What is a Request for Proposal (RFP)?

A Request for Proposal (RFP) is a document that announces and describes a project, inviting qualified independent contractors or vendors to submit bids for their goods and services.

An RFP is a business tool that helps a hirer evaluate the abilities and costs of contractors and vendors before hiring them for a project. 

Should I use a Request for Proposals?

Whether you have a large or small business, using a Request for Proposals helps you find contractors with the skills and resources to best meet the goals of large, complex projects. Sending a request opens the line of communication for contractors and vendors to provide their insights on solutions for your project, while also allowing them to submit a proposal for their services. 

You can use an RFP to find contractors with specialities in industries such as:

• Construction
• Marketing
• Transportation
• Engineering
• Information technology (IT)
• Health and wellness

LawDepot’s RFP template allows you to customize your request based on the industry of the contractors or vendors. Other services can include finance, real estate, website design, graphic design, and more. 

Once you’ve reviewed and determined the best contractor for your project, create a contract, such as an Independent Contractor Agreement or Service Agreement, to protect both parties.

Benefits of using an RFP

There are several benefits to using an RFP when contracting for your project. This includes:

• Streamlining vendor and contractor selections by highlighting qualified candidates
• Providing clarity to candidates with a thorough description and the desired deliverables of your project to match their skills
• Creating transparency and accountability by indicating a fair process for selecting contractors and vendors
• Opening up competition to help keep costs reduced while offering equal opportunities

Key components of a Request for Proposal

The key components of a Request for Proposal include elements like:

• Your company’s details (as the client)
• Scope, objectives, goals, and deliverables for your project or projects
• Key requirements for proposal preparation, submissions, and deadlines for bids
• Confidentiality and ownership of intellectual property to protect details of your business (e.g., Business Plan, marketing plans, financial information)
• Classification of independent contractors

An RFP can include optional components, such as proposed payment terms, evaluation criteria, and the initial term of the service contract. 

It’s important to note that an RFP is not a contract. However, adding detailed payment terms and evaluation criteria creates the risk that a court could interpret it as creating contractual obligations. If you include payment terms in your RFP using LawDepot’s template, it will indicate that the cost is a proposed amount only. Any final costs should be added to a binding service contract.  

How to write a Request for Proposals

LawDepot’s Request for Proposals template will prompt you to include all the necessary details to create a downloadable PDF of your RFP. Select the kinds of services you require proposals for, then complete the following:

Step 1: Provide client details

First, select the location where the project will be done and the client’s details (i.e., name, industry, and contact information). 

The person requesting proposals is the client. If you’re creating this document for your company, this is where you can add your details.

Step 2: Add project information

Choose if you are creating a request for a single project or multiple projects. Then add the project names and locations. To make a thorough RFP, describe the objectives of your project and the deliverables you need from contractors or vendors. 

Next, set out key dates for the proposal process, such as:

• The date the RFP will be issued
• Letters of interest or non-participation deadline
• Deadline for proposals
• Acceptance or rejection date
• Project start and end dates

Step 3: Define proposal requirements

You’ll be prompted to check off any additional details or documents you need from candidates when they submit their proposals. Additional requirements may include a cover letter, a company profile, work plans or methodologies, insurance details, references, and other relevant supporting materials.  

Then, specify the submission method for proposals. You may also add evaluation criteria and payment terms if you wish to include these items in your RFP.  

Step 4: Input the final details

To finalize your Request for Proposal, you can include the proposed initial term of the service contract for contractors, which may open up opportunities for negotiations. You can add any additional clauses to your RFP if your project has any unique requirements.

Then simply save and distribute your request as needed.

What is the process to request proposals?

The process for issuing Requests for Proposals will be unique to your organization and project. A summary of the process for RFPs includes the following:

1. Discovery: Have your internal plans and business goals prepared. Determine who is responsible for creating and executing an RFP before writing it.
2. Draft and issue: Create your RFP and distribute it to the selected contractors or vendors.
3. Evaluation: Review all proposals and shortlist candidates. Follow up accordingly with any questions, even before the submission window closes.
4. Select a candidate: Respond to proposals and choose the right candidate for your project, then create a contract (e.g., an Independent Contractor Agreement or Service Agreement). This is also an opportunity for any additional negotiations.

Other types of requests

There are other requests that companies may need to make for their projects, and they typically occur in a particular order. This includes the following: