What is an RFQ in Construction?

In construction, the term RFQ is used to mean both request for qualifications and request for quote. 

Project owners use a request for qualifications (RFQ) to narrow down a list of contractors to find those who meet the criteria to tender on a specific project. 

General contractors use a request for quote (RFQ) during the change order process to determine the specific cost of a required change. This terminology is most common in change management software, when owners request pricing from general contractors or GCs request pricing from specialty contractors. Some contractors don't use a formal term for this type of request, which is often simply referred to as "getting pricing".

In this article, we'll take a closer look at requests for qualifications, which is the most common usage of the term RFQ in the construction industry. We'll talk about how RFQs are used, what's typically included in an RFQ and how RFQs compare to other types of construction requests.

What is a request for qualifications (RFQ) used for?

Project owners use a request for qualifications to prequalify a shortlist of potential contractors for a specific project. 

Project owners use a competitive tendering or proposal process to try to secure the best price for a project. That said, owners also need to ensure that the contractors they partner with have the right experience and team to complete the project. For that reason, many owners on both public and private projects use RFQs to narrow down a list of potential contractors – so that only qualified contractors are eventually awarded the project. 

Contractors respond to RFQs with a statement of qualifications (SOQ), which enables owners to determine which contractors meet the criteria required to successfully build the project.

An RFQ is often the first step in two-stage procurement. In the second step, owners will issue a request for proposal (RFP) to qualified contractors.

In other cases, a project owner may select a general contractor simply on the basis of their SOQ. This happens most commonly on public projects with a set budget and a guaranteed maximum price (GMP) contract. 

What to include in an RFQ

The information required in an RFQ will vary from project to project, and the most important thing is that contractors make sure to include all of the requested details. 

Some of the most common information requested on RFQs includes:

• List of team members who will take part in the project
• Portfolio demonstrating past experience with similar projects
• Intended approach to the upcoming project, including details about construction methods, materials and potential obstacles
• Safety information, like ratings, scores and safety plans
• Financial information, like cash flow statements or balance sheets
• Proof of bonding or insurance, which could include tender bonds, performance bonds and general liability insurance
• References from relevant contacts, like past project owners, architects, city officials, developers or other contractors

All of the requested information will go into a contractor's statement of qualifications, which they'll submit to the project owner to get prequalified to tender on the project or submit a proposal. 

RFQ vs RFI and RFP – What's the difference?

While an RFQ is an important document in construction, it is far from the only one. In fact, the catch-all term RFX stands for "request for X" since there are so many different types of requests in construction. Some of the most common requests include requests for proposal (RFP) and requests for information (RFI). 

During preconstruction, owners use RFPs to solicit proposals from potential contractors for a specific project. The RFP process has the goal of selecting a general contractor, which eventually leads to contract negotiation and project buyout. 

Throughout a project, contractors and other project team members use RFIs to ask questions about specifications, drawings or agreements. For example, an RFI may seek to clarify a detail in one of the construction drawings, identify a potential design problem or resolve an ambiguity in the specifications.

There are many other names for requests in construction — like requests for tender or change — that help everyone involved understand the specifics of a project during each phase of construction.

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