CHAPTER Quota ons, Orders

10 and Tenders

Chapter Objective
To help the learner acquire the ability to write letters for inviting quotations and tenders, sending
quotations and placing orders for the supply of goods required for official or business purposes.

COMMUNICATION CORE
An important constituent of business correspondence is inviting and submitting quotations/
tenders, and placing orders. The purpose of inviting quotations and tenders is to secure the best
and cheapest goods, materials and services from reliable sources. In writing them great care should
be taken to specify the requirements in terms of quality, quantity, design, shape, size, location (if
necessary), time-frame and mode of payment. Similarly, while accepting the quotations or placing
the orders, all these details should be repeated so that there is no ambiguity in their execution/
implementation. There are many organisations and government departments which have devised
standard forms for the purpose. If you belong to such an organisation, use the prescribed forms
because these would be comprehensive enough to draw your attention to all the required details.

This chapter discusses some important types of business correspondence. The subsequent
chapters deal with each of them separately. Let us first take up correspondence regarding
quotations, orders, and tenders.

INVITING QUOTATIONS
You may write letters to organisations and individuals on a number of subjects, but perhaps
the most common of all will be the letter of enquiry in which you ask them to quote their
rates and terms of payment for the goods your firm or company wishes to buy from them.
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It is customary for a business organisation to invite quotations from several sellers before
placing an order. The purpose is to find out the cheapest and best source of supply of goods
required. There is a saying ‘goods well bought are half sold’. Hence, great care is necessary in
drafting such a letter so that you can quickly get the information you wish to collect and also
locate the right seller. To achieve these objectives you should proceed in a systematic manner
as follows:
1. Describe your needs clearly and precisely. Give detailed specifications such as the
shape, size, quality, make, etc., of the goods you require.
2. Request the seller to quote his prices and terms of payment.
3. Ask him for a sample, if necessary.
4. Give an idea of the quantity you intend to buy.
5. Indicate the time by which you would like the goods to be supplied. This will help
the seller determine whether during the period available he will be able to meet your
demand.
6. Ask if the goods are guaranteed and if so, for what period. Also ask the seller to give an
idea of the normal expected life of these goods.
7. Ask what accessories and spares, if any, would be supplied and how much would they
cost.
8. If the goods you are ordering need installation, ask the seller the cost of doing so and
also the repair facilities offered by him.
9. As the processing of a purchase proposal takes some time, ask the seller to indicate the
period for which his quotations will be valid.

Helpful Hints
The nature of enquiry will determine how you open and close your letter. However, to help you,
examples of a few opening and closing sentences are given as follows:

Opening Sentences
(i) Please quote your lowest rate for the following items.
(ii) We should be grateful if you would kindly inform us of the terms and conditions for the
supply of...
(iii) We intend to buy the following items next month for our new branch in... I should be
grateful if you would kindly quote your lowest rate for them. The detailed specifications
are given below.
(iv) May we request you to let us have your lowest rates for the following items which we
require in November?
(v) Please let us know your lowest rates as early as possible for the supply of...

Closing Sentences
(i) We look forward to hearing from you soon. If your quotation is suitable, we shall be
happy to buy all our requirements this season from you.
(ii) On hearing from you, we shall place a firm order with you.
(iii) We hope the terms and conditions you quote will be satisfactory. We shall, of course, be
happy to order all our requirements from you.
 Quota ons, Orders and Tenders 127

(iv) As we need these goods urgently, we shall be grateful for an early reply.
(v) We look forward to placing an order with you.

SENDING QUOTATIONS
Your response to a letter inviting quotations should be carefully drafted and should fully take
note of each item in the enquiry. Treat it as a sales letter and handle it in the manner discussed
in Chapter 11. Do not forget to mention:
(i) Mode and terms of payment.
(ii) Place and time of delivery.
(iii) Method of transport.
(iv) Charges on account of sales tax, octroi, freight and insurance.
(v) Packing and forwarding charges.

