How to Actually Monetize Construction RFIs (Instead of Losing Money)

Table of contents

• RFIs: Tiny Acronym, Tons of Chaos, Total Opportunity
  • The High Price of Misunderstandings: RFIs' Financial Impact
• Outbuild's Digital Approach
  • Integration-Based Early “Alerts”
  • Performance Tracking
  • Data-Sharing and Teamwork
  • Resulting Financial Benefits
  • From Cost Drain to Profit Generator: 7 Real-World RFI Money-Making Strategies
• The Bottom Line: The Right Tools and Mindset Make RFIs an Opportunity
  • Proactive vs. Reactive: A Cultural Shift
  • The Ripple Effect of Positive RFI Management
  • The Future of Construction: Data-Driven Decisions

‍Learn how with the right approach, you can turn the tables and profit from request for information construction orders.

RFIs are used in all kinds of industries, so the first two questions are always:

1. What are RFIs? And 
2. What is an RFI in construction, or more specifically, what does “RFI” in construction stand for? 

Contrary to popular belief, the answer to those questions is not Reason For Increased (Headaches, Delays, Change Orders, etc.). The RFI report in construction (or Request for Information) is a thorn in the sides of project managers worldwide. 

These information-clarifying requests are known for causing delays, miscommunication, and increased project costs across the board. However, there is a bright side to the necessary evil we call RFIs in construction. 

Yep, it’s true. With the right approach, RFIs can become a source of profit instead of loss in construction projects.

In this article, we’ll explain…

• The nuts and bolts of RFIs
• Why they tend to hurt profits
• How you can turn them into revenue-generating opportunities

So let’s get to the nuts and bolts.

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RFIs are a common and important part of construction communication because they clarify doubts and keep everyone on the same page.

Despite their many drawbacks, RFIs play a valuable role in construction management. For example, they…

• Help win bids. A well-answered RFI initially shows the client that you’ve carefully reviewed the project and understand its needs.
• Lower risks. Oftentimes, RFIs can bring looming problems to light before they become unmanageable.
• Build relationships. They provide an excellent opportunity to build trust with clients and partners and demonstrate your expertise.
• Support quality control. RFIs can help you make sure that everyone understands the project's scope and expectations.
• Can help with record keeping. They naturally create a history of decisions and conversations as long as they’re kept and organized.

RFIs were designed to save, not cost money. But in the real world, there’s a problem.

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The High Price of Misunderstandings: RFIs' Financial Impact

A 2013 study by Navigant Consulting found that responding to a single RFI can cost a construction firm an average of $1,080. 

Considering the number of RFIs required for one project, this could lead to losses of $859,000 or worse on larger jobs. These numbers make it clear that better RFI management is urgently needed.

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Delays

RFIs are questions requiring answers. Because of that, work stops until those answers are provided. For example, a contractor pours a concrete foundation, but the rebar spacing in the blueprints isn't clear, so the contractor submits an RFI to the architect. 

Work on the foundation halts until the architect clarifies the spacing, which ends up delaying the framing schedule.

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Rework

Any way you look at it, RFIs cost money. We already have the foundation delay example above. Now, think of an electrician who installs conduit based on the electrical drawings, only to learn that a plumbing RFI has revealed a conflict.

Now you’ve got to deal with the worst of all project problems: rework.

The electrician has to reroute the conduit, which in addition to the expense of time delays, requires additional labor and materials, significantly increasing the project’s overall cost.

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Administrative Headaches

Traditionally, the construction RFI process has required tons of time and paperwork. On large projects, general contractors typically receive hundreds of RFIs via email, fax, and text. 

Tracking, recording, and responding to each RFI can be a full-time job in itself, diverting resources from other critical tasks.

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Disputes and Disharmony

Because construction communication tends to be decentralized, RFIs often lead to internal disputes and overall bad vibes. For example, consider a project where a liquid waterproofing detail is transcribed incorrectly in the architectural drawings. 

The liquid membrane specialist submits an RFI seeking clarification on material type. The admin incorrectly communicates the RFI response to the specialist, who ends up applying the wrong material. 

When there’s a leak, the contractor naturally blames the specialist; the specialist blames the admin, the PM blames the architect, and on it goes. Money and time are wasted, everyone’s angry, and the client is dissatisfied.

