Construction projects are always vulnerable to risks. Thus, the focus of the clients is to correctly state the scope, objective, and other details of the construction project. Therefore, the use of a construction proposal template proves fruitful.
What is a construction proposal?
A construction proposal is a formal written offer from a bidder to the owner, ideally on a prescribed proposal form, to do the work and to furnish all labor, materials, instruments, or services for the prices and terms quoted by the bidder. In easy words, it includes;
- Quotes received from suppliers for raw materials.
- Proposals from subcontractors for their portion of work on the project.
- Guess the labor costs, taxes, and other overhead.
- Moreover, it also contains a markup of the contractor’s profit.
Free Construction Proposal Templates
What is a construction checklist?
A construction checklist is a list of items that you require to have ready for construction. Also, it’s the list of procedures and processes that you require to complete the construction of specific infrastructure. This checklist allows you to check on not missing crucial things that require to be mentioned in the plan.
How do you create a funding proposal?
Here are 5 steps that will help you to create a funding proposal;
Step#1: Firstly, you have to provide a project outline before creating a funding proposal. This shows the main goal for the proposal sample. In addition, this gives the parties a general idea of what the project is going to be about.
Step#2: Secondly, provide background information about all the parties that are included in the proposal. Also, provide information about the company and the investors in it as well. Discuss in detail what goals and objectives your company needs to achieve.
Step#3: Next, mention all the resources that you require to complete the project. Also, make a list of all the types of equipment that are needed.
Step#4: The most crucial element in proposals is budget. When the budget is planned then evaluating the proposal becomes easy. This provides you a general idea of what the income and expenses would be for the project throughout.
Step#5: When you have all done with drafting the proposal, recheck it thoroughly. Then, give it to your investors and clients as well so that they know what the project is about and the details of it. However, signatures are very important to declare your proposal legal. So, sign it with all the parties that are involved in the project.
How do I create a construction proposal?
Here are some tips for creating a construction proposal template;
- Ensures that your product knowledge is wide enough to cover all the important requirements of the specific undertaking.
- Make a list of all the things that affect the construction project such as threats and risks. Also, discuss how you will be able to manage these things as well.
- In the construction proposal, a cost proposal is a very significant section that has to be present.
- Selecting the design proposal template to be critical. Your proposal must be professionally-curate, systematically organized, and precise.
- The items that you place in the construction proposal make sure are attainable.
What elements should a construction bid include?
The following information must be included in a construction bid;
- The basics
- Project scope
- Existing conditions
- Cost
- Terms of payment
- Relevant documentation
- Work schedule
- Formal bid and signatures
Printable Construction Bid Proposal Form
Elements of Construction Proposal Template:
There are several formats and structures of the construction proposal template. However, the basic purpose of a construction proposal is to safeguard every stakeholder of the project.
Thus, the following elements must present in the construction proposal to avoid conflict and vulnerabilities later during execution or at the time of project closing.
- Introduction of Parties
- Project Scope
- Estimation of the Project Cost
- Project Work Schedule
- Relevant Authorities
Introduction of Parties:
The construction proposal or contract is a legal document. So, the complete identification of all the participants is a must. However, beginners overlook this requirement and face issues at later stages especially in case of any conflict.
Thus, it must include the name, signature, addresses, and authorized stamp of the parties. If the proper identification isn’t used, the contract can’t be challenged in court.
Project Scope:
It’s the most important section of the construction proposal. It includes the details of the work being agreed between the parties for a single lump-sum amount of money.
Thus, the details of the work include a description of tasks, grade, quality, materials, and schedule. However, any other description that is important to mention can be stated in this section.
The change order SOP should also be defined in this section to avoid conflict of interest during the project execution stage.
Project Cost Estimation:
The project cost estimation states the cost of services being stated in the scope section. It also includes how the settlement will be done in case of inflation and how the change order costs will be handled.
Further, it must include a clear payment schedule or cash flow projection for the construction project. Thus, both the companies should know how the cash flow will be managed during the project execution and on the achievement of set milestones.
Any special conditions that may force the early release of payment or warrant the release of money can also be included in this section.
Best Construction Proposal Example
Project Work Schedule:
Although the work schedules for the construction project are always vulnerable to risks for the categories of natural disasters, environmental changes, and political situation. However, the work schedule is supposed to state the expected start and end date of the project.
Further, the conditions to extend the contract and contractors’ liabilities for special cases should be discussed. Situations like delays in necessary approvals, frequent change orders, and poor weather conditions often let to the extension of the contract period.
The working days’ schedule and gazette holidays should also be included in the project work schedule section.
Relevant Authorities:
Construction projects are often long-term and engage a lot of subcontractors. Thus, the client and project managers require to define a proper authority matrix for different functions.
So, the authorities to sign legal contracts at different stages are well defined in the authority matrix to avoid the movement of files in the vertical hierarchy.
Things to consider before writing a construction proposal:
Here are the things you must consider before writing a proposal;
Do your research
Start your construction project with research. Without doing extensive research on every facet of what you’ll be writing and delivering, don’t start writing your proposal. The construction proposal defines the goods or services you aim to provide.
Check state and local laws
There might be mandatory requirements that your construction proposal must follow on the basis of the state you will be working at. These may include the following;
- The specific contact information
- As a deposit, the amount limit you are allowed to request
- A legal registration of all participating contractors and subcontractors in the project
- A dispute resolution clause
Meet with prospective clients
It is important to understand while making a construction bid proposal for a new prospective client who they are and what they are all about. Before drafting a proposal, arrange a meeting with your clients. It enables you to learn more about their industry. Also, you can get important information regarding the project that may be important to include in your proposal.
The significance of a construction proposal schedule:
Let us discuss below the importance of a construction proposal schedule;
Realistic project duration
You can easily understand through the construction proposal document whether or not the project is realistic and achievable. None of the contractors wants to take up a project with an impossible completion duration. With the help of project duration, you work out the overheads you expect to incur.
Identify your estimates
Most contractors appreciate a resourced schedule. They allow you to calculate, check, or estimate your tender requirements. You must submit a tender for a project along with the bid price. This indicates to the clients that you know what have to do to complete the project.
Client obligations
A good construction proposal highlights the client’s obligations toward the completion of the project. For example, you can state in the proposal that the client will be required to provide unique access to specific resources.
Cash flow forecast
You must forecast the cash flow demands throughout the project while working on your proposal. A lot of contractors failed in their projects just because they ran out of funds not because they weren’t able to do the right job.
Moving critical paths
You will figure out how to complete a project faster and more effectively by having a proposal that has been worked on by an expert. Also, you can easily complete a 36-week project in 32 weeks with all the resources at your disposal and it enables you to use the rest of the time for something else.
Activity sequencing
Construction proposal makes you able to reorganize the activities in a way that they are to be carried out. Some activities can be extended or some can be shortened in such a way that the utilization of resources is optimized. This way, you can safeguard your project from mandatory demobilization or remobilization of resources.
Monitor milestones
A proposal makes you able to identify the team goals and milestones when you have organized this document accordingly. Furthermore, you can figure out the best way with this to go about accomplishing the set targets.
Monitor supplies and suppliers
The proposal contains the dates and times for monitoring specific materials that will be needed on the construction site which help you in monitoring how the suppliers and sub-contractors are going with their deliveries.
Guide subcontractors
Give the subcontractors with the proper schedule. This provides them a good understanding of the duration of the construction project as well as the resources that are needed from them.
Resource mobilization
When proper mobilization of resources are mentioned in the proposal, it helps you to know the type of resources you require and when they are required. During working on the project proposal, the managers did not understand the nature of efficient project resourcing if the project has not been planned out properly.
