How To Write an RFP: Complete Guide To Request for Proposals

Organizations across sectors use RFPs (Request for Proposals) to source vendors, secure competitive pricing, and build mutually beneficial partnerships.

According to research from QorusDocs, 1 in 5 RFPs are left incomplete each year, translating into a $725,000 average revenue loss per year attributed to inefficient RFP management. Beyond these implications, businesses can also be stunted by missed opportunities to leverage systems of value, delayed progress on critical projects, and challenging vendor relationships.

Done right, however, RFPs can be quite profitable. According to Loopio’s 2024 RFP Response Trends and Benchmarks Report, RFPs generate more than 1/3 of the average business’s annual revenue (38 percent), underscoring their importance as one of the most critical processes for sustained growth.

In this guide, we’ll walk through everything from understanding when you need an RFP, how to write one, and managing the entire process.

What is an RFP?

An RFP is your formal way of asking one or more vendors, “Will you help us solve this problem and, if so, how?”. The document covers your project needs and invites qualified suppliers to submit formal, detailed proposals that address your challenge.

RFPs are an opportunity for you to compare one vendor to another and level the playing field between competing vendors. It’s a strategic tool that’ll allow you to partner with companies that understand your business, offer creative solutions, and deliver results.

When to Create an RFP

There’s no need to go through the full RFP process for all procurement situations. Writing too many (or unnecessary) RFPs will slow down operations and frustrate vendors.

Create an RFP when:

• The total project budget is over $50,000 (or your organization’s threshold)
• Multiple stakeholders need to be involved in the decision
• The solution requires customization or strategic thinking
• You’re entering a contract longer than one year
• Compliance or audit requirements demand a formal process
• The project involves significant business risk or change management

Skip the RFP when:

• You need something quickly (under 30 days)
• The solution is standardized with little differentiation
• You already have a preferred vendor and just need documentation
• The project is small and straightforward
• Market options are limited (fewer than three viable vendors)

Project complexity indicators that scream “RFP needed”:

• Integration with existing systems
• Multiple departments affected
• Regulatory compliance requirements
• Change management components
• Performance guarantees or SLAs needed
• Ongoing support and maintenance requirements

Be sure to also consider budget and timeline considerations. If you’re unable to lend vendors at least 3-4 weeks to respond thoughtfully, you probably don’t need an RFP.

Essential Components of an Effective RFP

Think of your RFP as a roadmap that guides vendors to exactly where you want them to go. Miss a critical sign, and they’ll end up lost – or worse, they’ll end up somewhere you don’t want to be.

Project Overview/Background

Start with your company introduction – not a boring corporate history lesson, but a snapshot that helps vendors understand your culture, size, and what makes you tick.

The project context is where you tell the story:

• What’s driving this need? 
• Are you growing rapidly, and your current systems can’t keep up? Why this RFP?
• Did new regulations create compliance challenges?
• Are you looking to deliver a better customer experience?

The goal of this section is to set the scene for your vendors so they know not only what you need, but why you need it.

It’s critical to implement a framework for success criteria early in your RFP. Instead of vague statements like “improve efficiency”, get specific: “reduce order processing time from 48 hours to 4 hours” or “achieve 99.5% system uptime.” According to Inventive.ai’s RFP best practices research, winning RFP responses focus on the “why” behind the RFP and connect high-level goals to the outcomes their solution delivers. This shows us that as the RFP writer, your why is imperative to creating the baseline for a clear message.

Detailed Project Requirements and Deliverables

Functional specs should sound like the wishlist of a user who really understand the business. Don’t just imply “reporting capabilities” – specify that you need real-time dashboards, automated weekly reports, and the ability to export data in multiple formats.

• Technical requirements need dense detail to avoid surprises, but should remain flexible enough to allow innovation.
• Be sure to include integration requirements, security standards, performance expectations, your tech stack, etc.
• Unless it’s a commodity purchase, leave breathing room for vendors to suggest better ways to do things.

All performance criteria and quality expectations must be quantified. Instead of “high quality,” specify error rates, response times, or user satisfaction scores. This gives vendors clear target signals for objectively driven evaluation criteria.

