Whether it is a residential or commercial construction, a construction proposal has always been challenging for construction contractors. This is because the owner or developer is always looking for the lowest cost with the best experience. In order to compete favorably in the bidding process, you must create a good construction bid template. The following step by step guide will offer some help.
1. Start creating your construction proposal template on your company’s letterhead paper. If you have not yet created a letter head paper, simply add your logo to a blank document. Add your company name, address, phone number and fax number. You are also expected to specify who the proposal is being address to, their company name and individual name if available.
2. Put the title of the document as “Construction Proposal”. You can put the name of the job and the date of your bid underneath.
3. Include the exact scope of work you intend to carry out. For instance, if your construction proposal example deals on door and Hardware Company, you may need to provide list of materials and labor you are providing. Note that by including a detailed scope, it is easier for the owners to make a competitive comparison of your proposal with others. It also helps you look professional and organized.
4. List your price which should include your overhead and your profit. If possible, give a breakdown of your cost. For instance, a contractor may list a total price of $5000 with an added $2000 for installation fees. This will help the developers or owners understand your sample construction proposal letter among other competing interest.
5. In this section, you have to indicate whether tax is included in your quoted price or any other special considerations such as insurance costs or bond premiums.
6. Conclude your bid with your name and contact information. This is important in case where the owner or developer may want to contact you directly for clarifications or change in the process.
1. When creating a construction proposal, it is important to outline procedures for change order. Ensure that your proposal clarifies the steps to change an order and the owner or developer must understand that any change no matter how big or small must follow the procedure for “change order” and may lead to an additional cost.
2. Ensure that your costs are well captured. For example, after your study of the job, determine your profit, overhead and contingency. Do not forget to add contingency fees due to unforeseen circumstances. This serves as a protection from rising unbudgeted cost for contractors. Note the owner will not bear the cost of any unforeseen circumstances.
3. Spend a little more time on the scope of work. Do not stay generic in the description of your scope of work. Give full details and make the client understand that you will not honor any warranty work on their supplied materials or fixtures.
