How to Write a Standout Construction Proposal (+Examples)

Learn how to write a construction proposal with our guide. Discover the best construction proposal format and explore real-world examples for success.

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What is a construction project proposal?

A construction project proposal is a comprehensive plan presented to potential clients or project owners, detailing the scope, timeline, budget, and materials for a construction project. It aims to convince them of the project's viability and your ability to deliver.

Stand out or sit out: your proposal makes all the difference

In the construction industry, winning a bid feels like a race. For every project you eye, there are dozens of other contractors eyeing it too. It's a tough competition, and it's not always the lowest price that wins.

If you want to stand out in a sea of competition and show why you’re the best choice for the job, you’ll need to learn how to write and build strong construction proposals.

This blog post is your guide to crafting a construction proposal that grabs attention and doesn't let go. With straightforward tips, the best formats, and examples to learn from, I’m here to help you write a proposal that wins, not just competes.

Let’s get started!

What’s the difference between a construction proposal and a construction bid?

A construction proposal outlines the project's scope, timeline, and cost, offering a detailed plan. A construction bid , however, is a document presenting the price you'll charge to complete the work described in the proposal. Both are crucial but serve different purposes.

What to include in a construction project proposal?

Crafting a standout construction proposal is your first step towards clinching that next big project.

To ensure your proposal hits the mark and captures your client’s attention, you need to showcase your expertise, commitment, and the unique value you bring.

11 essential slides of a construction company proposal:

Introduction: A personalized greeting that introduces your company and expresses your enthusiasm for the project.

Project overview: Summarize the project, highlighting its objectives and what you aim to achieve, setting the stage for the details to follow.

Scope of work: Provide detailed information on the construction tasks to be performed, including phases, specific tasks, and who will be responsible for each.

Timeline: Outline the project's estimated schedule, including start and completion dates, and major milestones along the way.

Cost estimate: Offer a detailed breakdown of all project costs, such as labor, materials, equipment, and any other anticipated expenses.

Payment schedule: Detail how and when payments will be made, including any milestones that trigger installment payments.

Legal and licensing information: Include copies of your business licenses, insurance certificates, and any other legal documents that affirm your legitimacy.

References and past work: Showcase examples of your previous projects to demonstrate your experience and ability to deliver high-quality work.

Terms and conditions: Clearly state any stipulations, warranties, or conditions, ensuring everything is transparent and understood.

Project team: Introduce the team members who will be involved in the project, highlighting their skills and roles.

Next steps/Call to action: Conclude with a clear outline of the immediate next steps the client should take to move forward, encouraging prompt decision-making.

What is the best construction proposal format?

Traditionally, construction proposals were static documents, typically delivered as PDFs or PowerPoint (PPT) presentations.

These formats, filled with pages upon pages of text, were the norm, providing comprehensive information but lacking in engagement and interactivity.

Times have changed, though. The best construction proposal format today goes beyond static text and images. It's about creating an interactive experience that draws the reader in.

Think about adding videos that can be played right from the page, links that invite you to explore further, and visuals that really show off what you're planning.

This kind of interactive proposal does more than just share information; it engages, it excites, and it sticks in the memory.

Here’s a comparison of the most popular formats:

Construction project proposal examples that sell your expertise

A successful construction proposal does more than just list services and prices; it showcases your expertise and builds a bridge of trust between you and your potential client.

It tells a story, highlighting how your unique skills and experiences make you the ideal partner for their project.

The examples of construction proposals we're going to look at have nailed this approach. They’re your guide for making a strong case for your services in a way that clicks with your client and builds a connection right from the start.

Dark mode construction project

This construction project proposal introduces a visually striking presentation that emphasizes clarity and focus.

It’s designed not just to present the project details but to do so in a way that captures attention and enhances readability, especially in low-light environments.

What makes this building construction project proposal great:

Architectural blueprints: It includes detailed architectural blueprints, providing a clear visual roadmap of the proposed construction project.

The option to edit details post-send: It offers the flexibility to edit details within the proposal even after it has been sent, without the need to resend the entire deck.

Rich library of components: It features a library of components specifically optimized for engagement, ensuring that every element of the proposal contributes to a compelling narrative.

Modern construction proposal

This construction proposal represents a leap forward in how construction projects are proposed and managed.

It’s a comprehensive platform that integrates seamlessly with your existing CRM, ensuring that all client interactions and project details are centralized and easily accessible.

What makes this construction management proposal great:

CRM integration: It offers the option to integrate seamlessly with your existing CRM system, ensuring all project details and client interactions are easily managed in one place.

Intuitive editor: It features an intuitive editor that simplifies the creation and customization of the proposal, making it accessible to users of all skill levels.

Analytics panel access: It provides access to an analytics panel, offering valuable insights into how clients interact with the proposal, enabling continuous improvement and personalization.

Light mode construction proposal

This construction proposal leads the way to a successful project with its clean and clear presentation style.

It’s designed to enhance the readability and engagement of your project details, making it a perfect choice for presenting to clients who appreciate clarity and innovation.

What makes this proposal for building construction great:

Dataviz components: The deck offers the option to add data visualization components that can display real-time data, making your proposal current and more compelling.

The option to embed links: It provides the flexibility to embed external links directly within the proposal, allowing for a richer, more informative presentation that can include additional resources, videos, or websites.

Branding extraction feature: It comes with the option to extract branding elements from any website, enabling you to seamlessly integrate your or your client's branding into the proposal for a personalized and cohesive look.

Building construction proposal

This construction proposal introduces a dynamic and interactive way to present construction projects, making use of advanced features to create a more engaging and informative experience for potential clients.

What makes this building construction proposal great:

Video embed feature: It offers the option to embed and directly play videos within the deck, providing a dynamic way to showcase your company's capabilities or highlight specific aspects of the project.

The option to add Before/After sliders: It includes the option to add before/after sliders, allowing you to visually showcase the transformation achieved by past projects, highlighting your firm's impact and expertise.

E-signature integration: It provides the option to add an e-signature feature, streamlining the approval process by allowing clients to sign off on the proposal directly within the document.

Solar rooftop project proposal

This construction project proposal is a great example of how to engage potential clients through interactivity and visual storytelling.

From dynamic personalization that speaks directly to the client, to seamless brand integration and captivating video content on the cover slide, this proposal is designed to make a memorable impact.

What makes this construction job proposal example great:

Dynamic variables for a personal touch: It incorporates dynamic variables, making every proposal feel custom-made for the client and their specific needs.

Easy brand integration: The proposal includes a spot for your logo that's easy to update, helping your brand shine right from the start.

Engaging introduction with a video: A video on the cover slide pulls viewers in, offering an engaging and dynamic peek into what your solar solutions are all about.

Construction collaboration proposal

This construction collaboration proposal showcases a comprehensive plan for an apartment complex, emphasizing 15 years of experience in blending traditional construction excellence with modern technology.

The proposal is tailored for the potential client, highlighting project specifics, timelines, and cost estimates in a clear and engaging format.

What makes this construction proposal great:

Dynamic variables for personalization: The use of dynamic variables like {{company}}, {{organization_name}}, and {{first_name}} throughout the proposal ensures a personalized experience for each recipient.

Content segmented in tabs: The proposal smartly segments the project execution overview into tabs. This organization allows for easy navigation and understanding of the project's scope and methodology.

Clear cost estimate: A detailed and transparent cost estimate is provided, breaking down expenses into different categories. This clarity helps in setting realistic financial expectations from the outset.

Building project proposal

This building project proposal is presented through an innovative, user-friendly digital format.

It's an interactive journey through the planned apartment complex project, designed to engage and inform the client every step of the way with clarity and precision.

What makes this building project proposal great:

Scroll-based design: It utilizes a scroll-based design that enhances engagement by allowing readers to smoothly navigate through the project details, timelines, and cost estimates, ensuring a seamless experience.

Terms and conditions with e-signature: It includes a T&C section that ends with an e-signature option. This facilitates a straightforward approval process, making it convenient for the client to agree and sign off on the proposal.

Smart control measures: It incorporates smart control measures such as the ability to set an expiry date or lock the document with a password. This ensures that the proposal remains secure and is only accessible for a specified period or to individuals with the correct credentials.

How to write a construction project proposal?

Crafting a construction project proposal is more than just a formality—it's your first step towards turning a potential project into reality.

A well-structured proposal not only showcases your expertise and capability but also sets the tone for a successful partnership with your client.

Here's how to write a construction proposal that stands out, communicates value, and wins the project.

1) Understand the client's needs

Before you dive into writing, take the time to fully understand your client's needs and the scope of the project.

This understanding will be the foundation of your proposal, guiding you to tailor your approach and solutions to meet those specific needs. Engage in thorough discussions with your client, ask questions, and clarify any uncertainties.

2) Summarize with an executive summary

Start with a compelling executive summary that encapsulates the essence of your proposal.

This section should provide a snapshot of your company, highlight the project's objectives, and succinctly explain why your company is the best choice for the job. Think of it as your elevator pitch —make it engaging and persuasive.

3) Detail the scope of work

Clearly outline the scope of work, detailing the tasks, deliverables, and outcomes expected from the project.

This section should leave no room for ambiguity, ensuring both you and the client have a clear understanding of what the project entails. Include any drawings, blueprints, or renderings that can provide a visual understanding of the proposed work.

4) Outline the project timeline

Provide a realistic timeline for the project, breaking it down into phases or milestones. This not only demonstrates your project management skills but also sets clear expectations for the project's duration.

Be sure to include any significant dates, such as when certain materials will be needed or when permits are expected to be approved.

5) Include a cost estimate and breakdown

Offer a transparent and detailed cost estimate, including labor, materials, equipment, and any other expenses. Itemizing these costs helps build trust with your client and clarifies the financial aspects of the project.

Be honest and realistic, and ensure your estimates are as accurate as possible to avoid surprises later on.

6) Specify payment terms

Outline the payment schedule and terms, specifying milestones or stages at which payments will be due.

This section should also cover any deposit required to start the work, acceptable payment methods, and any penalties for late payments. Clear payment terms help prevent financial misunderstandings down the line.

7) List materials and specifications

Detail the materials and specifications for the project, including any specific brands, types, or qualities of materials to be used. This ensures both parties agree on the quality and aesthetics of the materials, which can significantly impact the project's outcome.

8) Highlight qualifications and experience

Showcase your company's qualifications, experience, and any relevant certifications or licenses.

Highlight past projects similar to the proposed work, and consider including testimonials from satisfied clients. This builds credibility and reassures the client of your capability to deliver on the project.

9) Define terms and conditions

Include a section on the terms and conditions of the proposal, covering aspects such as warranty information, dispute resolution methods, and any other legalities.

This is crucial for protecting both parties and ensuring a clear understanding of the agreement.

10) End with a call to action

End your proposal with a clear call to action, inviting the client to take the next step, whether it's a meeting to discuss the proposal further or instructions on how to accept the proposal.

Make it easy for the client to move forward with you.

Here's a great example of a proposal with an Accept button:

Accept button example

Interactive construction project proposal templates

Starting from scratch on a construction project proposal can feel daunting, time-consuming, and, frankly, a bit overwhelming. You know every detail matters, from the foundation to the final touches, but plotting out where to begin is a challenge in itself.

Interactive construction project proposal templates provide a structured outline, ensuring you cover all necessary aspects of your proposal without missing a beat.

With sections already laid out for your executive summary, scope of work, cost estimates, and more, these templates not only save you valuable time but also enhance the professionalism and comprehensiveness of your proposals.

how to write a business proposal for a construction company

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How to Write a Construction Proposal: Free Template, Examples & 7 Tips

  • AEC Marketing
  • Educating and Informing

Posted by: Cinthya Soto

As a construction company or contractor, the first step in securing more projects is to craft a compelling construction proposal. This important document not only serves as one of the biggest selling tools for your construction company. However, participating in construction project bids can be a stressful journey. Crafting precise construction bids and submitting them to clients requires dedicated time, resources, and effort. 

To speed up the proposal creation process, we suggest having a construction proposal template ready. This proposal template should include all the essential elements of a winning proposal , so you don’t have to start from zero and should also be customizable, so you can make it your own and add any changes you’d like. 

In this blog, we will teach you how to write an effective construction proposal that stands out from the competition. We will also prove you with examples of construction proposals, top tips to boost your chances of winning the bid, and a downloadable construction proposal template.

What Is a Construction Proposal? 

A proposal for construction is a formal document submitted by a construction company or contractor to a client or project owner. Its purpose is to outline the details of a construction project, including the scope of work, cost estimates, timeline, materials, and other relevant information.

The proposal serves as a key communication tool between the construction firm and the client, providing a clear understanding of the project’s objectives and how it will be executed. Creating a construction proposal is easier when you have an effective construction proposal template you can customize.

What’s the Difference Between a Construction Proposal and a Construction Bid?

The term “construction proposal” is often used interchangeably with “construction bid” and “construction bid proposal.” However, a bid differs from a proposal. Proposals include all the details found in estimates, quotes, and bids but go beyond simple approximations. They are tailored and specific, highlighting the unique value that a construction company can provide to a potential client. 

A construction proposal is used as a persuasive tool to showcase the construction company’s capabilities and convince the client that they are the right choice for the project.

When submitting a proposal, you are likely to face competition from other companies that want to win a client’s business. Therefore, it is crucial to use a compelling construction proposal template and invest time in writing the details of the proposal to effectively showcase the value you can offer. 

On the other hand, a construction bid is used by the project owner to compare different offers from various contractors. After evaluating the bids, the project owner can select the most suitable and competitive bid to award the construction contract.

Bids are specifically common in the construction industry , especially for larger projects. Sub-contractors frequently submit construction bids to general contractors to undertake specific portions of the project. 

To summarize, bids and proposals are very similar, but proposals tend to be more detailed. Both are useful in different situations, and people will continue to use them interchangeably. 

Why Construction Proposals Are Important

Construction proposals are essential for several reasons. A construction proposal is not only about winning clients and making money; it’s also a way to show off your company. It reflects both what makes your company special and its overall image. A construction proposal plays a crucial role in the construction project’s success and the relationship between the construction company and the client. Here are some key reasons why construction proposals are important.

1. Brand Identity and Reputation 

Highlighting the construction company’s brand identity in the proposal reinforces its reputation and credibility. Using custom brand assets , colors, and other customized and personal elements can make a difference between winning or losing a potential client. 

A strong brand identity, built on trust, reliability, and quality, can make you stand out from other bidders and instill confidence in the client and reassure them that they are choosing a reputable contractor.

2. Clarity and Understanding 

A well-written construction proposal provides a clear and detailed outline of the project’s scope, timeline, and cost. This ensures that both the construction company and the client have a shared understanding of what will be delivered and at what cost.

3. Transparency and Trust 

You should define client expectations and be straightforward about what you are going to provide for the client. A comprehensive construction proposal demonstrates transparency in the pricing and cost breakdown. When the client sees a detailed estimate, they are more likely to trust the construction company, leading to better client-contractor relationships.

4. Project and Resource Planning 

The proposal serves as a foundation for project planning and execution. It helps the construction company allocate resources, plan schedules, and coordinate tasks effectively.

5. Client Decision-Making 

For clients, reviewing proposals from different construction companies allows them to compare offerings and select the best-suited contractor for their project. The proposal becomes an important document in the client’s decision-making process.

What Is Included in a Construction Proposal?

A construction proposal will typically include:

  • Contact information
  • Specification of parties 
  • Scope of work 
  • Work schedule
  • Relevant authorities 
  • Cost breakout 
  • Terms and conditions 
  • Warranty 
  • Signature line 

Below, we’ll go into more detail on what information to include in each section.

Additionally, here are some optional construction proposal elements to consider: 

  • Exclusions: Provide information about work, materials, or equipment provided by others. 
  • Materials: Outline the specific materials that will be used on the project. 
  • Labor: Describe the type of labor for the project and how many hours for each.

Equipment: This is useful for contractors that require heavy equipment on the job.

How do you write a construction proposal? 

Writing a construction proposal requires careful planning and attention to detail to ensure that all the necessary information is included. Here’s a step-by-step guide on how to create winning construction proposals : 

1. Specification of Parties 

The first part of a construction proposal is to highlight the details of both parties involved. Identify the parties involved in the construction project, including the construction company (contractor) and the client (owner). 

2. Contact Information 

Make sure to include both your contact information and the clients on the first page of the proposal. Include both parties’ names, logos, addresses, phone numbers, email, and any other relevant contact details. 

3. Scope of Work 

Describe in detail the scope of work that the construction company will undertake. Providing a detailed description of the work you’ll be performing is crucial in any construction proposal. This section should outline all the tasks and activities to be completed. We suggest dedicating a good amount of time to this section, ensuring it is highly detailed and comprehensive by listing all the services and tasks you offer. 

