Whether you’re a solo contractor or managing a full construction crew, a clear and professional construction proposal is one of the most important tools in your toolbox. It sets expectations, outlines costs, and helps protect both you and your client from misunderstandings once the work begins.
Here’s a breakdown of what to include so your proposals look great, cover all the bases, and help you win more jobs.
Who’s Involved?
Start by clearly identifying both parties:
- Your business details: Name and Contractor License Number (if applicable)
- Contact info: Phone number, email, business address
- Client details: Full name, phone, email
- Site address: Especially if it’s different from the client’s mailing address
Getting the details right here avoids confusion, especially when you’re juggling multiple projects.
Project Scope
This is the meat of your proposal. It’s important not to be vague here. A lot of sales teams get in trouble with clients by having a scope that is too broad. You want to spell out exactly what services and materials you are providing
For example:
“Supply and install timber decking to rear patio, approx. 25 sqm. Includes demolition and removal of existing surface, new joists, and Merbau boards. Client to supply outdoor lighting. Permits not included.”
Use plain language, and don’t be afraid to list out key tasks. The clearer the scope, the fewer surprises later.
More important than listing what is included in the project is being clear about what is not included. Don’t skip this step! It can save you major headaches later. Be upfront about what’s outside the scope. Some examples:
- City/County approvals or permits
- Electrical, plumbing, or landscaping (unless included)
- Material upgrades or custom finishes
- Trash removal (if not included)
Cost Breakdown
A good proposal makes pricing feel transparent. Use a simple breakdown like this:
- Labor: $X (hourly or fixed)
- Materials: $X (or itemised if preferred)
- Equipment rentals: $X
- Subcontractors: $X
- Other Job Costs: $X
For a single small project, supplying a total for all costs along with payment terms may be sufficient. On larger projects, your cost breakdown may need to outline phases of construction and expected job costs for each phase.
What if your project is for Time & Materials (T&M)? Even though the exact costs will be calculated later, you will need to give your client an estimate of the work based on typical hours and material requirements. Another good practice is to include additional language in your proposal outlining how the client will be informed of progress compared to the budget.
For example:
“We provide an estimate based on typical hours and material requirements, but final pricing will reflect actual time worked and materials purchased. Labor is charged at $[rate] per hour, and materials are billed at cost plus [markup]%. We’ll keep you updated with a running total and notify you before any major purchases or changes, so you stay in control of the budget throughout the project.”
Project Timeline
Give a realistic estimate of how long the job will take. This doesn’t need to be down to the minute, but a general schedule helps everyone stay on the same page. The schedule should factor in delays from weather, supply shortages, or subcontractor timing.
Your project timeline should communicate when to expect progress updates on the project, especially if the timeline will be covering several weeks or months. Also, be honest about delays created by you and ones created by the client. A client may have expectations on project completion, but if they are the source of the delays, you should outline how that will impact the progress. Your proposal should inform your client how you’ll handle those bumps.
Terms & Conditions
This is where you include your policies and set some guardrails. Think about things like:
- Payment terms: How much is the deposit? When are progress payments due?
- Late payments: Is there a fee or interest charged?
- Variations: How will changes to the scope be approved and charged?
- Cancellations: What’s your policy if the client pulls out of the project?
- Warranties: Do you back your workmanship? For how long?
Signatures & Approval
You’ve done all the hard work above in the meat of the proposal, but there are still a few areas that are smart to include on every proposal:
- A space for both parties to sign
- Date of agreement
- Validity period (e.g., “This quote is valid for 30 days”)
This makes it easy for your client to give the green light and helps protect you if pricing or availability changes.
Bonus Tip: Make It Visual
If you really want your proposal to shine, consider adding:
- A sketch or layout plan
- Photos of materials or finishes
- References or testimonials
- Your insurance certificate or license details
These extras don’t take long to add, but can make a big difference in how professional and trustworthy you appear.
A Good Proposal Sets the Tone for the Project
A good construction proposal isn’t just about winning the job. It’s about starting the project on the right foot. When everything’s clear from the beginning, it builds trust, saves time, and keeps the work flowing smoothly. If you’re tired of rewriting proposals from scratch, consider creating a simple template. That way, you can just plug in the project details and focus on getting the job done.
What if you have a great proposal but aren’t winning enough bids? Check out this article on four proven strategies to win more projects.