To further understand and identify request for quote (RFQ) or request for proposal (RFP) best practices in the construction industry, the Construction Marketing Association conducted a national survey of construction professionals. The following questions were asked:
1. Do you believe your company RFQ/RFPs and your RFQ/RFP development processes are effective?
2. What is your primary source of RFQ/RFPs?
3. What do you believe is the most important factor of a winning RFQ/RFP submission?
4. What do you believe is the key factor when losing an RFQ/RFP?
5. Approximately how many RFQ/RFPs do you develop each year?
6. What is your approximate win rate?
7. Please rate the following RFQ/RFP trends by approximate % of frequency in the last year: public projects, private projects, BIM requirement, integrated project delivery (IPD) requirement
8. What type of construction contracts were most frequent in the past year?
9. How do you classify your company?
10. What is the approximate size of your company?
11. Geography served
1. 71% of respondents indicated that their RFQ/RFPs and their RFQ/RFP development processes are effective.
2. Business development (49%) is the top source of RFQ/RFPs. Networking is the least frequent source of RFQ/RFPs with only 3%.
3. The top three factors in winning an RFQ/RFP submission are content/accuracy (30%), price/fee competitive (21%), and relationships (21%).
4. The top three factors in losing an RFQ/RFP submission are price (31%), relationships (29%), and content/accuracy (24%).
5. The majority of respondents indicated that they typically complete 11-20 (32%) or 21-50 (29%) RFQ/RFPs per year.
6. Nearly half of respondents indicated that their approximate win rate for RFQ/RFP submissions is 21-50%. Only 5% of respondents have a win rate of more than 50%.
7. RFQ/RFP trends in 2013 were ranked as the following:
8. The top three most common types of construction contracts over the past year included design build (25%), construction management (25%) and lump sum (22%).
Please see charts below for respondent demographics:
Stay tuned for our RFQ/RFP best practices webcast summary. And view our upcoming events here: http://www.constructionmarketingassociation.org/CMI_Events.cfm