If you plan to use a sub-contractor for certain tasks you won’t be performing, make sure to include their information and estimated cost, clearly outlining the responsibilities of each party involved. These will be the “exclusions” to the scope of work, which includes work that will not be done by the general contractor. 

A thorough scope of work prevents any misunderstandings or unexpected tasks that may arise if it’s not properly outlined. 

4. Work Schedule 

A realistic timeline is essential for successful project management. Present a realistic and detailed work schedule, including start and completion dates for each phase of the construction project. Make sure to include the time needed for obtaining permits and approvals, as well as the steps of work and completion. Remember to account for potential delays due to weather, delivery services, and other external factors beyond your control. 

5. Relevant Authorities 

Identify any relevant authorities or regulatory bodies that the construction project must comply with, such as building codes or permits required. The relevant authorities in a construction project refer to the roles and responsibilities of both your crew members and anyone else with decision-making power. This includes individuals at local municipalities, affiliates, and partners involved in the job. 

6. Cost Breakout 

Also known as administrative breakout, the cost breakout section should provide a comprehensive breakdown of the estimated costs for the entire project. This should include: 

  • Labor 
  • Materials 
  • Equipment 
  • Permits 
  • Any other relevant expenses 

It’s essential to have a payment schedule outlining how and when the client will compensate you for the work you are performing. 

Normally, the cost should be stated on the first page of the proposal. If your proposal extends beyond one page, include the total cost on the first page and the detailed breakout on the page where it falls naturally. 

7. Terms and Conditions 

In this section, outline the legal and contractual terms and conditions that both parties must agree to before starting the project. This section may cover: 

  • Payment terms 
  • Insurance requirements 
  • Dispute resolution 
  • Other important aspects 

The more specific and clear the conditions, the smoother the outcome will be. Both parties must acknowledge and accept the scope of work, costs, and terms in writing to avoid potential legal disputes later in the project. 

8. Warranty 

Specify any warranties or guarantees offered on the completed work. Clearly state the duration and coverage of the warranty. In this section, you outline the specific work you are responsible for fixing and the conditions under which you will do so. Additionally, it clarifies the aspects you are not liable for. 

9. Signature Line 

Lastly, there’s the acceptance of the proposal. Leave space for the authorized representatives of both parties to sign the proposal, indicating acceptance of the terms and agreement to move forward with the project. This will happen if the project owner is satisfied with the construction proposal. The signatures serve as the foundation for a legally binding document between the two parties, confirming their agreement to the terms and conditions specified. 

Construction Proposal Templates 

Here are some construction proposal examples to help you get an idea of what your construction proposal should look like. 

Commercial Construction Proposal Template 

how to write a business proposal for a construction company

Architecture Firm Proposal Template

how to write a business proposal for a construction company

Residential Construction Proposal Template

how to write a business proposal for a construction company

Source: Smartsheet

Roofing Proposal Template

how to write a business proposal for a construction company

Remodeling Contract Template

how to write a business proposal for a construction company

Source: Sample

But there’s so much more to learn about the proposal creation process outside of meeting the basic requirements. Here are a few short tips for customizations you can add that make your proposals stand out.

Writing Tips When Using Your Construction Bid Template 

Although there are no guaranteed construction proposal templates that ensure you win every bid, writing customized, detailed, and accurate proposals that showcase your business increases your chances of securing the next project. Here are 7 tips to help you craft a compelling and successful bid proposal:

1. Customize Your Proposal 

Tailor your bid proposal to the specific needs and requirements of the client and the project. Avoid using generic templates and instead, include personalized details that address the client’s goals and objectives. Show that you have taken the time to understand their vision and how your construction company is the best fit for their project.

2. Focus on the Details 

Provide a comprehensive breakdown of the project’s cost estimate, including specific budgeting details. Clearly outline labor, materials, equipment, permits, and any other relevant expenses. Be transparent in your pricing and avoid vague or ambiguous figures. A well-detailed budget inspires confidence in your financial planning and helps the client make an informed decision.

3. Specificity 

Use specific language and avoid vague or general statements. Provide concrete examples and data to support your claims. Specificity adds credibility to your proposal and shows that you have a well-thought-out plan for the project.

4. Show Project Impact 

Highlight the positive impact your construction company’s work will have on the client’s project. Explain how your expertise and approach will lead to successful project outcomes, such as increased efficiency, improved functionality, or cost savings. 

5. Demonstrate You Understand the Client’s Pain Points 

Address the client’s pain points and challenges explicitly in your proposal. Show that you have a deep understanding of their needs and concerns and explain how your construction solutions will alleviate these issues. 

6. Set the Timeline 

Present a clear and realistic timeline for the project, detailing each phase’s duration and key milestones. Ensure that the proposed timeline aligns with the client’s project objectives and any deadlines they have set.

7. Make Sure Your Data is Accurate 

Double-check all the data, figures, and information provided in the proposal. Inaccurate data can negatively affect the client’s confidence in your abilities and professionalism. Accuracy in your proposal reflects your attention to detail and commitment to delivering accurate results. 

Contractor Proposal FAQs 

Here are some questions that may arise during your construction proposal creation journey. 

What to Avoid When Writing Construction Contracts? 

When writing construction contracts, avoid:

  • Ambiguous language
  • Incomplete scope of work
  • Unclear payment terms
  • Lack of change order procedures
  • Omitting penalties for delays
  • Insufficient insurance coverage
  • Ignoring local regulations
  • Incomplete indemnity and liability provisions
  • Unclear warranty terms
  • Neglecting dispute resolution mechanisms
  • Using templates that aren’t customizable 
  • Neglecting signatures and execution dates 

What Should a Construction Proposal Look Like? 

Typically, a construction proposal can be a short one-page document (or a long, more in-depth proposal) that includes the contractor’s contact info, what work will be done (tasks, phases, and things to finish), cost breakdown (materials, supplies, equipment, and labor), payment plan, project schedule, rules, guarantee, dispute resolution, and signatures of both parties.

What Does Proposal Mean in Construction? 

When a customer has a construction project, they create a job posting, and contractors submit their proposals. These proposals are formal documents outlining project details, scope of work, timeline, cost estimate, and payment terms. The proposal serves as a communication tool for the client to assess the company’s capabilities and make an informed decision about the project. The winning contractor is often the one with the lowest bid, making it somewhat like an auction. 

How Do I Write an Independent Contractor Proposal? 

At the very least, a proposal for work, which becomes a legal contract when signed by both parties, must include the following:

  • Names and contact information of the owner and contractor
  • Work location
  • Detailed description of the work to be done (scope of work)
  • Cost of the work and payment schedule
  • Signatures of both parties and the date 

How Do I Respond to a Construction Request for Proposal (RFP)? 

To respond to a construction request for proposal (RFP) :

  • Review the RFP thoroughly 
  • Understand the client’s needs 
  • Form a response team 
  • Include an executive summary 
  • Address each RFP requirement 
  • Propose a comprehensive approach 
  • Demonstrate expertise and past successes 
  • Provide transparent budget and pricing details 
  • Emphasize quality and safety measures 
  • Introduce key team members 
  • Include client references or testimonials 
  • Use visuals for clarity 
  • Proofread and edit your response 
  • Submit on time and follow the instructions 

Start Your Proposal for Construction With OpenAsset

To win clients and secure projects for your architecture firm, it’s essential to create compelling proposals. However, we recognize the obstacles you may encounter in this process. That’s why, unlike traditional DAM systems, OpenAsset offers a project-based DAM solution specifically designed for AEC marketers . With dozens of integrations and useful features, OpenAsset is the MarTech you need to create high-converting content, proposals, presentations, and much, much more. 

Get your free downloadable construction proposal template today. And if you’d like to learn more about our DAM technology, you can reach out to our Support team, here or contact one of our digital asset experts today to schedule a demo . 

Get OpenAsset DAM Insights

how to write a business proposal for a construction company

How to Create Winning Proposals

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how to write a business proposal for a construction company

How to Write a Construction Company Business Plan (12 Steps)

You are starting a construction business. You own a construction company. Do either of those statements sound like you? If so, you need a construction company business plan. Building a construction company is hard work, but you don’t reach success on hard work alone. You also need strategic planning, an in-depth understanding of the competition, and a way to finance your business. These are all things that construction business plans address. In this post, we take a deep dive into how to write a business plan for a construction company. Read on to learn everything you need to know.

Why Do You Need a Business Plan for Your Construction Company?

Before you get too deep into “how” to write a home-building business plan, it’s helpful to understand “why” you should write one. There are three main considerations here: competition, growth, and financing.

Competition

The 50 U.S. construction companies with the highest annual revenue all made more than $1.5 billion in 2020 , with the highest-grossing company topping $14.4 billion. This is the level thousands of construction companies in the U.S. and around the world are trying to reach, and the fight to get there is fierce. With that in mind, you need to understand your competition. This is a primary purpose of a construction company business plan. You probably already know who your competitors are, but you need to do market research and write it all down. A construction or general contractor business plan will force you to do that.

Illustration #01

Like it or not, if you’re not growing, you’re more than likely dying in the construction industry. And your financial backers will want to see that you intend to grow. That means you need to have a plan for growth — how to achieve it and how to manage it when it happens.

How are you going to fund the expansion of your business? How will you get the initial capital to buy equipment? There are plenty of questions related to finances when you’re building a construction company. And any large or small construction company business plan will answer them and help you get the financing you need in the process.

Two Types of Information to Include in a Construction Business Plan

The information you include in your commercial or residential construction business plan will fall into two categories: industry information and general business information. Both are important to your business for different reasons. Perhaps the most important reason to include thorough information in your business plan is that it demonstrates your knowledge of the industry and business in general to the investors and banks who will read the plan when considering you for a loan. See below to learn more.

Industry information:

What do you know about the construction industry that others don’t? In other words, what makes your approach to your construction business different from the rest? This is what investors in your business will want to know as they try to gauge your chance of success. Don’t rely on empty buzzwords here — words like friendly, service, reliable, and the like. These are fine words, but you need to be more specific. How does what you know about the construction industry make you capable of running a successful construction business? Make sure those points are clear in your construction company business plan.

General business information:

In addition to your expertise in home building, you need to demonstrate some knowledge of general business practices. That means construction business plans need to have detailed information on the basic running of the business, the plan to get construction jobs, cash flow, corporate taxes, and similar items.

How to write a construction business plan

A business plan for a construction company is not a single page of text. It’s a complex, multi-part document that requires a lot of information. While not all construction company business plans are the same, most of them have a similar format. They include 12 key sections, which we explore in more detail below.

Executive Summary

Your executive summary is your introduction. It needs to summarize the rest of the document but not go into too much detail. Try to limit the executive summary section to a single page if at all possible, and cover topics like the following:

  • The reason you are starting a construction company
  • Your goals for the business
  • Where you plan to operate and offer residential construction services
  • Your estimated business expenses and profits
  • How your home building business will fit into the existing market

Again, don’t go into too much detail here. The details will come later in the business plan. Just hit the high points.

Company Description

The second part of your construction business plan will echo some of the points you raised in the executive summary, but it will go into deeper detail. In the company description section, the takeaway point for a reader should be why you think your business will be successful. To that end, you need to describe any specialties you or your business partners have, any special positioning you can achieve within the market, and any revenue streams or reduced expenses that can make you more competitive. You will also need to describe the existing competition here. Who are your competitors, how successful are they and why do you expect to outperform them? These are all questions your company description should answer.

Operational Plan

You will get into even more detail in this section. But instead of focusing on who you are and what your business will be, you will use the operational plan section to describe how your business is going to run day in and day out. You’ll need to cover a few key areas: Technology: List and describe the pieces of technology and equipment you will use in the operation of your construction business. This can include initial construction equipment purchases and office technology like computers, programs, and even home design software .

Bidding processes: How do you plan to bid on residential construction jobs? This is an important part of generating revenue for your construction company, so it needs to be described in detail in your business plan.

Production schedules: When you get a home-building job, you are instantaneously on a tight schedule. As you know, it takes a lot to take a home from paper to real life, and the logistics behind that process are complex and unforgiving. So, make sure your business plan demonstrates your knowledge of production schedules and, more specifically, how you plan to structure your company’s production schedules.

Inventory partners: Being willing to build homes is one thing, but having the right partnerships in place to get the job done is entirely another. Which vendors and suppliers will you work with? Why? Do you have any existing relationships that could prove beneficial to your business? Answer these and any related questions in your operational plan.

Market and Competition

You’re probably not going to be the first construction company in town. Who else is already established in your intended service area? How successful are they? Your construction company’s business plan needs to contain an in-depth analysis of the competition you’re going to face, as well as the market for residential construction services in the place you plan to operate. The reason why is simple. You need to know who your competitors are so you can see what they’re doing and look for ways to grab some market share from them. And you need to know whether people want the service you are going to provide. This section will cover all of that — for both your knowledge and that of your financial backers.

Illustration #2

Construction is a service, but it contains within it multiple related services that you can choose to offer or not offer to your customers. This is going to be an important part of your business plan — starting a construction business without a list of services you will provide is like opening a store without knowing what you’re going to sell inside it. So, make a list. Here are some of the construction-related services you may want to consider:

  • Residential construction
  • Commercial construction
  • Home design
  • Landscape work

Sales & Marketing

You may not be a marketer at heart, but you’re going to have to have a plan to market your construction business and bring in home-building jobs. The sales and marketing plan you write in your business plan should be as detailed as possible. Include information on the following subtopics:

  • Your marketing budget
  • Your company’s marketing assets, such as a website
  • Advertising plans (such as billboards, newspaper ads, and search engine advertising)
  • Whether and how you plan to leverage social media
  • Loss leader plans, such as offering free home design consultations
  • How you will measure the success of your marketing efforts

In addition to marketing, this section of your construction company business plan will need detailed information on your sales processes. Will you have dedicated salespeople? How will your sales team get leads? Will salespeople be paid on commission? Answer these questions and more.

Managers can make or break a construction business. These are the leaders of your company — the ones who will define the path your business follows and bear the responsibility for the successes and failures you have along the way. That’s why this is an essential part of your home-building business plan. Management may shift over time, but at the start, you need to have a good idea of who’s going to be in charge of what. You will also need to include an explanation of why you have chosen these people, who they answer to, and what you are planning to pay them.

For financial backers, this is going to be one of the most important sections of your business plan. They want to know how you plan to manage the money they may give you so they have an idea of whether this is a sound investment. Give them as much detail as possible. Cover everything from your revenue projections and operational costs to employee wages and the price of your services. Wherever possible, you need to include exact figures based on hard data and research instead of soft estimates based on your own beliefs. Remember — lenders and investors have a head for numbers, so they will immediately notice if you’ve left something important out.

The funding section of a business plan for a construction company is an extension of the finance section, but it’s not the same thing. This is where you describe how you plan to obtain the money you need to start, run, and expand the business. The audience reading your business plan will hopefully play a part in the funding — that’s the whole idea, anyway — but you need to convince them that you will be able to use their funds wisely to generate revenue. Be specific about how much startup funding you’re going to need and why. Go into detail about how you will repay a loan or generate returns for investors. Describe how initial funding will be used in your business — to buy equipment, hire talented employees, market your business, and so on. With these bases covered, you will set yourself up to receive the funding you need to get this business off the ground.

Financial Projections

You’re hoping for a bright future for your new construction company. That’s a given. But you need to show that bright future with the financial projections in your business plan. Include projections for revenue, expenses, and profits for five years out from your starting date. Don’t just say you plan to bring in $100 million by the fourth quarter of year three — show the numbers behind how you’ll get there. You will be able to reference the information from the other sections of your business plan to support your projections.

Funding Request

If you need investments or a loan to start your construction business, you need to include in your business plan a specific funding request. This is where you ask for the money you need. Here again, you need to provide some detail:

  • How much money do you currently have for the business?
  • How much are you contributing alongside the investment or loan you are seeking?
  • What assets do you already own, and what assets do you still need to acquire?

Many of the facts and claims you have made in other sections of your construction company business plan will have supporting information or related documents that won’t quite fit. The appendix is where you include those references. Any extra information that could help financial backers understand your proposed business should be included here. And don’t worry — this section will not likely be read in its entirety, so you can include everything. In general, more information in a business plan is better than less.

Final Thoughts

Writing a construction company business plan is a big task, but if you break it down into small steps, you can get it done. From the executive summary to the appendix, your business plan needs to demonstrate your ability to achieve success in the residential construction industry. With your business plan written and your company started, you’ll need to get home-building jobs and please your clients. Cedreo can help with that. Our home building software can help you quickly create 3D home designs to help clients visualize the project and make them much more likely to close the deal with you. Interested? Learn more about our home building software here, or contact us for more information.

