Real Estate Services & Strategies
RFQ/RFP principles to success
Introduction to principles
What is the RFQ/RFP process?
- A means of selection.
- A three-step process consisting of an RFQ, RFP and Negotiation (or a two-step process if there is a pre-existing short list of qualified participants eliminating the need for an RFQ).
- A competitive process with a defined set of selection criteria.
Why do an RFQ/RFP process?
- To generate competition-increase the potential price/rent received or otherwise strike a better bargain.
- To get a range of solutions to best refine the project to achieve campus goals.
- To grant access to the University's business.
- To allow disposition of controversial projects in a public process.
How can the RFQ/RFP process be used?
- Identify a third-party development team for a project off campus (purchase or lease) or on campus (ground lease).
- Find a qualified partner with whom to develop a project.
- Seek professional services or outsource defined functions.
Key elements of a successful RFQ/RFP process
- A cohesive project team that knows what it wants.
- A clear project concept (not a fishing expedition)
- Realistic expectations consistent with market conditions.
- Sufficient direction and background information to fully orient development teams.
- Selection criteria defined and disclosed.
- Sufficient time to attract qualified teams and have the short list respondents prepare proposals.
- A short list (i.e., 3 or 4 finalists pre-qualified) for the RFP Phase.
- A responsive, timely decision process.
- Recognition that the RFQ is the 1st step in negotiation.