Understanding RFQs in Construction

An RFQ is a request for quote.

In construction, it is the information a builder sends to a trade, supplier or subcontractor when asking them to price part of a job. That sounds simple, but the quality of the RFQ has a major impact on the quality of the price that comes back.

If the RFQ is vague, the quote will usually be vague.

If the RFQ is missing information, the trade will either make assumptions, exclude items or price the risk. That makes the builder's quote harder to prepare and increases the chance of problems during the job.

For early-stage builders, improving RFQs is one of the simplest ways to create better control over pricing, trade scopes and job setup.

What An RFQ Should Do

An RFQ should help the person pricing understand exactly what you need.

It should explain the work, the documents, the assumptions, the inclusions, the exclusions and the way you want the price returned. It should reduce guesswork.

A good RFQ does not need to be complicated. It needs to be clear.

The trade should be able to answer three questions quickly:

What am I pricing?
What information am I relying on?
What should I include or exclude?

If they cannot answer those questions, the RFQ needs more work.

Why Builders Get Poor Quotes Back

Many builders blame trades for vague pricing, and sometimes that is fair. But often the problem starts with the information sent out.

Common RFQ issues include:

sending drawings without a clear scope,
assuming the trade knows what is included,
failing to identify exclusions,
not explaining site access or constraints,
sending different information to different trades,
asking for prices without a due date,
not requiring the quote to be broken down clearly,
failing to ask about assumptions.

When trades price from unclear information, each quote may be based on a different understanding of the job. That makes comparison difficult.

One trade may include an item. Another may exclude it. Another may price a different product or assume a different method. On paper, one quote may look cheaper, but it may not actually cover the same work.

That creates risk for the builder.

What To Include In An RFQ

A practical RFQ should include the information needed to price the work properly.

At a minimum, consider including:

project name and address,
client or job reference,
relevant drawings,
specifications,
engineering or consultant documents,
required scope of work,
key inclusions,
key exclusions,
site access notes,
sequencing or timing requirements,
required materials or product selections,
allowance instructions,
quote due date,
preferred quote format,
contact details for questions.

You do not need a huge document for every trade. Some RFQs will be simple. But the structure should be consistent enough that you are not reinventing the process every time.

RFQs And Trade Scopes Work Together

An RFQ asks for the price.

A trade scope defines the work.

The two should support each other.

If your trade scope is unclear, the RFQ will be weak. If your RFQ is weak, the returned quote may not match what you thought you asked for. That can flow straight into the client quote and then into the construction stage.

For example, if you send a plasterer a set of drawings and simply ask for a price, you may not get clarity on:

ceiling heights,
square-set areas,
cornice type,
wet area requirements,
access,
patching,
sanding level,
cleanup,
exclusions.

If those details are not clear before the quote is accepted, they can become variation arguments later.

How To Compare RFQ Responses

Once quotes come back, the next job is comparison.

Do not compare only the final number.

Compare:

scope included,
exclusions,
assumptions,
allowances,
timing,
product selections,
GST treatment,
missing items,
response quality.

A cheaper quote can become expensive if it is full of exclusions. A more expensive quote may be better value if it is complete and clear.

Builders need a simple comparison process so they know whether they are comparing the same scope.

A Simple RFQ Checklist

Before sending an RFQ, ask:

Have I clearly described the work?
Have I attached the right documents?
Have I listed important inclusions?
Have I listed known exclusions?
Have I explained any site constraints?
Have I set a clear due date?
Have I asked for assumptions to be stated?
Will the returned quote be easy to compare?

Before accepting a trade quote, ask:

Does this quote match the scope I asked for?
What is excluded?
What assumptions has the trade made?
Is anything missing?
Does this price create a risk in my client quote?

Better RFQs Create Better Jobs

RFQs are not just paperwork. They are part of how a builder controls risk.

Clearer RFQs help create clearer trade prices. Clearer trade prices support better client quotes. Better client quotes reduce surprises once the job starts.

This is one of the practical systems Ground Floor helps builders improve. If your trade prices are coming back inconsistent, or you are not confident comparing quotes, your RFQ process may need work.