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How To Write a Winning Construction Company Business Plan + Template

Business Plan-TB

Creating a business plan is essential for any business, but it can be especially helpful for construction company businesses who want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every construction company business owner should include in their business plan.

Download the Ultimate Construction Business Plan Template

What is a construction company business plan.

A construction company business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Construction Company Business Plan?

A construction company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Construction Company Business Plan

The following are the key components of a successful construction company business plan:

Executive Summary

The executive summary of a construction company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your construction company
  • Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your construction business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your construction firm, mention this.

You will also include information about your chosen construction company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a construction company business plan. Conduct thorough market research to determine industry trends and document the size of your market. Questions to answer include:

  • What part of the construction industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a construction company business’ customers may include:

  • Businesses (e.g., office complexes, restaurants, retail stores)
  • General contractors
  • Other construction companies

As you conduct your customer analysis, keep in mind that your target customers may not be aware of your company or product right away. You will need to have a marketing strategy to reach them and get them interested.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or construction company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

  • Product/Service : Detail your product/service offerings here. Document their features and benefits.
  • Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your construction company business via word-of-mouth.

Operations Plan

This part of your construction company business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present. Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a construction company business include reaching $X in sales. Other examples include hiring a certain number of employees, signing up a certain number of customers, or completing a certain number of projects.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific construction industry. Include brief biography sketches for each team member. Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue : how much revenue you generate.
  • Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Construction Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All of the things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Construction Company

Cash Flow Statement Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup construction business.

Sample Cash Flow Statement for a Startup Construction Company

Finish with an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your construction company. It not only outlines your business vision but also provides a step-by-step process of how you will accomplish it.

A well-written business plan is an essential tool for any construction company. The tips we’ve provided in this article should help you write a winning business plan for your construction company.  

Finish Your Construction Business Plan in 1 Day!

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The Ins and Outs of Writing a Construction Business Plan (Free Template)

By Shannon Mulligan

Woman wearing hard hat and yellow vest

A strong foundation is essential for a construction job—and starting a construction business. And how do you do that? By setting up your business for success with a solid construction business plan. 

Read on to learn about why you need a construction business plan, how to create one in six easy steps, and a free template to get you started. 

What’s a business plan for a construction company?

A business plan is a document that outlines a company’s business activities, goals, and how its activities will help achieve its objectives. It documents a business’s market research, financial projections, mission statement, and offerings. 

Every construction business can benefit from a business plan, whether you’re established or just starting. A construction business plan can help you secure funding, document your business model, forecast future business demands, and function as a guiding light for you and your team. 

The benefits of having a construction business plan

Most businesses start with a business plan—it’s a natural way to get your thoughts onto paper and organize them into actionable steps. Business plans can take a lot of time, but when done right, your business plan can function as your manual to move your business forward. 

If you’re still unsure whether your construction business needs a business plan, these four benefits might help you decide. 

Apply for funding

You’ll need a business plan if you’re looking for a business loan or planning to apply for business grants. Most financial lenders won’t even consider giving you a business loan without a well-thought-out business plan. A business plan is a way for lenders to gauge the risk level they’re taking if they lend your business money.

Your business plan should show lenders how to use their money and how to pay it back. It also allows you to build confidence in your ability to run a business from an organizational standpoint.

Attract top talent

Hiring the right people is important for any business, but it can make or break a construction business. Giving potential hires a complete understanding of your vision for your construction company can be the difference between finding the right employees versus the right now employees.

Creating a business plan will give you a clear vision for your company that you’ll easily be able to communicate to any potential hires.

Understand your competition

Industry and competitor research and analysis are a big part of creating a business plan. You might start your business plan thinking you know exactly what makes you stand out, but then again, you might not. Researching who your competitors are and what they do helps you solidify how your business can be differentiated from your peers. 

Finding what’s unique to your business is a huge factor in outbooking other local construction businesses.

Gives you clarity

Trying to get your business off the ground can feel like you get lost in the weeds of it all. Creating a business plan can help you clarify key elements of your company. A business plan gives you the big picture and lets you identify the priorities and milestones you need to focus on for your business.

How to write a business plan for a construction company

Writing a business plan for your construction company is essential in building your business. Whether you’re looking for funding or you’re looking for clarity, a business plan can help set you on the right path. Here are six key components of a successful construction business plan.

1. Executive summary

An executive summary is an overview of your construction business plan. Think of it as the CliffsNotes version of your business plan—it gives readers the basics of your business’s goals, financial projections, strategies, and more. This should be the first section of your business plan, but it’s usually the last thing you write because your plan informs it. 

An excellent executive summary reflects your construction business and should excite the reader about your company and its potential. 

2. Company description

The company overview and description section is the second section in your construction business plan. This section outlines vital details about your company, like your location, the size of the business, what you do, and what you hope to do in the future. 

When writing your company description, try to include the following information:

  • The official company name
  • Type of business structure (sole proprietorship, LLC, corporation, etc.)
  • Names of the owners/management team
  • The business location
  • A company history that outlines when the business started, why you created it, and what it does
  • Mission and vision statements

3. Market analysis

A robust market analysis gives you the foundation to create a strong construction business plan with the best chance at success. Market research is the best way to test whether your business will succeed. It can help you mitigate risks, give insights into customer preferences, and even help you decide on location and pricing. 

There are two main types of market research: primary and secondary. Primary research is gathered directly from consumers—think surveys, interviews, and focus groups you administer. Secondary research is compiled from external sources—think government census data, polling results, and research conducted by third parties. 

Both primary and secondary are great on their own; together, they’ll give you a fuller picture. 

4. Operations plan

There are a lot of moving parts that go into running a construction business. The operations plan lets you lay out all those parts and explain how you’ll run your company. This includes everything from your physical location, facilities, staffing needs, and equipment you’ll require. You can outline the types of projects your construction business will undertake, how many projects you’ll take on at once, and what resources you’ll need to deliver quality service at that scale.

5. Marketing and advertising strategies

Use the marketing and advertising strategies section of your construction business plan to highlight how you plan to promote your business. This section can outline all of the strategies you plan to use and can include a rough budget of what you plan to spend on marketing and advertising. Consider social media , digital marketing, content marketing, SEO, and local marketing strategies.

6. Financial projections

The financial projections section includes details about how you’re funding your business, projected revenues and expenses, and profitability projections. Accurate financial projections give potential lenders and investors confidence in your understanding of the industry and the viability of your business. 

Quick tips for writing a construction business plan

Now that you’ve got everything needed to start writing your business plan, here are five quick tips to help your writing process. These are big-picture ideas that you can use to get the most out of your construction business plan:

  • Get to the point: Use clear, concise language to get your point across. Skip the jargon and ensure someone outside the construction industry understands what you write.
  • Use data when you can: It’s great to have supporting data points to back you up when you’re talking about the industry and market.
  • Write for your audience: Who are you writing for? Investors? Employees? Shareholders? Lenders? When you clearly define your audience, you can write in a way that resonates.
  • Research, and then research some more: What you have to say about your industry is important, but having facts backed by research is even more powerful and convincing. 
  • Use it: Don’t let your business plan just be another PDF collecting metaphorical dust on your desktop. Use it to inform your decisions and guide you and your team through the years. And update it when needed!

Free construction business plan template

Ready to get started on your construction business plan? Our free construction business plan template can help you write a business plan with all the elements needed for success. 

Download your free construction business plan template now

Build a better business with the right tools

If you know one thing, it’s that the quality of your tools can make or break a project. The same is true for the tools you use in your business. 

With Homebase , you get everything you need to take control of your construction business . Built for teams like yours, Homebase helps you schedule your team , track their hours , and run payroll even if you’re all on different job sites. 

Homebase is the all-in-one management app that simplifies running your construction business. Get started for free .

Construction business plan FAQs

Why should you create a business plan for your construction company even if you aren’t looking for financing.

You should create a business plan for your construction company even if you aren’t looking for financing, because it can help you understand your business and competitors and give potential hires confidence in your business.

What’s the best way to create your construction business plan?

The best way to create a construction business plan is to use a business plan template. You can download your free construction business plan template above.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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Construction Proposals: Tips and Templates

February 3, 2023 - 10 min read

Samuel Christopher Dixon

Unlike with auctions, in the construction industry, prizes are auctioned off to the lowest bidder. The prizes in this scenario are construction jobs or contracts.

However, this isn’t always the case.

Just as you wouldn’t always pick the cheapest option when choosing materials to decorate your house, those posting construction jobs won’t always go with the most affordable bid.

There are other factors involved in creating an effective bid, so your ability to persuade a client that you’re the right person or agency for the job isn’t solely based on rates.

In this guide, we’ll break down what exactly a construction proposal is, the importance of writing a good one, and how to draw them up with or without templates.

What is a construction proposal?

A construction proposal is a document that details the scope, budget, and other relevant information about a job.

The typical process of sending a construction project proposal looks like this:

  • The client posts a job and invites bids from contractors, based on calculations they’ve made and specifications for the project
  • The contractor reviews the site and draws up a construction proposal detailing pricing terms, scope, and other pertinent information
  • The client goes through the proposals they receive and awards the job to a contractor based on various factors such as price, reliability, and reputation
  • The contract is drawn up and signed by both parties, at which point the work can begin

What’s the difference between a construction proposal and a bid?

Whereas a construction proposal covers all details about the project in-depth, a bid is simply an attempt to win a job with a quote. For the purpose of this guide, though, we’ll use the terms interchangeably to refer to the process of securing a construction job via proposal. 

In a construction project proposal, the goal is to provide as much information as possible pertaining to the job, to give the client a clear idea of what they can expect with the project. 

Here are some examples of useful information to include:

  •  Contact information of both the party submitting the bid and the party receiving it
  •  The scope of the work involved, e.g., what tasks need to be completed
  •  Price and payment terms
  •  Space for both parties to sign

While you want the bid to contain as much relevant information as possible, it’s also a good idea to keep it concise. Stick to the essential project-specific information the client needs to know, and you can’t go wrong.

Why is it important to write a good construction proposal?

A construction proposal is not only how you win jobs and earn money, it’s also how you present your company. As such, it’s as much a reflection of the value proposition as it is your brand.

Build brand identity

A construction proposal is one of the most valuable marketing assets available to you and should be treated as such. If you can create polished construction proposals time after time, you’ll build a trustworthy reputation in the industry and put yourself in pole position for jobs you bid on.

Building a strong brand identity pays dividends as it can differentiate your company from other bidders. Using custom brand assets, colors, and other personalized touches can win you bids even if you don’t have the lowest offer.

Clarify expectations

When you write a construction proposal, you’re assuming that the job will be yours. As a result, everything you write will be more or less set in stone for both you and the client. The construction proposal is therefore a perfect opportunity to lay out in no uncertain terms what the client can expect when you execute the project.

When you have everything in writing, there can be no room for misinterpretation or confusion. You’re much less likely to run into issues with the client later down the line as you’ll have made everything clear upfront.

If you complete the project exactly how you said you would, you’ll also build a relationship of trust with the client who may be more inclined to work with you again in the future.

Inform stakeholders

Your construction proposal is your word that you’ll complete the project as outlined. This acts as a reassurance to both the primary decision-maker and any stakeholders with a vested interest in the project. 

By detailing all the potential obstacles you may encounter and how you plan to overcome them, you can put stakeholders’ concerns at ease and set yourself apart from the competition.

Plan resources 

Knowing how many raw materials, labor, and other resources you’ll need to commit to the project can be challenging. 

That’s why drawing up a detailed construction proposal is essential — it allows you to thoroughly think through every aspect of the project. With this prior planning, you can inform your resource planning strategy and make sure you’re not caught short.

How do you write a construction proposal?

If you’ve recently set up a construction firm or work as a freelancer, it pays to know how to write a good construction proposal.

Using a template is a good idea in the beginning, but if you want to put your own stamp on your proposal, let’s take a look at how you can draw one up from scratch.

  • Contact information

Much like any formal correspondence, a construction proposal should start with relevant contact information.

First, put your name, company name, and other contact information at the top of the document. Then, do the same for the client you’ll be working with.

Here’s a quick rundown of what to include:

  •  Company name
  •  Address
  •  Phone number
  •  Email

If you want to put a unique spin on your construction proposals, you can also use the space at the top of the letter to display your company logo and other branding assets. 

Scope of work

One of the most important elements of any construction proposal, the scope of work (SOW) section is where you’ll outline in detail what exactly the project will involve.

This is where you’ll answer questions such as the following:

  • What tasks need to be completed for the success of the project?
  • What equipment and raw materials do you need to fulfill the job?
  • How will you approach the project?

In the SOW section, your main goal is to inform the client as to how you’ll get the job done and reassure stakeholders that you’ve planned everything out accordingly. It’s where you’ll lay down the general expectations for the project, such as timing and the specifics of how you’ll work.

If it’s relatively brief you can simply add it to the body of the proposal document, but if it runs long you can consider attaching it as a separate document.

While the SOW is generally set in stone, it is possible to make changes during the execution of the project through change orders and deductive change orders.

  • Change order : A document to outline any changes to the priorly agreed-upon project scope. In the SOW you would typically describe the process for change orders that both parties understand.
  • Deductive change order: When the SOW that was initially agreed upon is reduced.

Cost breakout

A cost breakout or breakdown is where you’ll lay out the financial terms of the project. Specifically, you’ll include the following:

  • Overall cost
  • Itemized pricing breakdown for materials, labor, equipment, etc.
  • Pricing terms and a payment plan

It’s this section that most clients’ eyes will be drawn to straight away, as many bids are decided based on what’s most cost-effective.

If you can be flexible with how you receive payment, that can work in your favor once the time comes for the client to make a decision and award the job to a bidder.

  • Terms and conditions

While it’s the least interesting part of the proposal to draw up, the terms and conditions are as important as any other.

It’s here that you’ll outline the terms and conditions of the working relationship as pertains to the project. One of the most important pieces of information to include is an expiry date for when your bid is no longer viable, as you don’t want to waste time and energy thinking about a project that won’t materialize.

  • Signature line

At the end of the construction proposal, you should include a space for signatures where you and the client can sign on the dotted line and make it official.

Construction proposal templates

The first time you try to draw up a construction proposal, it can be an overwhelming process. You don’t want to miss any key details and you want to make a good first impression on the client to win the bid.

If you doubt that you can create an effective construction proposal from scratch, why not try filling out a template instead?

With a construction proposal template, you can use the existing framework to ensure you don’t forget anything. It’s a quick and easy way to put together multiple proposals, so you can send out your bids as and when you need to.

Here are some construction proposal examples you can take inspiration from or use for your own bids:

Excel template

This  Microsoft Excel template is basic, but a good option if you want to send a brief summary of what you can offer to prospective clients.

In it, you’ll find spaces to include everything from contact information for you and the client to itemized pricing.

If you’re interested in testing the waters with a simple project bid, the Excel template is good to have on hand.

TemplateLab template

This  TemplateLab template is another basic option that presents you with fields for information including the following:

  • Pricing information and payment plan

Jotform template

The Jotform construction proposal template is a much more detailed option if you want to include more information.

There are pre-built sections, including the following:

  • Contact details
  • Brief introduction
  • Company background
  • Project information
  • Pricing information

This template is an excellent place to start if you want to draw up an in-depth construction proposal to win a bid.

Final notes

Wrike has all the professional services management tools you could need to run construction management projects. While the pen-and-paper method still has a place in the construction industry, it’s the digital equipment that’ll help make sure everything aligns with your construction management plan .

With Wrike, you can fully plan out how you intend to complete a project, assign tasks and responsibilities to team members, and execute and adapt with construction project management features. It can help you as you form your construction proposal and also when the project gets underway.

Here are a few ways Wrike can help you with construction projects:

Resource allocation

Before you set out to complete any construction project, you want to be sure that the numbers add up. Poor resource planning can lead to budgetary issues and disrupt the plan you agreed on with the client, threatening to throw the entire project off course.

With Wrike, you can take control of your finances and allocate your resources accordingly for every project. Set up budget forecasts and visualize your resources and capacity at all times so you can stay on schedule.

Task prioritization and management

Projects rarely go exactly to plan, which is why you need to prioritize the most important tasks and have systems in place to ensure tasks flow through the pipeline and get completed without a hitch.

With Wrike’s task management features, you can assign projects to team members, notify them of changes in real time, and flag high-priority tasks.

You can also automate workflows so that certain actions trigger other actions, speeding up the approval request process and other important processes.

