Construction Proposal Elements: What to Include

There are several construction proposal elements that you should always include to make sure your clients find all the details they need to make a decision.


Construction Proposal Template Free Samples

Elements of a Construction Proposal

Bidding on construction projects is a stressful process. It takes time to create accurate construction bids and new proposals, get internal approval on the price and terms, and then send them to your clients. The time it takes to create a new proposal for every new project can be saved for other activities like follow-up. All you have to do is create a construction proposal template for your project categories. Download a free library of construction proposal templates here.

We analyzed proposals from different specialty contractors for a variety of building projects and compiled a list of 7 elements that should appear in a construction proposal. This article provides information about the elements of a construction proposal template and the order they should be listed in your proposal.

1. Specifications of the parties

The first element of a proposal will highlight the specifics of the parties involved. You wouldn’t believe how many proposals lack such information! To be more specific, include the project name, contact names, addresses, dates, and location of the parties.

2. Scope of project

The second element of the proposal is also known as the scope of project. This will include extensive body of information that will make up most of the proposal. It is mandatory for each construction proposal template to include such element. In this section you will get a chance to describe the services offered. Make sure to include specifications for:

  • materials used
  • construction plans (drawings you may produce) and calculations
  • work quality and difficulty
  • tests and certifications
  • guarantees and annual inspections
  • bond and insurance information

If any of the information is wrong or not filled out, it can lead to disputes later in the project.

3. Costs and terms of payment

The third element of the proposal is also known as the administrative breakout. This area identifies the costs and terms of payments of the proposal. Make sure you add any exceeding costs within the area, if necessary. Establish a payment schedule for the frequency and the amount owed. Identify any milestones related to payments plus extra terms and conditions. The more specific the conditions, the more efficient the outcome will be. It is crucial for both parties to acknowledge and accept the scope of work, costs, and terms in writing. Otherwise disputes may arise later in the project.

4. Fixed work schedule for the project

The fourth element, fixed work schedule for the project will identify the start and end date. This element won’t apply to all commercial projects, but if it does, make sure to include it. Identify any notice dates, approvals, easements, or construction permits. Make note of any delays due to unforeseen events. Also mention your liability as a sub-contractor related to delays or under-performance.

5. Relevant authorities

The fifth element, relevant authorities, establishes the individuals’ identity involved in the project. More specific, identifies the legal authority of the individuals. Make sure you are very clear about the involved authorities. Municipalities, affiliates, partners are a few examples.

6. Exclusions as part of a construction proposal template

The sixth element is also known as exclusions. Exclusions provide information about work provided by others. It is important to be thorough with exclusions, so that it is clear what you will not be responsible for. A few examples of exclusions are:

  • site work
  • any work that ties into yours but other trades will perform
  • permit fees
  • warranty beyond the term specified in terms
  • and more

7. Alternates in the proposal template

The Alternates element is not mandatory for all proposals. When existing, alternates identify a cheaper or more expensive alternative. Some examples of alternatives are:

  • work that you or other trades can perform and the general contractor has an option to decide on which one
  • performance bond expressed in a percentage of total of contract

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Elements of a Construction Proposal Template Infographic