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RFQ / RFP RFQ / RFP Best Practices WorkshopBest Practices Workshop

PowerPoint PresentationPowerPoint Presentation

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Presented byPresented by

(Insert name of presenting organization)(Insert name of presenting organization)

(Insert name and contact info for instructor)(Insert name and contact info for instructor)

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PurposePurpose This workshop outlines the This workshop outlines the best practices for best practices for

selectionselection of various service providers involved in the of various service providers involved in the design and construction processdesign and construction process

These team members are typically selected through These team members are typically selected through the the Request for Qualifications (RFQ) and Request for Qualifications (RFQ) and

Request for Proposal (RFP) Request for Proposal (RFP) process process

The practices described in this workshop are The practices described in this workshop are recommended for use by recommended for use by any entity procuring such any entity procuring such servicesservices from service providers from service providers

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Definitions of RFQ & RFPDefinitions of RFQ & RFP A A Request for Qualifications (RFQ) Request for Qualifications (RFQ) is a document issued is a document issued

by a buyer of services to sellers of services, requesting by a buyer of services to sellers of services, requesting documentation of their general qualifications and documentation of their general qualifications and experience, to determine whether such sellers are experience, to determine whether such sellers are qualified to provide the services required by the buyer. qualified to provide the services required by the buyer. The buyer will typically use the information received in the The buyer will typically use the information received in the RFQ process to develop a selected list of best qualified RFQ process to develop a selected list of best qualified providers. The buyer will then typically issue an RFP to providers. The buyer will then typically issue an RFP to those best qualified providers.those best qualified providers.

A A Request for Proposal (RFP) Request for Proposal (RFP) is a document issued by a is a document issued by a buyer of services to sellers of services, requesting much buyer of services to sellers of services, requesting much more specific documentation of their experience, more specific documentation of their experience, capabilities, resources and related costs, thereby allowing capabilities, resources and related costs, thereby allowing the buyer to determine which seller is best suited to the buyer to determine which seller is best suited to complete the specific assignment required by the buyercomplete the specific assignment required by the buyer

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When to Use RFQs & RFPsWhen to Use RFQs & RFPs

RFPs and RFQs are typically used for:RFPs and RFQs are typically used for:

Qualifications Based SelectionQualifications Based Selection

Best Value Selection Based on FeesBest Value Selection Based on Fees

Best Value Selection Based on Total Cost Best Value Selection Based on Total Cost

RFQs can also be used for:RFQs can also be used for:

Prequalification of service providers Prequalification of service providers

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Team Selection PrinciplesTeam Selection Principles

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Team Selection PrinciplesTeam Selection Principles

1.1. All RFQ / RFP information must be provided to all All RFQ / RFP information must be provided to all respondents, including responses to all questionsrespondents, including responses to all questions

2.2. Selection criteria must be clearly identified and Selection criteria must be clearly identified and communicated to the respondentscommunicated to the respondents

3.3. Weighting of selection criteria must be identified Weighting of selection criteria must be identified and communicated to all respondentsand communicated to all respondents

4.4. Selection criteria and weighting must be strictly Selection criteria and weighting must be strictly followed by the Selection Committeefollowed by the Selection Committee

5.5. Results of the Selection Matrix must be provided to Results of the Selection Matrix must be provided to all respondents (respondent names may be all respondents (respondent names may be concealed)concealed)

6.6. Transparency and fairness must be maintained Transparency and fairness must be maintained throughout the processthroughout the process

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Selection Committee Selection Committee GuidelinesGuidelines

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Selection Committee Selection Committee GuidelinesGuidelines

1.1. It is recommended that the Selection Committee be It is recommended that the Selection Committee be limited to no more than limited to no more than seven membersseven members, , representing the major project stakeholdersrepresenting the major project stakeholders

2.2. Participation by those with Participation by those with working knowledgeworking knowledge of of the profession being selected is recommendedthe profession being selected is recommended

