What is a Request for Quotation (RFQ)?

In project management, a Request for Quotation (RFQ) is akin to asking numerous retailers for pricing before purchasing anything, or collecting estimates from multiple contractors before remodeling your home. It is a formal document used to request quotes or costs for particular items or services required for the project from possible suppliers or vendors. The RfQ specifies what is needed and requests that vendors give their best price or proposal for those products. This technique assists project managers in comparing several bids in order to select the best alternative that satisfies the goals of the project while remaining within budget.