Full transparency

When you work on a construction project, you aren’t the only party interested in a successful outcome. The client and any external stakeholders will want to be updated on the progress as you go.

Wrike’s 360-degree transparency and client management features let you do just that: keep everyone who needs to know about the job posted on its progress. With @mentions, you can stay in touch with stakeholders and clue them in on milestones reached, obstacles encountered, and overall progress made.

Want to explore more? Start your free two-week trial of Wrike today.

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Samuel Christopher Dixon

Samuel is a freelance writer who specializes in SaaS and e-commerce.

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What is a Request for Proposal? How to Write an RFP

What is a Request for Proposal? How to Write an RFP

Not all projects should kick off with a handshake agreement. Some are too complex and have far too much at stake. For the big projects, with many stakeholders at every step, you should vet contractors, seek out bids, and review your options before you get started.  And even then, you may find yourself crossing your fingers in the hopes you’ve made the right decision. Before you turn that key project over to someone just because you heard they were the best, stop. Slow down. Take a breath, sit down with your team, and create one of the most important documents required to complete big projects: an RFP. What does RFP stand for? So, what is an RFP? An RFP (which stands for request for proposal) is a business document that outlines a new project. In an RFP, you’ll ask prospective contractors to submit their bids for completing that project. It’s common in businesses like construction, for example, when a business can’t build its own sites. As Investopedia puts it, an RFP “is a project announcement posted publicly by an organization indicating that bids for contractors to complete the project are sought.”  In other words, when you create an RFP, you’re asking businesses to submit their best estimates for completing what you need to get done. But the RFP is more than just an “ask.” It should also provide enough details about the project so that the aspiring bidders can provide an accurate estimate of what it would take to finish it. The more accurate the RFP is, the more likely it is to solicit bids that line up with real-world results. When are RFPs issued? You might issue an RFP whenever you have a large, complicated project with a significant budget. This is particularly true in the public sector. Typically, government agencies issue RFPs to solicit private bids, opening up price competition between bidders and maximizing the quality of results for the price. For example, the National Association of Counties (NACo) includes its own instructions for governments creating RFPs. This isn’t to say that RFPs are public-only documents. Any time a private company needs to consult outside help from bidders and contractors — who often enlist subcontractors themselves — an RFP could be an effective way to start. RFP benefits go beyond inviting potential bidders to submit their estimates. These documents should also include details of the project. Critical details include project milestones, regulatory requirements, and any pressing calendar deadlines. The more clear the RFP is about these requirements, the more it will naturally filter out any bidders who can’t meet the project's scope. What kind of organizations use RFPs? RFPs are particularly adept at lining up potential contractors for complex, service-based projects. For small projects with one contractor and one deliverable, an RFP might not be necessary. However, professional services that require extensive project planning and the employment of different skills, equipment, and labor are much more complicated. This makes their pricing and planning more complex. RFPs are common across a range of businesses, but they’re especially common in the following industries.  Construction companies The project might have a simple goal: to build a site by a specific date. But anyone who’s worked in construction knows that even a project with a simple goal can be susceptible to scope creep. An RFP for construction companies should define key stakeholders, establish the expectations for the final result, explain cost and budget limitations, and establish realistic deadlines. In turn, the construction company has plenty of information to include in its bid: estimated timelines for meeting milestones, equipment used, insurance and regulatory compliance needs, and subcontractor details.  A construction RFP should also include notices for any extra materials you’ll need to review. For example, a business building a new office compound may have no ideas about handling fire safety. But they can build a notice into the RFP asking each construction bid to highlight their fire safety plan for each floor.  Marketing companies A detailed marketing project can be a multimillion-dollar effort. Like construction, putting together a large marketing campaign requires skills across a range of disciplines — writing ads, editing TV and internet spots, data and research, and ad buying. An RFP outlines the goals of a marketing campaign while leaving flexibility in the hands of digital marketing experts as to how to achieve those goals. Government agencies A government agency is often unable to offer all of the services it’s responsible for. But with the budget to do so, it can solicit private contractors to place bids on the required work.  Government agencies will often hire construction, consulting, educational, and marketing-based services to fulfill the government’s obligations to the public. The RFP is an essential tool here, allowing government agencies to review each bidder while securing the best possible rates. Statement of work vs. proposal: What’s the difference? An RFP asks specifically for a proposal. On the surface, this might sound like the RFP is asking for a simple outline of the labor, budget, and timeline details required to fulfill a project. But a proposal differs from a statement of work (SoW) in that an SoW might be a section of the proposal, but never vice versa: A proposal is an overall pitch for a company’s approach to the project. The statement of work might be one element of this proposal, but a proposal can include other elements like a background on the company itself. Think of the proposal as a marketing tool on behalf of the company doing the bidding. It might include the basic details necessary to submit the bid, but it’s also looking to differentiate the company from the competition. A statement of work is a straightforward listing of the project’s milestones, the timeline, and the pricing of each element. One page within a proposal might outline the statement of work. Unlike the proposal itself, this section is typically written to be clear and is often closer to a list of bullet points. The RFP bidding process is typically the first stage in selecting a company. As G2 notes, it’s also an announcement of your upcoming project. For that reason, requesting a proposal means you’re inviting companies not only to outline their estimates, but essentially to make their best pitch. This puts you in the position to whittle down the best candidates. What to include in an RFP The purpose of an RFP is clear: not only to learn which companies can provide the services you’re looking for but to gauge what a realistic timeline and budget for your project might be. However, without adequate guidance on what to include in an RFP, you may find that businesses submit unclear proposals. Your goal with an RFP should be to cut through the ambiguity and bring clarity to your project. To do that, you’re going to need to include several elements: Relevant company and project history Start by getting a background on what the company is, who leads the company, and whether they’ve completed any similar projects in the past. It’s true that past performance isn’t necessarily indicative of future performance. But if your goal is to build a new downtown office high-rise and there’s only one company who can point to building a previous office high-rise who submits a proposal, you’ve probably got a fair idea that they’re going to be the best choice. The key here is to focus on relevant company and project history. You don’t need details about a company’s founding that have nothing to do with your upcoming project or initiative.  Project scope and objectives In a project’s scope, you should provide just as much information as you solicit. This is when you need to make your deliverables clear.  But what is a project’s “scope” exactly? It’s a brief document that includes the following details: Business case: This is the overall summary, detailing what the project is, why it’s necessary, and what the project hopes to achieve by the time it’s finished. Budget: Although it can sometimes be difficult to pin down a tight budget, many RFPs will include a basic budget “window” within which companies can submit their bids. Timeline: The overall timeline, especially the deadline, is critical. This is also a way to filter out companies that may be too busy to take on a significant amount of work in your timeline. Milestones: Milestones can be like mile-markers that signify the completion of individual portions of the project. Although not always necessary, it can be helpful to agree on project milestones ahead of time, particularly when subcontractor work is involved. Having milestones planned out in advance helps both sides assess what objectives to hit in order to keep the project on track. Deliverables: Finally, outline what deliverables you want completed by the end of the project. Include as many details necessary to consider the project to be completed, especially if there are any regulatory requirements at play. Project requirements Sometimes, project demands mean you’re working with constraints outside of your control. That may include budgetary constraints, government regulations, or NDAs you require bidders to sign.  Don’t hide these in hopes of securing better bids upfront. Include these essential details in your RFP. The sooner you make these requirements clear, the more sure you’ll be that you’re only working with qualified bidders as the process moves on. Similarly, try not to limit the scope of requirements you include. Whether you have business requirements or technical requirements to be satisfied, it’s always better to include these on the RFP so there’s no mistaking them. You don’t want to get 2/3rds of the way to completing a new office building only to find out that the construction company you hired isn’t licensed to handle the windows and didn’t include that estimate in the bid. Selection criteria Ever had a teacher who told you what sections of your textbook would be on the quiz? When you studied, you probably made sure that you reviewed those exact pages. In doing so, you remembered them all. Stating your selection criteria in an RFP is a bit like that. Spell out the precise details that will make you select one bidder over another. Don’t make them guess. When you tell them what variables matter most to you — budget, scheduling, etc. — you make sure every bidder gives their best possible answer on these variables. This makes for better comparisons when it’s time to review the proposals and select the finalists. Timelines Executing is important, but not if a project has so many overruns that it’s only completed years after the deadline.  State your project timeline in clear, specific terms. This is essential information that guides other priorities. Contractors can use project timelines to gauge their budget, whether they’ll have to hire subcontractors to supplement their team, or whether they’ll even have the bandwidth to take on this project in the first place.  Possible roadblocks An effective plan doesn’t just state what should happen. It also considers the risks involved. Take the time to brainstorm these potential roadblocks with your team, then list them in their own section. Of all the RFP requirements, this may seem the most optional. Why perform this exercise? Isn’t it something that the contractors should consider instead? Simply put, you want to list the potential roadblocks because you still own this project. By making other companies aware of these roadblocks, you can solicit more accurate proposals. Rather than selecting a low-budget option when you aren’t sure if they meet your qualifications, getting the roadblocks out of the way will serve as another selection filter. You’re less likely to go wrong in the long term if you’re upfront about the challenges. Budget The budget is often the top concern for anyone crafting an RFP. That’s for obvious reasons. Budgets determine resources, investments, time, effort, and the amount of labor a contractor can allocate to your project.  Even if you’re not confident that your budget is high enough, make it clear when you don’t have any wiggle room. It’s better to receive an RFP response of “sorry — we can’t do it at that price” than to create unrealistic budget expectations in the hopes of generating more responses. Be realistic about how much budget you can allocate to this project so you can get accurate proposals and realistic bids. The budget may also include payment terms, such as when each milestone’s invoice is due. About 63% of contractors say they “sometimes” get paid on time, so don’t be surprised if contracts include payment terms in this section of the proposal. Response guidance Finally, your RFP responses can use a little coaching. Tell these businesses what you want to hear from them and what you don’t. Make sure to include some other key details at the end, such as: Contact information: Who should businesses send their bids to? List the primary contact for the project and how to get in touch with them. Submission requirements and deadlines: Set a hard date, at which point you can gather all of the proposals and review them with your team. Give businesses enough cushion time to prepare an adequate proposal. Required elements: What are the must-have details you need to review in every proposal? Make note of the comparisons you want to make, such as the project’s budget — and let companies know that this information is required as part of their proposal. An RFP example Once complete, an RFP will mostly be an empty form — it’s up to the businesses to fill in the information. It may look something like this: Project overview: This is the part you do fill in. Here you’ll include the details we just reviewed, such as budget, timelines, project details, and any further guidance. Example: Imagine your project is a new website for your company. In this case, the project overview would include the types of pages you’d need for the website, the functionality you’d like to have, and when you’d like to launch the new site. Project goals: With the details in place, think of this section as a little bit like a time machine. Explain what you want the project to look like after everything is said and done. Example: Let’s stick with the website example. What do you want completed by the deadline? A fully-functioning website that’s capable of taking customer orders? Get specific about the deadlines and milestones your project needs to hit for you to consider it a success. Scope of work: Now it’s time to turn the work over to the people filling out the proposals. Explain the level of detail you need in the scope of work, then leave plenty of space for businesses to handle the rest. Example: In our website example, you might compare the scope of work from one project to another. Who is doing custom web development? Who is relying on pre-existing templates? “Scope of work” helps you understand each company’s approach. Roadblocks/barriers: In this section, either explain the roadblocks you foresee, allow the businesses to submit their own thoughts on the matter, or both. Example: Is there existing content that needs to be overwritten? Do you need to migrate to a new web hosting platform before the new company develops your website? Evaluation metrics: This is when you can include your own response guidance and selection criteria. List out the necessary details or extra materials you need to see for an effective bid. You might also include a submission requirements field here to further explain what every bid should look like before handing it in. Example: Tell the web developers what you need to see in each proposal. This will be up to you. Do you have a hard ceiling on the budget? Mention that. Is meeting the deadline your priority so you can have the website up by Black Friday? Mention that too. What does the RFP bidding process involve? You should have enough now to fill in the precise details of an RFP tailored to your upcoming project. Now what? You can’t wave a magic wand and expect the bids to start rolling in, after all. It may seem difficult at first, but since you’re the one looking to hire, don’t expect it to stay difficult for long. You simply need the contact information for relevant businesses you want to invite to submit a bid. You might ask businesses or organizations similar to yours where they were able to ask for proposals. Or, for some smaller projects, you might visit online resources and project postings to publicize your RFP. Once your RFP is in the hands of multiple businesses, your challenge shifts. No longer are you concerned with finding businesses, but dealing with the (potentially) overwhelming number of bids you’ve received.   Organize the proposals and, after the deadline, begin whittling down. Use your key metrics for this funnel. For example, if one bid came in at double your maximum budget, but you have five others at the budget, you can reasonably toss the high-budget proposal aside. RFP response examples The specific RFP response you receive may vary, depending on the RFP itself. But typically, you should expect a cover letter and an attachment of the proposal in full.  The cover letter is important and the first mark of a company with strong sales skills. It’s your first impression of the level of care and attention the company gave your proposal. For example, this… To whom it may concern: Attached is a standard project rate for XYZ Company. We very much look forward to serving your business needs. …reads like a form letter. However, a company that has taken the time to vet and review your RFP will address more specific concerns. To [Specific Contact’s Name]: Thank you for the opportunity to submit a bid for your [specific project details]. ABC Company has completed three similar projects in the past, the details of which are attached in this email. You can also find PDF and Word attachments detailing our proposals, as well as the extra materials you requested. It’s not hard to spot which cover letter sounds like it’s more likely to lead to a detailed, well-considered proposal. A good business has time to consider every aspect of their bid to increase their success — especially when companies that submit bids usually only win an average of 44% of them. RFP response tips and tricks What if you’re the one sending an RFP response? The RFP bidding process can feel like a minefield. Here are some time-tested tricks to get your proposal noticed: Take time to understand the RFP There’s no point in spending time on a proposal if you misunderstand the project in the first place. You’ll end up submitting a proposal that is either entirely off the mark or wasting your time with a project that wasn’t right for your business in the first place. However, if you take the time to understand the RFP, every point you include in the proposal will speak directly to your potential client’s needs, making it more likely they’ll accept yours. Review all project requirements thoroughly This is an off-shoot of the tip above. You don’t want to get too far in the project estimation process before you realize that the timeline is completely unrealistic for a company with your limited resources. Learn all of the requirements before you agree to a proposal. Draft possible questions from stakeholders A good RFP is open to feedback and questions. As you work through your proposal, maintain a list of questions that the RFP doesn’t answer. You’ll not only find this useful in researching the project, but the company requesting the information will likely appreciate the consideration you put into your proposal. Create the first draft of your response The first draft doesn’t have to be perfect. Create the first draft with the steps above in mind, but don’t hesitate over every detail. Remember you can always review and edit this response before you send it in. Get it checked by your team Don’t just have one person review the draft. Bring in the entire team. Make sure everyone is on board with the vision for the project — that you’re not writing checks that the company can’t cash, so to speak.  Present and submit your final proposal Finally, create a cover letter (like the one above), polish up the proposal, and send it off. If you’re presenting it in person, prepare an overview presentation that includes the basic details. But if you’re presenting it via email only, make sure that everything is available via attachment and that you confirm your RFP is received.  Why use Wrike to plan your RFP documents? The RFP is central to getting business done, on both ends. For the organization doing the hiring, it’s critical to get solid work on large projects with reasonable schedules and budgets. For a company submitting proposals, it’s the difference between a full schedule and wishing you had more work. But you shouldn’t try to reinvent the wheel with RFP documents. Use Wrike templates to ensure the proper organization and workflows necessary to build out documents that are professional, comprehensive, and effective.  On both sides of an RFP, it’s critical to think of every key detail. It will help two different organizations not only connect, but thrive together. Ready to simplify your RFP process? Get started with Wrike today.

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Blog Marketing How to Write a Construction Proposal

How to Write a Construction Proposal

Written by: Aditya Rana Feb 16, 2024

how to write a construction proposal

The construction industry is competitive . For a single project, there are dozens of construction companies vying for a contract.

Submitting bids and getting an initial agreement from a project owner is only half the battle. You also have to master construction project management.

While there is no secret success formula to this, using a construction proposal template is a great way to convert clients and get legal contracts to do a job.

In this post, I’ll show you how to create an effective construction proposal using a Proposal Maker and construction proposal templates .

Click to jump ahead:

  • What is a construction proposal?

How to write a construction proposal

  • Mistakes to avoid

Construction proposal examples

What is a construction proposal .

A construction proposal details how a contractor or construction firm plans to execute a project.

