Request for Proposal (RFP)

Definition

A Request for Proposal (RFP) is a solicitation, often made through a bidding process, by an agency or company interested in procuring a commodity, service, or valuable asset. For construction, the request is for Pre-Construction Services and/or Construction Services for a specific project.

Purpose

The purpose of an RFP is to invite potential vendors or contractors to submit proposals for providing specific services or products, allowing the requesting organization to evaluate and select the best option based on criteria such as cost, experience, and capability.

Examples of Use

• Government agencies issue RFPs for public works projects, such as road construction or facility renovations.
• Corporations use RFPs to select vendors for IT services, marketing campaigns, or supply chain management.
• Nonprofit organizations may issue RFPs to find consultants for strategic planning or fundraising services.

Related Terms

• Bid: An offer to perform work or supply goods at a specified price.
• Request for Information (RFI): A preliminary document to gather information from potential vendors before issuing an RFP.
• Procurement: The process of obtaining goods or services.

Notes

An effective RFP clearly outlines the scope of work, requirements, evaluation criteria, and submission guidelines, ensuring that proposals are comprehensive and comparable.