What is the difference between an RFQ and a tender?

An RFQ is a lighter, faster procurement route used below a monetary threshold, usually decided on compliance and price with a short deadline. A formal tender applies above the threshold and adds advertised competition, functionality scoring and committee evaluation.

Are RFQs advertised publicly?

Often yes, on the national portal and buyer websites, though some are sent directly to suppliers on a database. Being registered on the Central Supplier Database and appearing on buyer supplier lists increases how many reach you directly.

Can I negotiate price on an RFQ?

Generally no. Public procurement is designed to avoid post-submission negotiation, and your quoted price is treated as final. Some processes allow clarification of an obvious arithmetic error, but that is correction rather than negotiation.

rfq tenders

RFQ or tender: which process applies, and why it matters

Why some government work is quoted in five days and other work takes four weeks, and how the paperwork differs between the two.

Published 26 November 2024Reviewed 30 June 20266 min read

A tug working in Durban harbour, South Africa's busiest port for the goods bought through public procurement — Photo: FinlayCox143, via Wikimedia Commons, CC BY-SA 3.0. Cropped.

Two things get called tenders. One is a formal competitive bidding process with committees, functionality scoring and a month-long window. The other is a request for quotation that closes in a week and asks for three pages. Confusing them costs you either a missed deadline or a wildly over-engineered submission.

This explains where the line sits and what changes on each side of it. For live short-turnaround work, see RFQ tenders.

The line is drawn by value

Public procurement rules set monetary thresholds that determine the process an organ of state must follow. Below a lower threshold a buyer may obtain quotations informally. Above it, written quotations from a set number of suppliers are required. Above a higher threshold again, a formal competitive bidding process must be advertised.

The exact figures are set in Treasury instructions and municipal regulations, and they have been revised more than once. They are also currently in motion under the Public Procurement Act 28 of 2024 and its draft regulations. Do not memorise a number. Read the process the specific document prescribes, which is always stated on its front page.

What changes in practice

The difference that matters day to day is not legal, it is operational. An RFQ compresses everything.

Time. RFQs commonly close in five to ten working days against three to four weeks for a formal tender.
Paperwork. An RFQ may need a pricing schedule, a declaration and your compliance documents. A formal tender adds functionality returnables, method statements, personnel CVs and reference evidence.
Evaluation. RFQs are usually decided on compliance and price. Formal tenders add a functionality threshold you must clear before price is even considered.
Briefings. Compulsory site meetings are normal on formal tenders and unusual on RFQs.

Why the short deadline is the real barrier

An RFQ that closes in five working days is not a problem if your compliance pack is current. It is impossible if you need to renew a tax compliance PIN, chase a bank letter and commission an affidavit first.

This is why RFQs reward preparation more than any other category of public work. The businesses that win them repeatedly are not faster writers; they simply have nothing left to gather when the advert appears.

RFQs are the sensible entry point

For a supplier without public sector references, RFQs are the practical way in. There is no functionality score to fail on absent experience, the values are small enough that incumbents often do not bother, and delivery produces the reference letter that makes the next formal tender viable.

The trade-off is margin. RFQ work is price-driven and repeat volume is not guaranteed. Treat the first few as reference-building rather than profit centres, and be honest with yourself about what that costs.

Do not let the label mislead you

Buyers use these terms loosely. Documents titled 'request for quotation' sometimes carry functionality scoring, and documents titled 'invitation to bid' sometimes ask for almost nothing. The title tells you less than the returnable schedule list does.

Read the returnables first. They tell you what the buyer will actually evaluate, and therefore how much work the submission is. See invitation to tender for how a full formal document is structured.

Common questions

What is the difference between an RFQ and a tender?: An RFQ is a lighter, faster procurement route used below a monetary threshold, usually decided on compliance and price with a short deadline. A formal tender applies above the threshold and adds advertised competition, functionality scoring and committee evaluation.
Are RFQs advertised publicly?: Often yes, on the national portal and buyer websites, though some are sent directly to suppliers on a database. Being registered on the Central Supplier Database and appearing on buyer supplier lists increases how many reach you directly.
Can I negotiate price on an RFQ?: Generally no. Public procurement is designed to avoid post-submission negotiation, and your quoted price is treated as final. Some processes allow clarification of an obvious arithmetic error, but that is correction rather than negotiation.