7 Best Practices for Construction RFP Management
The RFP process determines who builds your project. A well-run process attracts qualified contractors, enables fair comparison, and sets clear expectations. A poorly-run process attracts the wrong bidders, creates comparison problems, and starts relationships with confusion. These seven best practices help you run RFP processes that produce better outcomes.
Why RFP Process Matters
The RFP process does more than just get pricing:
- Attracts or repels good contractors: Professional RFPs attract professional bidders
- Sets expectations: What you ask for shapes what you get
- Enables comparison: Consistent formats allow apples-to-apples evaluation
- Establishes relationship tone: Professional process starts professional relationship
- Reduces disputes: Clear scope reduces later change orders
An RFP is a communication—make it communicate clearly.
7 Best Practices for RFP Management
1. Write Clear, Complete Scopes of Work
Vague scopes produce unusable bids. Contractors interpret ambiguity differently, making comparison impossible and change orders inevitable.
Elements of clear scope:
- Detailed description of work required
- Specific materials and quality standards
- Clear boundaries of what's included and excluded
- Measurable deliverables
- Site conditions and constraints
- Owner-provided items vs. contractor-provided
How to write effective scopes:
- Be specific about quantities and specifications
- Use "shall" language for requirements, "may" for options
- Include drawings and specifications where available
- Explicitly state exclusions to prevent assumptions
- Reference standards (ASTM, building codes) appropriately
Common scope mistakes:
- Performance specifications without acceptance criteria
- Undefined allowances that become disputes
- Missing access or logistics requirements
- Vague quality language ("first-class work")
- Assumptions left unstated
See our guide to scope of work documentation for detailed guidance.
2. Structure RFPs for Easy Response and Comparison
How you structure the RFP affects the quality of responses and your ability to evaluate them.
RFP structure:
Section 1: Introduction and Overview
- Project description and objectives
- Timeline and key dates
- Contact information for questions
- Submission instructions
Section 2: Scope of Work
- Detailed scope description
- Drawings and specifications
- Special requirements
Section 3: Bid Requirements
- Required bid format (line item breakdown)
- Qualification information requested
- Required attachments (insurance, licenses)
- Questions to answer
Section 4: Commercial Terms
- Contract form to be used
- Payment terms
- Insurance requirements
- Bonding requirements
Section 5: Evaluation Criteria
- How bids will be evaluated
- Weighting of factors
- Selection timeline
Formatting for comparison:
- Provide bid forms with required line items
- Specify how alternates should be presented
- Require unit prices for potential changes
- Standardize assumptions and exclusions format
3. Invite Qualified Bidders
The quality of your RFP responses depends on who receives it. Be selective about who you invite.
Bidder selection criteria:
- Experience with similar projects
- Capacity for your project size and timeline
- Financial stability
- Geographic coverage
- Past performance (if you have history)
- Current qualification status
How many bidders to invite:
- Too few (under 3): Limited competition and comparison
- Right number (3-5): Good competition, manageable evaluation
- Too many (over 6): Overwhelming evaluation, may discourage quality bidders
Bid list development:
- Start with pre-qualified vendors
- Research additional candidates for specialized work
- Verify interest before formally inviting
- Consider capacity and current workload
Open bids (anyone can submit) attract quantity over quality. Invited bids target the right contractors.
4. Allow Adequate Time for Bidding
Compressed bid timelines produce incomplete or inflated bids. Contractors who bid carefully need time.
Recommended bid timelines:
- Simple projects (under $100K): 2 weeks minimum
- Standard projects ($100K-$500K): 3-4 weeks
- Complex projects (over $500K): 4-6 weeks
- Projects requiring sub-bids: Add 1-2 weeks
What happens with short timelines:
- Fewer bidders participate
- Bids include contingency for unknowns
- Less accurate pricing
- More questions and confusion
Timeline includes:
- Review of documents and site visit
- Questions and clarifications
- Sub-bid solicitation (if applicable)
- Bid preparation and review
- Submission and delivery
Rushing the bid saves a week and costs months in problems.
5. Conduct Effective Pre-Bid Meetings
Pre-bid meetings align understanding and surface issues before they become bid problems.