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Repetitive Questions

At the end of the day, many RFIs could be avoided with better planning and roadblock forecasting. For example, subcontractors shouldn’t have to submit RFIs asking for the standard paint color for the interior walls.

If the information is specified in the contract documents—and those documents are readily available to every stakeholder—there’s no need.

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Miscommunication

Information is always centralized in profitable projects. When it isn’t, conflicting answers to the same questions create miscommunication. For example, take an RFI concerning insulation, which is sent separately to the architect and the mechanical engineer. 

The architect tells one PM to use one type of insulation, while the mechanical engineer recommends a different type of insulation to a PM from another team. On the job site, this leads to confusion, frustration, disputes, and lost revenue.

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Unclear Communication

Poorly written RFIs create more questions than they answer. For example, an RFI asks: Can the ductwork be relocated? But it doesn't specify which ductwork or where it should be moved. 

This RFI needs its own RFI! Additional clarification like this is all too common. And it can have a huge impact on project resolution and timeline.

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Missed Opportunities

Missed opportunities are an underappreciated financial downside to RFIs that can directly affect company success. 

Here’s why.

RFIs require highly talented project managers, engineers, and estimators to devote considerable time and mental bandwidth to fielding deliberations and resolving information gaps. 

This is time and brainpower these especially capable team members could otherwise devote to the kind of high-level strategy and innovation companies need to stay competitive. Despite all their drawbacks, there’s no doing away with these pesky requests. They’re necessary and valuable pains in the proverbial arse. 

So what’s a project manager to do?

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Outbuild's modern approach totally revolutionizes the construction RFI process by digitally connecting RFIs to the project schedule.

Because teams actually enjoy using Outbuild, this simple connection transforms the chaotic RFI process into a process that’s organized and proactive.

Here are some of the ways it does that… 

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Integration-Based Early “Alerts”

When an RFI is added to Procore integrated with Outbuild, it automatically triggers the creation of a draft (or potential) roadblock in Outbuild, establishing a sort of “warning system” for potential problems. 

In other words, because every RFI is treated as a possible roadblock, you can easily find and address issues before they become major money pits.

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Performance Tracking

With the standard RFI, you get an initial request, followed by the work of several teams to address it. The results of that work and how it affected the schedule aren’t necessarily recorded. 

Outbuild automatically records this information and then gives you detailed analytics showing the impact of each RFI on your schedule. 

You can then use this info to make data-driven improvements to your estimation strategies and operations.

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Data-Sharing and Teamwork

Traditional RFIs create a top-down situation:

1. Leadership gets the RFI
2. The details are then communicated down the chain of command via phone, text, and email
3. And the miscommunication begins

With Outbuild, you get real-time updates from a centralized, user-friendly informational hub. This unified delivery encourages teamwork and gets everyone involved at once.

Additionally, it makes miscommunication virtually impossible because everyone is looking at the same information on the same platform, hugely shrinking the margin for error.

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Resulting Financial Benefits

These three things…

1. Knowing about the potential for RFIs before they happen
2. Having access to detailed performance metrics
3. And getting real-time updates from a centralized system 

…all work together in Outbuild to create a totally streamlined RFI process.

By simplifying the process, Outbuild helps avoid the delays and rework traditionally associated with RFIs. 

Mike Wong, Head of Customer Success at Outbuild, said,

“When your team uses a tool that can forecast roadblocks and remove constraints as a unified group, you become more resilient to inevitable change. As a result, the schedule—rather than project delays—drives the project. Just ask our clients; the money-saving implications are profound.”

In fact, Outbuild makes RFIs so simple you’ll find yourself welcoming them in so you can benefit from those business-boosting and revenue-generating powers we mentioned above. 

Remember, RFIs are a good thing because they…

• Help win more bids later in the process
• Lower risks by bringing problems to light early on
• Build relationships through trust
• Support better quality control
• Create a record of conversations that can mitigate disputes

No matter what, RFIs cost money. However, once you’ve got an organized process, you’ll begin to see the results of your RFIs generating profits that far outpace those costs.

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From Cost Drain to Profit Generator: 7 Real-World RFI Money-Making Strategies

Here are a few real-world scenarios illustrating how RFIs can lead to increased profits.