3.3. Confirm that all Committee participants are Confirm that all Committee participants are prepared to prepared to devote the time devote the time and effort necessary to and effort necessary to complete the process properlycomplete the process properly

4.4. Confirm that all Committee members Confirm that all Committee members understand understand the team selection principles and processthe team selection principles and process, providing , providing training to any individuals as necessarytraining to any individuals as necessary

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RFQ / RFP Best PracticesRFQ / RFP Best Practices

Most of the best practices contained in this workshop Most of the best practices contained in this workshop apply to both RFQs and RFPs. Whenever this is not apply to both RFQs and RFPs. Whenever this is not

the case, it will be noted.the case, it will be noted.

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Content of InvitationsContent of Invitations

Invitations to respond to RFQs and RFPs should Invitations to respond to RFQs and RFPs should contain the following information, at minimum:contain the following information, at minimum:

Name, address and contact information (phone and Name, address and contact information (phone and email) for entity requesting the responseemail) for entity requesting the response

Date and time when response is dueDate and time when response is due Basic description (one paragraph) of the services Basic description (one paragraph) of the services

being procuredbeing procured Date, time and location of any required on-site visits Date, time and location of any required on-site visits

or pre-response meetingsor pre-response meetings A requirement that invited respondents A requirement that invited respondents confirm by a confirm by a

specific date and time whether or not they will specific date and time whether or not they will submit submit a response to the RFQ / RFPa response to the RFQ / RFP

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RFQ / RFPRFQ / RFP Content & Structure Content & Structure

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ContactContact RFQs and RFPs must include the name and contact RFQs and RFPs must include the name and contact

information (phone and email) of the individual to whom information (phone and email) of the individual to whom questions should be addressedquestions should be addressed

Contact should be limited to the individual noted above; Contact should be limited to the individual noted above; contact to other Committee Members should be deemed contact to other Committee Members should be deemed to be grounds for disqualification of respondentto be grounds for disqualification of respondent

All questions should be directed to one individual, and all All questions should be directed to one individual, and all responses to questions should be issued by one responses to questions should be issued by one individual, to eliminate the possibility of conflicting individual, to eliminate the possibility of conflicting responsesresponses

All questions must be documented and responses to all All questions must be documented and responses to all questions must be provided in writing to all respondentsquestions must be provided in writing to all respondents

Provide contact information for others with whom Provide contact information for others with whom respondents must interact, such as security personnel for respondents must interact, such as security personnel for site visits, if applicablesite visits, if applicable

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ContextContextRFQs & RFPs should include the following contextual RFQs & RFPs should include the following contextual information:information:

Basic information about the entity issuing the request Basic information about the entity issuing the request (organization’s mission, size of organization, etc.)(organization’s mission, size of organization, etc.)

Any history relevant to the assignmentAny history relevant to the assignment

Schedule for every significant stepSchedule for every significant step in the entire in the entireRFQ / RFP process, from date of issuance to final RFQ / RFP process, from date of issuance to final

decision (Date request issued, last date for questions, decision (Date request issued, last date for questions, etc.)etc.)

Any additional information which would be beneficial to Any additional information which would be beneficial to the respondents’ understanding of the assignmentthe respondents’ understanding of the assignment

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Objectives & Scope of ServicesObjectives & Scope of Services

Define your project objectives in very clear termsDefine your project objectives in very clear terms

Define the scope of the required services in very Define the scope of the required services in very specific termsspecific terms

Failure to clearly identify your objectives and the Failure to clearly identify your objectives and the scope of the required services will likely lead to scope of the required services will likely lead to responses which cannot be fairly comparedresponses which cannot be fairly compared

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Contractual RequirementsContractual Requirements

Identify Identify the form of contract the form of contract (and general (and general conditions, if applicable) to be utilized for the conditions, if applicable) to be utilized for the assignmentassignment

Clearly identify any affirmative action, local Clearly identify any affirmative action, local participation or similar requirementsparticipation or similar requirements

Clearly define any confidentiality requirements Clearly define any confidentiality requirements

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Minimum or Unusual Minimum or Unusual RequirementsRequirements

If there are If there are any threshold requirementsany threshold requirements, identify , identify them very clearly, so as not to waste your time or them very clearly, so as not to waste your time or the respondents’ effortsthe respondents’ efforts(Examples: Respondent’s main office must be located in (Examples: Respondent’s main office must be located in the state in which the project is located; work must be the state in which the project is located; work must be performed under a Project Labor Agreement, etc.)performed under a Project Labor Agreement, etc.)

