bus, request for proposals (RFP)

Summary

Many industries have standard forms of contracts for the acquisition of goods and services. Buyers and sellers in those industries become familiar and comfortable with those forms. The goal of creating a common method of contracting enables participants to focus, when necessary, on negotiating only those issues for which a departure from the accepted norm is necessary or desirable. This approach will save considerable time and effort for the parties to a particular transaction. It also permits new provisions or evolving best practices to be incorporated into the standard contract for that industry efficiently and in a manner designed to benefit the entire industry. Finally, standardization leads to a consistency of interpretation that presumably should reduce the number of contract disputes and result in better prices for both the public and private sectors.