Vendor Proposal Acceptance Letter Template

A company writes a vendor proposal acceptance letter to a vendor as a reply to a business proposition made by him earlier.  A vendor may contact a company to provide some service that the company requires and will mention their business terms in a letter. In response, the company may write an acceptance letter in which they will inform the vendor about their agreement for the business. This can also be regarded as an official agreement of business with the vendor.

A company may receive several propositions from different vendors. For example, a company may give an advertisement requiring a cleaning service. Any vendors that can provide the service, local or otherwise, may contact the company through their respective proposals. The company will view the proposals and accept the one that suits them the most and falls within their budget. The vendor then will be sent a proposal acceptance letter through the company for the initial agreement.

What shall be mentioned in the vendor proposal acceptance letter?

This letter is an official document and should be penned down carefully. A company template may be used if that’s available. This letter will contain all the necessary specifics regarding the requirements of the company and the company policies.  Before any work begins, it is important for both parties to have read the company’s conditions and sign the official contract papers.

The following points are important.

1. This letter needs to be written in a professional and business tone. It should not be treated like an informal letter. A well written proposal acceptance letter may be foundation of a good affiliation between the two parties in the future.
2. Read the vendors proposal letter carefully before writing this letter. If you have any questions regarding any specific point the vendor mentioned earlier, please do so in this letter. Always avoid making hasty decisions. This can result is massive financial loss to the company later on and may also affect company’s reputation.
3. You can ask the vendor about any additional particulars he forgot to mention, for example, work hours or number of personnel that would need access to the company building etc. These details need to be discussed before hand so relevant arrangements can be made.
4. Consider all the proposals before making a final decision. This is very important. Wait till the deadline so you have received maximum proposals from all the potential vendors. Then make a final decision. If you think more than one vendor is suitable for the work, then it is best to judge them based on their previous work record. You may also get in touch with any other company the vendor has worked for previously, to get an idea.

Sample Letter

To

Mr. Chris Smith
Smith Cleaning Service
Oswald Lane, London

From,

Mr. Jay Shetty
Director Project Management
Bluebird group of Companies.

5^th Sept 20XX

Dear Mr. Smith,

I am glad to inform you that we wish to accept your proposal for providing a cleaning service to the Bluebird group of companies. After going through your proposal, we have decided that your service suits our company’s requirements. Please consider this letter an official confirmation from the Bluebird company, acknowledging our acceptance of your business proposal.

We can start our affiliation with effect from 10^th February 20XX, 0900 hours. Your work hours will be 7 hours a day, four days a week. A document with a detailed Job description is attached to this letter. Please read the following company policies carefully before signing the agreement.

1. The Bluebird company expects transparency from the vendor regarding time management, honesty, and business ethics.
2. The company reserves the right to revoke the services of a vendor with one-month prior notice.
3. The company reserves the right to extend partnership with the vendor subject to satisfactory performance.
4. All payments are scheduled in a bi-monthly manner and will be paid to the vendor company’s official account (no personal account will be entertained)
5. Up to 5 personnel from Service provider can be allowed inside the company building at a time. The personnel will be issue ID cards for their easy identification.

Please feel free to contact me in case you have further questions.
Regards,
Jay Shetty
Signatures.

Size: 19 KB Word .doc File 2003 & later

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