10 Most Common Proposal and Bid
Management Terms

10 most common bid & proposal terms
RFP (Request for
Proposal)
1
RFQ (Request for
Quote)
2
Scope of Work
3
Bid
4
Proposal
5
Compliance
6
Cost Estimation
7
Evaluation Criteria
8
Negotiation
9
Contract
10

1. RFP (Request for Proposal)
An RFP is a formal document that is issued by a
company or organization when they are looking
for a vendor or service provider to complete a
specific project or solve a specific problem. The
RFP will typically include a detailed description
of the project, the scope of work, the
requirements that the vendor must meet, and
the timeline for completion. Vendors will then
submit proposals in response to the RFP.
An RFQ is a formal document that is issued by a
company or organization when they are looking
for a vendor or service provider to provide a
specific product or service. The RFQ will typically
include a detailed description of the product or
service required, the quantity needed, and the
timeline for delivery. Vendors will then submit
quotes in response to the RFQ.
2. RFQ (Request for Quote)

3. Scope of Work
The scope of work is a detailed description of
the tasks, deliverables, and timeline required for
a specific project or service. It outlines the work
that needs to be done, who will be responsible
for completing it, and when it needs to be
completed.
A bid is a proposal submitted by a vendor or
service provider in response to an RFP or RFQ. It
outlines the vendor's approach to completing
the project or providing the product or service,
and includes a price quote.
4. Bid

5.Proposal
A proposal is a document submitted by a vendor
or service provider that outlines the solution to
a specific problem or need outlined in an RFP. It
should be well-written and compelling, and
demonstrate the vendor's qualifications and
ability to complete the project or provide the
product or service.
Compliance is the act of ensuring that a
proposal meets all the requirements outlined in
an RFP, including formatting, content, and
timeline. Compliance is important because
failure to meet all the requirements can result in
disqualification.
6. Compliance

7. Cost Estimation
Cost estimation is the process of calculating the
costs associated with a project or service. It
involves identifying all the expenses associated
with completing the project, and then
estimating the cost of each expense.
Evaluation criteria are the criteria used by the
client to evaluate and compare proposals
submitted by vendors or service providers.
These criteria will typically include things like
price, quality, experience, and timeline.
8. Evaluation Criteria

9. Negotiation
Negotiation is the process of discussing and
reaching an agreement on the terms of a
proposal or bid. This may involve negotiating
price, timeline, scope of work, or other factors.
A contract is a legally binding agreement
between a client and a vendor or service
provider that outlines the terms and conditions
of the project or service. The contract will
typically include a description of the scope of
work, the timeline, the price, and any other
important details. It is important to have a well-
written contract to ensure that all parties are
clear on their responsibilities and obligations.
10. Contract

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