How to Write a Bid Proposal for Construction Projects (With Example!)

As a construction company or contractor pursuing potential clients, the first step to prove your eligibility and professionalism is crafting a compelling bid proposal. It is one of the biggest selling tools for your company, as it clarifies key details from the start.

This means, at the very beginning, you are already establishing a relationship with the client and your company's expertise, increasing your chance of being hired for the project. Though the construction bidding process can be stressful, having a detailed proposal needs your time, effort, and resources.

However, you can speed up the creation of this proposal by using a construction bid proposal template. And since you want a winning proposal, the template should have all essential elements so you can customize it according to the client's requirements.

So, how do you write a proposal for a construction bid? In this article, we'll show you how to craft a compelling pitch for your next project.

What is a Construction Project Bid Proposal?

A proposal for a bid is a document/ agreement that businesses use to outline their services, products, pricing, and the timeframe they will use to complete a specific project for a client.

Generally, a company uses a project proposal to showcase its qualifications and details of its estimated costs so that the project owner can use it to determine whether they are the best fit for the project. They are commonly used in the construction industry.

In construction projects, proposals are used by an individual contractor or a construction company contracted to handle the entire project for a client.

Though bid submissions vary depending on the industry, project, and the bidding process, they still have common elements, which we will discuss later.

How Do You Write a Bid Proposal for Construction?

A good construction bid proposal needs proper planning and attention so that you don't exclude any important information. So, how do you write a bid submission? First, let's look at its elements.

Elements of a Good Construction Proposal

A good proposal for construction typically has the following elements;

• Contact details
• Scope of work
• Existing condition
• Cost estimate
• Payment schedule
• Work schedule
• Terms and conditions
• Warranty information
• Signatures

Below, we will include a detailed explanation of what information is needed in each section for bid proposals. Before that, you must review the proposal template.

1. Double Check the Bid Proposal Checklist

Ensure you have reviewed and understood everything listed in the following documents;

• RFP document
• Standard form contract
• Plans and specifications
• Photos and scope narrative
• Insurance requirements
• Building rules and regulations
• List of approved subcontractors

At times project owner can provide a bid sheet template. If it's provided, ensure you go through all the requirements. Check to see if there is a missing section, provision, or clause because any decision you make at this stage affects the cost estimate in your bid submission.

Remember that most winning bids are the most professional construction bids. So, you should prove to your potential client that you take bidding seriously by providing accurate information.

Now that you know the elements of a proposal for construction bids, let's look at them in detail.

2. Contact Information

Include a heading clearly stating what it's all about on the first page of your bid document. Then, ensure you include the construction company and project owner details. Include both the both the construction company and the potential customer's names, addresses, emails, phone numbers, and job titles. Also, include the project details, such as the project's name and location. If any salespeople are involved, you can include their federal ID numbers and names.

3. Scope of Work

This is the most critical part when writing a proposal for a bid. As a contractor, you should focus all your attention on the construction project scope of work. This section should be clear, detailed, and comprehensive and include all the activities and tasks your company will complete.

It should include all your services, the steps you will use for the project, the materials, model and specification numbers, and additional construction process in detail. No matter what, don't use any corners in this section. In fact, expand on the proposed schedules, work grade, material quality, and any other aspect of the job that you think should be included.

Additionally, use this section to explain your understanding of the entire project. Explain your understanding of the whole project and what your roles and expectations are. You can also list any inclusions or exclusions.

Inclusions are all items, actions, and tasks listed in the scope of work, whereas exclusions are items and actions that won't be included. Here is a good example of exclusion. If you will be working with sub-contractors, include their estimated budget and information while detailing their responsibilities.

With such a detailed scope of work, you will prevent misunderstandings on tasks that are not properly listed or change order requests. Again, if the construction proposal templates do not mention steps for handling the change orders, ensure you articulate the whole process and steps for which both parties are held responsible.

4. Existing Conditions

As part of your bid process, conduct a preliminary site visit. Through the preliminary site assessment, you can detail your proposal's bid based on the existing site conditions. This way, you will know the actions needed to handle the challenging conditions. So, mention all the steps that will be taken to handle it and who will be held accountable. If the conditions impact the scope of work, mention those details too.

