Construction Procurement Terms

Procurement terminology describes how teams buy out work, compare responses, commit cost, and protect the schedule from late materials or awards.

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Use this page when issuing bid packages, leveling bids, tracking long-lead items, or awarding subcontracts.

12 linked definitions.

Term	Meaning
RFP Request for Proposal	An RFP is a procurement document requesting proposals for a defined project, service, or scope of work.
RFQ Request for Qualifications	An RFQ is a procurement document used to evaluate firms based on qualifications, experience, and capability.
ITB Invitation to Bid	An ITB is a formal invitation for contractors or suppliers to submit competitive bids.
Bid Package	A bid package is a grouped set of scope, drawings, specifications, and instructions issued for pricing.
Buyout	Buyout is the process of awarding subcontracts and purchase orders after pricing has been received and reviewed.
Procurement Log	A procurement log tracks required materials, equipment, subcontracts, buyout status, lead times, and delivery dates.
Long-Lead Item	A long-lead item is a material or piece of equipment that requires a long time to purchase, fabricate, or deliver.
Purchase Order	A purchase order is a contract document used to buy materials, equipment, or services.
Request for Quote	A request for quote asks a vendor, supplier, or subcontractor to price a defined item or scope.
Subcontractor	A subcontractor is a company hired by a contractor to perform a specific portion of the construction work.
Trade Contractor	A trade contractor performs a specific construction trade or specialty scope.
Commitment	A commitment is a subcontract or purchase order that commits project funds to a vendor, supplier, or subcontractor.