Proposal Rejection Letters for Word

We often receive proposals of various kinds. We can’t say yes to all of them. We can only accept one proposal and turn down all the remaining proposals. However, we find it to be very challenging to reject a proposal.

Declining a proposal letter is written when we have not liked an offer made by a vendor or a contractor and we want to let him know that we are not convinced to work with them. This letter has a lot of significance in the professional world because we often have to reject offers from people because of any reason.

Many situations require us to properly decline an offer instead of deliberately ignoring it. We can decline a proposal when:

  1. The offer made in the proposal is not sound
  2. The bid made by the service provider is not affordable
  3. The proposal is not relevant to our business
  4. There are so many inconsistencies in the proposal that show the vagueness in the mind of the proposal writer
  5. The proposal is not in the correct format which shows the proposal writer is not much interested in it

There can also be many other situations. Sometimes we don’t want to accept an offer because the person making an offer does not have a good reputation in the industry or we don’t like working with that person for some reason. We should try to understand the situation so that we can determine when to write this letter.

What does it need to make a proposal look professional?

Details of the proposal you are rejecting:

When you are writing to decline a bid, you must refer to that bid first and then reject it. Provide the details of that proposal that you are rejecting such as the name of the person or organization that made an offer through the proposal, the date on which the proposal was received, the title of the proposal, and the date on which it is being rejected.

Give reason for writing this letter:

It is recommended to use a regretful statement to convey the message of rejection via this letter. No matter how rude you think it is to turn down someone, you should have enough courage to do that politely and professionally.

Therefore, you must tell the reader that this letter is being written from your side because you want to let him know about your decision not to accept his offer. Make sure that you are using a straightforward approach and that you are clear about what you are saying.

Specify the reason for turning a proposal down:

After reading your intent to write the rejection letter, the first question that comes to the mind of the reader is why you rejecting. Therefore, you should never forget to mention the reason. When you provide the reason, make sure that you make sense to the reader. Don’t try to give excuses just because you want to sound polite while giving the reason for the rejection.

While you provide the reason, there is no need to get into long details. Give the reason in one line and move forward. 

Suggest improvements in the proposal:

Some rejection letters also recommend the proposal writer bring changes to the proposal to improve it. In case you can accept the proposal if some improvements are made to it, specify the improvements. You can also provide the format that you want to be followed while writing the proposal.  You can ask the proposal writer to forward you the improved version of the proposal for acceptance in the future.

Appreciate the recipient for efforts

Writing a proposal is not an easy job. Sometimes rejecting it feels like ignoring the efforts of the person who has worked hard on it to make it work. If you feel like not discouraging him, you better appreciate him with some morale-boosting words.

Thank the reader:

At the end of the letter, you are expected to conclude it. Thank the reader for choosing your company to target for sending a proposal and making a bid.

Letter Template

I am writing this letter in response to the business proposal you submitted on (date). The proposal you submitted was well-crafted for the bid we advertised (state the aim of the proposal here), however, we regret to say that the proposal was not successful.

We have awarded the bid to another company, namely (state company name) as they gave us a better offer.

We appreciate your interest to work with our company. You can submit another proposal for another initiative we have.

You can contact us if you have any queries.