A request for quote or a quotation (RFQ) in a construction project is an invitation to contractors for bidding process of various activities of project by owner or main contractor. Request for quote can be for construction works, supply of materials or services in a construction project.
This can be explained by an example:
If a person wishes to do landscaping work in a planned manner in front of his building, he can approach a landscaping contractor to bring a plan for the same land. The contractor visits the land and develops a plan. If the idea of landscaping is accepted by the owner, he will put a budget.
The owner then will request for a quotation for the works he is going to perform along with the rate. Now this quotation must include all the works he is going to perform.
Sometimes there are contractors who will do activities and also supply the materials. But there are some who will only do field work that the owner must come up with a solution of supply of materials.
So, all the details that the supplier is going to provide with the rates must be specified in the quote. Some of the quotes will have time limit as with time there might be fluctuations in the rate of materials in the market.
Most of the construction projects carried out through Bidding and Tender activities will have quotations that are legally binding so that they do not change as far the scope is concerned.
Request for Quotation in Construction ProjectsThe request for quotation is a request form sent to the vendor or the builder or the contractor by the client so that they can give the details of the products or the services they ensure to perform or supply. The main features that one must know before placing a “request of quotation” is obtained by properly analyzing the tender packages and the estimation of the whole project. Proper and clear quotes can be obtained if we provide them a good tender package. The tender package must have all the set of plans and the detailed document so that the main requirement and need of the project is conveyed.
Details Required in Request for QuotationDifferent details that must be included while including the construction quotes are: Along with the Request of quotation the tender package and the scope of the work also must be attached. This attachment must be mentioned in the RFQ. Hence the attachment will have the offer form, the detailed description of the scope of works and the project description, based on which the quotation is requested.
- Request for the Details of the Materials Supply and their rate per unit price.
- Request for the Details of the reinforcements and as per the estimation provided in the tender and their rates.
- Request for the Details of the labor and the rate.
- Request for the Details of the subcontractors and their costs.