotationPrice and commercial termsRFPYou need suppliers to propose a solutionDetailed proposalApproach, capability and valueRFIYou are exploring the marketInformation and capability inputUnderstanding optionsTenderFormal competitive procurement with strict rulesBid submissionCompliance, transparency and evaluation discipline

Why RFQ quality matters

A rushed RFQ often creates extra work later. Procurement teams then spend time answering repeated supplier questions, correcting assumptions, normalising quotations and explaining price differences to stakeholders.

A strong RFQ helps you:

• Reduce ambiguity in supplier pricing
• Improve quote comparability
• Shorten clarification cycles
• Set realistic delivery and payment expectations
• Create a proper audit trail for internal approvals
• Support policy compliance and budget control

For Malaysian businesses, this also helps finance and tax teams validate whether the commercial terms, invoicing details and SST treatment are being handled consistently before a purchase order is issued.

Step 1: Define the requirement before you draft

Before writing the RFQ itself, gather the information internally. Many RFQs fail because the writer starts with a template before confirming the actual business need.

Clarify the purchase scope

Confirm:

• What exactly is being purchased
• Whether it is a one-off purchase or recurring requirement
• The required quantity or estimated volume
• Whether equivalent brands or alternatives are acceptable
• Where the items or services are needed
• When delivery or completion is required

Align with internal stakeholders

Speak to the requestor, end user, budget owner and finance team if needed. For certain categories, you may also need input from:

• IT for software, devices or access requirements
• Facilities for site access or installation constraints
• Operations for usage schedules or production impact
• Legal or compliance for contract terms
• Tax or finance for invoicing and SST handling

The goal is simple: suppliers should receive one clear version of the requirement, not conflicting internal assumptions.

Step 2: Start with a clear RFQ header and overview

The opening section should tell suppliers what the RFQ is about and how to respond.

Include these basic details upfront

At minimum, state:

• RFQ reference number
• RFQ title
• Issuing company name
• Contact person for clarification
• Issue date
• Quotation submission deadline
• Expected award timeline, if available
• Delivery location or service site

Add a brief project or purchase summary

This should be a short paragraph explaining:

• What is being purchased
• Why it is needed in practical terms
• Whether this is a replacement, expansion or new requirement
• Whether the award may be split or given to one supplier

This context helps suppliers understand the commercial importance of the quote without turning the RFQ into a long narrative.

Step 3: Describe the specification in enough detail to price accurately

This is the core of the RFQ. If the specification is weak, the quotations will be weak too.

For goods, include product-level details

Where relevant, specify:

• Item description
• SKU or internal item code if applicable
• Brand and model, if mandatory
• Whether equivalent products are allowed
• Technical specifications
• Unit of measure
• Quantity required
• Packaging requirements
• Shelf life or expiry expectations if relevant
• Warranty requirements
• Required certifications or compliance documents if relevant

For services, define the service scope clearly

Include:

• Scope of work
• Deliverables
• Service frequency or duration
• Service level expectations
• Manpower or skill requirements if applicable
• Working hours or site restrictions
• Start date and completion date
• Acceptance criteria

Use line items, not broad descriptions

A good RFQ breaks the requirement into line items wherever possible. This prevents suppliers from bundling assumptions in ways that make comparison difficult.

For example, instead of asking for a general office fit-out quote, break it down into measurable components such as materials, labour, installation, disposal, transport and optional maintenance.

Step 4: State the commercial terms suppliers must price against

Suppliers can only provide comparable quotes if they are pricing against the same commercial assumptions.

Include the key pricing instructions

Specify whether pricing should be:

• Itemised or lump sum
• Inclusive or exclusive of SST
• Inclusive of delivery, unloading, installation or training
• Fixed for a validity period
• Quoted in RM
• Subject to minimum order quantities or not

You should also ask suppliers to indicate:

• Unit price
• Total price per line item
• Any discounts offered
• Any optional charges
• Lead time
• Quote validity period

Clarify payment and credit expectations

If your company has standard payment terms, include them. Examples may include payment after invoice acceptance or after goods received confirmation, depending on internal policy.

Also ask suppliers to state:

• Payment terms offered
• Credit terms, if available
• Deposit requirements, if any
• Banking and invoicing details at award stage

For supplier onboarding in Malaysia, your finance team may later require business registration details, tax information and supporting documents for payment setup. Mentioning expected documentation early can reduce delays after award.

Step 5: Include delivery, fulfilment and logistics requirements

A low quote is not necessarily the best quote if the supplier cannot meet your delivery requirements.

Spell out operational requirements

Include details such as:

• Delivery address
• Delivery contact person or receiving procedure
• Required delivery date or service commencement date
• Delivery window or site access hours
• Floor level, lift access or unloading constraints if relevant
• Partial delivery rules
• Installation or assembly requirements
• Packaging disposal responsibilities

If the purchase involves recurring deliveries, indicate expected call-off frequency, ordering method and whether actual quantities may vary.

Step 6: Set supplier response instructions

This is the section many teams overlook. Even a good specification can produce messy responses if the submission format is unclear.

Tell suppliers exactly how to quote

Ask suppliers to submit:

• Completed pricing schedule
• Product specification sheets or brochures where needed
• Delivery lead time
• Quote validity period
• Company registration details where relevant
• Relevant licences or registrations if required by the category
• References or past experience only if truly needed
• Deviations or exceptions to the RFQ, clearly listed

Standardise the format

To make comparison easier, provide a quotation template or pricing schedule. This should reduce free-form responses and help you compare line by line.

