What should a Construction Proposal Include?
A construction proposal includes all necessary details of your project. You need to get the right professionals involved in order to make sure everything goes smoothly. If you don’t have enough money or time, then it’s better not to do anything at all.
A good idea is to hire a professional architect or engineer before starting any major undertaking. They will give you a sense of confidence that things are going to go well.
The construction proposal should contain all the essential information about your project such as location, size, cost, and other pertinent details. These details must be included so that everyone understands exactly what they’re getting into when hiring someone else to build their house or building something new yourself. Some of these details may be very detailed while others might just require some basic information like “the design was done by a designer.” Whatever the case may be, it’s always best to keep them brief.
You want to make sure that your construction proposal contains all the information that you think would be most helpful to potential clients. For instance, if you’re planning on doing a renovation of your kitchen, then you’ll probably want to mention how much work will be required and where the contractor will come in handy.
If you want to save money, then you’ll probably want to keep the details simple. For instance, if you’re building a home with a budget of $100,000 and only need one bathroom, then it would be nice if there were no additional costs beyond that amount. If you’re looking to have an addition built onto your home, then it would probably be a good idea to plan where everything is going to go and how much extra space the addition will give you.
In any case, it’s always best to look over your paperwork before giving it to a potential client. This will give you a chance to see if there is any additional information that you may have missed. You also want to double check for any grammatical or spelling errors.
In this case, it would be helpful to know exactly what can be accomplished within that price range. This type of information could help you decide how much money you’re willing to spend and which parts of the home are most important to you. If you want a large bedroom and a nice kitchen then you might have to cut corners somewhere else.
Find more example on how to write construction proposal in our article.
What makes a good construction proposal? Even though it may be a simple addition or renovation project, you still want to make sure you’re presenting yourself in the best light possible. One way to do this is by making sure your proposal is easy to understand. You don’t want potential clients getting confused about what exactly you’re going to do.
The last thing you want is for them to misunderstand what you mean and then end up blaming you for any issues that crop up with the finished project. If you have any doubts about whether or not your construction proposal makes sense, then have someone else read over it before submitting it out to potential clients. You need to show that you’ve done this many times before and are a trustworthy source for this kind of work.
You should remember that your potential clients are probably not construction workers. They’re probably not going to know the technical terms or specific lingo that you use on a daily basis. It’s always a good idea to keep it simple.
Use words and phrases that everyone can understand and don’t use too much tech talk. You don’t want to scare them away right off the bat.
What exactly is included in a construction proposal?
Step 1: Cover Page You’ll want to start off with a cover page that has your contact information, the homeowner’s contact information, a description of the project, and the due date. This should be easy enough to put together yourself; you just need to make sure that everything is spelled correctly and that it makes sense. Remember that this is the first thing your potential client will see, so you want to make a good first impression.
Oftentimes, potential clients will come to you with a list of questions before they’ll commit to hiring you. Don’t rush through them or write them off as silly or unimportant. Take the time to answer each one thoroughly and let them know if there’s anything that you haven’t covered that they should ask again later.
There is always the possibility that they may have some very good input that you hadn’t even considered yet.
Step 2: Introduction After the cover page, you’ll want to have an introduction. The introduction should consist of some general information about you and your company. Tell them a little bit about your business history, your experience, and your capabilities.
Make yourself seem approachable and trustworthy by giving them a glimpse into your personality. In this section, you’ll also want to include any other information about the project that you feel is important.
Step 2: List of Risks This may not seem important, but it really is. Every house that’s built, every room that’s renovated, etc. has some sort of potential risk.
Your job is to identify these risks and explain them in layman’s term for the homeowner to understand and accept. For example, let’s say you’re renovating a kitchen.
Step 3: Project Plan After the introduction, your proposal should shift to a more detailed explanation of the project. This is where you’ll go into detail about everything that you’ve come up with so far. If you haven’t come up with anything just yet, then you can put in a short statement saying that you’ll get back to them once you’ve come to a decision.
You might say something like, “The cabinets need to be replaced due to water damage” or “The floors in the kitchen need to be replaced due to cracks”. It’s important to explain precisely WHY these risks are an issue so that there are no surprises down the road.
Step 3: Project Timeline It’s always a good idea to have some sort of timeline so that your clients know when they can expect to see certain things done.
You’ll want to start by explaining the reason why you think the renovation is necessary. Just a brief overview will do. Make sure to stay away from any unnecessary drama or you could lose potential clients based on their own personal experiences.
Next, explain in detail what work you plan on doing and why you feel it necessary. Give some examples and point out any past experience you may have had with something similar.
Afterwards, explain how you plan on executing everything. It helps to keep you organized and it also gives them peace of mind knowing exactly when they can move back home or open up their store again.
Step 4: Costs and Payment Options This is usually one of the most important sections for a potential client. Make sure to break down all costs associated with the project so there are no surprises later on. You’ll also want to have more than one payment option because not everyone can fork over a lump some of money up front.
Explain your process of finding the right people for the job and any plans you have in place to make sure everything goes smoothly.
Step 4: Costs This is usually the part that scares most homeowners into wanting to back out. Make sure to be very, very clear about everything concerning the costs. You don’t want to spring any surprises on them down the road.
Be specific with materials, expected labor hours, and even the cost of your own services.
There are a few common options that you’ll want to suggest:
Option #1: Progressive (Most Common Option) – This is where the client pays for everything as you go. This option is usually the most beneficial for both parties because it keeps the job running smooth. The only issue with this method is that the client may not have all the money right away, so it may require some planning.
