A Quotation is a standard legal document which is used as a procedural process of most business transactions today. In the public sector, quotations are very important as they are used as the document which will determine if a project is awarded to a specific company.
The Quotation document is very important as the details imprinted would be used for future transactions. This document is usually issued when requested either verbally or officially through the RFQ (Request for Quotation) process. In many cases, Quotations are used for comparison purposes where there are organizations which require at least 3 Quotations for any type of purchase or procurement with the supplier with the lowest price (meeting the requirements) will be awarded the contract.
This document is issued by the seller of a product or service and would usually include important information like contact details, unit price, quantity price, discounts, terms of payment as well as validity of pricing which states the duration which the price stated in the Quotation is being offered. Once this period is over, the price is no longer legally binding which means that if the buyer wants to engage the service of the seller, they will need to request for a new quotation (which will come with a new price).