Construction RFPThe Ultimate Guide

Construction RFP is usually the weakest spot of construction companies in winning new opportunities to win business. The reason behind this is the failure of construction companies to show value in their request for proposals. 

In this article, we will discuss what construction RFP is all about. We will also show you the other types of construction requests and the dos and don’ts for a successful RFP response. 

Once you are done reading this article, you will have a deeper knowledge of construction RFP. Thus, allowing you to make great RFP and acquire new business opportunities.

ConstructionRFP: What is it?

A construction request for proposal (RFP) is a document that is used by organizations to get details for accomplishing their goals from potential suppliers and helps to source the best contractor to create the drawing boards. 

A construction RFP is commonly the last part of the process when an organization is doing capital improvements. 

Many public agencies or private companies are issuing requests for proposals in construction when they are trying to build or enhance a property.

In construction projects, the RFP is sent out to invite contractors to review project documents and submit bids. The request is usually sent out by the owner or general contractor which occurs during the solicitation phase. 

The process of sending out construction RFPs is crucial for many companies as it determines whether or not the construction managers have the necessary experience, qualifications, creativity, and resources to finish the project.

Types of Construction Requests

1. Request for Proposal (RFP)

Just like what we said earlier, a construction request for proposal determines if the construction managers have the necessary requirements to create the project. Thus, it includes the project scope, background, deliverables, and other resources needed to accomplish the project.

2. Request for Information (RFI)

An RFI is a document used by many agencies and companies to collect information for capital improvements. Commonly, an organization is just starting to decide how it can build the project. Thus, it is looking for ideas. 

For example, when general contractors are unsure about the specifications, they might submit a request for information to the client. 

RFIs can occur at any stage in the construction project including the construction procurement to clarify the needed materials prior to the submission of the bids.

3. Request of Qualifications (RFQ)

The RFQ is a document that asks for information about the firm’s credentials, previous projects, and experience. Thus, RFQs help companies to narrow down the list of vendors whom they will want to send an invitation to bid. 

Most of the time, construction projects require an RFQ or some kind of document to make the process of pre-screening and selection easier. 

4. Invitation to Tender (ITT)

The invitation to tender is a document that is frequently confused with RFPs. Although both documents are used to invite participants in the bidding process, the ITT is usually utilized in situations where the scope of work is predetermined. 

To simplify, the clients already know what they want and they are just simply looking for vendors to bid to complete the project.

5. Request for Quote (RFQ)

A request for quote (also known as RFQ but should not be confused with a request for qualifications) is a document commonly utilized in pricing equipment, materials, and some other resources. 

This simply means that the product does not differ dramatically from vendor to vendor and is just a matter of arranging favorable terms. 

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TheDos and Don’ts of Construction RFPs

The Dos in Construction RFPs

1. Establish what you expect and describe your requirements

If the RFPs cannot describe clearly its requirements, it will take a lot more time for bidders to send their bids as they will need to request more information to know more about the project. 

Additionally, it is crucial for companies to establish expectations with the bidders to avoid confusion. It should outline how bidders should make or structure their proposals in order to compare proposals easily.

2. State your cost qualifications clearly

When contractors prepare their response to the RFPs, it is important for them to clearly understand the cost qualifications. 

This includes the number of meetings that will be held, the number of reports, review procedures, etc. By knowing the hard and soft costs, the projects of a company can avoid going over its budget.

3. Set a schedule

If your company will send an RFP to contractors, the RFP  must clearly communicate the timing and when things should be done. 

Once you have received the RFP, the contractor must also clearly state when you can expect the project to be established.

4. Be flexible

Being flexible during the RFP process will help you and the contractors to better assess the project. If both parties take a flexible approach, the project will likely reach a successful outcome.

    The Don’ts in Construction RFPs

    1. Making assumptions

    In sending or receiving an RFP, you should not make any assumptions about the project or the parties that will be involved. 

    You should not assume unless it is clearly stated in the RFP. Assuming something that they do not mean can make the project unsuccessful.

    2. Ignoring feedback

    The RFP process is a tricky and tedious process, especially when parties do not listen to feedback from each other. By communicating with each other, the RFP process can be improved.

    3. Setting unrealistic deadlines

    Responses with the RFPs that you have sent out take time to allow the bidders to create quality proposals. Setting a realistic deadline will allow the company to evaluate and compare the responses effectively. 

    By focusing on flexibility and clarity, you are on the right track to making good collaborations with your bidders which allows the project to be successful.

    FrequentlyAsked Questions

    + What is Construction RFP?

    RFP is a document used by organizations to get details for accomplishing their goals by collaborating with their potential suppliers.

    + What is construction in procurement?

    Construction procurement refers to sourcing labor and buying materials that are used in the construction of a project in a timely and efficient manner.

    + Why is construction RFP important?

    The RFP is important as it determines whether your potential contractors are qualified to take on the project.

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