How to Write a Bid Rejection Letter

A bid rejection letter is a polite response to a failed bid.
A bid rejection letter is a polite response to a failed bid. (Image: Comstock Images/Comstock/Getty Images)

Writing bid rejection letters are a common, yet disliked part of running a business. A bid rejection letter is written by a company to inform another company that the bid the company placed was not accepted. When writing this type of letter, keep in mind that your message should be courteous and direct. It should explain the reasons why the bid was rejected and should also convey that future bids from this company will gladly be considered.

Prepare the heading of the letter. Include the date, the company’s name, contact person’s name and address of the company whose bid was rejected.

Address the letter appropriately and respectfully. The letter should be addressed using the word “Dear” and the contact’s name should be listed next.

Begin the letter by thanking the company for the offer. A bid rejection letter should be polite and should specifically thank the company for offering the bid. It can also include the date and job the bid was for. If applicable, include a sentence stating that you were impressed by certain details of the bid and list what those are.

Reject the company’s offer. Politely state that the bid that was placed by this company has not been accepted and that a bid from another company has.

Offer reasons for the rejection. After stating that the bid was rejected, give the company a reason or two regarding the details of why this decision was made. It may be because of prices or lower-quality goods, or because this particular company is not well-established. This offers a chance for the bidding company to know the problem and have an opportunity to correct it in future business decisions.

Encourage the company to bid again in the future. Close the letter by leaving the door open for future opportunities. This lets the bidding company know that future bids are welcome and that there is always a possibility that a future bid will be considered and possibly accepted.

Sign the letter. Use the word “Sincerely” when closing the letter and sign your name. Enclose a business card with the letter, further encouraging the bidding company to continue bidding on future projects.

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