By Meaghan Brown, AGS Construction
Community managers are tasked with submitting requests for proposals (or RFPs) day in and day out. As a vendor, we see RFPs come across our desks in various forms, some more detailed than others. It is not uncommon to receive a few words scratched onto a sticky note, with the expectation of accurately submitting a bid based on those few notes alone.
A properly written RFP is important for various reasons. Not only does it help vendors understand the Board’s expectations and how they would like the job to be outlined or broken out, but it also helps the Manager in obtaining apples-to-apples bids from the various vendors. This leads to a quicker turnaround time in obtaining the estimate, as it reduces back and forth questions from the vendor to the Manager. It also allows the Board to make a clear decision and better understand that in which they are investing.
Having a clear understanding of your Board of Directors (BOD) is an integral first step to writing an effective RFP. Knowing the level of experience the BOD has with projects, who from the BOD will be spearheading the project, and overall BOD goals as it relates to the project are essential considerations to start from.
At a minimum, the Board of Directors should take a physical look at the work and agree on the desired outcome. A community’s needs must be fully addressed in the scope and specifications. The Board of Directors should be involved in the scope development, so they know exactly what they are investing in and to ensure proper expectations are set. Ideally, the BOD should walk the project with the Manager and bidding contractors to determine details prior to the formal RFP being issued.
Setting and managing the Board’s expectations is another crucial step to this process. The timeline is key here… for example, is this project something they’d like to take care of this year or are they simply looking into budget numbers? When would they like all of the bids turned in? What is the timeline of when they plan on making a decision and when they want the project to start? Will they be holding interviews to meet the contractors before making the decision or would they hire someone based only on their resume? These are all fundamental questions to ask your BOD and information to provide to the vendors that are bidding the work.
Next, you need to develop the scope. Based on BOD input, create a specific written scope of work. Ask a trusted business partner (such as a contractor or engineer) for assistance. For example, if the Board is interested in an exterior repaint, find out exactly what is to be painted (siding, trim, fascia, eaves, mailboxes, garage structures, trash enclosures, etc.) and what type of paint is to be used. Include written job processes and expectations (spray and back roll, two coats, schedule, etc.) The goal here is to develop a comprehensive scope that all vendors will bid thus ensuring apples-to-apples bids.
An easy way to get some help with this is to reach out to manufacturer representatives. Specifications are typically provided by a material manufacturer and should accompany the scope of work. A specification details material used, preparation process, application procedures, etc. These are factors that can drastically affect the price. For example, when renovating balcony decks, there is a big difference between using a multi-layer balcony waterproofing system and using a cheaper elastomeric deck coating instead. They both look similar but perform differently.
Subsequently, to ensure everyone is on the same page, the Community Manager should schedule a pre-bid site walk with all bidding contractors. Ideally, this happens all at once with all bidding contractors present at the same time. Don’t be afraid to insist that all contractors follow the scope of work and specifications provided (and feel free to state that in your RFP). At the same time, other ideas may be recommended by a contractor, so be sure to encourage the bidding contractors to provide alternate materials/methods as a separate line item.
Recognizing how this process works for the bidding vendors will facilitate being able to set proper expectations for your Board and the contractors alike. Once the RFP is received by the Account Executive or Business Development Representative, the estimating team reviews the RFP and scope of work to clarify details. The estimator will then inspect the property and determine the means/methods for project execution. Once the estimating team quantifies and calculates scope of work, the team then reviews the bid for accuracy, feasibility, schedule, exclusions and unforeseen conditions. At that point, the Account Executive formats this information into a bid-packet presentation and delivers the proposal to the manager. It’s important to note, that on average, the bidding process takes vendors 40+ hours on a $100k project. This is not including the community manager’s time or any revisions.
Below is the information that should be included in the RFP:
1. General Information: Address, year built, number of buildings/units, access codes, site map.
2. Detailed Scope of Work: Paint, concrete, siding replacement etc.
3. Specifications: What materials are being used and what is the application process.
4. Pricing: How would the client like the pricing broken down?
5. Additional Requirements: References, insurance requirements, schedule demands, staging.
6. Protection of Property: What is the expectation for any damage that occurs during the project?
7. Warranty: Make sure everyone is offering the same duration.
8. Deadlines: When do you need everything submitted?
Lastly, upon receipt of the bid, comes bid review. Be sure to review bids with the Board of Directors to ensure each item that is spelled out in the RFP is covered. Utilizing a ‘bid comparison worksheet’ comes in quite handy here while evaluating the multiple bids. Interviewing potential contractors with the Board will also help to speed up the process and reduce back-and-forth questions.
All in all, there are several factors that can make it difficult to create the perfect RFP, but we all know a bad one when we read it. Be sure to take the time to develop an RFP correctly from the get-go, as it will ultimately save you time in the long run. By following the aforementioned steps, not only will you receive higher quality responses, but you also will be more likely to end up with a vendor who will give you the results that you desire.
About the Author: Meaghan Brown is the Director of Business Development AGS Construction and works with HOAs, multifamily, and commercial properties for their exterior, communitywide reconstruction projects. Meaghan acts as the liaison between their production team, the community/property manager, board of directors, and residents throughout the course of each project. Some of their core services include roofing, carpentry, EIFS/stucco, concrete, painting, decks/ walkways, steel fabrication, and construction defect services.