Proposal Response Format and Submission Guidelines

You can also help vendors shorten the turnaround time by clearly indicating your desired response format.

• List section headings, page lengths, attachments, and any special formatting requirements.
• Include submission methods (email, portal, physical copies), deadlines (with time zones), and contact information for questions.
• Always include a primary and backup contact person.

By making your requirements easy to follow, you free up vendor time and resources to be invested in creating the most competitive response, not combing through overly-complicated instructions. The result: higher quality responses and an evaluation process that is much more efficient.

When vendors know how you’ll judge their proposals, they can focus on what matters most to you.  Create a weighted scoring system that reflects your priorities. If pricing weighs into 30% of your decision, say so. If innovation is worth 25%, make that clear. According to Responsive’s procurement statistics report, the average RFP is scored by four to five individuals, so factor in coordination time for your evaluation team. So it’s best to have a few other people reviewing these besides a figure or two.

Contract Terms and Payment

No one enjoys unpleasant surprises, especially when it comes to money or legal terms.

• Be clear about your standard payment terms, preferred contract length, and any non-negotiable legal requirements from the start.
• Include any details about payment milestones, invoicing procedures, and performance guarantees you expect in your contract.
• You can also add specific intellectual property requirements or confidentiality agreements in this section, if necessary.

The contract terms will also allow vendors to self-select. Vendors who can’t operate under your terms will disqualify themselves at the very beginning, and for those who do respond, you’ll get more realistic quotes and timelines because they have a clear understanding of what they’re signing up for.

Contact Info and Communication Protocol

Use a single point of contact for questions from vendors—multiple contacts can lead to mixed messages.

• Provide their email address and phone number as well as preferred method of communication.
• Establish a question/answer process with deadlines for questions and responses.

Ensure a fair process is established where all vendors have access to the same clarifications. Many organizations publish Q&As to all bidders to maintain transparency.

How to Write an RFP in 7 Steps

Let’s break down the RFP creation process into manageable chunks. Now we know why an RFP is important and when we need to use one. Before going into document structure, let’s look over some key steps in creating an RFP.

Step 1: Define Project Scope and Objectives

Before you start drafting, make sure your internal affairs are in order.

Who are the people that will be affected by this project or purchase? E.g..The IT director, end users, finance team, and senior leadership all need to be on the same page about the project goals and what success looks like.

Use structured requirements gathering techniques. This could include workshops, surveys, interviews, etc. The goal is to capture the real needs, not just the obvious ones. The most effective RFPs solve problems that people didn’t even know they had.

Identify success metrics that matter to your company. According to Loopio’s 2025 RFP trends research, while 96% of teams are tracking success metrics, there’s an increase in those tracking granular metrics such as advancement rate, speed of completion, cost per bid, and team performance. Your RFP should reflect this level of detail.

Step 2: Research Potential Vendors

Perform market research to understand what is available, who the major players are, and what ballpark prices are. Use this information to help you create better requirements and set realistic expectations.

Begin vendor qualification criteria early.

• How big does a company need to be to take on your project?
• What certifications or experience are required?
• Are they financially stable?

Astute organizations qualify each opportunity by determining whether there is a strong buyer champion that can sell to the client from the inside – the same principle works in reverse.

Create your vendor shortlist prior to writing the RFP, then customize your RFP to attract the best-qualified bidders. If you’re targeting innovative startups, for example, make flexibility and growth potential the call to action. If you want enterprise stability, stress compliance and risk management.

Step 3: Develop Your RFP Structure

A clear and logical structure signals to vendors that your company is professional while making it easier for them to provide comprehensive responses.

• Begin with an executive summary, followed by sections in logical order: background, requirements, evaluation criteria, and submission guidelines.
• If technical capabilities are the most important factor, list the technical requirements near the top and give them more space. If your budget is a constraint, be sure to make cost a prominent consideration.
• Build an internal review process into your planning. Assign owners for each section, set deadlines for review, and build in time for multiple iterations.

