# Quotation in Construction Explained

> A quotation in construction is a vendor's priced offer for a supply or task. See a TMT steel example and how SuperWise compares quotations before the PO.

Canonical: https://superwise.site/glossary/quotation/
Last updated: 2026-11-01

A vendor's or subcontractor's written offer stating the rates, taxes, delivery time and total price for a defined supply or task.

## What is Quotation (Quote / Bid)?

A quotation is a supplier's or subcontractor's formal written price offer, given in response to an enquiry, a Request for Quotation (RFQ) or a [Request for Proposal](https://superwise.site/glossary/request-for-proposal/) (RFP). It binds the vendor to the unit rates, taxes, delivery timelines and total cost at which they will supply a specific material or carry out a specific task.

## Practical example

A purchasing manager needs 5,000 tons of TMT steel and sends an enquiry to three steel mills. Mill A quotes ₹55,000 per ton including transport. Mill B quotes ₹54,000 per ton with transport extra. The manager compares the quotations to find the lowest landed cost before issuing the purchase order.

## In SuperWise

SuperWise collects quotations against a request for quotation, or records walk-in quotes that staff enter from a phone call or email. The comparison view puts each vendor's rate for a resource side by side and shows the lowest. Awarding a quotation creates the purchase order, and the discounted rate carries into the PO line.

[Material management](https://superwise.site/features/material-management/)

## Related terms

- [Request for Proposal (RFP)](https://superwise.site/glossary/request-for-proposal/)
- [Tender (Tendering Process)](https://superwise.site/glossary/tender-tendering/)
- [Notice Inviting Tender (NIT)](https://superwise.site/glossary/notice-inviting-tender/)

## Related
- [Request for Proposal (RFP)](https://superwise.site/glossary/request-for-proposal/)
- [Tender (Tendering Process)](https://superwise.site/glossary/tender-tendering/)
- [Notice Inviting Tender (NIT)](https://superwise.site/glossary/notice-inviting-tender/)
- [Material management](https://superwise.site/features/material-management/)