PLACING ORDERS
After you accept a quotation, the next step is to order the goods. To ensure efficient and prompt
handling of your order bear the following in mind.
(i) Place a clear and firm order. It is the only thing which interests the supplier now.
(ii) Even if it amounts to repeating, do not hesitate to give a detailed, accurate, and
complete description of the items you wish to buy. Mention the size, colour, quality,
make, and reference to catalogue or identification number, if any. But make sure these
descriptions do not vary from those given in the original letter inviting quotations.
(iii) The next important thing is to specify the quantity you want. Also state the price per
unit of item.
(iv) Indicate the mode and terms of payment. If you have been getting regular supplies
from a seller you may omit this information because he would automatically debit your
account and approach you for payment according to the mode mutually agreed upon. In
other cases, respect the wishes of the seller as far as possible and send the payment in
the mode he desires. He may, for example, demand a certain percentage in advance. Do
not hesitate to let him have it because you have accepted his quotation after carefully
considering his standing in the market and the quality of goods he has offered for
sale.
(v) In most quotations the mode of transport, viz., passenger train, goods train, truck, etc.,
would be stated. But if it is not, do mention the way you want it.
(vi) When you place an order, you expect the goods to arrive within a reasonable period of
time. However, it is always better to spell out what you consider to be the reasonable
time-period. Sometimes you need goods urgently and you may have, in fact, indicated
this to the seller in your earlier correspondence. But to remind him it is necessary to
mention it again.
(vii) State the full address of the place where you want the goods delivered.
(viii) Normally proper packing is the responsibility of the seller and its cost is included in the
quotation. But if you want a special kind of packing and are prepared to pay extra, say
so in your order.
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(ix) Goods would be insured only when you specifically instruct the seller. If, however, it is
the normal practice to insure the kind of goods you have ordered, there is no need to
include any such instruction.
A few examples of correspondence exchanged for placing an order (see Exhibits 10.1–10.9)
are given as follows.

Example 1
Inviting Quotations

Exhibit 10.1

Dear Sirs
We wish to buy the following items of electronics equipment for our language laboratory. We should be grateful if
you would kindly quote your lowest rates for these items, giving full particulars and technical details. The quantity we
propose to buy is mentioned against each item. Since the processing of the purchase proposal takes quite some time,
it would be helpful if you could quote rates which may remain valid for at least three months.
Quantity Particulars
1 Tutor headsets
16 Student headsets
20 Top 1/2 track record/play head DR/RP 33A
20 Lower 1/2 track record/play heads DR/RP/33A
16 Oscillating erase heads
1 Bridge rectifier rec. 28A
1 Bridge rectifier rec. 20A
6 Capstan motors
6 Rewind motors
6 Take-up motors
2 Transformer for master tape recorder
2 Level meter V-4038
24 Student recorder knobs
4 Stop key buttons
20 Buttons other than stop key
90 Mini lamps
48 Rev. counter belts
We want to set up the lab by the end of June so that it can function when the university reopens in July. We would,
therefore, like the equipment to be delivered to us latest by 15 June. Please let us know whether you will be able to
arrange the supply by this date. Please let us also know the guarantee period and any after-sales facility offered by you.
We look forward to hearing from you soon.
Yours faithfully
R.N. Vaish
Purchase Officer
 Quota ons, Orders and Tenders 129

Sending Quotations

Exhibit 10.2

Dear Sir
Thank you for your letter No. ... dated ...
We have pleasure in submitting the following quotation for your consideration. We confirm that the prices will
remain valid for three months.
Sl.No. Item Description Net Price Each
Ex-Works
Rs.
1. Tutor headsets 400
2. Student headsets 513
3. Top 1/2 track record/play head DR/RP/33A 120
4. Lower 1/2 track record/play head DR/RP/33A 120
5. Oscillating erase head 160
6. Bridge rectifier rec. 28A 50
7. Bridge rectifier rec. 20A 44
8. Capstan motor 140
9. Rewind motor 100
10. Take-up motor 100
11. Transformer for master tape recorder 12.6 V 150
12. Level meter V-4038 125
13. Student recorder knobs 08
14. Stop key button 16
15. Buttons other than stop key 12
16. Mini lamps, 14 V (orange, green, white and red) 10
17. Rev. counter belts 07
Sales Tax 12%
Transportation 02%
Packing charges and other duties and taxes are included in the prices quoted above.
Since the equipment is breakable and expensive, we would strongly advise you to get it insured. If you agree, we shall
do it for you at an extra charge of 1/2 per cent on the quoted price. The equipment will be sent by goods train within a
month of the receipt of your order.
All items are guaranteed for three years. During this period, if necessary, we shall repair or replace any item at our
cost.
We do not require any advance but would like the payment to be made by crossed cheque drawn on the State Bank
of India, within 15 days of the receipt of equipment.
We look forward to receiving your order soon. If you need any further information, please do not hesitate to write
to us.
Yours faithfully
Narain Shitole
Sales Manager
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Placing the Order

