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What is a Request for Proposal (RFP)?
A Request for Proposal, or a RFP, is a document issued by a project owner highlights the project, scope, and invites potential contractors or vendors to submit proposals for a specific project.
The project owner typically originates from a business, organization or government agency. The request is for contractors or vendors who are suitable or are capable of completing the project. Steps required within the RFP process:
- Discovery
- Draft and issue RFP
- Score Proposals
- Select winner
- Contract winner
Why are RFPs needed in the construction industry?
Requests for Proposals (RFPs) are commonly used in the context of intricate construction projects where coordination among multiple subcontractors under a general contractor or construction manager is necessary.
They are particularly suitable for projects involving complex technical expertise or specialized capabilities that may not be readily available. RFPs often solicit proposals for advanced research and development of solutions tailored to the project’s unique requirements.
While government entities and public sector organizations frequently issue RFPs, they are also employed by private organizations. These requests foster competition and ensure equal opportunity among participating companies.
