Request for Proposal (RFP)
A document an owner issues asking contractors or construction managers to submit a detailed proposal, covering approach, team, qualifications, and price, for delivering a project, used when the owner wants to weigh more than just the lowest number.
Why it matters
A straight low-bid process picks the cheapest price; an RFP process lets an owner pick the best overall fit, weighing experience and approach alongside cost. For complex or unusual projects, that difference can matter more than the price gap between proposals.
On a real project
A hospital system issues an RFP for a new surgical wing, asking each construction manager to submit not just a price, but their proposed project team, similar past healthcare projects, and their approach to keeping the existing hospital operational during construction.
Who this matters most to
An Owner's Representative often writes the RFP and evaluates the responses on the owner's behalf, since choosing the right team matters as much as the price. A Preconstruction Manager on the responding side builds the proposal, translating the firm's actual qualifications into a compelling, specific response.
Where this goes wrong
An owner issues an RFP for a delivery method meant to weigh qualifications heavily, but the internal selection committee ends up picking whichever proposal has the lowest price anyway, treating it like a disguised bid process. The firm that's actually best suited for a complex project, but priced its risk more honestly, loses out to a competitor who underpriced the job and struggles to deliver.