Comparative Statement of Quotations: Format and Example

When three suppliers quote for the same purchase, someone has to line their offers up and show which one gives the best value. That document is the comparative statement of quotations: a side-by-side table of prices, taxes, freight, delivery and terms, ending in a recommendation that a manager or purchase committee signs. This guide gives you a comparative statement format, a worked example with three vendors, and the rules that make the comparison fair.

When a comparative statement is used

• Company purchases above a value set in the purchase policy, often with a three-quote rule
• Schools, hospitals, NGOs and government offices, where purchase files are audited
• Construction and contracting, to choose subcontractors and material suppliers
• Any business that wants a record of why a supplier was chosen, especially when the cheapest one was not

It sits between the request for quotation and the purchase order in the procurement process. You send the same specification to several suppliers (see our request for quotation format), collect their quotes, compare them on the statement, and then issue a purchase order to the chosen vendor.

Comparative statement format: the columns and rows

Header

• Organization and department name
• Statement reference number and date
• Subject (for example "Purchase of 50 ergonomic office chairs")
• RFQ reference and date, and the closing date for quotes
• Number of suppliers invited and number of quotes received

Price section

Each item gets a row with its specification and quantity. Each supplier gets a column group with unit rate and amount. Below the items, add rows for discount, packing, freight, installation, taxes and the total landed cost.

Terms section

Rows for delivery period, warranty, payment terms, quote validity, and whether the offer meets the specification. Our article on quotation validity periods explains why an expired quote should not be accepted without reconfirmation.

Conclusion and approvals

Ranking (L1, L2, L3), recommendation with reasons, and signatures of the person who prepared it, the person who checked it, and the approving authority.

Worked example: three quotations for office chairs

Subject: Purchase of 50 ergonomic office chairs (mesh back, adjustable armrests, lumbar support, 3-year warranty required)
RFQ: RFQ/ADM/2026/044 dated 20 Oct 2026   Quotes received: 3 of 4 invited

Particulars	Vendor A	Vendor B	Vendor C
Unit rate (INR)	6,200	5,950	6,050
Amount for 50 chairs	310,000	297,500	302,500
Freight and delivery	4,000	9,500	Included
Total before GST	314,000	307,000	302,500
GST at 18% on chairs	55,800	53,550	54,450
Total landed cost	369,800	360,550	356,950
Delivery period	15 days	30 days	21 days
Warranty	3 years	1 year	3 years
Payment terms	30 days credit	50% advance	30 days credit
Quote valid until	30 Nov 2026	20 Nov 2026	15 Dec 2026
Meets specification	Yes	No (fixed armrests, 1-year warranty)	Yes
Rank	L2	Not compliant	L1

Check the math: Vendor A is 6,200 x 50 = 310,000, plus 4,000 freight = 314,000, plus GST 55,800 (18% of 310,000) = 369,800. Vendor B is 5,950 x 50 = 297,500 + 9,500 = 307,000, plus 53,550 GST = 360,550. Vendor C is 6,050 x 50 = 302,500 with free delivery, plus 54,450 GST = 356,950. For simplicity the example taxes the chairs only; in practice, freight billed by the supplier as part of the supply is usually taxed along with the goods, so check the quotes for how each supplier treats it.

What the example shows

• The cheapest unit rate was not the best offer. Vendor B quoted the lowest rate but added the highest freight and failed the specification.
• The ranking holds with or without GST. Before GST, C is 302,500 and A is 314,000; after GST, C is 356,950 and A is 369,800. If your organization can claim input tax credit, the pre-GST comparison reflects your true cost.
• Terms matter. Vendor C also offers credit terms and the longest validity.

Recommendation (sample wording)

"Three quotations were received against RFQ/ADM/2026/044. Vendor B does not meet the specification (fixed armrests, 1-year warranty) and is excluded. Of the compliant offers, Vendor C is L1 at Rs 356,950 inclusive of GST and delivery, with a 3-year warranty and 30 days credit. It is recommended that a purchase order be placed on Vendor C."

