Reject a Bid or Proposal • Example Letters, Guides and Samples
A tactful letter rejecting a bid informs the bidder of your decision, but still leaves the door open for future business.
How to write this refusal letter:
- Express appreciation to the bidder for his or her effort.
- Describe, if appropriate, the bid's positive features. Explain briefly why you are rejecting it.
- Close with a positive remark, perhaps suggesting future possibilities for business together.
Example Letter #1
We acknowledge receipt of your bid to pour the foundation for our new school shop. We found your bid well-prepared, but considerably higher than the competition's. We have awarded the job to a local company. However, we will request bids on several more concrete jobs soon and hope that you will submit quotations.
Example Letter #2
Thank you for meeting with us to present your proposal for our company's retirement plan. It was obvious that you had spent a lot of time preparing your presentation. I am sorry to inform you that the board decided to accept the proposal of another provider with lower administrative fees. We will review this decision on an annual basis, so feel free to keep in touch about future opportunities. Best wishes in your business.
Example Letter #3
Thank you for submitting your landscaping bid for the Doe Inc. offices on Main St. We have decided to accept a competitor's bid instead of the one you submitted. They proposed a plan which more board members approved of. It was also cheaper. Thank you for submitting the bid. We anticipate many landscaping jobs in the future and hope you will allow us to rely on your services.
Example Letter #4
Thank you for submitting a cost estimate for rewiring the annex to the old courthouse. We appreciate the thoroughness of your proposal, and the timely manner in which you returned it to us with the requested changes. However, we did receive a bid with a lower complete cost, and we have awarded the contract to that firm. We hope you will consider bidding on future projects as we continue to renovate the city/county buildings.
Write Your Letter Step-by-Step
1 Express appreciation to the bidder for his or her effort.
Sample Sentences for Step 1
- We appreciate your excellent work on the bid you submitted earlier this month.
- Thank you for responding to our Request for Proposal (RFP) regarding a new accounting package for Doe's central office.
- We appreciate the time that went into your impressive proposal of April 5.
- Thank you for submitting specifications and a price estimate for recarpeting Doe's Department Store.
- Thank you for presenting your proposed design for the mall to the board.
- We examined with interest your price quotations on new light fixtures for our mobile home park.
Sample Phrases for Step 1
- appreciate the time you devoted to studying our organization
- appreciate the comprehensive, well-documented proposal
- appreciate the time you took to create such a detailed
- appreciate the comprehensive approach you took
- appreciate your excellent work on the bid you submitted to us on
- determining how we could work together on this project
- examined with interest your quotation on
- high quality of your proposal indicates the time and effort
- references and list of previous clients are impressive
- sincerely appreciate your effort in preparing such a lengthy
- submitted in response to our request for bids
- thank you for submitting specifications and a cost estimate for
- thank you for responding so thoroughly and quickly to our needs
- thank you for delivering your proposal
- thank you for the well-thought-out proposal on
- thank you for presenting your design to the board
- thank you for your prompt reply to
- the time and effort you put into your proposal is evident
2 Describe, if appropriate, the bid's positive features. Explain briefly why you are rejecting it.
Sample Sentences for Step 2
- We were impressed with your detailed and thorough presentation of your bid; however, we finally chose a bid with a lower overall cost.
- Since your proposal did not conform to the format requested in our RFP, we did not consider it.
- Although your firm was among the finalists, and the choice was difficult, we selected another firm's bid.
- Your careful work impressed all who reviewed it. After considering the costs involved, we chose to take up the carpet and replace it with vinyl flooring that will be easier to maintain.
- The design was innovative and dramatic, stylistically daring and original. The board agrees that your design was the most unusual one we considered. However, I am sorry to inform you that the board chose another design that will be less costly to build and maintain.
- Your bid was very low, but our accounting department discovered several errors in figures you supplied. We have, therefore, decided to award the contract to another vendor.
Sample Phrases for Step 2
- am sorry to learn that you are unable to provide
- accounting department discovered several errors in figures
- afraid I have some disappointing news
- after deliberating over who to award the job to
- after careful deliberation, we selected
- analysis and discussion of the unusually competitive responses
- another vendor whose timetable for delivery better meets our need
- because of the overwhelming number of fine proposals submitted
- carefully compared the responses we received to our request for
- concluded that your company cannot immediately provide adequate
- decision was based on several factors
- evaluating committee has selected another vendor for
- go with a firm a little closer geographically
- had great difficulty in selecting a training firm to develop
- have finally selected Doe Corporation to design the program
- have decided to award the project to
- have chosen a consultant who has
- have two other vendors who submitted lower bids for the work
- necessary to do the job most economically
- need more liberal credit terms than you can offer
- offered significant advantages in creativity and experience
- primary factor was cost
- regret to inform you that we have awarded another bidder the
- requires at least ten workers on site at all times
- since your proposal did not
- unfortunately, yours came in too high for our budget
- Doe Corporation is the lowest bidder
- weighing the strengths and weaknesses of each
- while all of the proposals were of exceptionally high quality
- your firm was among the five finalists we considered
3 Close with a positive remark, perhaps suggesting future possibilities for business together.
Sample Sentences for Step 3
- We look forward to receiving your bids on future projects.
- We wish you every success in your business.
- Thank you again for your bid. We hope at some point in the future to be able to accept a bid from your corporation.
- We appreciate your professionalism and invite your firm to bid on future projects.
- I believe your unique designs will set a new standard in office furniture.
- Best wishes for future success.
Sample Phrases for Step 3
- appreciate your efforts and want to thank you for
- appreciate the large amount of time and interest you put into
- appreciate your prompt response to our bid request
- aware of your company's excellent reputation
- assure you that we will give you an opportunity to
- be sure to include you in any future invitations to bid on
- contact you again on future work assignments
- continue to think highly of your firm
- extend our entire company's thanks for
- future work of this nature
- hope to see your company name in the future
- hope that in the future we will be able to contract with you
- hope you will keep us in mind should you have other ideas for
- hope to have better news for you on the next bid
- hope you will consider bidding on future projects
- hope to do business with you on another project
- if, for any reason, we solicit another round of bids
- keeping your information on file
- likely that we will be able to do business together in the future
- may we keep you on our list of outstanding producers
- particularly impressed with the cost section
- thank you for giving us the opportunity to review your proposal
- when we have grown some more, we will again consider
- will be in touch when we have other needs
- wish you continued success in all your future endeavors