Tender vs RFQ vs RFP — What's the Difference?

Quick answer

In practice, all three are ways for a buyer to invite offers — but they differ in formality, size, and how much detail is required.

Tender

A tender is the most formal process. It is typically used for larger or more complex procurement and follows strict rules.

• Usually has a full set of standard bid documents (SBD forms).
• Evaluated in stages: mandatory, functionality/technical, then price + B-BBEE.
• Often advertised publicly on eTenders.
• Validity periods, briefing sessions, and formal signed submissions are the norm.

RFQ — Request for Quotation

An RFQ is typically used for smaller, simpler, price-driven purchases — for example, items under a prescribed threshold.

• Often limited to suppliers already registered on the buyer's database (e.g. the CSD).
• Usually evaluated mainly on price and basic compliance.
• Shorter timeframes, fewer forms.
• Common for goods or routine services.

RFP — Request for Proposal

An RFP is used when the buyer knows the outcome they want but needs the supplier to propose HOW to achieve it.

• Heavier focus on methodology, team, and approach.
• Typical for consulting, professional services, software, research, or strategy work.
• Evaluated heavily on functionality/technical quality, with price considered alongside.
• Often includes a detailed technical proposal as a key deliverable.

How to tell which you are responding to

Read the first page of the document. The title, reference number, and invitation letter almost always state it clearly — for example:

• “Tender No: XYZ/2025”
• “Request for Proposal (RFP) for the appointment of…”
• “Request for Quotation (RFQ) for the supply of…”

When in doubt, treat it like a tender and follow the strictest interpretation of the rules. It's always safer to over-comply than under-comply.