Construction proposals can be one page or multi-page documents, but their ultimate goal is to get a client to the signature line.

A good construction proposal outlines the specifications of a construction project, including the scope of work, cost estimates, timelines, materials to be used, and other relevant information. 

Here’s an example of a page from a construction proposal.

yellow and blue minimalist construction proposal

Here’s an example scenario of when a construction proposal is useful.

Pretend, a construction company wants the contract to build a home. How can it convince the other party to hire it over someone else?

Through a proposal that showcases its expertise, past success, and a detailed plan of action on how it’ll get the job done. 

Construction proposals are usually the entry point of the sales process and a vital tool to see through a construction contract from start to finish.

A well written construction proposal gives an overview of the entire project and should include following elements.

Scope of work

This section of a construction proposal acts a project overview and is meant to inform stakeholders of every activity that will be carried out.

It should include information on the construction process, materials to be used, labor and equipment requirements, project timeline, and cost estimate.

Here’s a free construction proposal template featuring a scope of work section.

Orange And White Construction Proposal

Terms and conditions

In a construction project proposal , including the project terms is critical for establishing a legal framework within which all parties involved will operate.

Details in this section can include project schedule, payment plan, work schedule, completion dates, and more.

Though not a legally binding contract, this section is key to a project bid as it acts the precursor of a formal contract if the proposal is accepted.

Here’s a simple construction proposal template which features a terms and conditions page.

Simple Dark Blue Construction Proposal

Cost and budget

A budget page that provides a cost breakdown or estimated costs of a specific construction project is important to help relevant authorities decide in your favor.

You can share a detailed scope of expenses such as labor, raw materials, equipment, or any other costs associated with prospective clients.

Here’s a construction bid template that includes a cost and budget page.

Blue Minimalist Modern Construction Proposal

Personnel and contact details

In the construction business, trust and smooth communication is everything.

In your entire proposal, make sure to include a section which has all the details on peopled involved in the project and how to get in contact.

Be sure to highlight their expertise and title to enhance transparency and help quick dispute resolution should the need arise.

Here is a construction bid proposal that does this right.

Modern Dark And Orange Proposal Construction

Reinforce brand identity

In construction, trust and a strong brand identity is everything. Clients will evaluate a company’s capabilities from their proposal.

This is why you need to highlight identity in construction proposals.

Throughout your proposal, use every opportunity to differentiate your company from competitors. How can you do this?

A company logo, proof of past construction projects done (if any), relevant contact details and key team members are all examples.

Here’s a a good construction proposal template with strong branding.

Blue And Yellow Minimalist Shape Construction Proposal

And here’s the same proposal’s scope of work page. Notice the logo?

https://venngage.com/templates/proposals/blue-and-yellow-minimalist-shape-construction-proposal-0ea09008-ee76-4aec-b93a-3050e9c58c70

Construction proposal mistakes to avoid

When making construction proposals, small mistakes can lead to misunderstandings, disputes, or even the loss of a contract.

Here are three common mistakes to avoid to create successful construction proposals.

Use of unclear language

Writing ambiguous copy can cause confusion about project scope, responsibilities, and expectations.

Make sure each section of your construction proposal is clear and uses straightforward language. If you find any unclear or jargon wording in the construction proposal, you can simplify and make it fluent by passing your writing through a paraphrase online tool. It will automatically change your unclear and complex wording with plain and clear to understand one.

Avoid technical jargon unless necessary, and when used, provide clear definitions to ensure all parties have a mutual understanding.

Unclear payment terms

Another significant oversight is not specifying payment terms clearly.

This includes the total project cost, payment milestones, and terms for handling additional costs or changes to the project scope.

Failure to outline these details can result in payment disputes and financial uncertainty.

Using templates that aren’t customizable

Relying on construction proposal templates that aren’t customizable can severely limit your ability to tailor your bid to the specific needs and preferences of the project and client.

Each construction project is unique, with its own set of challenges, requirements, and client expectations.

Opt for construction proposal templates that allow customization in terms of design, content, and format (hint: Venngage offers all of this).

Ready to create a construction proposal but need some ideas or inspiration?

Check out these construction proposal templates (hint: if you don’t want to create a construction proposal from scratch, you can edit these customize these examples and make them your own).

White And Yellow Clean Simple Minimalist Construction Proposal

How to make a construction proposal in Venngage

If you want to create a construction proposal in a timely manner, Venngage has free construction proposal templates for you to customize and make your own.

Step 1 – Log in or sign up for Venngage (it’s free!)

Log into your Venngage account or create a  new account  if you don’t have one. 

It’s always free to create an account and after signing up, you’ll get access to our tools and access to in-editor library of icons and images.

venngage sign up

Step 2 – Go to the “Templates” page and select “Proposals”

Venngage offers dozens of construction proposal templates.

To find them, go to our templates page and select the “Proposals” category from the left menu. You should see a screen like this. 

Note: Some of our proposal templates are free to use and some require a small monthly fee. Sign-up is always free, as is access to Venngage’s online drag-and-drop editor.

proposal templates venngage

Step 3 – Select the “construction proposal” subcategory 

When you select “Proposals”, a new page should load showing several proposal subcategories you can create. 

Make sure to pick the “construction proposals” subcategory. 

construction proposal templates venngage

Step 4 – Customize your construction proposal

Once you open a template, you’ll see the editor window where the magic happens.

With Venngage, it’s easy to customize a constructional proposal template. Here are some things you can do to your construction proposal in a few clicks.

  • Add symbols 
  • Change colors
  • Change the fonts and text to match your brand or style
  • Move elements around with a drag and drop interface

For example, let’s say you wanted to edit this construction proposal template.

Simple Dark Blue Construction Proposal Template

Maybe you don’t like the blue background and want it to change it something brighter? It’s easy with Venngage. Just select the background, and you’ll get an option to replace colors.

Simple Dark Blue Construction Proposal Template

If you sign up for a Business plan, you’ll also get access to My Brand Kit. This allows you to apply your brand colors to any template with one click.

Step 5 – Save, share, or download your construction proposal

Once you’ve finished creating your construction proposal, save it as a PDF or PNG file if you’re on a Business plan. 

But you can always share a link to your construction proposal for free. 

save venngage template

Conclusion: Get people’s attention by creating construction proposals on Venngage

Construction proposals are a reflection of your capabilities, professionalism, and commitment to delivering quality.

By taking the time to create a customized construction proposal, you not only communicate how you’ll get the job done, but build the trust and authority that’ll help grow your business.

Frequently Asked Questions

What’s the difference between a construction proposal and a construction bid.

A construction proposal outlines plan for execution of a project and includes information like materials, labor, and cost estimates. Its purpose is to persuade a client on their approach. In contrast, a construction bid is a document that provides relevant authorities an estimated cost for completing a project. You’ll see them used in a competitive bidding scenario.

Why are construction proposals important?

Construction proposals are important because they help you communicate your value proposition to a prospective client a and show you plan to execute a construction project. This allows a potential client to better assess the reliability and expertise of different contractors and make better decisions before signing a legally binding document.

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Examples of Construction Business Proposals

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Examples of project cost assumptions, how to write a company profile for a graphics firm.

  • What Information Should a Business Proposal Contain?
  • How to Write an Accounting Service Proposal

Construction business proposals are used to help contractors get jobs and are used for bidding on request for proposals, or RFPs. All construction proposals have a similar structure, whether you are bidding on a construction project, giving a quote for a plumbing service, or describing your painting services to a commercial client. Outline your proposal before you begin to write it, and print the final product on your letterhead stationary.

Executive Summary

The executive summary section tells the reader why she should hire your contracting business. Demonstrate that you understand the client’s requirements for the job. For example, summarize the client’s needs by explaining the statement of work and give a description of what your company plans to do. Explain how your company is going to accomplish the work. A house painting company may describe painting specific rooms or provide site details about stripping kitchen cabinets.

Highlight Your Services

in a section entitled “Benefits” or “Services Provided," you will describe the benefits of using your construction business. The customer is interested in what you can do for him. Focus on the highlights of your construction business. For, example if you have experience building patio decks tell the customer in your proposal about the features of the previous decks that you have built. Provide photos of your past work. The customer wants to know about the jobs that you have done that are similar to this project and how well you have performed on them.

Describe the Cost

In the cost summary section of the construction proposal, give a summary of the cost to the client, including labor, materials and equipment. Write the timeline to explain when you will be finished with different stages of the project. Give a complete schedule and finish date and Include an equipment list and your safety record.

Resume and Experience

Write a detailed description of your construction company, the experience you have and the date you established the company. Provide names and addresses of some of your prior clients. Provide the client with the names, addresses, and phone numbers of all people you can use as a reference. Include with your proposal a list of resumes of key personnel, including personnel on the job, contractors, painters and electricians. Include photos of key staff in the proposal. Include professional resumes for all senior staff.

  • Seattle Daily Journal of Commerce: How to Build a Proposal Package for Your Company; Gerald Brown

Lanee' Blunt has been writing professionally since 1997. As a freelance copywriter for advertising, public relations and articles, she has handled projects in accounting, mortgages, contracting services and other industries. Blunt holds a bachelor's degree in business administration, as well as several writing certificates.

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Construction Company Business Plan

how to write a business proposal for a construction company

Growing a construction company is much more difficult and taxing than completing projects.

From acquiring a new project to meeting deadlines, managing the budget, and many more things in between- you will find yourself drowning in responsibilities when you start a construction company.

A construction business plan can come to your rescue in such burdensome situations. If prepared well, it can become a reference point for your company as it continues to grow.

Confused about how to write a business plan?

Well, this article will serve you perfectly. It will help you understand the contents of the business plan and offer a sample template for your construction company.

So let’s build a solid construction company business plan with this detailed guide.

Let’s dive right in.

Key Takeaways

  • Venture into the market by conducting thorough industry and market analysis.
  • Widen the scope of your service offerings to cater varying needs of your target audience.
  • Create a detailed operations plan to get thorough guidance in your business operations.
  • Conduct a SWOT analysis to identify your competitive edge over the competitors.
  • Determine your marketing strategies to launch your business and get it popular amongst your target market.
  • Define your business objectives, goals, and mission values to create a foundation for essential business policies.
  • Account for various project costs, operating costs, and office expenses to form realistic cash-flow projections.

Why do you need a construction company business plan?

Apart from the fact that investors and banks would ask for a business plan when you seek funding, here are a few more reasons you need a business plan.

  • A business plan offers a roadmap to your business. It acts as a guiding block that has answers to all your how, when, where, and what.
  • It helps in determining the exact target market for your business and formulating strategies to cater accordingly.
  • There are millions of construction companies competing in the industry. You can identify your strengths through a business plan and design a competitive edge to stand apart.
  • A well-rounded plan prepares you for emergencies that may arise in your business by making a plan for every situation.
  • A whole lot of business processes repeat every day. A business plan helps bring consistency by establishing SOPs for various business activities.

And of course, you get your desired funding with a solid business plan that vouches for the potential of your construction company.

Key components of a construction business plan

Writing a business plan gets much easier with a structurally defined flow. Well, let’s have a look at key components that a construction company business plan must have.

Executive Summary

A brief summary of an entire business plan that will encourage the readers to read further.

Company Overview

A brief company description including every detail from company structure to its mission statement and future goals.

Market Analysis

A thorough analysis of the construction industry and your target market. It also includes sections for competitor analysis, future market trends, and scope of growth.

Construction Services

Outline the construction services that your company will offer. Highlight any additional services that will make you a distinct player.

Marketing and Sales Strategy

It includes a strategic plan to achieve success through marketing and sales. Determine the best course of action for your business.

Management Team

Introduce key personnel in managerial and leadership roles. Discuss their roles, qualifications, experience, and expertise.

Operations Plan

A detailed plan that streamlines the everyday operations right from construction methods to hiring employees.

Financial Plan

A financial plan highlights the prominent figures and key reports of your construction company by making necessary financial projections.

Let’s dive further into these topics and get a detailed understanding of writing your business plan.

Related Construction Company Resources

  • Construction Company Marketing Plan
  • Construction Company Financial Plan
  • Key Stats for the Construction Sector
  • Start-up Cost For Construction Company
  • How to Start a Construction Business

A step-by-step guide to creating a construction company business plan

A poorly written plan serves no purpose. However, with this step-by-step guide, you will uncover every detail that goes into making a fantastic and purpose-serving business plan.

1. Get a business plan template

Writing a comprehensive business plan is taxing and time-consuming. But if you do it well, you will have a guidebook for running your construction company.

Now, there is a lot that needs to be considered, planned, and accounted for as you start writing the plan. Even if you closely follow a construction business plan outline, there are higher chances of you losing track or getting stuck at certain sections.

This is why you need a business plan template to give a solid structure to your business idea. With industry-relevant examples and a guide, the Upmetrics business plan template is easy to edit and customize.

Whether you own a general contracting firm or specialize in residential construction or specialty trades- we have plenty of construction-related templates for you to choose from.

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2. Write an executive summary

The executive summary is a concise yet insightful description of your entire business plan.

This one-page document summarizes the most important questions that a reader might have and offers a peek into what they are about to uncover. Investors take a brief glance at your executive summary before deciding whether to proceed further or not.

An executive summary must outline the following details of your construction business in persuasive consecutive paragraphs.

  • The exact business opportunity
  • The target market
  • The problem and the solution to it
  • Products and services offered by you
  • Market size and growth potential
  • Financial highlights
  • Management team

Maintain a personal storytelling tone while writing this section and encapsulate every minute detail that can make a difference.

But wait, don’t start writing yet. Write your executive summary only after you are done writing an entire plan. This will help you summarize effectively.

3. Prepare a company overview section

This section of a business plan will focus entirely on the details of your construction company.

From the type of construction company to the construction company’s goals- everything in this section is about your company description.

To begin with, highlight the type of construction business you will start. For instance, a residential construction company, general contracting company, industrial construction company, or specialty trade construction.

Clarify, if this will be a new business or an extension of existing business. If the business is already operating, offer a brief description of the business history.

After that, highlight the business structure of your construction company. Are you going to be a sole trader or start a limited liability company (LLC) or a limited partnership firm? The business structure you choose will decide how the finances and taxes will work in your business.

Now, this section is your chance to weave magical stories around your construction company. Present the mission statement, company’s objectives, and future goals over here.

For instance,

Mission statement : Syncore aims to become a trusted name for sustainable residential construction projects in Arizona by 2028. With our commitment to the highest quality standards, we will penetrate the market with our premium budgeted solutions.

Business goals :

  • Onboarding and signing 15 construction projects in a span of 6 months.
  • Generating revenue of $2 million by 2025.

Like this, you will write this entire section in parts by offering a brief overview of your construction business.

4. Conduct a competitive and market analysis

In this section of a business plan, you begin with industry analysis and then narrow it down to your particular market segment. This is important to show your potential investors that there are promising opportunities in this market.

Using market research practices determine the target market for your construction business. Create a buyer persona to identify what your ideal customer will look like.

Further, highlight your competitors in this competitive construction industry. Using SWOT analysis and PESTEL, determine the strengths and weaknesses of competing construction companies. In this section, you will also highlight your strengths to gain a competitive edge over existing players.

Don’t limit your market study to merely understanding the current scenarios. Extend the research and identify future trends and growth possibilities in your targeted market.

If you are a residential construction company focused on sustainable building practices, you must include the following details in your market analysis section.

  • How large is the construction industry?
  • What segment of the construction market will you capture?
  • Who will avail of the construction services?
  • What is the spending capacity of your target customers?
  • Who are the top competing construction companies?
  • What are the emerging trends in the industry and how will you leverage those?
  • What is the growth potential of your target market?

Focus on quality market research as this will form the base of your further projections and strategies.

industry analysis construction company business plan

This screenshot of the construction business plan example highlights only the market size for HDFL construction. You can also include details like competitors analysis, growth potential, and market trends here.

5. Describe your construction service offerings

What construction services will you offer your potential clients?

Offer a detailed answer to this question, as you write a business plan section for service offerings.

Overall, this section should highlight every service offering that will bring you money. This could include services like,

  • General contracting services
  • Design and Engineering
  • Construction
  • Renovation and remodeling
  • Project management
  • Specialty services i.e. concrete work, HVAC installation, Roofing services
  • Maintenance and repairs

Offer a brief understanding of these service offerings and highlight construction jobs you will specialize in. For instance, remodeling of kitchen and bathroom.

Now, will your construction company sell any construction materials for profit? If so, include details for that as well.

It’s important to consider the breadth of your service offerings to keep the customers coming back.

Overall, this section is your chance to prove to potential investors that your services can stand solid in the competitive construction industry.

