Last Updated August 3, 2023
What is a proposal?
A proposal is a document that businesses and contractors use to show clients how they’ll tailor services to meet specific needs. For example, construction companies and consultant businesses often use proposals when bidding on client projects.
Most importantly, this document gives an accurate price quote and time estimate, which helps contractors clearly demonstrate the value of their services.
Finally, the proposal may introduce key contract terms for the client to know. This can include details such as when the quote expires or any possible cost exclusions.
A Proposal Template is also known as:
- Bid proposal template
- Construction bid template
- Contractor proposal template
- Freelance proposal template
- Business proposal
What’s the purpose of a proposal?
Proposals persuade clients to hire a contractor by presenting a solution to their problem or need.
A proposal won’t necessarily explain every detail of how their services work. Rather, it often outlines the deliverables that a contractor can offer.
For example, imagine a business that wants to build a commercial office complex. They’re looking to replace their contractor after running into several issues that have delayed the project.
To highlight a solution to this problem, a construction bid might elaborate on the contractor’s experience with effective project management, functional designs, and quality control processes.
In the end, the client reviews the proposal and decides whether or not to hire the contractor.
Proposals do not have an ideal length, as every client project is different.
If you have many deliverables, your proposal will be more substantial. But some projects may have few (if any) deliverables and will be shorter.
Who should use a Proposal Template?
If you’re a freelancer, contractor, or business professional, you can use our project Proposal Template to create quality proposals for your clients.
It’s standard to provide potential clients with proposals when bidding on projects and jobs in many industries, including:
- Construction
- Maintenance
- Property management
- Cleaning services
- Consulting services
- Marketing
- Writing and editing
- Art and graphic design
- Social media
How do I write an effective proposal?
You can create a successful proposal by answering your client’s most important questions and attempting to meet their quote and time expectations.
Knowing your client’s expectations requires communication ahead of time, such as a meeting or phone call. Gather as much information from the client as you can before you write your proposal so you can tailor it to their needs.
When writing a proposal for freelance work, be sure to:
- Show that you truly understand the client’s project and goals
- Include realistic timelines, deliverables, and quotes
- Proofread your proposal before submitting it to a client
- Consider if your client would prefer a digital or printed proposal
Is a proposal legally binding?
No, a proposal is not a legally binding contract.
A valid and enforceable contract has key elements that must be present. One such element that’s missing from a proposal is offer and acceptance.
While a proposal offers a solution to a problem, it doesn’t include space for the client’s signature (which would signify their agreement to enter into a contract).
Once a client selects a contractor for a project, the parties can create a legally binding Service Agreement.
How do I write a proposal?
LawDepot’s Proposal Template is a convenient way to complete the proposal that you need to secure your next contract. Use our self-guided questionnaire to customize your document specifically to your needs.
First, begin by fully understanding your client’s needs and expectations. Then, tailor our Proposal Template to your client’s needs.
1. Get started
Let us know which industry you operate in. Then, choose between two types of proposal templates:
- A simple quote outlines basic pricing information and terms, but it doesn’t include specific deliverables.
- A detailed proposal provides the client with more information, including a list of deliverables and detailed pricing information.
2. Describe the project
Add your client’s name and email address. Then, give details about the proposed job, including:
- A brief description of the overall project
- If it’s a one-time project or ongoing
3. Outline costs
When quoting costs, you must decide whether to charge a single fixed price (state the price quote) or based on time (explain your rate and time estimate).
Some proposals might also include a deposit amount the client must pay before any work starts.
4. Explain terms
Set an expiration for the quote so that the client has a clear timeframe to respond to the proposal (e.g., between 30 and 90 days).
You’ll also need to explain any costs you’re excluding from the bid, if applicable. For example, you might need to charge the client for materials, permits, or other items at a later date. In this case, it might make sense to exclude these costs from the initial quote.
If there are any other specific terms you need to add, our template gives you space to write them yourself. Remember to proofread so your terms are polished and complete.
5. Provide contractor details
Give general details about the contractor, such as their name, contact info, experience, and qualifications. You might also want to make a statement on whether or not you have insurance or bonds.
More importantly, consider which details you can add to show unique value for your client. For example:
- Client testimonials from other contract work
- Information about your team
- Professional certifications
- Examples of past projects
Don’t sell yourself short! Increase your chances of getting hired by describing exactly how you have what it takes to get a job done.
