Bid Proposal FAQs
1) What is a bid proposal?
A bid proposal is a document submitted by a contractor that outlines the proposed cost, approach, and timeline for completing a specific project. It’s treated as a formal offer to provide goods or services and is typically prepared to compete against other contractors vying for the same project. The bid proposal includes specific requirements of a project and follows any guidelines or instructions put in place by the owner or parent company. A robust bid proposal communicates the contractor’s value proposition and ability to deliver a successful project on time.
2) Why is a bid proposal necessary?
A bid proposal is necessary because it demonstrates a contractor’s understanding of the obligations and requirements of a specific project, as well as their ability to meet those requirements. In many industries, projects are assigned through a competitive bidding process, and project owners need a fair way to evaluate and compare different contractors’ capabilities.
By submitting a well-prepared bid proposal, contractors demonstrate their comprehension of the project, their expertise and experience in the industry, detailed cost breakdowns, legal terms and conditions, and more. A bid proposal is also a formal record of the contractor’s offer, which can later serve as a reference point to resolve legal, contractual, or financial disputes.
3) What should be included in a bid proposal?
A thorough bid proposal is made up of a few key elements. First, the executive summary provides an overview of the proposal that highlights project requirements, key deliverables, and any unique capabilities of the contractor.
The project scope spells out the activities and objectives to be accomplished, followed by the methodology, which outlines the steps, processes, and techniques that will be employed to achieve the desired outcomes of the project. The timeline presents a detailed project schedule, the team and personnel section introduces the project team members, and the cost breakdown clearly presents the pricing structure associated with the project.
Last, you should include a list of references and testimonials, as well as terms and conditions related to the proposal — such as warranties, payment terms, liability, insurance requirements, and more.
4) How do I write a bid proposal?
Writing a bid proposal is a snap with Jotform’s Bid Proposal template. We give you a starting document that lets you customize the structure and text of your proposal in minutes. First make sure you fully understand the requirements of a specific project by researching the client and their background.
You can use our template structure as is, or add or edit sections depending on your research. Make sure to review it several times after you finish so that it contains all the necessary terms, regulations, and requirements.
5) What are the benefits of a well-written bid proposal?
A well-written bid proposal has the power to sway project owners in your favor when they’re picking a contractor for the job. Since most proposals end up in extremely competitive bidding environments, the most detailed and engaging ones are going to take the top spot. A well-written bid proposal may save you grief in the case of misunderstandings or disputes later on too. With the proper terms and conditions included, your proposal can protect you from legal action.
6) What mistakes should I avoid when writing a bid proposal?
There are a few best practices for writing an effective bid proposal. For starters, make sure you don’t misunderstand the requirements of the project and present inadequate research; this is the biggest mistake you can make in a bid proposal, because it may automatically disqualify you from consideration. Next, prioritize clarity and structure, and try not to drone on, as that could decrease the likelihood that a project owner will read the entire thing. Keep your proposal concise but detailed so that owners can get to the point as quickly as possible.
In general, try to avoid poor planning and presentation, unclear or complicated cost breakdowns, incomplete submissions, missed deadlines, and faulty terms and conditions. Anything that makes the bid proposal more of a chore for a project owner will lower your odds of getting the project.
7) How much detail should I include in my bid proposal?
While the necessary level of detail depends on each project, it’s generally best to include as much detail as possible without overwhelming readers with excessive information — we know, that sounds tricky. Try to focus on providing methodology and explanations only for requirements, key deliverables, timeline, cost, and relevant experience. These are the most important aspects of the proposal, and everything else can be fully fleshed out later.