An RFP, or Request for Proposal, is a formal document issued by a company to solicit bids from contractors, vendors, or service providers for a specific project or service. In the context of a commercial construction company, an RFP outlines the project requirements, scope of work, timelines, budget constraints, and evaluation criteria for selecting the best proposal.
For example, a developer might issue an RFP to hire a general contractor for building a new office complex. The RFP would include detailed specifications such as the building’s size, design requirements, materials to be used, and compliance with local building codes. It may also request information about the contractor’s experience, proposed timeline, cost estimates, and approach to the project.
RFPs are critical for ensuring transparency, fostering competition, and selecting the most qualified partner for a project.