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You must get all of the details correct from the beginning to the end of any construction project. A construction project needs to be right from the start, which is why you will need a good construction proposal template.

If you don’t have a legal officer review your contract, your business will have a higher chance of being sued if something goes wrong. A good contract will be clear to all involved parties, but it also needs to be fair in its provisions.

Construction proposal template elements

A good construction proposal should also help you strengthen your bargaining position. There are 5 elements that must be present in any construction contract.

◉ Identification of parties
◉ Scope of the project
◉ Pre-determined cost of the project
◉ Fixed work schedule of the project
◉ Relevant authorities

Identities of the parties

This is a requirement that obvious to many beginners and easily overlooked. However, for a construction proposal to be legally binding it must include the names of all parties involved. The document must contain the names, signatures and addresses of all who were involved in its creation. If this is not provided and in an understandable manner, there will be no legal contract.

Scope of the project

The details involved in any construction contract is mandatory, and you should make sure that you protect yourself. In detail, the services offered by each party involved will be described here. You should include the following information on the time, quality of work, materials, and any other features or descriptions that are necessary to see through the construction project.

Cost and terms of payment

This is the cost of the services you’ll get, and other possible costs if they’re not part of this construction project. There should also be a clear indication of the payment schedules or milestones that will be cleared upon the achievement of specific milestones.

Work schedule

The work schedule or project plan should provide an estimate of when the project will begin and when it will end. In addition, it must state the date when the contractors received a notice to go ahead with the project. While you must include the extent of the contractor’s liability in your construction bid proposal, including delays because of poor weather conditions, you must also include delays because of the actions of the property or project owner.

There’s a technical difference between calendar days and working days. There should also be a provision for supplier lead times. If the supplier’s projected orders change, this will affect your delivery schedule and you will need to factor in more time to accommodate for this.

Relevant authority

There are many big projects across multiple industries that are being worked on right now. It is important to differentiate who will have legal authority at each stage of the project(s). Before a project begins, a lot of things need to be decided.

This is a simple feature, but it’s crucial that you are clear about who should take responsibility for each task.

Construction Bid Form

Importance of a construction proposal schedule

There are a lot of people out there who view construction proposal templates as annoying documents, even though they may be necessary for a project. This is why some contractors will even give it to an intern or junior. This thinking must be abandoned. In reality, there are never any set rules for achieving success in a business.

There are good reasons why you need to carefully follow the ordering instructions and prepare this document in order to comply with them. Without a project schedule, it will be very difficult to see a project to completion or keep track of certain aspects of the project. For a small construction project, the schedule could be written down on a bar chart. For a large construction project, you will need to break the process into many smaller steps.

It may be necessary to invest in software and other resources that help your business run smoothly. The following are some of the benefits of giving this proposal schedule the attention it deserves.

Realistic project duration

Through this document, you can understand whether or not the project duration your client is talking about is realistic and achievable. No contractor ever wants to work on a project that they know will never be completed. This is because the late completion results in penalties for failure to meet the deadline.

If you realize you will not be able to meet a potential client’s requirements, you should submit a new bid outlining any changes or start working on another project instead. Estimation of project duration can be useful when it comes to working out the cost.

Determine your estimates

A resourced schedule is more often appreciated by contractors and for a good reason. It helps you to figure out how much of a tender package you’ll need. If you’re planning on submitting a tender for a project, it’s probably best to include the bid price in the tender. This is good for the client because it helps them see your thought process so they have an idea of how you think about a project.

Client obligations

A good proposal should also describe your obligations towards the completion of this project. A good example can be seen when a client needs to provide special access or information to a contractor in order for them to complete their work.

Cash flow forecast

When you’re writing a proposal, you should be able to forecast the cash flow demands throughout the project. There are a lot of contractors who failed to finish their projects because they ran out of funds. This happens when a contractor takes on a project that is either too huge for their financial muscle, or a project whose financial terms of payment are unfavorable.

Moving critical paths

Your project will go faster, more smoothly, and with fewer mistakes if you receive guidance from an expert. You have few tools, so you need to find a better way to complete a 36-week project in 32 weeks.

Activity sequencing

Some tasks can be lengthened, others shortened. When you do this, it is possible to reduce the resource demands at peak times, which in turn can maintain the continuous flow of resources. This will protect your project from being shut down, often for good.

Monitor milestones

When you have the construction bid proposal template organized accordingly, you are able to determine by what time they are supposed to be met. You can use this to figure out the best way to go about achieving the set targets.

You will make a list of the tasks and the order in which they need to be completed. A lot of companies use this to make sure they know what their goal is at any given time, and how to achieve it. The project will become more and more complex and haphazard as more and more features and changes are added

Monitor supplies and suppliers

There should be a guideline for monitoring the delivery dates and times of construction materials. This can also help you monitor your suppliers and sub-contractors.

Guide subcontractors

The schedule should be provided to the subcontractors as well. This contract will help ensure that when you tender, you have a good understanding of when the building will be delivered. By avoiding disputes or claims, the long-term financial benefit will be increased.

Resource mobilization

Knowing what kind of resources will be needed allows you to anticipate the cost and time of the mobilization. In case the project has not been planned out properly, you usually end up with a project where there is either too much or too little staff available at any given time.

Meeting obligations

Sadly, there are a lot of contractors out there who see the free construction proposal template as a means through which their client will minimize their efforts. Putting together a good project proposal is crucial if you want to make sure that both you and the client are on the same page. If you need to prepare a valid claim for an extension of time, it is recommended that you have a construction proposal signed by the parties involved.

Construction Proposal Samples

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