For big, detailed projects with a lot of resources in play, a simple handshake agreement won’t cut it. That’s where a request for proposal (RFP) comes in. 

An RFP is a formal document for a new project that invites contractors to submit competitive offers, or bids, to do the work. RFPs are most commonly used for complex projects in areas like construction, marketing, nonprofit, and government. They make sure everyone clearly understands the project’s goals, timeline, and budget, which ultimately contributes to successful project delivery. 

In this guide, we’ll give you a detailed request for proposal definition, discuss when and why to use one, guide you through the process of writing one, offer an example RFP for clarity, and share tips on selecting the right vendor. Understanding these aspects will not only help you start your projects smoothly and successfully but also ensure you achieve your project goals.

Try Wrike for free

What is an RFP and why use one?

An RFP is a business document that thoroughly outlines a new project, covering its scope, objectives, requirements, and specific details. Companies use RFPs to get potential contractors or vendors to submit proposals detailing how they’d execute a project. It’s a structured procurement process, and it helps organizations evaluate and compare different bids when selecting the most suitable partner. 

The benefits of an RFP go beyond asking bidders to submit their estimates. A clear RFP is about what a project entails, including details like project milestones, regulatory requirements, and any pressing calendar deadlines. This filters out any bidders who can’t meet the project’s scope. Plus, when there are multiple proposals submitted, you can gauge a realistic timeline and budget for your project. 

In other words, RFPs offer a comprehensive understanding of what’s needed and expected from a project — for both the issuing organization and potential service providers. An RFP facilitates clear communication and ensures transparency, fairness, and efficiency for everyone involved.

When to use an RFP

You might consider using an RFP for:

  • Complex projects that require detailed specifications, involve significant financial investments, or rely on specialized expertise from external contractors or vendors
  • Projects that require clarity and transparency, such as in government contracts, large-scale construction projects, or comprehensive service agreements. This way, all potential bidders receive the same information and are evaluated on equal footing, fostering fairness and healthy competition
  • Projects in industries where regulatory compliance, risk management, and adherence to specific standards are critical
  • Projects that would benefit from exploring multiple approaches — in this case, RFPs allow you to compare strategies, timelines, and budgets and determine which approach is best for a particular project

RFPs can be sent directly to specific contractors and vendors, especially when an organization has identified potential candidates it wants to invite to bid on a project, or aspects of the project must remain private. For example, large pharmaceutical companies often issue RFPs privately to contract research organizations to protect confidential data and control access to proprietary information.

Alternatively, RFPs can be posted publicly. This is a great option when you want to reach a broader range of potential bidders or comply with transparency requirements for public sector projects. A local government would usually issue an RFP publicly for proposals to redesign a city’s downtown area, as it involves matters of public interest and compliance with zoning regulations.

What to include in an RFP

Without knowing how to write a request for proposal, you might find that your RFPs encourage potential partners to submit unclear proposals. So, your goal with an RFP should always be to clearly and accurately define your project needs, so vendors know precisely what you’re looking for. 

To do that, you’ll need to include several elements:

1. Relevant company and project history

An RFP typically includes information about your company to provide context and background for potential vendors or contractors. This may include relevant details about your company’s history and values. You’ll then solicit their company background, such as leadership and other key stakeholders, values, location, and if they’ve completed similar projects in the past.

Concentrate only on relevant company and project history. Details about a company that aren’t related to your upcoming project or initiative won’t be necessary.

Also, while past performance doesn’t always predict the future, if you’re planning to construct a new office high-rise and a company with proven experience in similar projects submits a proposal, they’ll likely be among the stronger candidates for your project.

2. Project scope and objectives

Here, you should provide just as much information as you’re asking for — it’s where you make your deliverables and project objectives clear. A project’s scope should include:

  • Business case: This is a full overview of the project, explaining its purpose, its importance, and the goals it aims to accomplish upon completion.
  • Budget: While it can be challenging to set a really precise budget, many RFPs provide a general budget range for companies to submit their bids.
  • Timeline: The overall timeline, and most importantly the project’s deadline. This is a great way to weed out companies that might be too busy to handle a big project within your time frame.
  • Milestones: These are checkpoints that mark the completion of important stages in the project. Although not always necessary, it can be helpful to agree on project milestones ahead of time, particularly when subcontractor work is involved. This allows both sides to assess what objectives to hit along the way to keep the project on track.
  • Deliverables: These are the tangible outcomes or products that are completed incrementally throughout the project. It’s essential to clearly define what will be delivered to ensure alignment with project goals and expectations.

3. Project requirements

Project constraints may include things like budgetary limits, government regulations, technical requirements, or NDAs you require bidders to sign. Include these essential details in your RFP. 

