What does Request for Proposal (RFP) mean?
A Request for proposal (RFP) is a document that solicits proposals from businesses for a project or commodity. This document can be issued by the client, the industrial architects and design consultants or PMCs.
- RFP invites bids/quotes to complete the work/supply as per the document specifications.
- The RFP document provides information about the project, goals, and timelines.
- Additionally, RFP should provide the necessary specifications and requirements for the bidder to provide a solution.
RFPs are generally issued for items like Effluent Treatment Plant, and Sewage Treatment Plant, where the technology is provided by the bidder.
What information must an RFP contain?
The RFI must contain all necessary information to get a viable response from bidders. The bidder must understand the work or requirement and the scope clearly. The RFI must provide a format for the bidders to fill in their bids. The industrial architects and design consultants must ensure that the RFP is clear.
A typical Request for Proposal contains the following:
- Company introduction
- Scope of the work
- About the project or work or challenge
- Contractual terms
- Details of post-project support, if needed
- Process of bidding
- Format for replies
- Address/ mail to send the replies
- Information required in the bids
- Evaluation criteria
- Timeline
- Payment terms
- Bonus and penalties
- Last date to submit the bids
- Contact information for queries
RFP is an open-ended process in comparison to Request for Quote. The RFI document portrays the project goal clearly. But there is a scope for creativity in RFP. The proposals submitted in response to the RFP undergo review. Typically the stakeholders from the project team including the industrial architects review the proposal.
A well written RFP ensures that the proposals meet the expectations. The RFP also helps in bring many bidders with varied solutions. The client can choose the best option. Moreover, the bidder is usually selected based on the price, solution, timeline for the delivery, experience, or other technical or intangible considerations.
The RFP forms an important document in an industrial project. Industrial Architects and design consultants must ensure clarity in the document so that the purpose of the RFP succeeds.
