For a General Contractor, the proposal is the most critical pivot point in the sales cycle. It is the document that bridges the gap between a “nice conversation” and a signed contract.
Too many contractors send a one-page invoice format that simply says: “Renovation of Master Bath: $45,000.”
In the high-end residential market, this lack of detail signals risk to the client. They don’t see the value; they only see the cost. To win competitive bids against other professional builders, your proposal must demonstrate competence, transparency, and organization.
We have compiled a Master Proposal Kit containing templates for the three most common contract structures.
[Download the Proposal Template Kit (Word/PDF)]
Different projects require different financial vehicles. Our kit includes templates for:
The standard “hard bid.” The client pays a single price, and the GC absorbs the risk of overruns.
The client pays for all actual costs (labor and materials) plus a fixed percentage fee for the GC’s overhead and profit.
A hybrid model. The project is Cost-Plus up to a “cap.” If the project comes in under budget, the savings are often split between the Client and GC.
Regardless of the contract type, a professional proposal must contain specific elements to build trust and limit liability.
Don’t just list line items. Tell a story.
Allowances are the #1 source of conflict in residential construction. Your proposal must define them clearly.
Never leave payments vague. The proposal should outline a payment schedule based on milestones, not calendar dates.
How detailed should the cost breakdown be? This depends on the contract. In a Fixed Price proposal, you should not break down every line item price (e.g., don’t show them what you pay the plumber). Give them the total. In a Cost-Plus proposal, total transparency is required.
Should I include a timeline? Yes, but cushion it. Use “Working Days” rather than calendar dates (e.g., “Estimated duration: 60 Working Days”). This protects you against weather delays and holidays.
Is this a legal contract? No. This is a Proposal. Once signed, it should be referenced as an exhibit within a formal Construction Agreement (like an AIA contract or your standard local agreement).
Creating proposals in Word is the industry standard, but it is fraught with “Copy/Paste Risk.”
We have all seen it. You copy a proposal from a previous job to save time, change the numbers, but forget to change the address or the client’s name in the footer. It looks amateurish and destroys trust immediately.
Word documents do not calculate math. If you update the “Plumbing” line item but forget to update the “Grand Total” at the bottom, you might send a proposal that doesn’t add up.
You spent hours building a detailed estimate in Excel. Now, you have to manually re-type those descriptions into Word. This double-entry is a waste of time and introduces transcription errors.
Bid Bench turns your estimate into a proposal instantly. Because your costs, scope notes, and specs are already in the system, you don’t need to re-type anything.
Win more jobs with less paperwork.
[Start your 30-day free trial of Bid Bench today. No credit card required.]