6. Propose marketing and sales strategies

According to the IBIS world report , there are more than 3,787,470 construction businesses in the USA. Starting a construction company will add one more to this list, but hey- How do you wish to make a brand that your target audience can recall easily?

All the market assessment and understanding of your potential clients will come in handy at this stage as you make your marketing plan and sales strategies.

Take an opportunity to lay out your sales plan in this section. If you have existing customers, explain how you plan to retain them.

After you are done making your sales strategies, touch the marketing aspect.

Firstly, identify the way you want your brand to be recognized- as an ordinary construction firm, a luxury construction company, a sustainable solutions firm, or an affordable construction company. This will help you make a marketing plan.

Your marketing strategy should answer the following questions:

  • Which marketing channels will you use-  Online, offline, or a mix of both?
  • How will you generate more leads?
  • Online marketing methods- search engines, social media, Email marketing, content marketing, etc.
  • If you are going to be utilizing social media platforms- which ones?
  • How much will you budget for paid ads?
  • Will you use billboards, pamphlets, and newspaper advertisements to market your business?

Keep in mind the marketing channels where you can find your potential customers. For instance, you are more likely to find conversions through Email campaigns than social media campaigns, if you are finding clients for commercial construction.

All in all, in this section you have to draw potential investors’ attention with your sales and marketing strategy.

7. Introduce your management team

Everyone is aware of the cutthroat competition in the construction industry. Knowing that you need an able team to transform your business plan into a successful venture.

After laying out your marketing strategy, it’s time to introduce the key management and leadership team to your business plan.

It’s okay to brag about the talented individuals you have in your company. From construction heads to project managers, highlight the achievements, experience, and expertise of these people and prove their asset-worthiness for your company.

Also, draw the hierarchical map to give potential investors an idea of your organizational structure.

This is your time to prove that you have both the means and manpower to run a successful company.

8. Outline your operational plan

You may know construction, but do you know how to run a construction business?

As someone said, “ Seamless operations are the silent engine of extraordinary business achievements”

Before even taking the first project, it’s important to define operations and SOPs for different business activities. Make it so thorough that it can act as a guidebook whenever a problem arises in your construction company.

As you write a business plan for this section, focus on answering the following questions:

  • What construction materials will you use?
  • What will be the supply chain process in your construction company?
  • Who will oversee the project management on site?
  • What will be the timeline for completing projects?
  • What will be health and safety protocols for construction workers?
  • What will be the process of construction work?
  • How will the communication flow within an organization?
  • What technologies and equipment will you use?
  • How will you ensure quality work?
  • How will you hire employees?
  • What accounting software will you use?

This is just a general gist of questions that can help you prepare this section. Consider it as a living document that will undergo various changes as the business commences and grows.

A thorough operations plan will lay a clear groundwork for running a company. Moreover, it will instill investors’ faith in your ability to run a construction company.

9. Create a financial plan

Writing a sound financial plan is a challenge but nothing that your determined mind can’t handle.

Whether you plan to raise funds or get bank loans, you need a sound financial plan. Investors will analyze this section and only if they find your business financially viable, will they invest.

In this section, you will make financial projections and estimates for your construction company. This includes forecasting sales, estimating startup costs , projecting overhead costs, and making a pricing plan.

Using the startup costs projection, determine how much funding is essential to start your own construction company.

Also, prepare different reports like income statements, cash flow statements, balance sheets, and break-even analyses using the projections made earlier.

To make a financial plan more relevant, consider various progressive and aggressive situations.

Lastly, prepare graphs, charts, and diagrams to make this section visually appealing and easy to grasp.

Now, stop. Don’t start writing a financial plan yet. You need a financial forecasting tool from Upmetrics to help you with projections and calculations of cash flow, sales, revenue, and everything else. Simply enter the data and it will make detailed and precise calculations for you.

Trust us, you don’t want to scratch your heads writing the entire plan from ground level.

And that’s it! With all this information you pretty much know everything that a construction business plan must have.

Construction Industry Highlights 2023

Now that you are almost set to open a construction company, here are a few industry statistics that might interest you.

  • Market size : The US construction market sector was valued at 1.8 trillion US dollars in 2022.
  • Growth of the virtual construction market : The global BIM market is 7.9 billion US dollars . North America is projected to be a market leader capturing 30% of this market.
  • Rise in prefabrication and modular construction : Healthcare facilities followed by hotels/motels and educational institutions are most likely to avail of modular construction facilities.
  • Major concerns : The leading concerns encircling the construction industry are inflation and supply chain disruptions faced by nearly 90% of constructors.
  • Sustainable and green building : There is a continuous increase in demand for sustainable and green building solutions. As for 2021, the green building market in the USA was reported to be approximately 83 billion dollars .
  • Growing investment in smart cities : According to IDC, the investment in smart cities is expected to grow to 203 billion dollars by 2024.

From sustainability to tech-centric processes, the construction industry is making huge shifts in trends. Both, small businesses and large have to evolve according to changing times to keep themselves relevant.

Download a sample construction business plan

Facing difficulty writing a business plan? Well, we have a perfect resource for you.

Download the Upmetrics sample business plan template. Our template offers step-by-step instructions and prompts to ease the entire plan writing process. It’s designed to meet modern market needs and is perfectly detailed with construction-relevant examples.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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A lot of us struggle when it comes to translating our ideas into a solid business plan. But not with Upmetrics.

Upmetrics is an intuitively designed business planning app with more than 400+ sample business plans . Our business planning tool features AI assistance that will transform your business writing process. Not only that, it allows you to design, collaborate, and share your business plan in real-time with your team.

So what are you waiting for?

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Frequently asked questions, what kind of market research should i include in my construction business plan.

The market research for your construction business plan must include the following details:

  • The market size of your targeted market, i.e. commercial construction, residential construction, etc.
  • The target audience of your services and their buyers’ persona
  • Top competing firms and companies offering similar services
  • Emerging trends in your market
  • Growth potential for your firm

Is a SWOT analysis necessary for a construction company business plan?

Absolutely yes. There are more than a billion construction companies in the USA itself. Starting another business won’t guarantee success unless you have a business that can withstand the dynamic competitive environment. SWOT analysis will make you aware of the company’s strengths, weaknesses, and the opportunities it can avail

What are the initial startup costs for a construction company?

It is possible to start a construction company with as little as $10,000. However, if you plan to set up a mid-sized construction company, expect to spend anywhere around $50,000-$250,000 on getting a basic setup. This includes accounting for licenses, insurance, office setup, construction materials, and payroll for the initial months.

Can I get government grants for a construction business?

Yes, you can apply for government grants to start your construction business. Check the local, federal, and state regulations to see which grants are applicable to your business. Check the eligibility and apply accordingly.

How often should I update my construction business plan?

A business plan is a living document that can guide you toward success if mapped properly. Ideally, you should update your business plan every 4-6 months to make it relevant. Set aside time to do so as a renewed plan will offer deep and meaningful insight into your business goals.

About the Author

how to write a business proposal for a construction company

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Download Construction Company Business Plan

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Construction Business Plan Template

Construction company business plan template.

If you want to start a construction business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow all types of construction businesses, including commercial construction, building construction and residential construction.

Construction Business Plan Outline: How To Write a Construction Business Plan

Below are links to each section of a construction business plan:

  • Executive Summary – The executive summary is the most important part of your business plan. It’s where you explain what your business is and why it will be successful.
  • Company Overview – This section of your construction business plan should include a brief business description, your vision and mission statement, and the company’s core values.
  • Industry Analysis – This section of your plan will provide an overview of the construction industry, including market size, growth outlook, major players, and competitive landscape.
  • Customer Analysis – In this section of your plan, you will identify and describe your target market(s).
  • Competitive Analysis – In this section, you will analyze your competitors and explain how you plan to differentiate your company from them.
  • Marketing Plan – Your marketing plan should include an overview of your marketing goals, strategies, and tactics.
  • Operations Plan – Your operations plan should describe how you will produce your product or service, as well as the people and resources needed to do so.
  • Management Team – In this section, you will introduce the members of your management team and their experience and qualifications.
  • Financial Plan – Your financial plan should include your financial statements such as the income statement, balance sheet, and cash flow statement.
  • Appendix – The appendix of your plan should include any additional supporting materials, such as market research reports, resumes, licenses and permits.

Next Section: Executive Summary >

Construction Business Plan FAQs

What is the easiest way to complete my construction business plan.

Growthink's Ultimate Construction Business Plan Template allows you to quickly and easily complete your Construction Business Plan.

Where Can I Find a Free Construction Business Plan PDF Download?

You can download our construction business plan PDF template here . This is a business plan template you can use in PDF format.

What Is a Construction Business Plan?

A construction business plan provides a snapshot of your construction business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan for a Construction Company?

The construction industry is tough. If you’re a contractor looking to start a small construction business or construction services company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your construction business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes. As always, we are here to help you write a business plan and guide you through the steps of taking your business idea from dream to reality.

What Are the Sources of Funding for Construction Businesses?

The main sources of funding for a small construction business are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a construction business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will generally not fund a construction business.

How Do You Start a Construction Business?

Please see this article on our website: How to Start a Construction Business

What Are the Keys to Success for a Construction Business?

Below are some of the keys to success in the construction business:

  • Vision & Focus: determine the type of construction business you want to operate and stick to that vision.
  • Create your business plan: Your plan will help you set goals and outline how to achieve them.
  • Get licensed, bonded, and insured: before you can bid on your first job, you need to investigate and meet the requirements for local and state licenses and do what you need to do to secure them, get your worker’s compensation and liability insurance, and find out how much you need to be bonded for.
  • Build a winning team: Hire and train a team of employees with the right skills. Remember that since construction is seasonal and cyclical, you must also be willing to downsize if/when the workload decreases.
  • Purchase wisely: be careful not to overspend on salaries and equipment. Consider renting equipment when possible.
  • Properly price jobs: Keep factors such as overhead and actual production costs (materials, labor, inspections, etc.) in mind when pricing jobs to ensure a healthy profit on all projects.

CONSTRUCTION BUSINESS PLAN OUTLINE

  • Construction Business Plan Home
  • 1. Executive Summary
  • 2. Company Overview
  • 3. Industry Analysis
  • 4. Customer Analysis
  • 5. Competitive Analysis
  • 6. Marketing Plan
  • 7. Operations Plan
  • 8. Management Team
  • 9. Financial Plan
  • 10. Appendix
  • Construction Business Plan Summary

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Construction Proposal Template

Get your Construction Proposal Template for Word or open it in ProjectManager, the best way to manage your projects online.

how to write a business proposal for a construction company

Before a construction project starts, there’s something called the bidding process, which is when project owners hire a general contractor based on the contractor’s project proposal or project bid. But how do construction contractors present their bids to a potential client?

The answer is this construction proposal template. It outlines all the details clients want to know and gives you the space to answer questions and win their business. Use our free construction proposal template for Word and get that contract for your next construction project.

Better yet, open the construction proposal template in ProjectManager. Making a proposal is a project in itself, and with ProjectManager, you can assemble all the elements of your proposal together with your team in one online location. Create tasks and phases, attach files to the project, set due dates, schedule reminders and update progress along the way. Get started with ProjectManager for free and make a better construction proposal.

Free construction proposal template for ProjectManager

What Is a Construction Proposal?

A construction proposal, or bid, is used in the construction bidding process when trying to win business. It includes detailed project information, such as quotes from suppliers that give an idea of how much the raw materials for the construction project will cost. There are also quotes from subcontractors for the work they’ll do in the construction project.

Free Construction Proposal Template for Word

This free construction proposal template captures all the information of a construction bid in an outline that is filled in by the general contractor and sent to the project owner seeking bids. There is a place for the client to sign if they accept the bid, which then acts as a legally binding contract—though in some cases, a signature can be required as an acknowledgment of receipt.

ProjectManager's free construction proposal template

What’s Included in this Construction Bid Template?

This free construction bid template outlines the most important elements of any construction proposal. The following are its components.

1. Contact Information

The first thing is to identify the client and put your contact information with theirs at the top of the document. There are fields for both of your names, addresses, phone and emails as well as the contact person at each organization. In fact, our fully customizable construction proposal template has room on top to place your company logo, adding to a professional presentation.

2. Scope of Work

Now comes the meat of your construction proposal. For a great construction bid, you must first outline the scope of work (SOW). Describe the construction work that is going to be done in the project, detailing tasks, deliverables and phases. Also include the equipment, labor and materials that will be used. You can even attach a construction plan.  Note the certifications required for the work, as well as an annual inspection, bond and insurance information.

3. Financial Information

The next section will go into the costs and payment schedule of the job. The costs will include the materials, supplies, machinery, other equipment and, of course, labor. You’ll want to add your profit margin here. There should be a schedule of payments, how and when the client will pay you for the work you’re doing.

4. Project Schedule

The construction schedule is outlined next. This will include the proposed start date for the work as well as when you forecast the job will be completed. You’ll want to add the milestones, such as when one phase ends and another begins, but other dates such as approvals, easements and permitting.

Related: Free Construction Schedule Template

5. Relevant Authorities

The relevant authorities are the roles and responsibilities of those in your crew but anyone who has authority in the construction project. That includes those at the local municipalities, any affiliates and partners on the job.

6. Exceptions

You’ll want to have a section that covers exclusions to the scope of work, which are things that will not be done by the general contractor. This is where you’ll explain the work done by other parties, such as subcontractors and other trades. Include the warranties outside the scope of your agreement.

7. Terms and Conditions

The terms and conditions of the relationship if contracted as outlined in this section. This details the rights and responsibilities of both parties. This is a good place to place an expiration date for the construction project proposal. You don’t want to have it open-ended.

8. Signature Line

Then, there’s the acceptance of the proposal. If the project owner finds the construction bid to their satisfaction, they can sign it (there’s a signature line below with a place to date the document) and return it to you before the expiration date. This can act as a contract or the foundation to a legally binding document between the two parties to the agreed-upon terms and conditions.

Why Use a Construction Proposal Template?

A construction proposal is a critical construction management document because it’s used to acquire work. A bid is not that different from a sales call, only in this case, you have a motivated project owner. You need to convince this potential client your construction firm is the right one for the job.

The project proposal outlines the scope of the project, including costs. In many cases, this is the first step to the legally binding contract. Therefore, you want to make sure you include accurately detailed, pertinent info to avoid any costly misunderstandings later on if you’re awarded the job. To beat the competition, you have to have the best bid, one that meets their needs and provides you with a profit. Construction bidding is a complicated process and the last thing you need to do is waste time.

A construction proposal is made up of project scope, costs and more. Fortunately, construction project management software efficiently organizes all that data. ProjectManager helps you present a competitive project proposal in a timely manner. You and your team can choose from five different project views when executing projects. Switch to the kanban board to easily organize tasks and track status via columns. Try our construction proposal template today with a free trial. 

Construction proposal template in ProjectManager

Who Is This Construction Bid Template For?

This construction proposal form can be used by:

  • General building contractors: A clear construction bid template can help you win projects.
  • Project owners: Having a standardized form for the construction bidding process saves time.
  • Construction project managers: Any site manager must be familiarized with the construction bidding process.
  • Construction companies: Construction management templates help firms streamline their processes.

Depending on the size of the business, there may be others who crunch the numbers and fill out the actual construction proposal template, but it will always stop last on the desk of the business owner for approval.

There could potentially be many stakeholders involved in the process of putting together a construction proposal template. Whether it’s the owner or an assistant putting together the draft of the construction proposal, they will seek guidance from members of the construction team, accountants, architects, et al., in order to make sure the proposal is as accurate as possible.

Using ProjectManager to Plan Construction Projects

Once your construction project proposal has been approved, all the promises must be fulfilled within the time and for the money you’ve agreed upon. That means you need to build a viable construction project plan. ProjectManager is award-winning construction project management software that helps you organize your tasks, crew and projects for greater efficiency.

Lay Out Your Project on a Gantt Chart

Project management training video (kki7zez71n)

Track Progress in Real-Time

More than just planning a construction project, we have features to monitor performance. Real-time dashboards give you a high-level view, automatically calculating data and displaying it in easy-to-read graphs and charts showing time, costs and more. One-click reporting goes into greater detail. There are resource management tools, timesheets and so much more to make your construction project a success.

ProjectManager’s dashboard view, which shows six key metrics on a project

More Free Construction Project Management Templates

Our free construction proposal template is one of the many templates available for download on our site. There are templates for every phase of your project, from initiation to closure. We picked some of our most popular construction project management templates below:

Construction Estimate Template

When filling in our free construction proposal template for Word, you’ll want to make sure you add the most accurate figures possible when forecasting the cost of your build. The free construction estimate template helps you calculate all the labor and material costs for the project.

