Request for quotation: template and content

What a good request for quotation contains

The Finnish Competition and Consumer Authority (KKV) advises always requesting quotes in writing and from several companies, so that the price level and the reliability of the companies become visible. According to KKV, a renovation request for quotation should include at least a description of the work, pricing and invoicing principles, a preliminary schedule, the deadline for submitting quotes, and a request to confirm that the contractor is in the prepayment register.

The same structure works for other services too, such as cleaning, property maintenance or yard work. The more precisely you describe the job, the less bidders have to guess, and the more comparable the quotes will be. Ask every bidder for a price in the same format, for example as a total price and separately as an hourly rate for extra work.

Decide on the pricing method in advance

KKV distinguishes four pricing methods, and in your request for quotation it is worth stating which of them you prefer:

Contract price: a fixed price that acts as the maximum budget. Pricing of additional work is agreed separately.
Hourly rate: ask for an estimate of the working time and record it in the contract. Prices to consumers are quoted including VAT.
Cost estimate: according to the FCCA (KKV), an estimate may be exceeded by no more than 15 per cent and only for a justified reason.
Maximum price: the upper limit may not be exceeded, but the price can fall if less work or material is used.

Template: request for quotation for renovation or service

The template below is a fictional example. Replace the parts in square brackets and attach photos, drawings or measurements if you have them.

Template – copy and edit

Subject: Request for quotation – [name of the work, e.g. bathroom renovation], [address]

Hello,

I am requesting a quote for the work described below. A quote is also being requested from [number] other companies.

1. Client: Matti Meikäläinen, [address], [phone], [email]

2. Description of the work: [what is done, where, which dimensions or quantities]. Attached: [pictures / floor plan / measurements].

3. Materials: [the contractor supplies / the client supplies]. Quality level: [for example brand or equivalent].

4. Client's own work: [for example demolition work, or none].

5. Schedule: work may begin from [date] and must be completed by [date] at the latest.

6. Price: I request a [fixed price / maximum price / hourly rate and estimate of working time] including VAT. Please state separately the labour share for the household deduction and the hourly rate for additional work.

7. Payment terms: payment [in instalments according to the progress of the work / once the work is completed and accepted].

8. I ask that the following be attached to the offer: Business ID, confirmation of prepayment register registration, liability insurance details, any subcontractors and 2–3 references with contact details.

9. The offer must be submitted no later than [date and time] to the email [address]. The offer must remain valid for [validity period].

10. The property can be viewed [time]. Questions to [email] by [date] at the latest.

Kind regards

Matti Meikäläinen

Before you choose a provider

Check the company's details in the YTJ service, meet a representative and call references. According to the FCCA (KKV), the household deduction requires the contractor to be in the prepayment register. It is usually not worth paying in advance, and if you pay in instalments, put most of the payment at the end.

After choosing, record in a written agreement the content of the work, schedule, price, payment instalments, materials, your own work, consequences of delay and subcontractors. For smaller renovations KKV has a small renovation contract template, and for larger works KKV advises checking whether the contractor's terms are approved by the Consumer Ombudsman, such as RYS-9.

If the client is a business, the Contractor's Obligations Act may require reports. According to the occupational safety and health administration, the reporting obligation applies, for example, to subcontracts worth at least €9,000 excluding VAT, and in construction it applies more broadly.

How a public procurement request for quotation differs

Public procurement is governed by the Act on Public Procurement and Concession Contracts (1397/2016). According to the Hankinnat.fi service, a request for quotation for a national procurement must always be made in writing and must be clear enough for the tenders to be comparable. The request states, among other things, a non-discriminatory description of the subject of the procurement, the tenderers' suitability requirements, the selection criterion and comparison criteria, the deadline, the delivery address and the validity period of the tender.

Small contracts below the national threshold are carried out according to the contracting entity's own guidelines, but the request for quotation is still made in writing and states the selection criterion and the deadline. Contract terms, such as JYSE 2017 or YSE 1998, are usually attached to the request, and appeal instructions are given with the procurement decision. A private buyer, by contrast, may choose a supplier freely and does not have to justify the choice.

If you are yourself a bidder in a public tender, read our guide on submitting a tender in a public procurement. Tutkat.fi's paid Tender Package for public procurement brings together the bidder's checklists and templates.

Frequently asked questions

From how many companies should you request a quote?

KKV advises requesting a quote from several companies, but does not give an exact number. What matters is that the quotes are based on the same description of the work and are therefore comparable.

How much may a cost estimate be exceeded?

According to KKV, a cost estimate given to a consumer may be exceeded by no more than 15 per cent and only for a justified reason. A fixed contract price and a maximum price must not be exceeded.

Is a request for quotation binding?

A request for quotation does not oblige the buyer to place an order. A binding contract is formed when you accept the quote. Record the terms in a written contract.

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Sources

The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.

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