Exhibit 10.3

Dear Sirs
Thank you for your letter No... dated...
We are pleased to place an order for the following items on the terms and conditions agreed upon. Please send the
equipment duly insured and include the extra charges in your bill.
Sl.No. Item Description Quantity
1. Tutor headsets 1
2. Student headsets 16
3. Top 1/2 track record/play heads DR/RP/33A 20
4. Lower 1/2 track record/play heads DR/RP/33A 20
5. Oscillating erase heads 16
6. Bridge rectifier rec. 28A 1
7. Bridge rectifier rec. 20A 1
8. Capstan motors 6
9. Rewind motors 6
10. Take-up motors 6
11. Transformer for master tape recorder 2
12. Level meter V-4038 2
13. Student recorder knobs 24
14. Stop key buttons 4
15. Buttons other than stop key 20
16. Mini lamps 90
17. Rev. counter belts 48
We note that the equipment will be sent by goods train and reach us within one month of the receipt of this order.
We shall make the payment by crossed cheque as desired by you soon after the arrival and inspection of
equipment.
Yours faithfully
R.N. Vaish
Purchase Officer
 Quota ons, Orders and Tenders 131

Example II
Inviting Tenders

Exhibit 10.4

Dear Sirs
We intend to buy the following items of furniture for our new branch to be opened shortly in Subhash Market,
Janakpuri. Please quote your lowest rates and also indicate the terms and conditions of payment.

Quantity Item Specifications

35 Single pedestal steel Length 60¢¢
grey-coloured desks Width 40¢¢
Height 28¢¢
6 Double pedestal steel Length 62¢¢
grey-coloured desks Width 48¢¢
Height 28¢¢
8 Typist’s posture steel chairs Height 16¢¢ (adjustable up to 20¢¢)
with seats and backrests Width 17¢¢
padded with foam Length 12¢¢ (from back to front)
Depth of backrest 5¢¢
Width of backrest 10¢¢
Colour: Sky blue
We look forward to hearing from you soon.
Yours faithfully
R.T. Mahesh
Purchase Officer
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Sending Quotations
Exhibit 10.5

Dear Sir
Many thanks for your letter No... dated... We are pleased to quote the following rates for the furniture you require.
Item Description Net Price Each
1. Single pedestal steel grey-coloured desks (60¢¢ × 40¢¢ × 28¢¢) Rs. 1425.00
2. Double pedestal steel grey-coloured desks (62¢¢ × 48¢¢ × 28¢¢) Rs. 1963.50
3. Typist’s posture steel chairs with seat and backrest padded
with foam (height adjustable from 16¢¢ to 20¢¢; width 17¢¢;
length 12¢¢ (from back to front); depth of backrest 5¢¢; width
of backrest 10¢¢; colour sky blue) Sales Tax @ 7½% Rs. 846.50
Packing and transportation charges from our Works to Subhash Market and other duties and taxes are included in
the price quoted above.
We hope to receive your order soon and help you furnish you new branch office without delay. We assure you of our
prompt services and shall deliver the goods within a fortnight of the receipt of your order.
A folder describing the LASTWELL furniture we manufacture is enclosed to make it convenient for you to select any
other items you may wish to buy now or in future.
Yours faithfully
Hari Prasad
Manager

Placing the Order

Exhibit 10.6

Dear Sirs
Thank you very much for your quotation No... dated... We should be grateful if you could arrange to deliver the
following items at 327-B Subhash Market, Janakpuri (Opposite Police Chowki) within a fortnight.
Particulars Quantity
1. Single pedestal steel grey-coloured desks (60¢¢ × 40¢¢ × 28¢¢) 35
2. Double pedestal steel grey-coloured desks (62¢¢ × 48¢¢ × 28¢¢) 6
3. Typist’s posture steel chairs with seat and backrest padded with
foam (height adjustable from 16¢¢ to 20¢¢, width 17¢¢; length 12¢¢
(from back to front); depth of backrest 5¢¢; width of backrest 10¢¢;
colour: sky blue) 8
It is very thoughtful of you to have sent us your folder. We shall certainly use it for our future transactions with you.
Our bankers are United Commercial Bank, Janakpuri Branch and we propose to pay you by a crossed cheque drawn
on them. Please confirm that this arrangement suits you.
Yours faithfully
R.T. Mahesh
Purchase Manager
 Quota ons, Orders and Tenders 133

Example III Inviting Quotations

Exhibit 10.7

Birla Education Trust

(Building Department)
Pilani (Rajasthan)
Ref. No. BET: MO: TF 76 4 November, 2014
Messrs Hengers (INDIA) Private Limited
P.O. Gobindpur, Distt. Dhanbad (Bihar)
Dear Sirs
Sub.: Quotation for 300 kVA Transformer
We are interested in buying one 300 kVA transformer the details of which are given below. We shall be glad if you will
please send us your lowest quotation together with all details, date of delivery, etc. at an early date.
One 300 kVA, outdoor type 3 phase
50 cycles, naturally cooled doubled wound,
core type 11000/433 V transformer with ISI specification.
Yours faithfully
B.N. Sen
Maintenance Officer