If you have recurring RFP types in your organization, consider creating templates to standardize section headings and requirements for each type. This will make your RFPs easier to compare for vendors while also reducing the time it takes to create a new RFP from scratch.

Step 4: Write Clear and Detailed Requirements

Avoid ambiguous language that leaves room for interpretation. Instead of “user-friendly interface,” specify: e.g.. “interface that allows new users to complete basic tasks within 15 minutes of initial login.”

• Balance specificity with flexibility. You want to be clear about your needs without being so prescriptive that you eliminate innovative solutions.
• Use examples and use cases to help clarify your requirements, but don’t write them in a way that enforces your current way of doing things.

Vendors will literally build the solution based exactly on the requirements you’ve provided. If you don’t mention your CRM system in the RFP, don’t expect the bids to include pricing for CRM integration.

Step 5: Set Realistic Timelines and Milestones

Divide your project into logical phases with achievable timeframes. Consider task dependencies, resource availability, and change management needs.

• Account for the unexpected with buffer time.
• Most projects take longer than expected. Even more so for complex ones with many stakeholders.
• A good rule of thumb is to add 25 percent to your initial timeline estimates.

Factor in realistic response times from vendors – typically a few weeks for complex RFPs.If you rush the response period, you’ll just receive rushed proposals.

Step 6: Review and Refine Your RFP

Get fresh eyes on your document. Internal stakeholder review should include people who weren’t involved in writing the RFP – they’ll catch assumptions and gaps that you missed.

Do a final editing and formatting pass. Crafting the perfect RFP can be difficult, so leaving yourself several days before submission dedicated to reviewing and proofreading will help you look at your work with fresh eyes.

Step 7: Distribute and Manage the RFP Process

Create a vendor communication plan (a plan that involves more than just distributing the RFP). In most cases, you’ll get better and more accurate proposals.

• Hold a pre-bid meeting if necessary. This lends vendors an opportunity to ask questions and you an opportunity to communicate requirements.
• Be sure to manage this meeting/Q&A in a professional manner.
• Respond to questions in a timely manner and share questions and answers with all bidders.

Establish a plan for receiving and filing proposals prior to the deadline. Nothing is worse than frantically stuffing a dozen or so three-inch-thick proposals into three-ring binders in the last hour before the deadline.

RFP Template

It goes without saying that each RFP should be tailored to your unique situation, but it’s helpful to start with a basic structure to ensure you don’t leave out important elements. The following works in any industry:

Basic RFP Structure

The following is a checklist of a standard RFP:

Executive Summary (1-2 pages)

• Project overview
• Key objectives
• Timeline summary
• Contact information

Company Background (1-2 pages)

• Organization profile
• Current situation
• Strategic goals

Project Requirements (3-5 pages)

• Functional requirements
• Technical specifications
• Performance expectations
• Integration needs

Scope of Work (2-3 pages)

• Deliverables
• Timelines
• Milestones
• Success criteria

Proposal Requirements (1-2 pages)

• Response format
• Required sections
• Submission guidelines
• Deadline information

Evaluation Criteria (1 page)

• Scoring methodology
• Weighting factors
• Selection process
• Timeline

Contract Terms (1-2 pages)

• Payment terms
• Legal requirements
• Performance guarantees
• Intellectual property

Industry-Specific Considerations

In some industries, there some specific things to keep in mind, such as:

• IT Projects: Pay attention to security requirements, system integration capabilities, scalability needs, and support structures. Include detailed technical environments and compatibility requirements.
• Marketing Services: Focus on creative capabilities, campaign measurement, brand alignment, and previous experience in your industry or with similar challenges.
• Construction Projects: Highlight safety requirements, licensing and bonding needs, environmental considerations, and local regulations compliance.

Sample RFP Excerpts:

Don’t write: “We are looking for a user-friendly system.” Instead, write: “The system must enable non-technical users to produce standard reports with no more than three clicks and to perform routine data entry tasks with no more than 30 minutes training.”

Don’t write: “Please provide a cost-effective solution.” Instead, write: “Provide solutions that will result in an ROI in less than 18 months assuming current operations cost $X per month.”

