Web Extra: Municipal vs. Commercial RFPs

May 12, 2017 -  By

In some form or another, both municipalities and commercial entities, often property management groups, use RFPs to bid work. Municipal RFPs are often called “formal,” due to their rigidity and cookie-cutter aspects, while “informal” Commercial RFPs are more flexible and open-ended.

“Formal RFPs are fairly regimented,” says Ken Thomas, co-founder of Envisor Consulting. “Informal RFPs are more in the property management world, which controls the majority of the business out there.” We break down the key differences between municipal and commercial RFPs:

Municipal RFPs

  • Type of properties: Schools, hospitals, parks, government buildings/properties
  • Where to find: Opportunities published somewhere (i.e. website, newspaper, etc.)
  • Decisions based on: lowest price
  • Notes: Budget and competing offerings are available as public information.

Commercial RFPs

  • Type of properties: Homeowner Associations, hotels, apartment/condo complexes
  • Where to find: Typically offer opportunities to a targeted, private list of contractors, though some are published online.
  • Decision based on: Relationships, customer service, creative solutions, price.
  • Notes: The lack of formality and laser-focus on bottom line creates a comparison that is not “apples to apples,” which can be a positive for companies with higher prices.

To read the full story from the May 2017 issue on the ins and outs of RFPs, click here.

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