Pre-bid meeting purposes:
- Walk the site and show existing conditions
- Answer questions and clarify scope
- Identify access constraints and logistics
- Highlight unusual or critical requirements
- Enable contractor networking with subs
Meeting structure:
- Presentation of project overview and timeline
- Review of scope highlights and special conditions
- Site walk-through
- Q&A session
- Deadline for written questions reminder
Best practices:
- Make attendance mandatory for bidding
- Document attendance and provide sign-in sheet
- Answer questions consistently for all bidders
- Issue written addendum for any clarifications
- Don't make verbal commitments—put it in writing
After the meeting:
- Issue written summary of questions and answers
- Provide addenda for any scope clarifications
- Extend bid deadline if significant changes made
- Respond to follow-up questions in writing
6. Evaluate Bids Systematically
Objective evaluation prevents choosing the wrong contractor and supports selection decisions.
Evaluation framework:
Price (typically 40-60% of evaluation):
- Total bid amount
- Completeness of bid (no gaps)
- Reasonableness of line items
- Qualifications and exclusions
Qualifications (typically 30-40%):
- Relevant experience
- Proposed team and availability
- References and past performance
- Financial stability
- Safety record
Schedule and approach (typically 10-20%):
- Proposed schedule
- Approach to key challenges
- Resource plan
- Communication and reporting plans
Evaluation process:
- Check bids for completeness and responsiveness
- Normalize for scope differences
- Score each criterion using consistent scale
- Weight and total scores
- Document evaluation rationale
Common evaluation mistakes:
- Focusing only on price
- Not normalizing scope differences
- Inconsistent scoring between evaluators
- Not checking references before selection
- Ignoring warning signs in bid responses
See our contractor bid evaluation guide for detailed methodology.
7. Communicate Clearly Throughout
Good communication improves bid quality and starts the relationship right.
During bidding:
- Respond to questions promptly
- Share Q&A with all bidders (anonymized)
- Issue addenda for any changes
- Confirm receipt of bids
After bidding:
- Acknowledge bid receipt to all
- Communicate selection timeline
- Notify non-selected bidders professionally
- Provide feedback if requested
Common communication failures:
- Ignoring questions until deadline
- Answering one bidder without informing others
- Radio silence after bid submission
- Ghosting non-selected bidders
Professional communication:
- Set expectations for response times
- Be consistent—what one bidder learns, all should learn
- Document all communications
- Keep records for future reference
Contractors remember how you treat them—during bidding and after.
RFP Document Checklist
Included in RFP package:
Information to request from bidders:
Common RFP Mistakes
Incomplete scope: Forces contractors to guess, producing incomparable bids.
Price-only evaluation: Lowest bid often isn't lowest total cost after change orders and problems.
Unrealistic timelines: Compressed bid periods produce padded or incomplete bids.
Inconsistent communication: Answering some bidders but not others creates unfair advantage.
No evaluation criteria: Makes selection subjective and potentially challenge-able.
Boilerplate RFPs: Generic documents that don't address project-specific needs.
Frequently Asked Questions
Should I share the budget with bidders?
Opinions vary. Sharing budget helps contractors right-size their approach but may anchor bids. Consider sharing a range or "target" rather than hard number. Never share other bidders' pricing.
What if all bids exceed budget?
Options: reduce scope, increase budget, or re-bid with different scope. Don't negotiate all bidders down equally—that creates race to bottom. Consider value engineering specific elements.
How do I handle late bids?
Establish clear policy upfront and apply consistently. Most organizations reject late bids to maintain fairness to on-time bidders. If you accept late bids, communicate that to all bidders.
Should I negotiate after bid opening?
Minor clarifications are normal. Significant negotiation after bid opening undermines the competitive process. If you need different pricing, consider re-bidding with clearer scope.
Key Takeaways
- Write clear, complete scopes that enable accurate bidding
- Structure RFPs for easy comparison
- Invite qualified bidders selectively
- Allow adequate time for thorough bids
- Conduct pre-bid meetings to align understanding
- Evaluate systematically with documented criteria
- Communicate professionally throughout
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