How to Make The Best Construction Proposal Template
Most construction projects have a bidding process before they start, where a project owner will hire a general contractor based on its project bid or project proposal.
The contractor will present their bids using a construction proposal template. It outlines all the details clients might want to know and provides you the space to answer most of their questions and win their business.
A construction project must start with the proposal, which is why you need a good construction proposal template. You will also need a credible legal officer to review the contract and check whether it has been drafted according to the state's legal requirements. It has to be fair for all the parties involved in the proposed project.
That's what you will learn here: what is a construction proposal, why it is important, how it is written, and how to make the best template for it.
How to Make The Best Construction Proposal Template
What is a Construction Proposal
A construction proposal is used in the bidding process when you try to win the contract. A construction proposal form with detailed project information will be your showcase, a legal contract, protection, and a great sales and marketing tool.
It is more detailed than a simple project bid and will help you avoid conflicts during construction. Suppose the owner wants you to do some work you don't perform. In that case, you can refer to the construction project proposal to show exactly what you have been contracted to do and what your obligations are.
The construction proposal process will help you see if the client's expectations are realistic and decide on the project's feasibility. Your proposal could offer the client a more realistic alternative and outline why your business proposal is a better choice.
You can also show clients how well you know their project while also showing off your reputation and skills. It will also include task scheduling to ensure the progress throughout the construction process, keeping the job on track.
Key Elements That Compose a Construction Proposal
A well-made construction proposal will safeguard you, your company, and your best interests.
Several elements must be present in every construction proposal. Ignoring them will result in showing serious vulnerabilities in your bid proposal.
Basic Information of the Parties
The identities of all the parties involved must be stated in the construction proposal. Doing so will make it a legally binding contract.
The template must have the necessary contact information, such as names, addresses, and signatures of the parties involved.
Provide it appropriately to make the contract possible to be considered legal in a court of law.
Scope of the Project Proposal
This section of the construction proposal has to highlight the services offered by each of the parties involved.
It should be a transcription of the grade of work, quality, schedule, materials, and any other relevant feature to see through the entire project.
Cost and Terms of Payment
It highlights the cost of all the services that will be rendered and any additional costs that might be running beyond this project's scope.
It should also clearly indicate the terms and conditions of payment, its schedules, and the amounts upon achieving specific milestones.
Work Schedule
It provides notice of when the project will begin and end. It also indicates the date when the contractors will receive a notice to go ahead with the construction project.
It is mandatory to state the extent of the contractor's liability in the bid proposal template with respect to the delays that may occur due to the actions of the project. The same applies to delays in getting the needed approvals or permits by the property owner or even due to weather conditions.
You need to note the difference between the working days and calendar days. It has to be a provision for supplier lead times, and if any change happens in the projected orders, you need to highlight how it will affect delivering the project on schedule (and how much more time it will take).
Relevant Authorities
It is very important to highlight the different parties under authority in each stage of the project. Also, who has the legal authority to enter into any legally binding obligation at each stage? It has to be determined before the project starts.
For huge projects, there are going to be different small ones being undertaken within the bigger project. The completion of each will result in the entire project coming to fruition.
It is a simple feature, but without it, if there are any errors, you could get confused as no one will clearly know who should take responsibility for a given task.
Why Do I Need a Construction Proposal Template
There are good reasons why you need to prepare construction proposal templates. It is a critical construction management document used to acquire work.
You need to convince your potential client that your construction firm is the right one and highly competitive with the rest of the construction companies.
The project proposal will outline the scope of the construction project, including costs. It is the first step in making a legally binding contract. To beat the competition, you need to have the best bid proposal and the one that meets the client’s needs and gives you profit.
Sets a Realistic Project Duration
This document will make it easier to understand if the project's duration is realistic and achievable. Failure to meet the deadline usually results in penalties due to late completion.
If you consider your client’s requirements impossible to meet in their specific period, you can submit a different bid proposal with an updated schedule that you can complete.
Project duration will also help to solve the problems you expect to incur, such as running costs, management costs, and supervision.
Defines Your Estimates and Client Obligations
A resource schedule offers a good opportunity to calculate, estimate, and check your tender requirements.
It is usually a fine idea to submit a tender for the project, complete with the bid price. It’s good for the client as it shows you have reviewed the entire project and know what to do to complete it.
A good construction proposal will also enlighten the client with some of their obligations towards completing such a project.
Monitors Supplies, Suppliers, and Milestones
There has to be a guideline to monitor the dates when certain materials are needed on the construction site and when they need to be delivered. It will help you determine how sub-contractors and suppliers are going about the deliveries.
A well-organized construction proposal template will allow you to determine the team milestones and when they should be met. Then, you can figure out the best way to reach certain goals within the project.
The sequence of tasks will guide project managers and supervisors on the activities that need to be carried out and the corresponding order of completion. Without it, you will have different parts of the team working on different things and not knowing their targets.
Optimizes Resources and Guides Sub-contractors
Proper resource mobilization can be mapped out in advance, helping you to know the type of resources you need and when.
If the project hasn’t been planned out properly, you will end up with a construction project with either too many or too few resources available. This could happen because managers didn’t understand how to efficiently manage resources when working on their project proposal.
Sub-contractors also need a proper copy of the proposal with a well-established schedule. It guides them when tendering so they have a good understanding of how long the construction project will take and the resources that are needed from them. It will effectively reduce the prospect of claims or disputes.
Better Management of The Construction Project
Many construction companies overlook this document because they fear they would have to honor commitments, such as completion time. Also, they will have to invest more resources and time to correct things if anything goes wrong or issues occur.
But they don't realize that the document will give them a chance for efficient project management and ensure the client will live up to their obligations and expectations.
Get Your Free Construction Proposal Template!
Now that you know how to craft a well-made construction proposal template and why it is so important, it is time to make one of your own.
Making one from scratch is a daunting task. So, we will give some free construction proposal templates to give you a head start in such a task. All you need is Microsoft Word and Excel installed on your PC.
If you need a CD key for Word and Excel, you can purchase Microsoft Office 2021 Professional Plus Key Retail Global at a low price in the RoyalCDKeys store. You will get the latest version of Office and get such programs as PowerPoint, Outlook, and Access, alongside Microsoft Word and Excel.
Construction Proposal Template
This template captures all the information that a construction bid outlines. There is a place for the client to sign if they accept the bid, allowing the document to act as a legally binding contract. Although, in some cases, a signature might be required as an acknowledgment of receipt.
You can download it from ProjectManager.
Simple Construction Proposal Template
This template has a basic design for different kinds of construction proposals. It includes details for the contractor and the owner, along with sections to outline the scope, terms, exclusions, and itemized costs.
You can download it as an Excel file from Smartsheet.
Residential Construction Proposal Template
You can create a thorough proposal for a residential construction project that includes a cover letter and qualifications details, together with the proposed home plans and examples of previous projects.
You can download it as a Word document from Smartsheet.
Construction Proposal Materials Template
This template can be used to complement or extend another bid proposal, as it has a large table where you can specify all the resources that the construction project requires, together with their costs.
You can download it as an Excel file from TemplateLab.
Commercial Construction Proposal Template
This template provides an outline for making a commercial construction proposal. It can be customized based on the project type and scope. You can provide clients with a breakdown of proposed schedule phases, construction responsibilities, relevant experiences, key team members, and pricing.
Key Takeaways
Getting your construction proposals done in a timely manner is crucial to winning project bids. Using one of the templates above will help you get the job quicker than doing it from scratch and even more when deadlines are present.
Consider all you learned above, and you will be able to win more bids, complete more projects on time, and remain within the budget. You will be making profits while saving time.