Evaluating and Managing RFP Responses

On the other side of writing an RFP, is responding to the proposals you get. Your response process must be just as dense as your writing process.

Initial Screening Process

Start with a compliance check. This isn’t about quality yet; it’s about qualification.

• Do proposals meet basic requirements?
• Are they complete?
• Did they follow your submission guidelines?

Eliminate any proposals that miss mandatory requirements before investing time in detailed evaluation. Create a standardized evaluation sheet that maps to your RFP criteria. This ensures consistency across evaluators and helps you document your decision-making process for audit purposes.

Detailed Evaluation Methodology

Follow your weighted scoring system diligently. It is natural to want to go with your gut instinct, but a more rigorous process will provide you with a better decision and a defensible result. Consider multiple perspectives. As previously discussed, the best practice is to have 4-5 people involved in evaluating RFPs.

Score each section of the proposal separately before considering totals. This prevents the “halo effect”, where a strong (or weak) first impression colors your evaluation of everything else.

Vendor Presentations and Negotiations

Use this to iron out any questions or concerns left open in their written proposals. Here’s your chance to see how they react to pressure, curveballs, and requests for customization.

Shortlist your top 3-5 vendors for presentations or demos. Savvy organizations view the presentation phase as an opportunity to confirm that vendors really understand their needs and can follow through on their promises.

• Inquire about how vendors handle edge cases, unexpected questions, and requests for customizations.
• Find out who the vendors send to presentations – Inquire about team stability, project management styles, and communication protocols. Team chemistry often plays a crucial role in project success as much as technical capabilities.

The vendors who shine during this interactive phase often become your strongest long-term partners, while those who struggle here may signal future project management challenges.

Making the Final Selection

Remember that the highest scoring vendor may not necessarily be the best overall choice, and there are likely non-quantifiable risks and strategic considerations to take into account, like risk associated with implementation, vendor stability, or a long-term relationship.

• Inform all participating vendors of the outcome of the RFP as soon as possible and do so in a professional manner.
• Where appropriate, provide unsolicited vendors with feedback as to how they can improve their RFP response in the future.
• Get into a contract negotiation and kick-off meeting with your winner sooner rather than later.

Momentum matters, and delays between selection and start can derail projects before they begin.

Common RFP Challenges and Solutions

Even the best-planned RFPs run into challenges. Here’s how to handle the most common ones without losing your sanity or compromising results.

Handling Incomplete Responses

The Problem: The vendors you solicited respond with proposals that lack key information and/or don’t answer important questions or address important requirements.

The Solution: Make completeness and compliance a large part of your evaluation criteria. When relevant, allow vendors one chance to clarify or supplement an incomplete proposal, but limit the time for accepting additional.

Prepare a detailed RFP response checklist, and include a copy of it in your RFP response instructions so vendors can self-audit their proposals before they submit them.

Managing Timeline Delays

The Problem: Your project timeline gets compressed due to budget approvals, changing requirements, or other business priorities.

The Solution: Build flexibility into your process from the start, and communicate timeline changes immediately and transparently.

If you need to shorten vendor response time, consider simplifying requirements or offering preliminary meetings to clarify complex points.

Dealing with Budget Constraints

The Challenge: You’ve received great proposals that are way over budget, and have to make some hard decisions on what scope or quality to cut.

The Solution: Try value engineering sessions with your most promising vendors – a collaborative process for brainstorming how to achieve the core requirements within the budget. Sometimes breaking projects into phases can make them more financially manageable.

And of course, always include budget ranges in your RFP, be as specific as needed. The more detailed, the more likely it is that vendors can then propose what you want and need, rather than over-engineering costly solutions.

Addressing Scope Changes During the Process

The Challenge: Your business or project needs a change during the RFP process.

The Solution: Determine as soon as possible if changes are substantial enough to warrant restarting the process or if minor changes can be accomplished through amending documents.

If you must make changes, communicate them to all vendors simultaneously and extend deadlines proportionally to the complexity of changes required.