RFP (Request for Proposal)
A formal invitation to propose an approach and a price, evaluated on more than just the number.
Quick Answer
An RFP (Request for Proposal) is a formal solicitation an owner issues inviting contractors, construction managers, or design teams to submit a detailed proposal covering their approach, team, and price for a project. Unlike a straight competitive bid, an RFP response is evaluated on multiple weighted criteria — qualifications, approach, and price together — not price alone.
The Full Picture
An RFP exists because lowest price isn't always the right basis for selecting a contractor or design team, especially on complex, negotiated, or public projects where approach, team quality, and risk management matter as much as the number. Formal RFP processes also give public owners a documented, defensible selection method under procurement regulations like FAR Part 15 for negotiated federal contracts.
An RFP describes the project and scope, states the evaluation criteria and their relative weight, and sets a submission deadline. Proposers typically respond with a technical proposal (approach, schedule, key personnel, relevant experience) and a separate price proposal. An evaluation committee scores each response against the stated criteria, often shortlists finalists for interviews, then selects.
A general contractor responding to a hospital owner's RFP for a CM-at-Risk project, for example, submits its proposed preconstruction approach, its team's healthcare experience, a proposed fee structure, and references — competing on the strength of that whole package, not just a bottom-line number.
For a contractor, winning the RFP is often how a negotiated project is won in the first place, and the preconstruction approach described in the proposal — how estimates will be developed, how the GMP will be built, how subcontractor bidding will be run — becomes something the owner expects the team to actually deliver once under contract.
Real Examples
Common Misconceptions
People assume: People assume the lowest number always wins an RFP.
Actually: most RFPs use weighted scoring where price is one factor among several — qualifications, approach, and interview performance often carry as much or more weight than the price proposal.
People assume: People use RFP and RFQ interchangeably.
Actually: an RFQ narrows the field to qualified firms first, with no price involved; an RFP is the next step, inviting that shortlisted group to submit a detailed approach and price.
Frequently Asked Questions
What does RFP stand for?
Request for Proposal — a formal solicitation an owner issues asking contractors, construction managers, or design teams to submit a detailed proposal on their approach, team, and price for a project.
How is an RFP evaluated?
Against criteria the owner states upfront, typically weighted across qualifications, proposed approach, key personnel, and price. Many public RFPs also include an interview stage before final selection.
Who responds to a construction RFP?
General contractors, construction managers, design-build teams, or architecture/engineering firms, depending on what service the owner is soliciting — design, construction, or a combined delivery method.
What's the difference between an RFP and a hard bid?
A hard bid (invitation to bid) is typically awarded on price alone to the lowest responsive, responsible bidder. An RFP evaluates multiple factors together — approach and qualifications as well as price — making it common for negotiated rather than competitively bid work.
Why does the RFP stage matter for preconstruction?
The preconstruction approach a team describes in its RFP response — how it will estimate, coordinate the design, and level subcontractor bids — often becomes the standard the owner holds the team to once the contract is signed.