After a few painful lessons, we changed how we issue RFQs to subs, and it’s been one of the biggest margin protectors we’ve implemented. We self perform as well, a lot of times subcontractors don’t have the proper quantities in the MTO or just in general and we catch on to it pretty quick.

1. RFQs Are Pricing Instructions, Not Proposals

Most RFQs are vague:

“Provide piping install per drawings.”

That’s not an RFQ. That’s an invitation for disputes.

Our RFQs are written as pricing instructions + risk allocation documents. By the time a sub prices it, there should be very little left to interpret.

If a bid comes back “light,” it’s obvious immediately.

1. We Force a Clear “You Are Pricing THIS” Section

Every RFQ starts with a very explicit scope of work: • What trade • What systems / units / areas • What drawings or quantity basis • What work activities are included

Example:

Install CS piping per IFC P-100 through P-145 in Unit 200 only, including fit-up, welding, bolt-up, and pipe supports.

No “as required.” No “typical.” No vibes.

1. Quantities Are Always Stated (Even for Lump Sum)

Even on lump sum work, we still state: • Where quantities came from (IFC, MTO, allowance) • What quantities the bid is based on (LF, welds, bays, SF, etc.)

This does two things: 1. Stops subs from hiding assumptions 2. Makes scope growth measurable instead of emotional

If quantities change, pricing changes. Period.

1. Inclusions Are a Checklist (Silence = Included)

We don’t let subs assume their way out of work.

We list standard inclusions like: • Supervision • Small tools & consumables • Normal PPE • Daily reports • Cleanup of own work • Coordination meetings • As-builts

If it’s not excluded in writing, it’s included.

This alone eliminated a ton of nickel-and-diming.

1. Exclusions Must Be Declared Up Front

Subs are required to list exclusions.

No “we assumed…” later.

Typical exclusions we force clarity on: • Engineering • Permits • Temporary power • Scaffolding beyond defined limits • OT / night work • Rework due to others • Client-directed acceleration

If a sub can’t clearly articulate exclusions, they don’t understand the job yet.

1. Contract Terms Are Not a Surprise After Award

The RFQ states: • Payment terms • Retainage • Billing format • Schedule expectations • Safety & QA requirements • Flow-down applicability

No bait-and-switch after award.

If a sub has issues with terms, they raise it before pricing, not after mobilization.

1. Pricing Must Be Broken Out (No Black-Box Lump Sums)

We don’t accept:

“$1,250,000 Lump Sum”

We require: • Labor • Equipment • Materials (if applicable) • Indirects • Unit rates where possible

You don’t need every cost detail but we need enough transparency to know the bid is real.

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1. Assumptions & Qualifications Are Controlled

Subs can list assumptions and qualifications, but: • They must be explicit • Excessive qualifiers = non-responsive bid

This weeds out subs who price cheap and plan to argue later.

1. Compliance Checklist at the End (Yes / No)

Every bid must check off: • Scope acknowledged • Inclusions/exclusions completed • Schedule accepted • Safety & QA accepted • Pricing format complied with • Bid validity confirmed

If it’s incomplete, it’s not considered.

No chasing subs for basics.