5 Major Types of Procurement Documents for Projects
Many organisations use procurement documents terms interchangeably. It is very important that you can distinguish between different types of procurement documents. Here are the different types of procurement documents that we have.
#1 Request for Bids
This is commonly used when deliverables are commodities for which there are clear specifications and when the price will be the primary determining factor.
The request for Bid is submitted to the selected seller for a formal bidding process. Some negotiations may be anticipated.
#2 Request for Quotation
This is commonly used when deliverables are commodities for which there are clear specifications and when the price will be the primary determining factor.
Unlike an RFB, this solicited prove quote is used for comparison purposes and is not a formal bod for work. This may allow for some negotiations of price.
#3. Request for Proposal
This is commonly used when deliverables are not well defined or when other selection criteria will be used in addition to the price. Sellers are often encouraged to offer suggestions and alternatives approaches to meet the project goals. Preparing the RFP is time-consuming and costly for the seller.
Negotiation is expected. Because it is time-consuming and expensive to create a proposal in response to an RFP, it is typical that not all seller solicited will respond.
#4. Invitation for Bid
This is commonly used when deliverables are commodities for which there are clear specifications and when the quantities are. It is sometimes used interchangeably with RFP.
The invitation is usually advertised and any seller may submit a bid. Negotiation is typically not anticipated.
#5 Request for Information
This is commonly used to develop lists of qualified sellers and gain more input for resource availability.
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