A simple pricing schedule can include columns for:

• Line item
• Description
• Unit
• Quantity
• Unit price
• Total price
• Brand/model offered
• Lead time
• Remarks or exceptions

Step 7: Include evaluation criteria without overcomplicating it

An RFQ does not need a highly elaborate scoring model, but suppliers should understand how quotes will be assessed.

What to communicate

You can state that quotations will be evaluated based on factors such as:

• Compliance with specification
• Total cost of ownership where relevant
• Delivery lead time
• Payment terms
• Warranty or after-sales support
• Supplier capability and reliability
• Acceptance of commercial terms

If price is not the only deciding factor, say so clearly. That helps reduce disputes later when a lower quote is not selected.

Compare on a like-for-like basis

During evaluation, normalise differences such as:

• SST treatment
• Freight inclusion or exclusion
• Alternative product assumptions
• Warranty differences
• Different pack sizes or units
• Delivery timing

This is often where procurement adds the most value: not just collecting quotes, but making them genuinely comparable.

Step 8: Add terms, conditions and compliance requirements

Your RFQ should set the basic rules of engagement.

Common items to include

• The company is not obliged to accept the lowest quote
• The company may reject incomplete or late submissions
• Quotations must remain valid for a stated period
• Any deviations must be declared clearly
• Award is subject to internal approval
• Quantities may be estimated unless confirmed otherwise
• Confidentiality expectations

Include category-specific compliance where relevant

Depending on what you are buying, you may need suppliers to provide:

• Product compliance documents
• Safety documentation
• Insurance details for on-site work
• Relevant permits or registrations
• MOF registration if the procurement context requires it

Only include compliance requirements that are genuinely necessary. Unnecessary documentation requests can discourage good suppliers or slow down the process.

Step 9: Run an internal quality check before issuing the RFQ

Before sending the RFQ out, review it from a supplier's perspective.

Use this pre-issue checklist

• Is the scope clear and complete?
• Are quantities and units stated consistently?
• Are the specifications detailed enough to price?
• Are delivery requirements realistic?
• Is the submission deadline reasonable?
• Is the pricing format clear?
• Are commercial terms stated?
• Are evaluation criteria aligned with stakeholder expectations?
• Are there any contradictions between sections?
• Has the budget owner reviewed the requirement?

A short internal review can prevent multiple rounds of clarification later.

Step 10: Manage clarifications properly after issuing

Writing the RFQ is only part of the process. How you handle supplier questions also affects quote quality.

Best practices for clarification management

• Set a deadline for supplier questions
• Channel questions through one contact person
• Share material clarifications with all invited suppliers
• Update the RFQ formally if the scope changes
• Extend the deadline if the clarification materially affects pricing

This protects fairness and improves response quality.

Everything to include in an RFQ at a glance

The easiest way to structure an RFQ is to think in sections.

RFQ sectionWhat to includeWhy it mattersHeader and admin detailsRFQ number, title, issuer, contacts, datesHelps suppliers identify and respond correctlyRequirement overviewBrief background and purchase purposeGives context without changing the scopeSpecificationsDetailed item or service requirementsDrives accurate pricingQuantities and unitsItem counts, units of measure, pack sizesPrevents assumptionsDelivery requirementsLocation, timing, access, fulfilment needsTests operational fitCommercial termsPricing basis, SST treatment, validity, payment termsMakes quotes comparableSubmission instructionsRequired documents and response formatReduces messy or incomplete submissionsEvaluation approachKey award considerationsSets expectations fairlyTerms and conditionsValidity, rejection rights, approval caveatsProtects the buyer

Common RFQ mistakes to avoid

Even experienced teams make avoidable mistakes when working quickly.

Mistake 1: Asking for a quote before the requirement is defined

If specifications are still changing, suppliers will price assumptions. That usually leads to revisions, disputes or change requests later.

Mistake 2: Combining mandatory and optional items without distinction

Separate core requirements from optional items. Otherwise, quote totals become hard to compare.

Mistake 3: Leaving out SST or delivery assumptions

A quote that excludes SST or freight can look cheaper than one that includes them. Always request a clear pricing basis.

Mistake 4: Accepting free-form quotations only

Without a standard pricing schedule, each supplier may structure the quote differently, making evaluation slower and less reliable.

Mistake 5: Using unclear language like "best price" or "standard specs"

These phrases are too vague. Be specific about exactly what suppliers must price.

Mistake 6: Setting unrealistic deadlines

If suppliers do not have enough time to check stock, obtain internal approvals or confirm lead times, quote quality may suffer.

A simple RFQ writing process for busy teams

If you need a practical workflow, use this sequence:

1. Confirm the business need and approval owner
2. Gather technical, operational and commercial requirements
3. Draft the specification and pricing schedule
4. Add delivery terms, payment terms and submission instructions
5. Review internally with requestor and approvers
6. Issue to selected suppliers
7. Manage clarifications fairly
8. Compare quotations on a like-for-like basis
9. Document the award recommendation
10. Convert the approved quote into a purchase order or contract

Final thoughts

Writing an effective RFQ is less about using formal language and more about removing ambiguity. If suppliers understand exactly what you need, how to price it and how you will evaluate it, you are much more likely to receive useful, comparable quotations.

For procurement teams managing recurring indirect purchases, standardising RFQ formats across categories can save time and improve control. And if you later move more spend onto a procurement platform, keeping your RFQ inputs structured from the start makes sourcing and supplier comparison much easier. In Malaysia, some businesses use procurement marketplaces such as Lapasar to complement formal sourcing workflows, especially when they need access to a broad supplier base, MOF-registered procurement support and operational fulfilment across Peninsular Malaysia.