What are the Reasons to Create an RFP?
This is part 2 of 2 as we dive into the question of whether you should create an RFP for your project. In this post, we look at the reasons why you would want to go through the request for proposal process. If you haven’t yet, check out Part 1 where we analyze why some people think they shouldn’t create an RFP.
Last week we looked at some of the objections to creating an RFP. We offered up the most common objections (looking for the lowest bids, not letting vendors use their expertise, and RFPs take too long) and debunked each of them.
This week we’ll explore the reasons why you would want to create a request for proposal for your project. Is this the more positive comeback to last week’s negativity? Perhaps you could say that, but we’re always happy to talk RFP so let’s get to it.
RFPs Define What You Actually Need
Part of creating a formal request for proposal template, is determining what you need. As we discussed last week, determine what you must have, what would be nice to have, and where you would like to gather input from the vendor experts.
Well, the great part about going through that exercise is that you come to realize what is important to you. You may not fully understand what you’re looking for when you simply email a vendor asking for their price. By coming up with a list of requirements and questions, you’re learning about the key items in your project and that will lead you to…
Find the Best Vendors for Your Project
Once you’ve determined the important parts of your project and completed your RFP template or scope of work, the vendors you send it to will now need to answer accordingly. When you have specifically called out the must haves and the items you want, the vendor that is the right fit for the project will be very apparent, as will the vendors who would not be good fits. This will be easy to see because…
Good RFPs Make Vendor Comparisons Easy
If you have properly structured your RFP template, and laid out the requirements and questions designed around what you must have and would like to have, and if you’ve ensured that vendors will respond with similar types of responses, then comparing proposals will be simple. With the wrong RFP format, bids will come back with all sorts of different responses – some will be very wordy with long paragraphs while some will have one word answers.
Ensuring the response type will give you an apples-to-apples comparison and make it easy to compare vendors to each other.
RFPs Help the Project Stay within Budget
When you’ve lined out your needs and made sure it is clear so that vendors will price their proposals accurately, your project will be more likely to stay within budget.
The times when budgets are blown the most, is when an RFP is light on requirements (or there is no RFP at all) and vendors give the lowest potential bid, then once getting into the project they realize there are more requirements and they add costs. This is not ideal. Making sure everything is covered up front will provide the best bids ant the correct price, and thus allow the project to stay within budget.
RFPs Can be Created Quickly with Technology
Of course we know that technology inherently is designed to make things easier for us. That’s no different with RFPs. Using an RFP automation software like Synlio allows property managers to quickly create RFPs in minutes, especially with easy to use pre-built templates. Once the RFP is sent, automation can manage the RFP, follow up with vendors automatically, and even replace vendors who are unresponsive. All of these capabilities allow property managers to save valuable time in their RFP process.
So there you have it. We’ve looked at the reasons why people do not want to create and RFP, and now the reasons why you should create a request for proposal. With all these benefits, it’s time to get started on your RFP!