If there are any unusual requirements, provide If there are any unusual requirements, provide detailsdetails(Example: All work must be performed on weekdays (Example: All work must be performed on weekdays between 7:00 PM and midnight)between 7:00 PM and midnight)

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Selection CriteriaSelection Criteria Clearly Clearly identify the criteria upon which your selection will be identify the criteria upon which your selection will be

basedbased(Experience with relevant assignments, safety record confirming safe (Experience with relevant assignments, safety record confirming safe performance, etc.)performance, etc.)

Clearly Clearly identify the weighting identify the weighting of each of the selection criteriaof each of the selection criteria(Example: Respondents’ relevant experience will account for 20% of their (Example: Respondents’ relevant experience will account for 20% of their overall rating)overall rating)

Criteria for RFPs will typically be more detailed than for RFQs, Criteria for RFPs will typically be more detailed than for RFQs, and weighting will also be differentand weighting will also be different

Responses to RFQs are generally utilized by the issuer to Responses to RFQs are generally utilized by the issuer to select a “short list” of respondents for an RFP select a “short list” of respondents for an RFP

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Format of DeliverablesFormat of Deliverables1.1. Identify the format of deliverables (electronic in .pdf Identify the format of deliverables (electronic in .pdf

format, hard copy, etc.)format, hard copy, etc.)2.2. If hard copy, identify the size of the deliverables, keeping If hard copy, identify the size of the deliverables, keeping

the size appropriate to the requested materialsthe size appropriate to the requested materials(Example: 8-1/2” by 11”)(Example: 8-1/2” by 11”)

3.3. Identify Identify the sequencethe sequence in which the deliverables are to be in which the deliverables are to be organized, which should mirror the sequence of the RFQ / organized, which should mirror the sequence of the RFQ / RFP. This will make your retrieval of the information RFP. This will make your retrieval of the information easier when you receive the responseseasier when you receive the responses

4.4. For deliverables which involve numbers, For deliverables which involve numbers, provide tables provide tables to to be filled in by the respondentsbe filled in by the respondents

5.5. Identify the acceptable volume of deliverablesIdentify the acceptable volume of deliverables(Example: Proposal content shall not exceed 25 pages)(Example: Proposal content shall not exceed 25 pages)

6.6. Identify the number of copies which must be submitted for Identify the number of copies which must be submitted for each type of hard copy deliverableeach type of hard copy deliverable

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Content of DeliverablesContent of Deliverables

Define deliverables in very specific terms, to ensure Define deliverables in very specific terms, to ensure that that all responses will be comparableall responses will be comparable

Be sure the deliverables directly address your Be sure the deliverables directly address your selection criteria, preferably in selection criteria, preferably in measurable termsmeasurable terms

Be sure the Be sure the deliverables are achievabledeliverables are achievable

(Example: Don’t ask for a schedule for the assignment if you (Example: Don’t ask for a schedule for the assignment if you have not provided all of the information upon which the have not provided all of the information upon which the schedule must be based.)schedule must be based.)