Followed by: Prepared by / Checked by / Approved by, each with name, designation, signature and date.

How to prepare a comparative statement step by step

1. Use one specification for everyone. If suppliers quote different things, the comparison is meaningless. Ask for clarifications in writing.
2. Log quotes as they arrive, noting date and time, especially for sealed quotes.
3. Enter unit rates and quantities exactly as quoted, then compute amounts with formulas.
4. Add every cost element: discount, packing, freight, installation, insurance, taxes.
5. Check technical compliance before ranking. Non-compliant offers are listed but not ranked.
6. Rank compliant offers by total landed cost (or by an agreed weighted score if quality and service are also scored).
7. Write the recommendation with reasons, especially if you are not choosing L1.
8. Get approvals and file the statement with copies of all quotations.

Comparative statement template you can copy

If you are setting up the format in Excel or Google Sheets, this column layout covers most purchases:

Column	Content
A	Serial number
B	Item description and specification
C	Quantity and unit
D and E	Vendor 1 unit rate and amount (=C x D)
F and G	Vendor 2 unit rate and amount
H and I	Vendor 3 unit rate and amount
J	Lowest compliant rate for the item (for item-wise awards)
K	Remarks, such as brand offered or deviation

Below the items, add rows for subtotal, discount, packing, freight, installation, taxes and landed total, then the terms rows (delivery, warranty, payment, validity, compliance) and the ranking. Lock the formula cells and keep each supplier's quotation as a separate PDF with the same reference number, so the statement and its evidence stay together.

Who signs

Typical sign-off has three levels: the person who prepared the statement (often in purchasing or administration), a checker from the user department or finance who confirms the arithmetic and compliance, and an approver whose authority matches the value of the purchase. Keep the person who prepared it separate from the approver; that separation is a large part of why auditors ask for comparative statements in the first place.

Clarifications and negotiation

Quotes rarely arrive in perfectly comparable form. One supplier offers a different model, another leaves out freight, a third quotes in a different unit. Before you finalize the statement, write to suppliers to clarify gaps, and give every supplier the same chance to respond so the process stays fair. Record each clarification on the statement, for example "Vendor A confirmed by email on 3 Nov that freight includes unloading."

If your policy allows negotiation, it is usually done with the L1 supplier only, after ranking, and the negotiated price is recorded alongside the original. Asking every supplier to keep lowering prices after seeing others' offers undermines trust and, in public purchasing, is often not allowed.

Variations

Weighted scoring

For services or complex equipment, some buyers score price, quality, delivery and support, for example price 60%, technical 25%, delivery 10%, support 5%. If you do this, publish the weights in the RFQ so suppliers know how they will be judged.

Item-wise vs total-basis award

When an RFQ covers many items, you may compare item by item (and split the order) or on the total. Decide in advance and state it in the RFQ; switching after seeing prices invites complaints.

Government purchases in India

Central government offices follow the purchase methods in the General Financial Rules 2017 and later amendments, with value-based procedures such as purchase committees and limited tenders, and many items must be bought through GeM. Value limits have been revised over time, so check the current office memorandums your department follows. This is general information, not legal advice.

Common mistakes

• Comparing unit prices only. Always compare total landed cost.
• Ranking non-compliant offers. Exclude them first, with the reason written down.
• Accepting expired quotes. Ask the supplier to extend validity in writing.
• Mixing quotes for different specifications. Ask for clarifications instead of guessing.
• No reasons for choosing a higher bidder. Auditors will ask.

After the order, the supplier's invoice is checked against the purchase order and goods receipt; our guide to the three-way match explains that final control. If you are a supplier on the other side of this process, our article on quotes vs estimates explains why a firm, itemized quote is easier for buyers to approve.

Suppliers can produce a clean, itemized quotation for a buyer's comparison in our invoice generator: switch the title to "Quotation", fill in the items, taxes and validity date, and download a PDF in a minute, free and without signing up.