It’s worth including all relevant constraints, needs, and specifications to give potential bidders a full understanding of the requirements of the project. For example, if you’re building a new office, you don’t want to find out late in the process that the construction company you hired isn’t licensed to install the elevators and didn’t factor that cost into their bid.

4. Selection criteria

Selection criteria (which can also be called evaluation criteria) are the specific guidelines you’ll use to assess and compare the bids you receive. It’s important to define your selection process in an RFP to specify how you'll choose one bidder over another.

There’s no need to leave bidders guessing. When you clearly outline what matters most to you, like budget or scheduling, it helps each bidder give their best answers on these critical variables. This makes it easier to compare proposals and choose the finalists when the time comes.

5. Timelines

It’s wise to clearly spell out your project timeline. Timelines are essential information that tell potential contractors when each phase of the project needs to be done and dusted. This allows them to assess their resources, budget requirements, and workloads to determine whether they can feasibly complete the project. In the end, this leads to more accurate and realistic proposals.

6. Potential roadblocks

A well-rounded RFP doesn't just outline what needs to be done. It also anticipates potential risks. It’s important to brainstorm with your team and list these potential roadblocks in a dedicated section of the RFP. This can really make a difference in the accuracy of the proposals. Plus, it acts as another filter in choosing the right partner. Being upfront about challenges reduces the chances of setbacks down the road.

7. Budget

Budgets impact everything: resources, investments, time, effort, and how much manpower a contractor can dedicate to your project. Accurately defining the budget in your RFP is a must, because it sets clear financial boundaries and expectations for potential partners. In other words, it helps them gauge if the project is financially feasible for them. It also sets up alignment with your financial expectations and constraints. 

Include a budget range or specific budget amount so that qualified vendors can prepare realistic proposals. Specify any funding restrictions, payment terms and schedules, or cost breakdowns. With this information, vendors can accurately estimate costs and allocate resources, preventing misunderstandings later in the project lifecycle. 

8. Response guidance

It helps to provide clear guidance to potential bidders on what you expect from their responses, and what they can leave out. You can include things like:

  • Contact information: Specify who businesses should send their bids to, including the primary project contact and how to reach them.
  • Submission requirements and deadlines: Set a solid deadline for submitting proposals so there’s enough time for preparation and review with your team.
  • Required elements: Outline the essential details that must be included in each proposal. Highlight specific comparisons you need to evaluate, such as project budget, and let contractors know that this information is required as part of their proposal
Try Wrike for free

A request for proposal example

Once you’ve finished, an RFP is essentially just a blank form. The businesses who pitch are the ones who fill in all the necessary information. Generally, it’ll look something like this:

  • Project overview: This is one of the parts you do fill in with the project details, like budget, timelines, and any further guidance. 
    • Example: Imagine your project is developing a mobile app for your company. In this case, the project overview would outline the app’s features, user interface design requirements, and the target launch date for the app on both iOS and Android platforms.
  • Project goals: This is another part you fill in. Describe how you envision the project once it's completed.
    • Example: Let’s keep going with the mobile app example. What do you want completed by the deadline? A fully functional app that enhances user engagement and integrates smoothly with existing systems? Get specific about the deadlines and milestones your project needs to hit for you to consider it a success.
  • Scope of work: This is where contractors and vendors start filling in the proposal. Be clear about how much detail you’re looking for in the scope of work, then leave lots of room for businesses to fill in the blanks.
    • Example: In the mobile app example, you can compare how different vendors approach the project’s scope. Some may focus on custom feature development, while others might rely on pre-existing modules or third-party integrations. Understanding each vendor’s “scope of work” helps you assess their unique approach to app development.
  • Roadblocks/barriers:  In this section, outline the potential challenges or obstacles you anticipate during the project. Request that businesses also identify any additional roadblocks they foresee.
    • Example: Are there specific legacy systems that the app needs to integrate with? Do you anticipate challenges in ensuring seamless performance across different mobile devices and operating systems?
  • Evaluation metrics: In this section, provide clear guidance on how proposals will be evaluated and the criteria that will be used to assess them. Specify the key factors that are important to your organization and the project’s success. 
    • Example: Proposals for our mobile app project will be evaluated based on several key criteria:
      • Technical proficiency: Demonstrated experience in mobile app development, especially with e-commerce functionality and responsive design
      • Project management: Clear methodology with defined milestones and timelines to ensure on-time delivery
      • Cost proposal: Detailed breakdown of costs, including development and maintenance fees, demonstrating cost-effectiveness
      • Innovation and creativity: Proposed features or enhancements that differentiate the app and enhance user engagement
      • Client references: Past client projects and testimonials that highlight successful outcomes and client satisfaction

front cover of ebook on how to write an rfp

What to look for in an RFP response 

Typically, you should expect a cover letter and an attachment of the proposal in full. The cover letter is key — it tells you right away how much effort they put into understanding your project. A top-notch cover letter isn’t merely a formality — it shows they’re genuinely interested in your project, not just ticking boxes.