Construction Daily Report Template

Once you’ve started to execute the project, you need a tool to record what’s happening on the job site. There’s a lot going on, and it’s changing every day, which is why our free construction daily report template is essential to capture all the activities that occur each day.

Punch List Template

You’re not done with your construction project until you’ve done a walkthrough with the customer. At this point, you’ll find items that might not be on the contract but still need to be done before you can get paid. The free punch list template is used to properly close out the project.

Related Content

Our site has free project management templates to download and tons of blogs, tutorial videos, guides and ebooks. If you’re looking to get more information on anything to do with construction project management, you’ll find it. We’ve gathered some of the more relevant pieces on the site, which are listed below.

  • Construction Contracts: Types, Best Practices & Mistakes
  • 7 Tips for Better Construction Daily Reports & Daily Logs
  • How to Make a Construction Schedule
  • Making a Construction Estimate: 5 Tips for Better Outcomes
  • Best Construction Scheduling Software
  • Construction Bidding Process

ProjectManager is cloud-based software delivering live data for you to make better decisions. It helps you plan, monitor and report on your construction projects. Keep in real-time contact with your crew on the site, balance their workload and give them collaborative tools for greater productivity, all with one tool. Try our software today by taking this free 30-day trial.

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Proposal Templates

10+ construction business proposal templates – word, pdf.

A construction proposal sample is a document that summarizes the construction company potential to further offer a service proposal with it. It is mainly centered on the contractor’s intention to take part in bidding or a tender to render construction services from architectural designs to actual building project completion.

how to write a business proposal for a construction company

Proposal Template Bundle

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Construction Request for Proposal (RFP) Template Bundle

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Construction Business Proposal Template

construction business proposal template

Construction Agreement Proposal

construction agreement proposal

Jumla School Construction Proposal

jumla school construction proposal

Construction Proposal Template in PDF

construction proposal template in pdf format

How to Write a Construction Bid Business Proposal

  • Executive summary – To start, contractors provide a background summary of their identity as a construction company. They include construction projects that they have successfully completed. It is also in this part of the proposal that contractors convince clients as to why they are perfect to build a project.
  • Construction services – Endorsing the company as a whole increases the chances of winning the bid for a building project. Highlight the quality services that a construction company offers in a way that it perfectly coincides with what the clients are requiring. Construction companies could also use a research proposal template to endorse their well-researched procedures in order to maintain quality service.
  • Estimated project cost – Write about the estimated project value which should entice clients into weighing their budget for the building project. Attach a budget proposal template is necessary and list relevant expenses for clients to evaluate from construction materials, labor, and equipment among others.

Construction Contract Proposal

construction contract proposal

Proposal for Residential Construction

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Construction Management Services Proposal

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Request for Proposal Construction Management Service

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Proposal for Student Hostel Construction

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Residential Construction

residential construction

Basic Inclusions of a Construction Business Proposal

  • Contractor identification details – Be it known that clients and customers would need anything that would help them easily identify contractors. In cases where a specific proposal of a contractor is shortlisted, clients would want to know full details to be its company name, contact information, project managers, and more.
  • Project portfolio – A compilation of projects should be included in the proposal as an exhibit for clients to see. Most clients might possibly base their approval upon checking out completed construction projects.
  • Construction time frame – A proposed end date of construction could be appealing to clients in a way that they get to see how much progress can be done in a specific span of time proposed by contractors.

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Starting Your Own Construction Business? Here’s Why Construction Project Management Software Should Be a Priority.

Posted on May 14, 2024 |

Starting your own construction business is exciting. It’s also scary. 

There are so many different aspects of getting a trade contracting business off the ground that it is easy to get overwhelmed and lose sight of why you were so excited in the first place. The keys to success are to take a deep breath and create a detailed, actionable business plan.

“A well-thought business plan can guide you through the launch process and ensure that every aspect of your construction company is budgeted for,” explains Mike Enright , operations manager at Wolters Kluwer. 

While completing this task may seem difficult on the surface, it doesn’t have to be. “Your business plan can be as extensive or simple as you feel is needed,” writes Enright. What matters most is that it is comprehensive. 

To achieve that end, one item that absolutely must be addressed in your plan is the technology tools you will use to help you run your business as efficiently as possible. A project documentation management solution, like eSUB, should be at the top of that list.  

Table of Contents

Project Documentation is Critical to Your Business’ Success

How you control your construction project documents matters. 

“Document control is an integral part of efficient construction project management,” writes Ravindra Ambegaonkar , marketing manager at NY Engineers. If you don’t have “complete, accurate, and accessible records,” your projects “may suffer from major setbacks,” he notes. That risk is particularly high if you use manual document control processes.

Manual Document Control Causes Problem

The purpose of documentation in construction is to compile and track project information so that you can ensure projects are on time and on budget. Good document control also helps you make good business decisions. You can’t do any of these things well if you are using physical binders and multiple spreadsheets as your data repositories. 

That’s because the only person with access to real-time project data is the one in possession of these documents. Everyone else’s data is outdated for as long as it takes for the owner to submit their documents and for that information to be stored or shared with all project stakeholders. It’s also nearly impossible to compile and analyze historical data when information is being held in different places. 

Consequently, business and project decisions may be made using bad data. That’s why “real-time data collection is critical in the construction industry,” writes Ben Sparhawk , marketing account manager at Stevens Engineers and Constructors. “Real-time data collection enhances decision-making,” he adds.

Poor document management also leads to productivity losses. “When a business doesn’t have streamlined document workflows, employees lose valuable time every day to process inefficiencies,” writes RTG Solutions Group . “Poor processes create redundancies, errors, bottlenecks, confusion, and frustration. All these things impair business productivity. This, in turn, hurts your bottom line.”

The only way to avoid these problems and create maximum efficiency in document management is to use digital tools designed for that purpose.

“Accessibility is a crucial tenet of document control,” writes Stonemark Construction Management . “Documents should be available to everyone who needs them when they need them. To this end, you must equip your team with the right technology.”

The Right Construction Project Management Solution is an Invaluable Business Asset, Especially for a New Company

Planning ahead to implement a construction project management platform from the start will help you avoid document control chaos and get your new business started on the right track. It’s a critical step in your business plan that will help ensure your company’s long-term success. 

With the right software, you can build a sustainable business by increasing productivity, increasing profit margins, improving operation, and bringing in new business.   

Technology Increases Productivity

Productivity is a critical component in a successful construction business. You need your team members to be able to maximize the time they spend on project-specific tasks in order to meet often-tight project deadlines so you can stay profitable. 

That’s nearly impossible to do when they have to spend hours each day on administrative tasks, like document management. They sacrifice key time that can otherwise be spent completing the highly-skilled work you hired them to do when they have to manually fill in, seek out, and submit documents. 

Construction project management software streamlines and optimizes document workflows, automates some administrative processes, and facilitates access to real-time documents and data so your teams can complete administrative tasks quickly and efficiently and get back to doing profitable, project-specific work. 

“Connecting data and document workflows in real-time results in smoother projects, increased efficiency, and improved profitability for your organization,” writes sustainable architect Forough Farhadi at Neuroject. 

Digital Tools Streamline Operations

In order to build a profitable construction business, you must be able to streamline your operations. If your processes are clunky, all aspects of your business will be chaotic and inefficient. 

That’s the struggle Monarch Mechanical faced before implementing eSUB. The company was using outdated, manual project management methods that were time-consuming, error prone, and inefficient.   

“When I got here, not a single job was in line … it was chaos,” says Jason Yano , director of operations. “They used to just dump all their sent emails for a job onto the server with no labeling,” he explains. “So it just was basically the same file labeled with a 1234 or 5 at the end … sometimes 100 different pieces of communication.”

He quickly realized they needed organization.

Construction project management software provides the level of organization and operational efficiencies Yano was seeking. eSUB facilitated a vital transition from the fragmented and manual processes to a centralized, automated system which was instrumental in streamlining operations for Monarch Mechanical.

The Right Software Helps Grow Your Business

You don’t start a new company with an expiration date; you start it with longevity in mind. When your people are more productive and your operations are more efficient, you have the bandwidth to take on more projects, increasing the profitability and sustainability of your company. 

To win those new projects, you need the historical data that construction project management software can provide. Because the technology centralizes the data, historical data is at your fingertips. You can use it to create more realistic and competitive bids so you win more profitable projects. 

That’s a big reason why Ground Breakers Construction started using eSUB. The tool has the capabilities to help the company scale for growth. 

“Over time we will be able to use our historical data to help us bid better, know our strengths, and know what we need to improve,” says Chief Operating Officer Marty Siebe . “It also gives us a competitive advantage over any other subcontractor still using paper; being able to have live, up-to-the-minute data in the palm of your hand is essential.”

Your New Business Needs Construction Project Management Software

The critical lesson here is don’t underestimate the importance of document control and data management to construction projects. 

“Disregarding document control spells trouble in construction,” asserts Stealth Mode cofounder Chris Lee . “By giving document control the attention it deserves, construction companies can significantly enhance their profitability, project outcomes, and stand out in a competitive market.”

As you plan your new company and the technology that will help you build it, be sure to prioritize construction project management software so you maximize efficiencies from the beginning. For trade contractors, the best tool for the job is eSUB.

Schedule a demo of eSUB Cloud today to learn more about why its software is a critical asset for your new construction business.

Images used under license from Shutterstock.com.

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Sandeep Kashyap

How to write a perfect project proposal in 2024?

how to write a perfect project proposal

Introduction

The primary purpose of writing a project proposal is to secure funding, gain approval, or secure resources from the most important stakeholders of a project. 

For that, you need to explain the following in simple terms in a project proposal:

  • What do you want to do and what are your goals for the project? 
  • How are you going to achieve your goals? 
  • How are stakeholders going to benefit from the project?
  • What do you want from stakeholders?
  • How are you going to use the money and resources granted by stakeholders? 

In this post, we will learn about all these about writing a perfect project proposal in 2024. We will look at different types of project proposals, a project proposal template, and a real-world example of a project proposal.  

What is a project proposal? 

A project proposal is a project management document that outlines a project’s objectives, timeline, budget, goals, and requirements. 

It is primarily written for stakeholders to secure funding, gain approval, and secure resources. However, other types of project proposals are also sent to win projects from clients.   

A project manager should have a good understanding of the project and its key stakeholders for writing an effective project proposal. It is because a manager needs to get into the heads of the project’s stakeholders to understand what they expect from a project and write an effective project proposal accordingly to ensure buy-in for the project.

Benefits of writing a strong project proposal

Writing a strong project proposal offers a surprising number of benefits beyond simply securing funding or approval. Here are five key benefits of writing an effective project proposal:

  • Clearly defines the project to increase the chances of success  
  • Makes it easy for stakeholders to mutually understand the project 
  • Ensures everyone involved is on the same page about goals, roles, and expectations
  • Helps identify potential roadblocks early for proactive planning of solutions  
  • It can attract funding, and talent, and even serve as a marketing tool

Difference between a project proposal, a project charter, and a project plan

It is important to note that a project proposal is different from a project charter and project plan. Let’s understand the difference between these terms.     

Project proposal vs. project charter 

A project charter is a formal document that outlines the project’s goals, objectives , and resource requirements for a shared understanding of the team. It can’t be created until the project proposal is approved. Whereas a project proposal is written during the initiation phase.

Project proposal vs. project plan  

A project plan is a detailed guide that provides step-by-step instructions for executing, monitoring, and managing the approved project. It is created during the planning stage after the project charter and project scope is defined. Whereas, a project proposal is a persuasive tool for securing project approval and resources.

Read more: Project management plan – everything you need to know about

Project proposal types 

Project proposals are of six different types. Each has a different goal. A manager may have to write a project proposal for external and internal stakeholders to run a project successfully. Therefore, it is important to know about the different types of project proposals.

Project proposal types

1. Solicited project proposal 

A solicited project proposal is sent in response to a request for proposal (RFP). RFP is a document sent by a company to vendors to seek out resources required for a project. It includes the details of the scope of the work and the payment company pays for the resources. 

RFP is sent to many vendors. Thus, while writing a solicited project proposal, you need to keep in mind that you may be competing against other vendors to secure a project. Thus, you need to keep your tone persuasive.

2. Unsolicited project proposal 

This type of proposal is sent without having received a request for a proposal (RFP). A company has not sent a request for proposal to vendors but you know that the company is seeking resources from third-party vendors. You may or may not be competing against the other vendors in this type of proposal.

3. Informal project proposal

It is a type of project proposal that is created when a client makes an informal request for a project proposal from vendors. It means there is no formal RFP. Thus, the rules for writing a project proposal are less concrete. You can follow any format that can secure you a project.   

4. Renewal project proposal

A project manager writes this type of proposal to existing clients to extend their services to the client. In this type of proposal, you focus on highlighting past achievements to secure a renewal for the future.

5. Continuation project proposal 

The purpose of the continuation project proposal is to inform the client that the project is beginning and communicate the progress. You are not persuading the client with this type of proposal.   

6. Supplemental project proposal

As the name suggests, this type of proposal is sent to the stakeholders who are already involved in a project to secure additional resources. The purpose is to convince the client to invest additional resources during the project execution phase.

How to write a winning project proposal?

You need to include certain elements in the project proposal to make sure it is good. Have a look at the steps to learn how to format a project proposal. 

How to write a winning project proposal

A. Pre-writing stage

The pre-writing stage is crucial for creating a compelling and successful project proposal. Here’s a breakdown of the key steps involved:

1. Understanding the audience 

The first step is to identify decision-makers and understand the mindset of the audience for which you are writing a proposal. Thoroughly research the client’s needs, goals, and expectations. This includes understanding their industry, current challenges, and past projects. 

Determine who will be reviewing and approving the proposal. This will help you adjust the tone, level of detail, and overall focus to cater to their expertise and interests. Tailor your proposal to directly address their specific concerns and priorities.

2. Project requirements gathering 

To create an effective project proposal that has a higher chance of getting accepted, gather the project requirements. Usually, it is mentioned in the Request for Proposal (RFP) where specific requirements, evaluation criteria, submission deadlines, and any other instructions are provided. 

If there is no RFP, schedule meetings or interviews with key stakeholders to gain a deeper understanding of the project requirements. This allows you to ask clarifying questions, gather feedback, and ensure your proposal aligns perfectly with their expectations. 

3. Team brainstorming

Writing a project proposal is teamwork. Involve your team in brainstorming sessions to make a strong proposal. When a team is involved, it diversifies perspectives and expertise, leading to a more comprehensive and well-rounded proposal. Discuss the project goals, potential solutions, and resource needs with your team. Refine the proposal concept based on the collective knowledge and ensure everyone is aligned on the final approach.

B. Writing the proposal

1. start with writing an executive summary .

An executive summary is a concise overview of what a project is all about. It talks about the most important details or information of the project. 

It primarily talks about the problem a project will solve, the solution a project will provide, and the benefits stakeholders will get from investing in this project. 

Start with writing an executive summary 

It is important to keep in mind to explain these items briefly as you are going to explain the problem and solution in detail later in your proposal.     

The purpose of writing an executive summary is to pique the interest of the stakeholders in a project. It is like the elevator pitch of an entrepreneur whose purpose is to attract the stakeholders for further discussion.

2. Explain the problem in the project background

The project background is a one-page section that focuses on highlighting the opportunity by talking about the project problems you are going to solve. It talks about the problem and its history such as statistics, references, and start date. 

It discusses what has been done so far to solve the problem by others or earlier projects. What is the current state of the problem, and how your project will focus on solving it? 

This section indicates the opportunity and the next section of vision explains how you are going to seize the opportunity.       

3. Project vision and solution

Project vision is the section where you present the solution to the problem. Vision statement defines your vision for the project, the solution you are going to work on, and how it will solve the problems. 

This section tells what goals and objectives you are going to achieve from the project. Thus, it also acts as a north star or success criterion for your project. 

Project vision and solution

Now, stakeholders know what a project is all about; the problems, the solution, and the objectives. And they are interested to know how you will achieve the proposed objectives of a project. 

The next sections of a project proposal talk about the project approach, scope, deliverables, milestones, budget, resources, and timeline.  

Read more: Project objectives: learn how to write them for business growth

4. Project scope and deliverables

This section describes all the work items you need to work on a project. It involves breaking a large project into small tasks so that stakeholders can easily understand the project scope.

 It also includes describing key milestones and project deliverables during the execution phase of your project life cycle. 

project scope and deliverables

The purpose is to provide stakeholders with enough information to make decisions about funding and resources.    

