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What Do RFP & RFQ Mean In Construction? Free RFP & RFQ Templates

The execution of a construction project heavily relies on making purchases. While it’s no mystery that budgeting and cost control are vital aspects of construction management, the actual act of making purchases is important in and of itself. Whether we’re purchasing material and equipment or contracting out a portion of our work, there’s an art and a science behind the procurement process of a project. Within this process are some common acronyms, specifically RFP and RFQ. What do RFP and RFQ mean in construction? That’s what we’re exploring in this article. We’re also giving away FREE RFP & RFQ templates – scroll to download section!

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What Does RFP Mean In Construction?

In the construction industry, RFP stands for Request For Proposal. An RFP is usually issued when an owner, developer or contractor needs some specific tasks performed; tasks that must be taken on by a specialist.

The reason this is referred to as a Request For Proposal is because the recipient must consider the project details, develop their own approach to performing the work and submit a bid for doing so.

In this nature, RFPs represent far more than just requesting the price for a box of screws.

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For example, developers looking to hire General Contractors to construct a building will issue RFPs to several GCs. In turn, the developer is expecting these contractors to outline exactly how they’ll do the job, what their pricing looks like, what is included vs. excluded from their proposed scope of work, etc.

In turn, the General Contractors will issue RFPs to a variety of potential Subcontractors for performing a part of the work. Foundation work, structural steel, plumbing, electric, exterior facade, etc.

When one issues a Request For Proposal, they’re essentially requesting a bid for performing specific work.

What Does RFQ Mean In Construction?

RFQ stands for Request For Quotation. Remember the box of screws mentioned earlier? That’s where an RFQ comes into play. In these instances, a purchaser – contractor, developer or otherwise – knows exactly what they’re looking for. What they don’t know is which vendor can supply the best price, deliver the best overall value, etc.

Here are some common items that are requested on a RFQ form:

Hardware & Fasteners
Raw Building Materials – Concrete, Masonry, Lumber, Gypsum, Etc.
Equipment
Tools
Safety Provisions

When one issues a Request For Quotation, they’re essentially requesting a price for a specific item.

RFP Best Practices

When issuing Requests For Proposals to contractors, there are a few best practices to keep in mind. Check out these RFP tips:

Due Dates: Getting proposals in a timely manner is a must.
Project Documents: Provide contractors with access to all drawings, specs and other pertinent documents so they can be reviewed.
Legal/Contractual Info: At the time of request, it may be helpful to issue a sample contract to potential contractors. This includes legal terms, insurance/liability, project documents (plans, specs) and more. A contractor might provide a proposal at first but back out once they see the contract later. This prevents that from happening.
Qualifications/Exclusions: Request contractors to explicitly state what is assumed or not included. This will eliminate a lot of grey area when it comes time to issue a contract.
Scope Of Work: RFPs should clearly denote what the scope of work entails. This includes specific drawing details, written descriptions and checklists.
Project Conditions: It can be helpful to request logistical info. from contractors at this stage. You can request their input for onsite utility requirements (electric, water), storage, access/equipment, etc.
Schedule: Contractors don’t need to provide a full schedule at this stage in most cases, but they should at least outline expected durations and timeframes, even if they’re approximate. Schedule is one of the most important parts of a project – contractors that can’t meet it shouldn’t get the job.

Make sure to download a FREE Request For Proposal (RFP) Template below!

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RFQ Best Practices

While issuing Requests For Quotation is a bit simpler than sending out RFPs, let’s cover a few helpful tips for RFQs too:

Documentation: It’s a good idea to supply vendors with specific Product Data Sheets (from manufacturer) for the material you’re looking for. This reduces the likelihood that you’re quoted for the incorrect item. You can also provide them with the written specifications on the project, too. The clearer, the better.
Quantities: Is vital that quantities are included on any RFQ form. You’ll probably be quoted a better unit price for a larger quantity, and you’ll also be quoted the correct unit size. For example, fasteners can come in boxes of 50 and also 500. If you’re buying 10,000 fasteners, you can opt for the larger boxes, which are likely cheaper.
Logistics: It’s essential that you iron out as much logistical information as possible, too. This includes delivery costs, lead time, loading/unloading at the job site and other operational info.

Make sure to download a FREE Request For Quotation (RFQ) Template below!

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RFQs and RFPs in Construction: In Conclusion

The construction industry is full of acronyms, and not knowing them can be frustrating. If you came here wondering what RFP and RFQ stand for in construction, you now know what they mean and some tips on how to use them! I hope this article and the free RFP / RFQ templates have been helpful for you. Thanks a lot for reading.

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Bids & Proposals, Contractors, Contracts, Free Templates & Downloads, Procurement, Purchase Order, RFP, RFQ, Starting A Project, Subcontractors, Vendors

Pat Finnegan

Hello! I'm Patrick, the creator of PM Problems. I have an educational background in Civil Engineering and I've worked in the construction industry since 2008, working on many types of projects in that time. I love talking about project management as well as helping others learn and grow!

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What Do RFP & RFQ Mean In Construction? Free RFP & RFQ Templates

What Does RFP Mean In Construction?

What Does RFQ Mean In Construction?

RFP Best Practices

RFQ Best Practices

RFQs and RFPs in Construction: In Conclusion

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Pat Finnegan

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Is My Boss Manipulating Me? Here Are 12 Signs Of A Manipulative Boss

What Do Building Inspectors Do? 4 Construction Inspector Responsibilities

Buying Materials For Contractors Directly? The Pros & Cons To Consider

My Boss Doesn’t Have My Back: What Should I Do? My 5 Personal Tips

Do Construction Managers Have To Travel? Let’s Break It Down

Writing Skills For Project Managers: These 6 Are Essential For Success

Tracking Construction Productivity: A Few Examples [Free Excel Template]

6 Project Management Lessons From Enron & Their Historic Collapse

6 Things I Learned While Working For A Failing Company

Is Project Management Competitive? The Answer Is Complicated

For Project Managers Becoming Entrepreneurs: 5 Tips From Experience

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What Do RFP & RFQ Mean In Construction? Free RFP & RFQ Templates

What Does RFP Mean In Construction?

What Does RFQ Mean In Construction?

RFP Best Practices

RFQ Best Practices

RFQs and RFPs in Construction: In Conclusion

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Pat Finnegan

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