Printable Bid Proposal Rejection Letters (Samples & Examples)

Bidding is considered to be a crucial part of the business. When someone bids on a project, you need to consider how the project can benefit your organization. If, however, you don’t believe it is the right project for your organization, then you should reject it by writing a rejection letter. If you are having a difficult time writing a rejection letter, no matter if it is for a declined bid or a job rejection letter. you will be more efficient if you use references, samples, and templates for the bid proposal rejection letter.

How to Write a Proposal?

It is never easy to write a regret letter, especially to a trusted company. However, you need to do it. Do not forget to show some courtesy as you do so. Your relationship with a company should not end just because you reject a bid. Do not forget to show some courtesy as you do so. Begin by thanking the company for submitting its bid. Indicate the project and the date the bid was announced. The letter must be written on the official letterhead of your company. The general rules for writing an official letter apply. However, include the date at the top. Similarly, include the company’s name and address. Further, reject the bid using block style writing. Therefore, make sure all text is aligned to the left. Separate the contents while including a double space between two successive paragraphs. The Times New Roman font should be used unless specified otherwise since it is the most commonly used for official correspondence. Finally, use official terms like ‘Dear Mr Duncan’ when writing to the recipient.

How To Write a Declining Bid For Tender?

It can be excruciating to turn down a bid offer. Despite how intimidating it may sound, informing the bidder about the rejection is the right thing to do. Moreover, It’s better to decline an offer kindly than to mess things up.

How do you write a sample bid rejection letter?

  • Maintain a professional tone and structure
  • Thank them for their bid
  • Explain why the bid rejects
  • Explain how you might work together in the future

Five Common Reasons of Proposal Rejection

A bid proposal rejection letter is not always in the form of acceptance. However, more bid proposals are rejected than accepted. The main reasons are as follows:

Excessive Pricing

Often, proposal prices are higher than what the company inviting bids is comfortable with. Similarly, all companies want to spend as little money as possible on their projects. Therefore, they tend to favour the cheapest quote.

Improper Schedule

In addition to pricing, most companies want their work completed in a certain amount of time. However, many of those who send out bids cannot complete the tasks within the stipulated timeframes.

Lack of Necessary Expertise

For a perfect task, the person or company doing it must possess the necessary technical expertise. Likewise, it is common for the companies submitting bids to lack part or all of the expertise required.

Inadequate Experience

The mere possession of technical expertise is never sufficient. However, it is also necessary that the company submitting the bid proposal has some experience. There is a chance of rejection for an inexperienced company’s proposal.

Poor Operation Model

The majority of companies prefer to work with one contractor. Nowadays, it is not uncommon for companies to outsource their work to third parties or freelancers. Once again, the companies submitting the proposals may be in the rejection process due to a weak operational model.

What Should be the tone?

Professionalism and courtesy require in this field. Similarly, do not use slang or other derogatory terms. It might not be the end of your relationship with this company if you reject this particular bid. Lastly, find a positive aspect of the company and point it out. Find something positive to say about the company in question. For Instance, you could say, ‘we appreciate your consistency in providing outdoor catering services. Next, compliment the contractor on their proposal, previous tasks, or general reputation.

How To Decline The Proposal?

Let’s get to the point of the bid proposal rejection letter. Reject the offer. Moreover, get straight to the point. Don’t use too many words to make your point. Your response requires to follow a candid explanation of why you had to reject the bid. You can also point out a mistake or issue with the proposal that led to its rejection. Therefore, doing so will help the contractor prepare for future bids. It will also eliminate any ambiguities that the contractor might have. You should also check policy proposal templates.

Encourage For Further Submission

Encourage the contractor to keep an eye out for future bids. Similarly, ensure that this rejection will not affect their future bids. Whenever you are working on multiple projects at the same time, inform the contractor that you are rejecting this specific bid. Their other bids will consider equally yet.

How To Close The Letter?

Your letter concludes by stating that you look forward to working with them in the future. Tell them where they can find information if and when they need it. Then, use courteous closing phrases such as ‘Sincerely,’ ‘Regards,’ ‘Faithfully,’ or ‘Yours Truly.’ These terms add some personal touches that go a long way in cementing the bonds that already exist between you.

Things To Include And Avoid In the Letter

It is important to include certain things in such a letter and to ignore others. Let us examine them both in this section.

Should Include

Date: This letter must have a date. This is for future reference and accurate record keeping. Salutation: When addressing the recipient, you must be formal and official. Moreover, Your salutation is the only way to achieve this. A few examples are ‘Dear,’ ‘Sir,’ and ‘Mr.’ Body: It is important to pay attention to the body of the letter. However, it contains the details of the bid rejection. You Should devote the bulk of the letter. Signature: Last but not least, you must include a signature with your letter. This adds to the official character of the letter. Moreover, it lends credibility and authority.

Should Not Include

Reference: While a reference uses in other official letters, it is not necessary for a bid rejection letter. Moreover, don’t worry about it, just move on to the body of the letter. Disparaging Comments: The end of your relationship with a contractor or company does not necessarily follow a rejection of their bid. Hence, you must be careful not to disparage them.


For an organization, a bid proposal rejection letter is the equivalent of a job application. Similarly, the proposal is a formal document that one business (otherwise called a contractor) sends to another business in response to an earlier request for a proposal. It consists of a detailed plan and proposed costs. Similarly, the company intends to base its execution of the task on approval. Other terms of reference include in some bid proposals. As a result, the selected business must adhere to while completing the tasks.

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