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Examples of DeliverablesExamples of Deliverables Provide the project name, project address, Provide the project name, project address,

approximate project value, approximate project approximate project value, approximate project square footage and owner contact information for square footage and owner contact information for five projects completed by your organization which five projects completed by your organization which you deem to be you deem to be similarsimilar to the project identified to the project identified herein (RFQ’s)herein (RFQ’s)

Provide resumes for the specific individuals in your Provide resumes for the specific individuals in your firm which you propose to assign to this project, firm which you propose to assign to this project, and project details for at least three prior projects and project details for at least three prior projects for which they were responsible which are similar to for which they were responsible which are similar to the project identified herein (RFP’s)the project identified herein (RFP’s)

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Pricing DeliverablesPricing Deliverables(Not applicable for RFQs and some RFPs)(Not applicable for RFQs and some RFPs)

Deliverables for Deliverables for pricing must be very clearly defined pricing must be very clearly defined and and kept separatekept separate from the technical portion of the response. from the technical portion of the response. All deliverables NOT related to price should be judged All deliverables NOT related to price should be judged prior to considering any pricing.prior to considering any pricing.

If certain items are to be chargeable and others are to be If certain items are to be chargeable and others are to be included in the respondent’s fee, prepare a chart listing all included in the respondent’s fee, prepare a chart listing all likely costs and likely costs and identifying which billing category applies identifying which billing category applies to each of those coststo each of those costs

The key issue: you MUST establish a format for The key issue: you MUST establish a format for submission of pricing information which will submission of pricing information which will allow you to allow you to compare costs compare costs for the same services from all respondents for the same services from all respondents on a fair and equal basison a fair and equal basis

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Acceptance of ResponsesAcceptance of Responses

In fairness to all, it is best to require that all In fairness to all, it is best to require that all respondents respondents meet all RFQ / RFP requirementsmeet all RFQ / RFP requirements

(Examples: mandatory attendance at scheduled pre-(Examples: mandatory attendance at scheduled pre-submission meeting; rejection of late submissions, etc.)submission meeting; rejection of late submissions, etc.)

If you DO plan to retain the right to waive any of the If you DO plan to retain the right to waive any of the stated requirements (which is NOT recommended), stated requirements (which is NOT recommended), then state this in the RFQ / RFPthen state this in the RFQ / RFP

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Analysis of ResponsesAnalysis of Responses Prepare Prepare a matrix a matrix which will allow you to develop a which will allow you to develop a

fair and accurate comparison of the responsesfair and accurate comparison of the responses

Limit matrix content to the selection criteria Limit matrix content to the selection criteria established in the RFQ / RFP. The established in the RFQ / RFP. The established established criteria and weighting must be strictly followedcriteria and weighting must be strictly followed. .

Pay careful attention to whether respondents Pay careful attention to whether respondents followed the instructions contained in the RFQ / followed the instructions contained in the RFQ / RFP. (If they did not follow instructions, it may RFP. (If they did not follow instructions, it may indicate that they will not do so during the indicate that they will not do so during the assignment.) assignment.)

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Analysis of ResponsesAnalysis of Responses

If there are any threshold requirements (such as If there are any threshold requirements (such as ““respondent’s main office must be located in-state”), respondent’s main office must be located in-state”),

they should be judged on a pass/fail basis, rather they should be judged on a pass/fail basis, rather than being rated on a numeric basis than being rated on a numeric basis

If deliverables include pricing, any proposals which If deliverables include pricing, any proposals which are more than 15% lower than the others should be are more than 15% lower than the others should be considered outliers, and should receive a greater considered outliers, and should receive a greater level of scrutiny level of scrutiny

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Tips for Best RFQ / RFP ResultsTips for Best RFQ / RFP Results

Take the time to develop your RFQ / RFP carefully and Take the time to develop your RFQ / RFP carefully and ensure that it ensure that it addresses all of the selection criteria addresses all of the selection criteria shown in your Selection Matrixshown in your Selection Matrix

The time you invest The time you invest in writing a complete RFQ / RFP will in writing a complete RFQ / RFP will pay substantial dividends when you must analyze the pay substantial dividends when you must analyze the responses responses

