Request for proposal
The document that asks bidders to propose both a price and an approach, judged against criteria the board sets first.
A request for proposal (RFP) is the document a board sends to invited firms asking them to submit both a price and their proposed approach to a specific project, evaluated against criteria the board sets in advance. It differs from a request for qualifications, which screens firms for capability and experience before price enters the conversation at all.
What a request for proposal should describe
No standard written for homeowners associations defines what belongs in a request for proposal. The clearest available structure comes from federal procurement law, adapted here for board use, not because your association is bound by it. A complete RFP describes the requirement, states the contract terms bidders are agreeing to, spells out what information a proposal must contain, and names the factors that will be used to judge it.
An RFP should "describe the Government's requirement," state "anticipated terms and conditions that will apply to the contract," specify "information required to be in the offeror's proposal," and list "factors and significant subfactors that will be used to evaluate the proposal and their relative importance."
Source: Requests for proposals, FAR 15.203, U.S. General Services Administration
This is federal contracting law, not association law, and it does not govern your HOA. It is cited here only as a workable template. The requirement itself, what you are asking the contractor to actually do, should come from your defined project scope; anything left out of that scope becomes a change order once a contract is signed.
Request for proposal or request for qualifications first
An RFP and a request for qualifications (RFQ) ask for different things. An RFQ screens firms for capability, licenses, and past projects before anyone discusses price. An RFP asks shortlisted firms to propose both a price and an approach, evaluated against criteria the board set in advance.
A request for qualifications "is an essential tool used in the construction industry to invite contractors, architects, subcontractors, and consultants to submit qualification statements," used to ensure "that only qualified professionals are considered for the next stages of the project, such as bidding or contract negotiation."
Source: Request for Qualifications, what are they used for, AIA Contract Documents
For a large or technically complex project, many boards issue an RFQ first to build a shortlist, then send only the shortlisted firms the RFP. For a small, well-defined project, the board may go straight to an RFP. See Request for qualifications for detail.
Check your bidding rules before you send anything
Sending an RFP does not, by itself, satisfy any legal requirement to competitively bid a project. Whether your state requires competitive bidding at all, and above what dollar threshold, depends on your state statute. Florida sets different percentage-of-budget thresholds for condominiums and homeowners associations, and California imposes no statewide bidding mandate. Confirm your own state's rule, and your CC&Rs, before deciding how many firms to invite and whether an RFP is even the right step. See Competitive bidding for how that threshold works once you know it applies to you.
Check yourself
Answer before you read the explanation, recalling it is what makes it stick.
The board wants three firms to submit both a price and their proposed approach to a roof replacement, judged against criteria the board sets. Which document should it send?
An RFP the board sends says only "replace the roof," with no evaluation criteria listed. What is the likely result?
Which of these belongs in a well-built RFP, following the same structure procurement law uses for describing what bidders must submit?
- Requests for proposals, FAR 15.203, U.S. General Services Administration
- Request for Qualifications, what are they used for, AIA Contract Documents
- Florida Statutes, section 720.3055, The Florida Senate
- Florida Statutes, section 718.3026, The Florida Senate
- California Civil Code, section 5620, California Legislative Information
Related elsewhere in the Academy
Capital Projects
Ready to narrow the field before you talk price? See Request for qualifications next.
Whether your state requires competitive bidding at all, and at what dollar threshold, varies by state and is separate from whether you choose to write an RFP; check your state statute and your governing documents before setting your process.