RFQ vs RFP
An RFQ (Request for Quotation) requests pricing for clearly defined materials. An RFP (Request for Proposal) requests a detailed technical and commercial proposal for complex requirements where the approach or solution may vary between suppliers.
Both documents are standard tools in EPC procurement. Choosing the wrong one wastes time: issuing an RFQ for a complex service produces incomplete responses; issuing an RFP for commodity pipe produces unnecessarily complex bids.
| Aspect | RFQ | RFP |
|---|---|---|
| Full name | Request for Quotation | Request for Proposal |
| Purpose | Get competitive pricing | Get technical solutions + pricing |
| Specifications | Fully defined by buyer | May be partially defined or performance-based |
| Primary focus | Price and delivery | Technical approach, methodology, then price |
| Response format | Price quote, delivery schedule, compliance matrix | Detailed proposal: scope, methodology, team, schedule, price |
| Evaluation | 60-70% price / 30-40% technical-delivery | 40-60% technical / 40-60% commercial |
| Typical use | Bulk piping materials, standard valves, flanges, fittings | Engineered packages, specialty services, EPC sub-contracts |
| Cycle time | 3-5 weeks | 6-12 weeks |
| Negotiation | Price and delivery focused | Technical scope + commercial terms |
| Number of rounds | 1-2 clarification rounds | 2-4 rounds with shortlisted bidders |
When to Issue an RFQ
RFQs work best for items with established specifications and multiple qualified suppliers. The buyer has already determined the technical requirements from the pipe class, MTO, and P&ID.
| Item Type | Example |
|---|---|
| Carbon steel pipes | ASTM A106 Gr. B, SMLS, per MTO quantities |
| Butt-weld fittings | ASTM A234 WPB elbows, tees, reducers per ASME B16.9 |
| Flanges | ASTM A105, WN, 150#, RF per ASME B16.5 |
| Standard valves | API 600 gate valves, Class 150-600 |
| Stud bolts | ASTM A193 B7 / A194 2H per flange quantities |
| Gaskets | Spiral wound per ASME B16.20 |
When to Issue an RFP
RFPs are required when the buyer needs the supplier to propose a solution, not just a price. The scope involves design, engineering, or specialized execution.
| Item Type | Example |
|---|---|
| Engineered valve packages | Actuated control valve assembly with positioner |
| Specialty alloy procurement | Inconel 625 clad pipe with custom weld overlay |
| Fabrication services | Pipe spool fabrication with QA/QC program |
| Inspection services | Third-party inspection per project specification |
| Logistics packages | Multimodal freight from mill to remote site |
| EPC sub-packages | Mechanical installation of a piping module |
The RFI Step
Before either document, a Request for Information (RFI) may be issued to gather preliminary data: supplier capabilities, approximate lead times, and available stock. The RFI is non-binding and helps the buyer define the scope for the subsequent RFQ or RFP.
| Document | Binding? | Output |
|---|---|---|
| RFI | No | Market intelligence, vendor shortlist |
| RFQ | No (until PO) | Competitive pricing, delivery commitments |
| RFP | No (until contract) | Technical proposals, commercial offers |
Effective procurement starts with accurate engineering. Both RFQs and RFPs depend on reliable P&ID symbols, pipe class definitions, and MTOs. Errors in these upstream documents propagate through every quotation and purchase order, driving rework and cost overruns. For international shipments, both documents should specify Incoterms and required shipping documents.
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