In general, if there is information which the respondents In general, if there is information which the respondents would need to know in order to understand what you will would need to know in order to understand what you will require or what it will cost them to deliver it, it should be require or what it will cost them to deliver it, it should be clearly defined in your RFPclearly defined in your RFP

The best value provider is not necessarily the lowest The best value provider is not necessarily the lowest cost provider; carefully examine all information provided cost provider; carefully examine all information provided

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Keep Expectations ReasonableKeep Expectations Reasonable

Don’t ask for information which you do not need Don’t ask for information which you do not need in in order to make your decisionorder to make your decision

Allow enough response time Allow enough response time for proper preparation for proper preparation of the requested informationof the requested information

Remember that respondents have a limited amount Remember that respondents have a limited amount of time and resources to address your RFQ / RFP, of time and resources to address your RFQ / RFP, and are often doing so at their own expense and are often doing so at their own expense

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RFQ / RFP SummaryRFQ / RFP Summary When issuing RFQs or RFPs for services from When issuing RFQs or RFPs for services from

vendors, consultants, or contractors, it is essential vendors, consultants, or contractors, it is essential that you that you clearly communicate your requirements and clearly communicate your requirements and the deliverables the deliverables which you expect to receivewhich you expect to receive

Your request must be structured in a manner which Your request must be structured in a manner which will will allow you to effectively compare allow you to effectively compare the responses the responses on an fair and equal basis on an fair and equal basis

The time you invest The time you invest in the development of a properly in the development of a properly structured RFQ / RFP will pay substantial dividends structured RFQ / RFP will pay substantial dividends when you reach the point when the responses must when you reach the point when the responses must be analyzedbe analyzed

Transparency and fairnessTransparency and fairness throughout the process throughout the process are essentialare essential

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Interview Best PracticesInterview Best Practices

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Interview Planning: InterviewersInterview Planning: Interviewers Distribute copies of the RFQ or RFP (as issued) and all Distribute copies of the RFQ or RFP (as issued) and all

qualification / proposal packages to the interviewers far qualification / proposal packages to the interviewers far enough enough in advance in advance to ensure that they will be read before to ensure that they will be read before the interviewsthe interviews

If the interviewers will be judging the respondents against If the interviewers will be judging the respondents against the established selection criteria, i.e., if this will not be the established selection criteria, i.e., if this will not be done by others prior to the interviews (the former being done by others prior to the interviews (the former being the recommended practice), provide them with the recommended practice), provide them with copies of copies of the Selection Matrix well in advancethe Selection Matrix well in advance of the interviews. of the interviews. Clearly communicate the selection criteria and weightingsClearly communicate the selection criteria and weightings to the interviewersto the interviewers

Schedule a Schedule a pre-interview conference call or meeting pre-interview conference call or meeting with with the interviewers prior to the interviews, to ensure that all the interviewers prior to the interviews, to ensure that all participants understand the documents and the processparticipants understand the documents and the process

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Interview Planning: IntervieweesInterview Planning: Interviewees Communicate all of Communicate all of your interview plans your interview plans to the to the

interviewees in writing, at the point when they are invitedinterviewees in writing, at the point when they are invited

Advise the interviewees of the Advise the interviewees of the issues you want them to issues you want them to addressaddress, the amount of time allotted for same, and the , the amount of time allotted for same, and the amount of time allotted for questionsamount of time allotted for questions

If you have specific If you have specific presentation preferencespresentation preferences, such as , such as direct discussions in lieu of PowerPoint presentations, direct discussions in lieu of PowerPoint presentations, inclusion of the specific individuals proposed for the inclusion of the specific individuals proposed for the assignment, etc., advise the interviewees of those assignment, etc., advise the interviewees of those preferences in advancepreferences in advance

Leave sufficient time Leave sufficient time between interviews for discussion between interviews for discussion by the interviewers; if in doubt, leave more timeby the interviewers; if in doubt, leave more time

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Interview ProcessInterview Process Treat all interviewees fairly and equallyTreat all interviewees fairly and equally