Exhibit 10.8

Head office: Kolkata

Branches: Delhi-Patna-Kathmandu (Nepal)
Hengers (India) Private Limited
Manufacturers of Electrical Transformers
Binoy Nagar
P.O. Gobindpur
Dist. Dhanbad, Bihar
Phone No. Gobindpur: 837926
(via Dhanbad)
Gram: HENGERS
Ref. No. G/3603 15 November, 2014
The Maintenance Officer
Building Department
Birla Education Trust, Pilani (Rajasthan)

Dear Sir
Sub: Quotation for 300 kVA Transformer
In response to your enquiry dated 4 November 2014 we are pleased to submit below our offer for the supply of
‘HENGERS’ transformers.

(Contd.)
134 Business Correspondence and Report Wri ng

Exhibit 10.8 (Contd.)

Specification: ‘HENGERS’ make 300 kVA, outdoor type, 3 phase, 50 cycles, oil immersed naturally cooled, double
wound, core type transformer manufactured in accordance with IS: 2026/62 and with following details.
No load voltage: 11000/433 V
Tapping on H.T. side: ± 2.5% and ± 5%
Vector group ref.: Dy 11
Temperature rise:
(a) in oil 40°C
(b) in winding 50°C
Terminal arrangement: H.V. side
\
L.V. side As per your requirement
Standing Fittings:
1. Oil conservator with filling hole and cap with drain plug One
2. Dy-hydrating silicagel breather One
3. Drain value One
4. Filter valve One
5. Earthing terminals Two
6. Lifting lugs Two
7. Thermometer pocket One
8. Off circuit, externally operated gang type, tap changing switch One
9. Air release device One
10. Unidirectional plain rollers Four
11. Name rating and diagram plate One
Price: ex-Works, Gobindpur
300 kVA
11000/433 V 1 No. Rs 23,200 (Rupees twenty-three thousand two hundred only each)
Extra: Rs 360/- will be changed for H.T. and L.T. Cable End Boxes, if required.
Sales Tax: The above price is exclusive of sales tax or any other taxes, which if leviable will be charged to your
account.
Delivery: 14 weeks from the date of the receipt of your firm order along with 50% advance.
Terms of Payment: 50% of the total amount to be paid as advance along with your firm order and the balance at the
time of issue of delivery order.
Test and Guarantee: Original test certificate, in triplicate, will be furnished for each transformer. Usual guarantee will
be given for a period of 12 months from the date of delivery against defective materials and bad workmanship.
Validity: The offer will remain valid for 30 days.
We shall despatch the transformer as soon as we receive your order.
Yours faithfully
For HENGERS (INDIA) PVT. Ltd.
N.R. Pal
Sales Manager
 Quota ons, Orders and Tenders 135

Placing the Order

Exhibit 10.9

Dear Sir
Thank you very much for your quotation of G/3603 dated 15 November, 2014.
The terms and conditions indicated therein are acceptable to us. Please send the H.T. and L.T. cable end boxes also
and include the extra charges in your bill.
A crossed cheque drawn on the UCO Bank for Rs. 11,780 is enclosed as desired.
Yours faithfully
B.N. Sen
Maintenance Officer
Enclosure. Cheque No. T/R 467821 dated 22 November 2014.

INVITING TENDERS
While quotations are generally sought from a few selected sellers, notices regarding tenders are
advertised in newspapers, magazines, etc., inviting prospective sellers of services and goods
to quote their rates for doing a job or supplying goods specified in the notice. When a tender is
accepted, the successful tenderer has to sign a contract to do what he has promised.
A tender is generally invited for a job whose execution is spread over a period of time, or
needs adequate prior preparation. It may be the construction of a road, building, bridge or bulk
supply of goods or rendering of service.
Most organisations have devised standard forms for inviting and submitting tenders.
An example of each of these forms used by the Central Public Works Department of the
Government of India is given below.

Notice Inviting Tenders

1. Tenders are hereby invited for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
Estimated cost Rs. . . . . .
2. Contract documents consisting of the detailed plans, complete specifications, schedule
of quantities of the various classes of work to be done, and the set of ‘conditions of
contract’ to be complied with by the person whose tender may be accepted, which
will also be found printed in the form of tenders, can be seen at the Divisional/Sub-
Divisional Office, between the hours of 11 a.m. and 4 p.m. everyday, except on Sundays
and public holidays.
3. Tenders which should always be placed in sealed covers, with the name of the work
written on the envelopes, will be received by the Divisional/Sub-Divisional Officer,
Division/Sub-Division up to ......... on the......... 20, and will be opened by him in his
Office on the same day at..........