Proposal Rejection Letter Samples (Decline Bid or Business Proposal)

A proposal rejection letter is a letter businesses, companies, or organizations write to reject a bid. These are common letters in the business world that act as responses to companies that have submitted proposals for specific projects.

The letter is written to express regret that the company didn’t meet the set guidelines or to inform them that the project was awarded to a competitor. Writing the letter requires the right words, tone, and format. If you’ve any doubts writing the letter, refer to samples.

Tips on how to write a proposal rejection letter

  • Offer a clear and valid reason for rejecting the proposal. The recipient requires some explanation as to why their proposal didn’t sail through. This information will assist them in preparing better in the future.
  • Use a polite tone. Since you’re communicating bad news, you need to use a respectful tone to say no. Your words should not make the recipient humiliated.
  • Be professional. A proposal rejection letter is a formal letter that should follow an official format.
  • Express wiliness to work with the client in the future should they meet your requirements. As you terminate the letter, show optimism that you can work with the company if they make the relevant changes.

Sample proposal rejection letters

Sample 1

Dear Sir,

I write this letter to thank you for showing interest in working with us. Unfortunately, your proposal was rejected by our board of directors.
A keen look at our terms and conditions established that the contract may not be economical for our company, we may incur losses. We wish the best in your business and hope that we will work together in the future.
If you need any clarification, please contact my office for details.
Once more we thank you for expressing interest to work with us.

Mark Timbre
Managing director
Seamless Technologies Ltd

Sample 2


Marie Jared
Outcomes business solutions
323 Birds St, Mercy Ave
Chicago IL, 9243

Date: July 23rd, 20XX

Sub: Apologies for business proposal rejection

Hello Ms. Jared,

This letter is in response to your business proposal dated May 3rd, 2019.
Although you had submitted a well-crafted business proposal for the bid we had advertised for the supply of printing machines, we regret that your proposal was not successful.
The bid was awarded to another company named Mercer technologies since they presented a better offer besides offering to be servicing the machines for free.

We value your interest to work with us. You are still eligible to submit your proposal in the next bid.
If you need further details for this project, call or email us.

Jose Kims
Group C.E.O

Adept Solutions

Business proposal rejection letter examples

Business Proposal Rejection Letter 01

Business Proposal Rejection Letter 02

Business Proposal Rejection Letter 03

Business Proposal Rejection Letter 04

Business Proposal Rejection Letter 05

Business Proposal Rejection Letter 06

Business Proposal Rejection Letter 07

Business Proposal Rejection Letter 08

Business Proposal Rejection Letter 09

Business Proposal Rejection Letter 10