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A construction proposal is typically a one page document that specifies who the contractor is, the work to be performed and the estimated cost. It is written in a straightforward fashion and will usually contain four to five short sections. Writing a construction proposal is fairly simple with the use of a standardized legal form. In some situations, the construction proposal may include attachments, such as blueprints.
When companies send out requests for proposals from potential construction vendors, they need a cost and time estimate for the job. The construction proposal is a good faith estimate that the vendor gives the company's decision maker, who must then decide which vendor to select based on quality, reputation and cost. A proposal essentially states that the vendor is willing to perform and complete the job given certain parameters.
The top of a construction proposal should list the name of the construction company, its licensing information and the date. It should follow with a section that spells out who the proposal is being submitted to. This section will typically contain a name and title of the company's decision maker, as well as the name of the company and its main address.
Below the preliminary information will be a section that states where the construction job is to be completed and will also spell out what date the construction will begin. A lead foreman and engineer's name may be listed. This is important in case the company's decision maker needs to contact someone about the progress of the job or if there are any emergency issues that arise. For intricate builds that involve new construction, the proposal may indicate the date of the blueprints that are attached, in addition to a lead architect's name and contact number.
One of the most important sections in a construction proposal are the details of the work that is to be performed. This section spells out the construction materials that will be used and may break down the individual costs. It will state if there are going to be any sub-contractors involved in the job and which sections of the work they will be performing. Labor and materials costs may be separated.
The materials section may specify if substitute supplies will be used in the event that the original proposed materials are unable to be located. There will usually be a statement that the work is guaranteed as indicated by the attached blueprints or listed specifications. A section that states when payments are to be submitted and in what amount will also be included. Most construction companies require that a certain percentage of the total costs be paid before the work begins in addition to several increments once certain milestones are completed.
A proposal will have a section that states the contractor is submitting the bid. This section will include a statement that indicates the bid will expire within a certain amount of days. There will be a line for the company's decision maker to sign and accept the proposal.
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