Be Specific When Drafting Request-for-Proposal

When you need to find a contractor for a major project at your center, such as an ongoing job like landscaping, or a one-time job like replacing roofs, don’t simply hire the first available contractor you can find. Instead, prepare a request-for-proposal (RFP) to solicit bids from multiple contractors.

But be specific when drafting your RFP. That’s because if your RFP contains only basic information, such as the due dates for bids and the start and end dates of the work, and doesn’t include other important items, such as the precise scope of the work or a set of drawings, it could put you in danger of hiring an unqualified or overpriced contractor. And that may, at best, make the project more costly and, at worst, lead to litigation.

While, typically, tenants don’t have the lease right to either review an owner’s RFP or require that the owner follow a particular RFP-related set of protocols, using a well-drafted RFP can show a tenant that you’re making an effort to have the ultimate cost of the work be reasonable and the work itself comply with applicable building codes. Tenants should be comfortable with that. But poorly crafted RFPs can create misunderstandings between you and your contractor that may lead to delays and unforeseen costs that cause tenant disenchantment with you and your management team.

For a checklist of items you should include in a well-drafted RFP, see “Draft Effective Request-for-Proposal to Contractors,” available to subscribers here.

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