Make sure to have all of your resources at hand so that you can back up any claims you make. If you say something is going to cost a certain amount, be prepared to show documentation that it will in fact cost that much and why.
Step 4: Payment Options As previously mentioned, not everyone can afford to fork over a large payment all at once, so it’s always a good idea to offer different payment options. This can range from a set monthly price to paying as you go. You might even want to offer some other ways that might be unconventional, but entirely possible depending on the project.
For example, if you’re building someone a new deck, you could offer them the option to pay half the price up front and the other half once you’ve finished the project. Some people may even want to barter for their services. This is especially true if you’re working with a company.
There are many different options you can choose from:
Full Payment – This is the option most people would think of, but it’s not always available. It usually only works for people who have the ability to pay in full upfront without any issues.
With any luck, you’ll be able to get your first client off of the contract. Of course, this isn’t likely to happen if you just put it online and wait for people to find it. You’re going to have to advertise it somehow.
Option #1: Signage – If you own or have access to a business, putting up a nice looking sign with your company name and what you do can bring in some extra business.
Upfront deposit with monthly payment – This is usually the way for smaller jobs that can be completed in under a month or two. The client pays you a small down payment to start and then pays a little bit each month until it’s finished. This keeps you working, but doesn’t burn a hole in their pocket.
It’s not going to bring in hundreds of people, but a few people here and there can add up. The best kinds of signs are ones that can be seen along commonly travelled roads or highways in your city.
The only problem with this is you’ll most likely have to go out and purchase the sign yourself. I’m sure you can think of something to ask for Christmas or your next birthday.
Payment upon Completion – The most common and reliable payment option, though it requires some trust on both ends. The customer pays once you’re done with the job. You’re paid in full.
You may need to advertise in order for the customers to find you, so make sure you keep track of all your ads so you know which ones are working and which ones aren’t.
Option #2: Word of mouth – This is probably going to be the slowest method, but it doesn’t require any money out of your pocket. All you have to do is advertise that you’re in the sign making business and you’ll do one or two jobs for free to test your customer service skills. If you do a good job with those customers, then their friends and family will be more likely to call you for their sign needs.
This is a lot of responsibility, but being your own boss has its perks.
You’re ready to put those entrepreneurial skills into use!
Option #3: Go door to door – This is probably the most frustrating method, but it gets the word out there the fastest. The only problem is that you might not want to do this in certain neighborhoods. It’ll probably take a lot of time and you may not make any money, but it’s entirely possible that someone may refer you to a friend or family member who needs one.
All of these advertising options are not independent of one another.
You begin by making a list of all your family and friends. You then cross reference it with a phone book. After that, you go online and search review sites to see what other local businesses are in your area.
You narrow down the list as much as you can before setting a goal to contact at least ten people per day.
The first few days you spend creating signs or fliers to hand out to people or put up around town. Pick one and stick with it for the time being. Check back weekly to see if you’re getting any results.
If you don’t, then try something else.
Once you have a customer, it’s time to get to work!
THE CREATIVE PROCESS (PART 3)
Here we are at the fun part of your job: the creative process!
This is where you put all of your artistic talent and skills to work. You’re lucky your parents were willing to help you out with a loan to get you started.
The first few weeks are slow going, but you manage to get three jobs total from people who saw your signs or fliers. You do the best you can and learn a bit from each experience. It isn’t easy and there’s bound to be some “failures”
You can probably think of a bajillion ideas for each step along the way, but it’s extremely important that you focus on quality over quantity. Spending a little more time on each sign will help your business in the long run. It’ll also help keep your interest as well as the interest of others.
Make sure to keep organized while working on these projects. Always sketch out or print your designs first before painting. If you come up with a better idea, you don’t want to have to redo the entire thing.
That is, unless the customer is willing to pay for it. Always get confirmation from the customer before starting or else you may wind up doing more work than what you’re getting paid for.
(There is so much more to this job that I can’t possibly put all of it in this story. One of your main objectives will be to learn as you go. It won’t always be fun and games, but as long as you keep learning, you should be fine.)
THE GRIND (PART 4)
One month in and you’re starting to feel the effects of being overworked. It isn’t as bad as you thought it would be, but it still sucks at times. You don’t mind creating the signs or printing the fliers.
It’s actually kind of fun since you get to be creative with it. It’s the walking around and asking people if they need any signs made that’s getting to you. You aren’t really good at dealing with people in general so you tend to stumble on words a lot or say something weird sounding.
One thing’s for sure, you’ve learned that some businesses will always have signs around no matter how good or bad they are. There’s always room for improvement as far as signs are concerned. (Or at least there should be) You’ve also found that the better signs tend to be in nicer areas where the businesses are more stable.
It makes sense since if a business is failing it won’t matter how good your signs look.
You’ve been getting a few jobs here and there, but nothing consistent. Your parents continue to help you out with the start up loan, but you really want to start making money to pay them back as soon as possible.
Sources & references used in this article:
- Computer-implemented method and system for producing a proposal for a construction project (M Elliott – US Patent 6,446,053, 2002 – Google Patents)
- An Event Plane Detector for STAR–Construction Proposal 2016 (A Schmah, R Reed, M Lisa – arXiv preprint arXiv:2002.09830, 2020 – arxiv.org)
- E-bidding proposal preparation system for construction projects (G Arslan, M Tuncan, MT Birgonul, I Dikmen – Building and Environment, 2006 – Elsevier)
- ESS Instrument Construction Proposal SKADI (PH Frielinghaus – 2017 – indico.esss.lu.se)