Quotation

A quotation is a statement of the estimated price of goods or services. It is usually issued by a provider in response to a request for proposal (RFP) or invitation to tender (ITT). A procurement process generally starts with the release of an RFP or ITT, followed by the evaluation of proposals and the award of a contract to the successful bidder.

Quotations are used extensively in procurement, especially in relation to construction projects. Quotations can also be used in other situations, such as when seeking quotes from suppliers for goods or services. In most cases, the buyer will issue an RFP or ITT that outlines their requirements and invites bids from prospective suppliers. The supplier will then prepare a quotation based on their assessment of the buyer’s requirements.

The quotation should include all relevant information about the goods or services being offered, such as price, delivery timescale, warranty/guarantee information and terms and conditions. It is important that both buyers and suppliers understand the contents of the quotation before entering into any contractual agreement.