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Quotation Process
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Quotation Process

What are the quotation purchasing steps?Back to Top

Once it has been determined that a purchase is required and the funding has been approved, the seven main steps in the quotation purchasing process are:

Quotation Steps picture

Quotation process is determinedBack to Top

The value of the purchase and its business category, determines the quotation process to be used. To review how this decision is made refer to How Purchasing Works.

Even though a government buyer may verbally ask you to quote, they will usually expect a written response, but this depends on the dollar value.

For purchases valued at more than $50 000, a written quotation response is required.

Request for Quotation is preparedBack to Top

The government buyer preparing a written RFQ will develop documentation that outlines what is required and how you should respond. 

The style of document used, and the amount of detail provided, will be determined by the value of the good/service or works required. 

The documentation may include:

  • Conditions of quotation.
  • A specification describing the product, service or works required. This specification should be clear, accurate and complete.
  • Conditions of Contract.
  • Supplier Response Schedules (which may include documentation to be completed by you as part of your response).

See Understanding the Quotation Documentation for further information.

Quotations are invitedBack to Top

Invitations to quote are generally not advertised. Therefore, to ensure that you are invited to quote, make sure that the government buyer is aware of your business. For marketing tips, see How to Get Known.

Suppliers respondBack to Top

Before responding, you should first obtain any available documentation from the purchaser. For simple purchases or projects there may be no documentation. You should then:

  1. clarify any uncertainties;
  2. prepare your response; and
  3. submit your response in the right format, on time and at the right location.

To find out more go to Planning your Quotation Response.

Evaluation and selectionBack to Top

Your offer will be evaluated against the Conditions for Participation (mandatory requirements) and the evaluation criteria specified in the Request for Quotation documentation.

The Conditions for Participation are assessed as either being "met" or "not met" during the first stage of the evaluation process. If your offer does not meet the Conditions for Participation, it will be eliminated from further consideration. If your offer meets the Conditions for Participation it will then be assessed against the evaluation criteria.

If an informal quotation process is being used, your quotation will be assessed on how well it meets the requirements and whether it offers value for money.

Notification and debriefingBack to Top

When a contract has been awarded, the successful bidder will be advised either verbally or in writing of the outcome. A debriefing is available for unsuccessful bidders.

Contract established and managedBack to Top

Depending on the value and complexity of the purchase and its business category, an offer may be accepted by using a letter of acceptance or by issuing a Purchase Order. Sometimes a formal agreement may be required if the purchase is complex. For information on the Standard Conditions of Contract, which may be used in these circumstances, see Establishing the Contract.

Payment will be made at the completion of the contract or as outlined in the payment schedule in the Request for Quotation documentation.

Want to know more about quotes and the processes involved? See How to Quote.

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