The construction business is quite a lucrative industry. And, as in any profitable business, competition reigns here. Therefore, companies widely use all available marketing tools to attract orders and customers. One such tool is a Construction Proposal.
In this article, we will tell you why it is important for a construction business entity to have a Construction Proposal, cover the existing proposal types, and explain what points must be taken into account when drafting the document. You can also use our form-building software to compose the correct proposal form.
The construction business is a type of industry where relationships are highly valued. The general contractor will be invited to work with a company that is convenient and pleasant to work with. The more general contractors you know, the more you can get invitations to bid (ITB). When you receive such an invitation, it is very important to take your chance. That is when Construction Proposal comes in handy. A correctly drawn-up document helps you receive an order, and the client may choose the most suitable company.
Construction (or Contractor’s) Proposal is a large group of proposals, which can be roughly divided into two types:
The first package of documents is a direct marketing tool. You use it to send to potential clients, companies that you would like to start collaborating with. You represent your company favorably, talk about its advantages. Basically, you are trying to convince the client to work with you and include you in the bid lists.
Bid proposals are more specific proposals. Their goal is to win a job tender. In such proposals, you set out your current proposal for a specific project, and the customer selects the most suitable company. Usually, they are chosen for the most appropriate cost of work, terms, volumes that the contractor can perform. The bid proposal should be concise and understandable so that the customer can immediately evaluate your proposal and not be confused by numerous pieces of information.
Ideally, it is better to have several ready-made templates that you can use for different purposes.
In the case of a marketing proposal, this can be a colorful option that promotes your services. You use it to get valuable contacts.
The BID proposal does not require a bright design. The most important thing in it is clear information:
It is very important to accurately describe the offered services. So that the client does not expect more from you than you actually provide. It is better to avoid misunderstandings at the very beginning of the journey, not to put yourself in an uncomfortable position.
Competent preparation of the BID proposal will bring you a sale.
If the resources and size of the company allow you to do so, set a sales department. Their tasks will include searching for and working with the tenders, calculating proposals, and competently presenting the Construction Proposal. You can hire both a sales manager and marketers and estimators to your newly established department. All employees must have a good understanding of the specifics of the business industry and the product or services you offer.
The goal of this package is to impress the potential client. You must interest them and attract, initiate your relationship.
A good marketing proposal consists of:
You must be able to estimate the work ahead correctly. When preparing a BID proposal, it is important to get the price right. The general contractor often selects those who provide the most advantageous offer. But at the same time, you still need to make money on the project. Therefore, it is crucial to draw up a complete list of required services and evaluate them correctly.
It is equally important to submit your proposal clearly within the specified deadline. Proposals submitted after the deadline are often not even considered, despite the fact that they can be excellently written.
Your BID proposals must meet the following qualities:
The design is not as important here as the information itself. Items to be included:
Since the BID proposal is an actual proposal, you must sign the document. Clients also sign the paper if they accept the proposal.
We have prepared a step-by-step guide for you on how to fill out the Proposal page itself. In addition, it is recommended to add a Cover with the logo and design of the company. But it is this paper that will be an official document.
Give License Data
In the upper left corner, enter your license number and expiration date. Provide contact information for your company (address, telephone, name of the proposal’s originator).
Enter Customer Details
Indicate the details of the person to whom this offer is intended:
Provide Job Details
Indicate the date of the proposal. Then describe the job itself — name and location.
Describe Your Services
Give a complete description of your work, including timing and framework. Describe everything in detail, indicating all stages of work. It will protect you from misunderstandings with the client. The clearer the proposal and the framework of the job are, the better for you. In this case, if the client wants to increase the volume of work or receive additional services, you can issue an additional invoice for them.
If you run out of space, add more sheets. If so, add the numbering of pages in the upper right corner.
Set a Price
Indicate the total cost of all listed works. First, write the sum in words, and in parentheses, write the number in digits.
In addition to the total amount, you should indicate:
Provide complete and accurate information regarding payments so that the client understands the whole picture.
Sign and Set the Deadline
Put your signature to certify the authenticity of the offer. It is also recommended to give a deadline — how many days the client can consider your proposal. It is especially worth doing when you are competing in several projects and will not be able to handle all of them in case you win. It is quite possible that in a month you will no longer be interested in this project. So setting a deadline for the client’s decision will serve as a safety net for you.
Get Customer Signatures
You do not need to complete this section. The client signs and dates the document and then returns you one copy once (and if) they approve the proposal.
If the client accepted your offer, then we can congratulate you. It technically means that you did the best and were able to attract the project. Now it is time to draw up a contract and get to work.
If you have not won the tender, do not be discouraged. Do additional work, get feedback from the customer, find out what points they did not like, and improve them.