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Scenario: Simplification through Automation

A project manager using Procore is overwhelmed by the ongoing flood of paper and static digital RFIs, so he decides to implement Outbuild. Now, when any subcontractor submits an RFI through Procore, the crew is automatically aware of the potential roadblock in Outbuild. 

Cost-saving points

• Manual data entry eliminated
• Miscommunication reduced
• Liability reduced (no more lost paperwork)
• Response times increased

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Scenario: RFI-to-Schedule Connection

An electrician submits an RFI about a wiring detail discrepancy, and the RFI is linked to the electrical rough-in task in Outbuild's Look Ahead module. The project manager immediately sees the potential delay and adjusts the schedule.

Cost-saving points

• Response times increased
• Delays averted 
• Rework averted
• Liability reduced (safety risk avoided)

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Scenario: Data-Informed Decision-Making

A project manager reviews Outbuild's analytics on a big job and learns that RFIs related to concrete pours are seeing a disproportionate number of delays. An even closer look at the metrics shows these holds are due to missing structural engineer approvals. 

Armed with this insight, the PM knows to involve the engineer earlier in the process for future pours.

Cost-saving points

• Delays averted
• Rework avoided
• Communication improved
• Relationships strengthened

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Scenario: Quick Dispute Resolution

A dispute arises over a change order related to a previous RFI. On the same day, the project manager locates the original RFI and related communications in Outbuild and presents a clear record of the process.

The dispute is resolved by 5 p.m., everyone remains friends, and no one works overtime.

Cost-saving points

• Liability reduced (recorded processes)
• Delays averted
• Rework avoided
• Relationships strengthened

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Scenario: Automatic Teamwork

A plumber on a hectic job discovers a potential conflict between the plumbing and HVAC systems, issues an RFI in Procore, and then moves on to address a sudden fire drill. Since the RFI has triggered a potential roadblock in Outbuild’s Look-Ahead module, the project manager is alerted to discuss the issue with the HVAC subcontractor. 

Without the plumber’s involvement, they’re able to quickly devise a solution to address the conflict before it becomes a problem.

Cost-saving points

• Delays averted
• Rework avoided
• Communication improved
• Relationships strengthened

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The real takeaway here is that the RFI for construction is a double-edged sword. It can drain your resources or, with a shift in perspective and the right tools, become a valuable asset. 

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Proactive vs. Reactive: A Cultural Shift

Many construction professionals view RFIs as an inevitable annoyance—a reactive part of the process. But we can flip the script. Instead of dreading the next RFI, think of it as a trigger for proactive problem-solving. 

Every RFI is a chance to fine-tune your processes, strengthen relationships, and ultimately deliver a better project that gets you more jobs.

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The Ripple Effect of Positive RFI Management

The benefits of automated RFI management extend far beyond the immediate project. When you show the industry you’re dedicated to efficient communication and problem-solving, you build a reputation for reliability and excellence. 

This leads to:

• Increased Client Satisfaction. Happy clients are more likely to recommend you, leading to more projects and opportunities.
• Stronger Partnerships. Subcontractors and suppliers who enjoy working with you will prioritize your projects, helping you secure the best teams.
• Reduced Legal Risk. A well-documented RFI process minimizes misunderstandings and disputes, protecting your company from costly litigation

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The Future of Construction: Data-Driven Decisions

Like it or not, the construction industry is on the cusp of a data revolution. 

By harnessing the insights from platforms like Outbuild, you can make informed decisions about everything from staffing to material choices—and stay ahead of the competition. This level of data-driven precision can improve your project outcomes and bottom line in unimaginable ways.

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Actionable Steps

1. Assess Your Current RFI Process: Identify pain points and bottlenecks in your current system.
2. Explore Technology Solutions: Research RFI management software (like Outbuild) and see how it aligns with your needs.
3. Invest in Training: Make sure your team is equipped to use new tools effectively.
4. Embrace a Visionary Mindset: Encourage open communication and view RFIs as opportunities instead of obstacles.

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The Choice is Yours

You can continue to let RFIs be a financial drain and a source of stress, or you can grab hold of a new way of working—your most proactive competitors most certainly are.

By adopting the right tools and promoting a forward-thinking culture, you can transform RFIs into a powerful tool for project success and use them to future-proof your company for long-term growth.

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Do you have questions or want to learn more about how Outbuild can transform your RFI process? Start your 14-day free trial today or book a demo with one of our experts to see the impact firsthand!

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