The 3 Types of RFPs You Should ALWAYS Walk Away From
We’re all builders at heart. We’re problem-solvers. This “can-do” attitude is our greatest strength, but it can also be a weakness when it pushes us to chase every single opportunity, even the bad ones. Learning to walk away is not a sign of weakness; it’s a strategic skill that protects your profitability, your team, and your reputation.
After reviewing thousands of RFPs, we’ve identified three clear types that you should walk (even run) away from.
1. The “Puzzle with Missing Pieces” RFP
What it looks like: This RFP is vague, incomplete, and light on crucial details. The scope is described in fluffy marketing language instead of technical specs. The budget is either missing entirely or seems wildly unrealistic. Key drawings or geotechnical reports are “forthcoming” or available only after you sign a burdensome NDA.
Why it’s a red flag: An unclear RFP is a ticking time bomb. What the client envisions and what you price based on vague descriptions are almost guaranteed to be two different things. This leads to:
Scope Creep: The project will inevitably expand, but your fixed-price bid won’t.
Change Order Battles: You’ll be constantly negotiating for fair compensation for work the client assumed was included.
Strained Relationships: The project becomes a contentious debate over what was promised, rather than a collaborative build.
The Bottom Line: If you have to make more assumptions than calculations during the bid phase, you are setting yourself up for a dispute. A professional client provides professional documents. A lack of clarity in the RFP signals a disorganized and high-risk client.
2. The “Race to the Bottom” RFP
What it looks like: This document screams, “PRICE IS THE ONLY FACTOR.” It’s often a standardized, commoditized form with little room to demonstrate your company’s unique value, safety record, or expertise. The selection criteria are 90-100% weighted on cost. You may also notice an unusually short bid period, pressuring you to cut corners in your estimation.
Why it’s a red flag: This client doesn’t see you as a partner; they see you as a commodity. They are shopping for the cheapest hammer, not the most skilled builder. Winning this “race” often means you’ve left money on the table—or worse, you’ve bid below your own costs.
Zero Profit Margin: You might keep the lights on, but you won’t be investing in new equipment, training, or your team.
Corner-Cutting Culture: When price is the only driver, quality and safety are the first casualties. This is a dangerous path for everyone involved.
Bad Reference: A project done at a loss for a difficult client will never be a good case study for winning better work.
The Bottom Line: Competing on price alone is a sucker’s game. There will always be someone hungrier and more desperate to underbid you. Profitable companies compete on value.
3. The “Here’s How You’ll Work” RFP
What it looks like: This RFP comes with an attached mountain of “boilerplate” documents: a take-it-or-leave-it contract, onerous insurance requirements, and punitive payment terms. Look for clauses that transfer all risk to you, like uncompensated delay clauses for any reason, excessive liquidated damages, and a payment schedule that holds retainage until 60 days after final completion.
Why it’s a red flag: The RFP itself is a preview of the client’s adversarial mindset. They’ve written the contract to protect themselves at your expense, before a single shovel has hit the dirt.
Financial Risk: Slow payments and high retainage strangle your cash flow, the lifeblood of your business.
Uninsurable Risk: Some risk transfer clauses can make the project uninsurable or force you to purchase prohibitively expensive coverage.
A Litigious Partnership: This client has already prepared for a fight. The entire project will be managed through the lens of the contract, not collaboration.
The Bottom Line: If your gut clenches when you read the proposed contract, listen to it. No project profit is worth the existential risk of signing a fundamentally unfair agreement.
Building a Disciplined Business
Walking away from an RFP feels counterintuitive. It feels like leaving money on the table. But in reality, you’re making room for the right projects—the ones with clear scopes, fair clients, and healthy profit margins. The most successful construction companies aren’t the ones that win the most bids; they’re the ones that win the right bids. They qualify their opportunities as rigorously as they execute their work.
What's the worst RFP you've ever seen? Share your red flag stories with us on LinkedIn and let's help each other build smarter businesses.
Thanks for reading,
Lorraine Cline DeShiro
