Introduction
An interior design project is a critical part of the entire construction project and whose efficiency determines the success of the whole construction project. Therefore, treating interior design as a separate project from the overall construction results in complexities that will adversely affect the time and quality of the project. Notably, the bidding process in construction and interior design projects entails a chain of complex activities which require careful consideration and proper decision making. The complexity in the bidding process consumes resources and time and may not guarantee customer satisfaction in the end. For an optimal bidding process for an interior design project, the collaboration of the project owner and the general contractor is essential during the preparation of RFP to ensure the inclusion of all specific information regarding the expected quality from the proposing firms. Therefore, the procurement can optimize the entire bidding process by optimizing the RFP process.
Inefficiencies of the Current RFP and Their Implications
General construction contractors develop RFP as a quality guide for the architects or construction engineering firms. However, failure to include adequate specific details about the expected project outcomes is a common mistake that often occurs when the client is absent or fails to specify their needs during the RFP development. Provision of ambiguous or inadequate specific project information to the proposing engineering firms becomes problematic as the firms find it challenging to understand the particular needs of the entire project. As a result, the proposing firms are unable to propose services that will align with the project. On the other hand, inadequate information on RFP complicates the decision-making process for the procurement team during the selection of the firm that offers competent interior design services (Liang et al., 2016). The conditions mentioned above increases the chances of the procurement team selecting and picking an incompetent bidder at the expense of the best bidders. Therefore, taking time to make proper decisions concerning details necessary to include in the RFP, directly and indirectly, could optimize the bidding process in several ways.
Direct Involvement of Project Internal Personnel during RFP Preparation
Developing an informative RFP requires direct involvement of the client and all the right project personnel. The client and the internal project personnel provide important information that helps prospective suppliers understand the project’s specific objective. As a result, it becomes easier for the supplier to know the critical services they should include in their proposals to help them be competitive bidders. Conversely, a specific informative RFP will help eliminate bidders whose services do not qualify those in the RFP. Thus, the procurement is left to select a competent bidder from a small team of bidders, thereby saving time for the entire bidding process (Liang et al., 2016). Therefore, the procurement team must ensure direct involvement of all project stakeholders to capture all critical information necessary for the development of the RFP, which guides the supplying firms on the specific requirements of the entire project before writing and sending their supply proposals.
Supplier Relationship Management
Additionally, building and maintenance of solid relationship with suppliers and service providers can help optimize the bidding process. Notably, suppliers and service providers who have a history of the specific needs of the construction project play a significant role in ensuring the entire project’s success. These suppliers can confidently provide the general contractor and the project owners with crucial interior design initiatives and take responsibility for their outcomes (Habibi & Kermanshachi, 2018). Furthermore, supplier-client relationship management cuts the cost and time of the bidding process. The client selects the suppliers based on their previous capacity. The suppliers have an easier time offering specific services to the client’s project because they possess explicit knowledge about its objectives (Adamtey, 2019). Therefore, a long-term client-supplier relationship ensures easy decision-making on the content to include in the RFP and the suppliers who are likely to win the bids.
Optimization through Risk Management
Most of the time, the procurement team fails to include risk management as part of the RFP requirement. As a result, the costs of necessary renovation of an old building may compete with minor interior spatial improvements costs. Unfortunately, the marketers and the internal users of the space are more vocal in interior design renovations than the infrastructure maintenance department (Adamtey, 2019). Since RFP does not primarily account for annual interior design improvement projects, the contracted renovation suppliers and service providers will have significant bargaining power over the maintenance department. As a step towards RFP optimization, it is essential for those preparing the RFP to consider including the budget for technical needs and include project risk management budget before issuing an RFP to the suppliers to eliminate possible additional costs and time for scheduling another bidding session for renovation.
Optimization through Demand-Based Allocation of Funds
Another notable shortfall of the current RFP is their lack of proper allocation of funds in interior design project funds. The project managers, the client, and the procurement department should collaborate in budgeting to ensure the project’s priority considers the spatial demand requirements. For instance, in a home interior design project, the RFP should allocate funds for designing the interiors of rooms that the clients or visitors will use first, while the budget for other rooms should come later (Habibi, &Kermanshachi, 2018). This strategy ensures the client the occupancy of the home even as the interior design project continues. This strategy also provides the guests visiting the house carry a good image and reputation of the client. Therefore, making a decisive RFP helps the proposing firms know the client’s interior design priorities and assess their delivery capabilities before proposing to undertake the project. Also, the client does not suffer financial constraints because the allocation of funds is done on a space-demand basis.
Conclusion
In conclusion, project managers can improve the efficiency of the bidding process of interior design by carrying several reforms on the current RFP document. Notably, the recent RFP document contains inadequate information for the suppliers, making quality and timely project delivery a problem. The clarity of the RFP saves time and costs incurred during the bidding process. Thus project managers and the procurement teams should collaborate in ensuring the development of an informative RFP. To achieve an optimal bidding process, project managers should ensure direct involvement of all right stakeholders who can provide critical information to prepare the RFP. This information ensures only eligible suppliers propose their bids, which makes bid selection easier for the procurement department. Moreover, maintaining long-term relationships with suppliers is essential in assuring clients of quality and saving on the costs and time taken to invite, assess and select new bidders. RFP optimization will also ensure that the budget for annual interior design renovation and risk management falls into consideration. Lastly, adopting a demand-based budget allocation RFP strategy will ensure only competent suppliers propose their bids and the client incurs costs according to the space demand requirement.
References
Adamtey, S. (2019). A case study performance analysis of design-build and integrated project delivery methods. International Journal of Construction Education and Research, 17(1), 68-84. Web.
Habibi, M., & Kermanshachi, S. (2018). Phase-based analysis of key cost and schedule performance causes and preventive strategies. Engineering, Construction and Architectural Management, 25(8), 1009-1033. Web.
Liang, R., Sheng, Z., Xu, F., & Wu, C. (2016). Bidding strategy to support decision-making based on comprehensive information in construction projects. Discrete Dynamics in Nature and Society, 2016, 1-15. Web.