Supply Quotation Template: How Suppliers Quote Materials and Goods (With Example)

A contractor needs 400 bags of cement, 5 tons of steel and 2,000 blocks on site by Thursday. They send the same request to four suppliers. The supplier who wins is rarely the one with the lowest number on a WhatsApp message. It is the one whose quotation answers every question before it is asked: which brand, what grade, delivered where, by when, paid how, and until when the price holds.

A supply quotation is different from a service quotation. You are not quoting your time; you are quoting goods whose cost moves with the market, that have to be transported, checked and signed for. This guide shows what to put in it, with a full example you can open in our free generator.

💡 Tip: you can make one in under two minutes with our free invoice generator: no sign-up, no watermark, PDF in English or Arabic.

What a supply quotation must include

1. Your company details: name, CR number, phone, and VAT number if registered.
2. The buyer and their reference: company name, contact person and, if they sent one, the request for quotation (RFQ) or tender number. Quote their reference on your quotation so procurement can match it.
3. Each item with a full specification: product name, size, grade or standard, brand or "or equivalent".
4. Unit and quantity: bag, ton, piece, m³, carton. Use the unit the buyer asked for.
5. Unit price and line total, and the total in the right currency with the right decimals.
6. Delivery terms: delivered to site, collected from your warehouse, or for imports an Incoterm such as FOB or CIF.
7. Delivery time: "within 3 working days of the purchase order" is clearer than "ASAP".
8. Payment terms: cash, advance, on delivery, or credit (for example 30 days) for approved customers.
9. Price validity: short for materials whose price moves (steel, copper, cement), often 3 to 7 days.
10. VAT where it applies, shown separately.

Specifications: the difference between a quote and a guess

"Steel 12 mm, 5 tons" can mean very different products and prices. "Steel rebar 12 mm, ASTM A615 Grade 60, 12 m length" cannot. When buyers compare four quotations, they need to compare the same thing. A precise description protects you too: if the buyer receives exactly what is written, there is no reason to reject the delivery.

• Name the standard or grade when one exists (cement type, rebar grade, pipe pressure class).
• Name the brand or write "or approved equivalent", and add: "any substitute requires the buyer's written approval".
• Use the buyer's item numbers when you answer a formal RFQ, in the same order, so your quotation can be checked line by line.

Delivery terms: who pays for the truck, and who carries the risk

For local supply, write it in plain words: "delivered to site (Jahra), unloading by the buyer" or "ex-warehouse Shuwaikh". If delivery costs extra, put it on its own line so the buyer sees it.

For imports and cross-border supply, use an Incoterm (Incoterms 2020) and a named place, for example "CIF Shuwaikh Port" or "FOB Jebel Ali". The Incoterm tells both sides who pays freight and insurance and when the risk moves to the buyer. Remember that goods imported into the GCC usually pay customs duty (generally 5% of the value) on top.

Worked example: building materials in Kuwait

A building materials supplier in Shuwaikh quotes a contractor for materials delivered to a site in Jahra. Kuwait has no VAT, and the Kuwaiti dinar has three decimals.

The notes say: delivery within 3 working days of the purchase order, quantities confirmed on the signed delivery note, substitutes only with written approval. Terms: 50% with the purchase order and the balance on delivery, prices valid for 7 days because steel prices change often.

Open this example in the free quotation generator: all items, notes and terms are filled in. Add your company and logo, change the items and prices, and download the PDF.

The same order in the UAE would add 5% VAT on the total including delivery: 2,405.00 AED would become 2,525.25 AED (in dirhams, with two decimals). In Saudi Arabia it would be 15%. Check any amount with the VAT calculator.

Price validity and price changes

Material prices can move between your quote and the buyer's order. Protect yourself with two lines:

Prices are valid for 7 days from the date of this quotation.
Quantities and prices are confirmed on the purchase order; items are subject to availability at the time of order.

If the buyer comes back after the validity date, send a new quotation with a new date instead of honouring old prices by habit.

From quotation to purchase order, delivery note and invoice

1. The buyer accepts and sends a purchase order (PO) that refers to your quotation number.
2. You deliver with a delivery note that the site signs. It proves what arrived and in what quantity.
3. You issue the invoice for what was delivered (a tax invoice if you are VAT-registered), quoting the PO number.

If the buyer needs an invoice-like document before paying an advance or opening a letter of credit, send a proforma invoice. Our guide explains proforma, commercial and tax invoices.

Common mistakes in supply quotations

• Vague items ("cement", "pipes") that cannot be compared or checked on delivery.
• Delivery hidden in the unit prices. Show it on its own line; buyers compare it.
• Long validity on volatile items. A 30-day price on steel is a gift to the buyer.
• Two decimals for KWD, BHD or OMR. 0.18 KWD is not 0.180 KWD on a 2,000-piece order. See currency decimals on GCC invoices.
• No payment terms. If you do not write them, the buyer will choose them.

Frequently asked questions

What is the difference between a supply quotation and a contracting quotation?

A supply quotation prices goods delivered; a contracting quotation prices work carried out on site (often including materials). For work, see our contracting quotation template.

Should a supply quotation include VAT?

If you are VAT-registered in the UAE, Saudi Arabia, Bahrain or Oman, show the total before VAT, the VAT and the total. Kuwait and Qatar have no VAT.

How do I answer a formal request for quotation (RFQ)?

Use the buyer's item numbers and order, quote their RFQ reference, answer every line (write "not quoted" if you cannot supply an item) and keep to their deadline. A short cover letter helps; see our ready quotation letter and email wording.

The prices in this guide are examples, not market prices. Last checked: October 2026.