5. Work Schedule

For a construction project to be successful, you need to have a realistic and detailed work schedule. This includes the start and completion dates for every phase of the project. Ensure you include the time needed for permits and approvals of the project, steps of work, and potential delays caused by external factors such as delivery services, weather, etc. In case of external factors, please explain how you will go about it.

6. Detailed Cost Estimate

In this section, include all the project's cost breakdown. The cost estimates have to be detailed enough. It should be a breakdown of material, labor, equipment, and additional costs that may be incurred. Also, information about the allowance or amounts set aside for subcontracted work.

Remember, the accuracy and detail in the cost estimate can significantly impact the client’s decision-making process. It’s crucial to be as precise and realistic as possible to avoid unexpected overruns and to establish credibility in your cost management capabilities.

7. Payment Schedule

On the payment schedule, list pricing details such as total costs and provide a clear breakdown of payments. Remember this is a crucial stage, especially when managing your company's cash flow. You also have to include the amount you expect as a compensation. Then you can now detail the payment terms and how you expect it to be paid, which can be in percentages or milestones. Ensure you include the following in your payment schedule;

• Contractor's name
• Summary of the job completed
• Amount due
• Due date
• Paid amount
• Payment method

8. Warranty Information

As mentioned earlier, every detail you provide should be specific. So, in this case, specify if there are any warranties after the work is completed. As a contractor, it's best to include an express warranty. This specifies your responsibilities after the project. Include the duration and the coverage of the warranty. Now, warranties often cover a specific condition or state, you must include all ,these aspects and those that you are not liable.

9. Signatures

Finally, include a signature line section. This will serve as a formal statement or legal contract from all the parties involved.

Construction Proposal Template Example

Here is an example you can use when creating your construction proposals:

Client Information

Galore SPA 5430, Austin Street Las Vegas, 54, 20595 404-602-5555 Daymond@galorespa.com

Contractor Information

Gipsum Construction Company 6540, Jean Street Las Vegas, 54, 20595 404-302-5555 John@gipsumconstructioncomapany.com

Job Name:

Proposal For Commercial Building Construction Project Bid

Scope of Work

Our proposal includes the following scope of work;

Construction Job Summary:

The company will build a 5-story commercial building in downtown Las Vegas featuring retail units, office spaces, and parking facilities. We will use a systemic approach to project management, quality control measures, and detailed scheduling to ensure the project is successfully completed.

Gipsum Construction Company is committed to delivering high-quality and professional construction services on the time scheduled and within the stipulated budget. We bring over 10 years of experience in commercial construction, including the completion of a similar project in the same town. Our team is qualified and dedicated to delivering the best.

Work Schedule:

Our work schedule outlines timelines, key milestones, and completion dates for each phase of construction. The commercial Building Constriction Project is expected to commence on 30/02/2024 and be completed by 30/08/2024.

Proposed Project Budget;

The estimated cost of this project is $5,000,000 in total. This caters for labor and material costs, permits, and associated costs. The exclusion includes landscaping, land acquisition, and interior furnishes.

References:

Below are references from our past clients who can attest to the quality of our work and the reliability of our services.

( Reference)

Terms and Conditions:

This proposal is subject to the terms and conditions mentioned in the attached document. We have included the payment terms, warranties, and other contractual details specifically for your review.

(Attached document)

Bid Price:

_Our bid price for the construction of your Commercial Building Project is $5,000,000. Our price is valid until (expiry date) and a subject to change in case of changes in the scope of work.

Client Signature Daymond Kathy 2/2/2024 Contractor Signature John Carey 2/2/2024_

Mind you, this is just a quick example of a proposal. Remember to give detailed figures and data for all costs incurred.

Bottom Line

When writing your bid proposal, pay close attention to your scope of work, as all other elements depend on it. Try our template and ensure you are clear and detailed enough. If you need clarification, ask questions. So, whether you write your own proposal or use a bid proposal template, ensure its detailed according to the project scope.