What is the role of informal quotations?

Informal quotations serve the purpose of obtaining competitive pricing, particularly for smaller purchases where the formal bidding process may not be practical or necessary. By soliciting informal quotations, a public works manager can quickly evaluate and compare prices from different suppliers, enabling more agile decision-making and cost-effectiveness in procurement. This approach is especially useful for smaller projects or purchases that fall below a certain dollar threshold, where the time and resources required for a formal bidding process may not be justified.

Using informal quotations allows organizations to respond swiftly to needs while still fostering competition among vendors, which can result in favorable pricing. This practice also promotes the opportunity for local businesses to supply goods and services, supporting the local economy. The emphasis is on the efficiency and responsiveness of the procurement process for lower-cost items, rather than the complexity and formalities associated with larger contracts.