In an industry where time is short and the stakes are high, understanding the bids you receive for your store fixturing job is imperative. A good Request for Proposal (RFP) can help provide apples-to-apples comparisons between the companies competing to provide your fixtures.

The ABCs of RFPs

If you want the bids you receive to be accurate and meaningful, you need to provide an outline of all of the information your bidders will need to complete the project. RFPs will vary with the complexity of the job, but there are certain items you'll always need to include. An RFP should remind vendors to include the estimated costs for all materials, labor, and services necessary to successfully execute all portions of the project included in the bid request. The RFP should also state the rules regarding opening, reviewing, and awarding of bids; all responsibilities the owner wishes to assume; and all schedules and time frames the job must meet. According to Michael Lopez in the second edition of his book, Retail Store Planning & Design Manual, a well-thought-out invitation to bid should also include a fixture agreement that clearly states "the dates of the agreement between clients and subcontractors; anticipated completion dates; and allowances, contingencies, permits, taxes, and fees directly related to fixtures."

Here are more questions to ask yourself before you complete the RFP: When will you need the quotes returned to you? When and where should the product be delivered? Is all of the product due at the same time or will you need to provide bidders with a phase-in schedule? What sort of packaging and transportation are required? Any special requests regarding installation or warehousing? What are your warranty expectations? In addition, you'll need to address payment terms and pricing requirements in the RFP.

James Terranova, president of Accel Group, has received many RFPs. He suggests that preparers include "drawings with specifications, sizes, details, materials, colors, interior and exterior finishes, and hardware specifications." David Bradshaw, Vice President of Operations for estorefixture.com, recommends providing prototype and sample requirements, and bid forms or templates, to ensure that vendors submit bids that will be easier to evaluate and compare.

While a stringent, detailed RFP provides for accurate bid comparisons, you might want to consider leaving some room for value-added suggestions offered by creative vendors. A substitute material or setup may save you time and money without jeopardizing project results. It is a good idea to stipulate that variances from the RFPs be identified on the manufacturer's proposal, however, so you can decide where allowances in the specifications can be made and where they cannot.

As always, it's not a bad idea to have your attorney review the Request for Proposal before you send it out. Your attorney can include provisions pertaining to changes in project expectations or scheduling and quality of materials and workmanship, among others.

Bid Time

Once you've finalized the format and details of the RFP, you need to determine a realistic time frame for bid submissions. Terranova suggests allowing anywhere from two or three days to two or three weeks, depending upon the scope, size, and complexity of the project. Bradshaw says, "On average, two to four weeks is a reasonable time frame." Allowing vendors enough time to do their homework means you're much likely to receive a more accurate estimate of costs.

This brings you up to the decision of who to invite to bid on your fixturing project. In the next article, we'll discuss the pros and cons of different bidding systems that store planners can use.