Most importantly, you should look for detailed proposal documents that thoroughly and thoughtfully address each section of your RFP. This means the proposals should demonstrate clear alignment with your project requirements, providing specific solutions, timelines, budgets, and methodologies that show how they intend to meet your needs.

Why use Wrike to plan your RFP documents?

When it comes to creating an RFP, there’s no need to start from scratch. Wrike offers a powerful project management platform equipped with customizable templates. These templates improve organization and workflows, ensuring your documents are professional, thorough, and impactful.

product screenshot of wrike space templates on aqua background

On top of that, Wrike includes a versatile suite of tools designed to streamline collaboration, track progress, and ensure accuracy throughout the entire document creation process. Whether you’re managing multiple stakeholders, coordinating complex timelines, or simply aiming for a polished final product, Wrike’s comprehensive project management features give the structure and support you need to enhance productivity and achieve results. 

Ready to simplify your RFP process? Get started with Wrike today.

Related FAQs

What does RFP stand for? 

An RFP in project management stands for request for proposal. 

What kind of organizations use RFPs?

RFPs are great for lining up potential contractors for big, service-based projects. For smaller jobs with just one contractor and one deliverable, you might not need an RFP. But for professional services that need lots of planning and different skills, equipment, and workers, things get more complicated. That’s when an RFP becomes really useful.

RFPs are used by lots of businesses, but you see them a lot in industries like:

  • Construction companies: Construction projects typically involve multiple phases, diverse subcontractors, and intricate regulatory requirements, making them inherently complex. RFPs help streamline the bidding process, clarify project details, and ensure that all stakeholders are aligned on expectations from the outset.
  • Marketing companies:  When assembling a comprehensive marketing campaign, RFPs play a crucial role in identifying partners capable of executing tasks ranging from ad copywriting and TV spot production to digital marketing management and market research. They facilitate the selection of skilled collaborators who can adeptly handle every facet of your campaign strategy.
  • Government agencies: Government agencies will often hire construction, consulting, educational, and marketing-based services that involve taxpayer funds and public accountability. This requires a transparent and competitive bidding process. RFPs help ensure fairness, compliance with regulations, and alignment with specific project goals and budgetary constraints.
  • Nonprofits: Nonprofit organizations often rely on grants and donor funding for their projects, which necessitates careful financial stewardship and accountability. RFPs enable nonprofits to solicit competitive bids, demonstrate fiscal responsibility to donors, and ensure that project outcomes align with their mission and stakeholder expectations.

What’s the difference between an RFP and a statement of work?

An RFP is a solicitation document used by organizations to find services or products from external vendors. It outlines project details, requirements, and asks vendors to propose how they will meet those needs. It’s a preliminary step to gather bids and select a vendor.

A statement of work (SoW) is a detailed document that comes after selecting a vendor through a request for proposal process. It defines the scope, deliverables, timelines, and expectations of the project in explicit detail. The SoW serves as a contractual agreement between the client and the chosen vendor, ensuring clarity on what will be delivered, how it will be accomplished, and what criteria define successful completion. 

Essentially, while an RFP is used to solicit bids, a statement of work formalizes the agreement and guides the project execution phase.

What’s the difference between an RFI and an RFP?

An RFI (request for information) is typically used by organizations to gather information about potential suppliers or solutions before issuing a formal RFP. It seeks general information about a vendor’s capabilities, products, or services without committing to a procurement decision. 

An RFP is a formal request sent to selected vendors inviting them to propose solutions in response to specific project needs. It includes detailed project requirements, evaluation criteria, and often seeks cost estimates or pricing proposals. The goal of an RFP is to solicit detailed and competitive bids from vendors, allowing the organization to select the best-suited supplier based on their proposals.

What’s the difference between an RFP and an RFQ?

An RFP is used when an organization wants detailed proposals from vendors to address complex projects or services, inviting vendors to propose solutions that meet those needs. RFPs focus on more than just pricing, considering factors like technical capabilities, experience, and approach to the project.

An RFQ (request for quote)* is used when the organization knows exactly what it wants and seeks specific pricing information from vendors. They are straightforward and aim to compare vendors based primarily on pricing and delivery terms.

*An RFQ may also signify request for quotation.  

Try Wrike for free