This is a step-by-step instructional guide for managing the RFP (Request for Proposal) process in a way that saves time and money, enhances team collaboration, and assures quality in construction. It focuses on the negotiated contract method, which is a more efficient, time- and cost-saving bid method than the traditional competitive bid method. This book will take you from articulating the needs/wish list for a construction project to the analysis of the responses and interviews, through negotiations for the final deal.
- Downloadable forms make it easy to implement a successful RFP process.
The negotiated contract method for RFPs is a rapidly growing trend in construction. Traditionally, RFPs have gone through a competitive bid method—meaning that 100% of the design work is done without the input of contractors and with very little real cost information. With the negotiated contract method, only about 10% of the design work is done before a contractor is brought to the table, which means less paperwork and lower up-front costs. There are several advantages to the negotiated contract method:
- Because only a small part of the design work is done up-front (before a contractor is brought on board), no extensive re-design work has to be done when budget/schedule issues with the design become a factor.
- A complete team—architect/designer and contractor—is assembled earlier, making for a much more efficient process and outcome.
- The RFP process becomes a collaborative effort, rather than a competitive one.
There is no other book on the shelf that either focuses specifically on RFPs in the construction industry, or features a step-by-step method for implementing the negotiated contract method. This is a step-by-step guide for managing the RFP process in a way that saves time, money, enhances team collaboration, and assures quality in construction. Focusing on the negotiated contract method (as opposed to the competitive bid method), the book takes readers from articulating the needs/wish list for a construction project, to the analysis of responses and interviews, through negotiations and finalization of the deal. This is a roadmap for:
- Preparing, understanding, and assessing the quality of information in an RFP.
- Gathering critical, project-specific information from free and up-to-date local databases.
- Adding value to the process by assisting consultants in marketing and project management capabilities.
- Selecting and working with a team early in the process to stay on-schedule and on-budget.
- Improving the materials selection process and the end-result overall quality of construction.
Example and template forms make it easy to create a successful RFP process.
Excerpt from the Preface: The View from Here
The construction industry is continually evolving. Change is the norm, and it permeates all facets of the construction process - from feasibility, to
design, to construction and finally to occupancy. As the project progresses, it never stops changing, growing and maturing and ultimately it becomes
reality in the form of the sum of all the process parts.
Yet the development continuum of a project is only one aspect of change. Development professionals - including architects, engineers, constructors,
developers, owners, users and a cast of hundreds - are fortunate to participate in projects that have a beginning, an end and a lasting finished product of which to be proud.
With every project comes a new team of participants, new design challenges, new materials, new construction techniques and new technology, all of which
represent a fresh approach, an expanded professional network and another beginning and end. A can-do approach, an open-minded philosophy and working with enthusiasm are integral to ensuring a positive outcome. Personal approach to both work and life attracts like-minded teammates. And when the project is
complete, the champagne corks are popping and the happy owner is beaming, every team member from laborer to design professional can point out the product
to family and friends and say, "That's my building!"
From the Introduction
This book presents a step-by-step process for executing a Request for Proposal (RFP) for negotiated contracts. Sample formats and spreadsheets are included
to illustrate various aspects of the process and to enhance the reader's understanding, but they are not intended to be definitive. Since each RFP plan
varies according to the team's objectives and other relevant process-related issues, formats must be tailored accordingly.
A well-managed RFP process will lead to a successful negotiation and Guaranteed Maximum Price (GMP) contract with a qualified contractor. The goal is to select the best candidate, capable of:
- Working with the team to ensure that design meets budget.
- Constructing a quality product, on time and on budget.
When the process presented in this book is utilized in a collaborative manner involving the owner, architect and/or construction manager, it will provide
a clear and defined basis for a value-oriented RFP plan and increase the probability of achieving the greatest possible success on the project.
Table of Contents
Preface: The View from Here; Acknowledgments; Introduction; Chapter 1: Why Negotiated?; Chapter 2: The Cost; Chapter 3: The Search; Chapter 4: The Request for Proposal; Chapter 5: The Analysis; Chapter 6: The Interview; Chapter 7: The Negotiation; Chapter 8: The Deal; Chapter 9: What's Next?; Summary;
Appendix: Sample Request for Proposal; Index.
About the Author
Rick Fria (Walnut Creek, WA) has more than 30 years' experience in the construction industry. He is founder and president of The Fria Company, Inc., and frequently conducts seminars and workshops around the country on the negotiated contract method for RFPs. |