((Example: Hold all interviewees to their allotted timeExample: Hold all interviewees to their allotted time))

Be certain that interviewees Be certain that interviewees address the issues address the issues stated in stated in the interview invitation the interview invitation

ListenListen for specifics as to how the interviewees will for specifics as to how the interviewees will address your stated issues. You are attempting to address your stated issues. You are attempting to identify the identify the best qualified provider, not the best marketerbest qualified provider, not the best marketer

Try to avoid having one interviewer monopolize the Try to avoid having one interviewer monopolize the question and answer period; give question and answer period; give all interviewers the all interviewers the opportunity to ask their questionsopportunity to ask their questions

If parties other than the interviewers are allowed in the If parties other than the interviewers are allowed in the room, those parties should be identified and they should room, those parties should be identified and they should NOT be permitted to question those being interviewedNOT be permitted to question those being interviewed

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Interview SummaryInterview Summary Proper planning Proper planning will help to ensure good interview will help to ensure good interview

resultsresults

Leave sufficient time Leave sufficient time for discussion between for discussion between interviewers, as this interaction will often produce interviewers, as this interaction will often produce a more well-rounded view of the intervieweesa more well-rounded view of the interviewees

Hold Hold all interviewees to the same standardsall interviewees to the same standards, to , to ensure fair and equal treatment of all partiesensure fair and equal treatment of all parties

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Disclosure of OutcomeDisclosure of Outcome Prior to disclosure, depending upon the awarding Prior to disclosure, depending upon the awarding

party’s policies, party’s policies, namesnames of all respondents other than of all respondents other than the respondent receiving the specific scoring sheet the respondent receiving the specific scoring sheet can be concealed can be concealed

After completion of matrix scoring and decision After completion of matrix scoring and decision regarding selectionregarding selection, disclose results to all respondents, disclose results to all respondents

It is helpful to offer all respondents the opportunity for It is helpful to offer all respondents the opportunity for a post-award meeting or de-brief, a post-award meeting or de-brief, so they may learn so they may learn where they can improve. Contact for such meetings where they can improve. Contact for such meetings should be arranged only through the original sole should be arranged only through the original sole contactcontact

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ConclusionConclusion Selection of the right team for an assignment is Selection of the right team for an assignment is

often the single often the single most important determinant most important determinant of the of the assignment’s success or failureassignment’s success or failure

Unless otherwise dictated by law or regulation, be Unless otherwise dictated by law or regulation, be careful to careful to look for the best look for the best valuevalue, which may not , which may not necessarily be provided by the lowest cost providernecessarily be provided by the lowest cost provider

Be certain that all Be certain that all questions are answeredquestions are answered to your to your satisfaction; if not, pursue them furthersatisfaction; if not, pursue them further

Do not allow time pressures to force a rushDo not allow time pressures to force a rush to to judgment, as the time which will be lost working with judgment, as the time which will be lost working with the wrong provider can overshadow the minimal the wrong provider can overshadow the minimal time required to make the right initial selectiontime required to make the right initial selection

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AcknowledgementsAcknowledgements

Significant portions of this workshop were originally developed bySignificant portions of this workshop were originally developed byThomas Beebe for the Construction Institute of theThomas Beebe for the Construction Institute of the

University of Hartford in Hartford, Connecticut. Mr. Beebe and the Institute University of Hartford in Hartford, Connecticut. Mr. Beebe and the Institute have allowed the use of this content, and their willingness to do so is have allowed the use of this content, and their willingness to do so is

sincerely appreciated. A group of dedicated industry professionals also sincerely appreciated. A group of dedicated industry professionals also contributed to the further development of this workshop, and their time and contributed to the further development of this workshop, and their time and

effort are reflected in the quality of its content. Their commitment to the effort are reflected in the quality of its content. Their commitment to the improvement of our industry is gratefully acknowledged. improvement of our industry is gratefully acknowledged.

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Questions and DiscussionQuestions and Discussion

Jan 2012Jan 2012