5. Project timeline

Project stakeholders have a clear idea about the scope of the project. But the very next question that comes to stakeholders’ minds is how much time a project will take to complete. 

Project timeline

You need to propose an estimated timeline for the project describing when the key deliverables and milestones will be delivered and achieved.

6. Project methodology

With every project, the risks of cost, scope, time, and quality are associated. Thus, you need an effective project management approach to manage these risks.

In this section, you explain to stakeholders about the project approach you are going to use for project management . It includes defining project management methodology, tools, and governance for your project.

79% of teams worldwide use digital collaboration tools . The choice of your project management tool is going to influence how the project will be planned, executed, and managed and its potential risks are identified and mitigated successfully. 

ProofHub is an all-in-one project management and team collaboration software that provides you with a centralized platform to collaborate with a team on a project proposal. 

ProofHub strengthens your project proposal’s “Implementation Plan” by providing a platform to meticulously define tasks, assign roles, and track progress . Its work plan section allows for a detailed breakdown of the project with clear task dependencies and time estimates, visualized through a Gantt chart .

Project methodology gantt chart

Team members can be assigned to specific tasks, ensuring accountability, while resource allocation demonstrates a well-planned approach. 

ProofHub table view for well-planned approach

Real-time progress updates, collaborative discussions within tasks, and reporting capabilities showcase transparency and proactive management.

ProofHub discussion

By incorporating ProofHub, your proposal presents a clear picture of efficient execution, giving the reader confidence in your ability to deliver the project successfully.

Learn more about ProofHub’s collaboration capabilities !

7. Project resource requirements

Project resource requirements talk about the resources you need to complete your project which includes materials, human resources, and technology. It is a key section that is crucial for the success of the project because every project needs resources to convert a plan into action.          

This section of the project proposal briefly describes the project resources you need for the project and how you are going to utilize these resources. 

project resource requirements

It does not explain the nitty gritty details of resource allocation. But, it gives a fair idea of why you need specific resources for your project and how these will be utilized. 

Read more: 2024 guide to project resource management: processes, challenges & tools

8. Estimate project costs and budget

Project resources come at a price. Thus, in this section, you will define the project costs and create a project budget. It is the responsibility of a project manager to write this section in such a way that it covers all the project expenses. 

At the same time, it also provides the opportunity for stakeholders to jump in and help you mitigate unexpected costs.  

It also includes estimating project costs everything from the cost of project technology to team salaries and materials.

9. Closing statement 

At this point of a project proposal, stakeholders have complete information about the project: scope, cost, time, objectives, and impact. You just have to briefly summarize the problem your project addresses and remind stakeholders about the benefits they will get from this project. 

You can use cost-benefit analysis to demonstrate why your project is profitable. Thus, in this section, you wrap up your project proposal with a persuasive and confident conclusion to convince stakeholders to close the deal. 

I hope these steps help you write a winning project proposal. Now, let’s have a look at some practical tips from experts to write a winning proposal.

Additional tips to write a perfect project proposal

Here are the five practical project proposal tips for writing a proposal:

  • Clarity and conciseness: Do not use jargon or make your proposal overly complex. Keep it simple so that project sponsors can understand it easily.    
  • Strong value proposition: You want your project proposal to be accepted. Give strong emphasis on the benefits of your project and how it addresses the existing problems.
  • Compelling visuals: Make your proposal compelling so that project sponsors read it. If it is not persuasive and visually interesting, project sponsors may not read it.  
  • Proofreading and editing: Do not make silly grammatical mistakes and fact check and proofread your proposal. Wherever required provide statistics to back your claims.  
  • Use collaboration tools: A project proposal involves explaining about project scope, cost, time, and resources. Use a project management tool like ProofHub to create a plan and collaborate with a team to create an effective project proposal.

Project proposal examples 

A project proposal in project management is primarily sent to the stakeholders to secure funding, gain approvals, and request resources from stakeholders.        

Here is a real-world example to get an idea of how to write a proposal for a project:

Project Proposal: Implementation of a CRM System to manage company customers, prospects, and leads 

1. Executive 

The Customer Success Manager at XYZ Corporation is proposing the implementation of a new Customer Relationship Management (CRM) system. 

Currently, the company is using a legacy system that makes it difficult to manage data and ensure the alignment between the sales and marketing teams. It results in poor customer service to the customer and missed opportunities. 

The new CRM system streamlines the company’s customer interactions, improves data management, and enhances overall customer satisfaction. 

This results in enhanced customer relationships, improved operational efficiency, and increased business growth.  

2. Background 

  • Lack of centralized data management system
  • Lack of alignment between marketing and sales departments
  • Not able to provide exceptional customer experience due to operational inefficiencies

3. Vision 

  • Implementing CRM to improve customer data management by centralizing all customer information into a single database
  • Enhance communication and collaboration among sales, marketing, and customer service teams
  • Increase customer satisfaction and retention through personalized and timely interaction

4. Project scope

  • Researching and selecting a suitable CRM solution based on the specific needs and requirements of XYZ Corporation.
  • Customizing the CRM system to align with the company’s business processes and workflows.
  • Migrating existing customer data from legacy systems into the new CRM platform.
  • Phase 1: Research and Selection (1 week)
  • Phase 2: Customization and Configuration (2 weeks)
  • Phase 3: Data Migration (1 week)
  • Phase 4: Training and Adoption (2 weeks)
  • Phase 5: Go-Live and Deployment (2 weeks)

5. Project management approach  

Hybrid project management : Waterfall during the planning of each phase of the project and Agile during the implementation of the CRM.

6. Project resource and budget  

The estimated budget for the CRM implementation project is $50,000, including software licensing fees, customization costs, training expenses, and implementation services.

7. Project risks and mitigation

  • Potential resistance from employees toward adopting new technology 
  • Integration challenges with existing systems and applications: 

Mitigation:

  • Addressed through providing training sessions for employees to ensure hassle-free adoption of the CRM system.
  • Managed through careful planning and coordination with IT vendors and stakeholders.

8. Conclusion

The implementation of a CRM system for XYZ Corporation enhances customer relationships, improves operational efficiency, and drives business growth. We seek approval from the executive management team to proceed with the implementation of the CRM system as outlined in this proposal.

Project management proposal template

Trying to manage a project without project management is like trying to play a football game without a game plan. – Karen Tate

A project management proposal template provides the framework and detailed proposal outlining to create a project proposal. It outlines the sections you need to include in a project proposal and the instructions in each section. By following the instructions in the template, you know how to make a project proposal, customized to your business needs.

Here is the project management proposal template: 

1. Executive Summary 

In this section, you will summarize the complete project proposal and add the most important details of the project. 

Outline the following details in brief in the executive summary:

  • Project background and vision
  • Project goals and deliverables
  • Project budget, timeframe, resource, and success criteria      

2. Project Background 

In this section, you will talk about the problem a project is going to solve or the business opportunity a project intends to grab. Explain it in-depth because it forms the basis of the project.

Here is what you need to include:

  • Project history and stats of similar projects  
  • The basis upon which the project is created

3. Project vision   

This section includes the project vision statement. You explain the solution to the project problem and define the goals of the project. 

Here is what you need to do:

  • Write a project vision
  • Present a solution       
  • Write the SMART goals you want to achieve

4. Project plan

It includes multiple sections as below:

4.1 Project scope and deliverables  

Project scope defines all the work you need to do to complete the project.

Project deliverable is something that is of the end-user or customer value.

4.2 Project timeline 

Every project has a start and an end date. Similarly, there is a timeframe for each task and deliverable.

4.3 Project approach 

Every project follows an approach to project management and uses project management tools. For example, construction projects follow the Waterfall methodology whereas software development projects follow the Agile methodology.

4.4 Project risks

A project risk is something that can impact the cost, time, and scope of the project.

List here all the project risks, likelihood, impact, mitigation plan, and risk owners in a table.

4.5 Project resource requirements

Project sponsors need to know about the details of the resources required to approve the budget for the Project Proposal. 

Define the project resource requirements here in the table: 

  • Technology requirements 
  • Human resources requirements
  • Material requirements    

4.6 Project estimated cost and return on investment  

A project sponsor wants to know the project costs and return on investments.

4.7 Project ownership and communication plan   

This section includes the details of the key stakeholders of the project. 

  • Project sponsor: who owns the project 
  • Project customer: who the project is being delivered to
  • Manager: who is responsible for managing the project and informing the status to stakeholders  

5. Call to action 

In this section, provide your contact details for the client to get in touch with any questions or allow the project sponsor to authorize the project if they are happy with the project proposal.

It is important to keep in mind the above-mentioned are the standard sections that are included in most project proposals. If you want to add some other elements to your project proposal, you can add the sections as per your needs to format a project proposal.

Create a winning project proposal with the right tool

A good project proposal convinces stakeholders why the project should be carried out. It should clearly describe project problems, project objectives, benefits for stakeholders, your requirements from stakeholders, and how you will utilize the secured resources. You need to have a good understanding of the project and project sponsors and stakeholders before writing a project proposal.   

To create an effective project proposal, you need cross-collaboration between departments to gather key details and project management software to plan a project.    

That’s where a feature-rich project management software, ProofHub, comes into play. It helps you with team collaboration and project planning for the project proposal. You can create a project plan using a Gantt chart , create tasks using task management software , and collaborate with the team using chat and a centralized file-sharing system .

Organize, manage, and collaborate seamlessly with ProofHub – All-in-one solution for projects, tasks, and teams

Related articles

  • How to manage projects with a tool like ProofHub
  • 10 Common project management challenges (and How to solve them)
  • Project objectives: learn how to write them for business growth
  • The 11 best project management software for your team

How long should a project proposal be?

A project proposal should not be too long. Ideally, a project proposal should take 1-2 pages but it also depends on the complexity of the project and the format you choose.

What section of a proposal presents a list of project costs?

Project costs are briefly covered in the Project Cost section. However, it depends on the template you choose. The detailed breakdown of the project costs is attached with the project proposal in the reference document.

What section of a proposal identifies the key issues and discusses the project goals?

Project background and project vision are the sections that talk about the key issues and project goals. However, it is explained in brief in the executive summary also.

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how to write a business proposal for a construction company

Local construction groups propose hotel for New Bohemia district, city taking proposals

T he City of Cedar Rapids will be accepting development proposals for a site in the New Bohemia area, and one local construction company is already part of a partnership looking to build a hotel in the spot. 

Conlon Construction , along with partners Ramker and Hospitality Specialists , have proposed a 150-room hotel under the Marriott brand to go in lot 44.

"Newbo is known for music and its culture, and that's what a Marriott Aloft is, it's very upbeat, very contemporary," said Conlon Vice President Bryan Kubik. "Putting a hotel that really meets those demands from a culture perspective, to arts, to vibrancy, entertainment, this hotel really does fit that mold."

The project also includes 10 rowhouses just down the street from the hotel.

Kubik said he is aware of community concerns about parking, but the hotel would be accommodating and share parking when there are events in Newbo. 

He said Conlon is in the early development stages and is considering adding conference and meeting spaces, and there is potential for rooftop amenities. 

"We want to make sure we were cognizant of the district and making sure we still had that neighborhood feel, and that's what Newbo is, it's a neighborhood feel," said Kubic. "It's walkability, it's feeling like everything's there, some sensible belonging there."

Business owners in the area said a hotel would help get newcomers to Newbo.

"Humans come in town, you know, they're on vacation, they're here for business. They're like, right on, check out all this stuff that's going in this community," said Eduskate Board Shop owner Nate Sherwood. "When I travel with my wife, there's nothing better than when I stay in hotel, even if it's just a road trip or I'm just staying there for the night, and I find something culturally, you know, interesting across the street or down the street." 

The city will take other proposals starting June 25 up until July 26.  City Council will choose a project on August 13. 

If this specific project is selected, Kubik said construction would start next spring, with an opening date in spring 2026. 

The city's development committee met on Wednesday to discuss the proposal. Watch below:

Local construction groups propose hotel for New Bohemia district, city taking proposals

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COMMENTS

  1. Craft a Winning Business Proposal for a Construction Company

    A business proposal for a construction company should contain the costs, market research, scope of work, dates, and roadmap for achieving the project's vision. Construction companies can use digital solutions to speed up the process of drafting, reviewing, and signing business proposals. Construction proposals should also contain compelling ...

  2. How to Write a Standout Construction Proposal (+Examples)

    1) Understand the client's needs. Before you dive into writing, take the time to fully understand your client's needs and the scope of the project. This understanding will be the foundation of your proposal, guiding you to tailor your approach and solutions to meet those specific needs.

  3. How to Write a Construction Proposal: Free Template & Tips

    Here are 7 tips to help you craft a compelling and successful bid proposal: 1. Customize Your Proposal. Tailor your bid proposal to the specific needs and requirements of the client and the project. Avoid using generic templates and instead, include personalized details that address the client's goals and objectives.

  4. How to Write a Construction Company Business Plan (12 Steps)

    That means construction business plans need to have detailed information on the basic running of the business, the plan to get construction jobs, cash flow, corporate taxes, and similar items. How to write a construction business plan. A business plan for a construction company is not a single page of text.

  5. Writing A Construction Company Business Plan + Template

    A construction company business plan is a formal written document describing your company's business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if ...

  6. The Ins and Outs of Writing a Construction Business Plan ...

    How to write a business plan for a construction company. Writing a business plan for your construction company is essential in building your business. Whether you're looking for funding or you're looking for clarity, a business plan can help set you on the right path. Here are six key components of a successful construction business plan. 1.

  7. Construction Proposals: Tips and Templates

    The typical process of sending a construction project proposal looks like this: The client posts a job and invites bids from contractors, based on calculations they've made and specifications for the project. The contractor reviews the site and draws up a construction proposal detailing pricing terms, scope, and other pertinent information.

  8. How to Write a Construction Proposal

    Step 2 - Go to the "Templates" page and select "Proposals". Venngage offers dozens of construction proposal templates. To find them, go to our templates page and select the "Proposals" category from the left menu. You should see a screen like this.

  9. How to write a construction proposal I Buildxact US

    It could be as simple as finding a free construction proposal template, adding your company logo, changing fonts to reflect your business style and adding a cover letter. Pay attention to what your clients need, make the review of your proposal easy and make sure the clients read clear instructions and information throughout the proposals you ...

  10. Examples of Construction Business Proposals

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  11. How to Write a Business Plan for a Construction Company

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  12. How to write a business plan for a construction company?

    The projected P&L statement for a construction company shows how much revenue and profits your business is expected to generate in the future. Ideally, your construction company's P&L statement should show: Healthy growth - above inflation level. Improving or stable profit margins. Positive net profit.

  13. Construction Company Business Plan Template [Updated 2024 ]

    A construction company plan is an important document for acquiring funding and bank loans. Write an exceptional plan with this detailed guide and also check the free template that will ease your plan writing. Download Template. Create a Business Plan. Growing a construction company is much more difficult and taxing than completing projects.

  14. Construction Business Plan Template & Example [Updated 2024]

    Construction Company Business Plan Template. If you want to start a construction business or expand your current one, you need a business plan. Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow all types of construction businesses, including commercial construction, building construction and residential construction.

  15. How To Write a Proposal for a Construction Project

    To write an effective construction project proposal, follow these steps: Do your research. Check state and local laws about proposals. Meet with the prospective clients. Create a proposal template. Include a cover letter. Be specific and detailed in each proposal section. Include a signature page.

  16. Construction Proposal Template for Word (Free Download)

    Free Construction Proposal Template for Word. This free construction proposal template captures all the information of a construction bid in an outline that is filled in by the general contractor and sent to the project owner seeking bids. There is a place for the client to sign if they accept the bid, which then acts as a legally binding ...

  17. How to write a business proposal: Examples and Templates

    It's the most common type of business proposal in the B2B markets. Example: A construction company submits a formally solicited proposal to a government agency in response to an RFP for building a new community center. The proposal outlines the company's approach, timeline, costs, and qualifications for the project.

  18. How to Write a Business Plan for Your Construction Company

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  20. 10+ Construction Business Proposal Templates

    10+ Construction Business Proposal Templates - Word, PDF. A construction proposal sample is a document that summarizes the construction company potential to further offer a service proposal with it. It is mainly centered on the contractor's intention to take part in bidding or a tender to render construction services from architectural designs to actual building project completion.

  21. Starting Your Own Construction Business? What You Need

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    How to Write a Marketing Proposal. Follow these steps to write a persuasive marketing proposal that impresses your prospective clients. 1. Design a Polished and Visually Appealing Cover Page. Your cover page is the window to the rest of your proposal. So you should aim to make an excellent first impression.

  26. Local construction groups propose hotel for New Bohemia district

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