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What is Request for Quotation in Construction Projects?

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.
Construction Project

Request for Quotation in Construction Projects

The 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 Quotation

Different 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.
  1. Request for the Details of the Materials Supply and their rate per unit price.
  2. Request for the Details of the reinforcements and as per the estimation provided in the tender and their rates.
  3. Request for the Details of the labor and the rate.
  4. Request for the Details of the subcontractors and their costs.
Other than the mentioned details above, there are specific requests that must be request in the “request for quotation form”. These include:
1. It must be quoted both in the tender and the quote that any changes in the schedule or materials or fixtures must be conducted in the presence or acceptance of the client or the designer. This will help in saving the money from unexpected, expensive alterations or substitutions.
2. A quote that is fully itemized must be requested, where the whole breakdown of the project with the respective materials and details and their price is mentioned.
3. The quote must provide start dates, end dates and dates of milestones if any. As timeline factor will affect the rate of construction and the cost of materials together, the time for which the quote is valid must be specified.
4. The payment details with the progress of the project must be properly mentioned in the quote.
5. Details on how environmental commitment is fulfilled can be asked. This will include the disposal of demolition waste. The rules and regulations are different from council to council.
6. The next important detail to be asked is the Registration or builders insurance or the proof of license. We will have to check the given details and credentials of the builder with the respective authority in the state or the country. All the bidders are supposed to provide complete documentation of their insurance details.
7. The quote must also ask for the past history of work and the client details as the means of reference. This will help in inspecting the prior work efficiency of the contractor before accepting the quote.
The amount of details added in the request for quotation will decide the quality and the worthiness of the quotes that the bidders provide the client.
If necessary the quote can request for finer details like the number of coats of paints, the models or the brand of the materials used. This will help in enabling comparing with other brands and bringing an economic solution.

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